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- Canada - Toronto & Southern Ont.
-- condo market in TO
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j_spot...it's not only whether or not the property value will go up or down, it's the costs associated with buying that may make it not worthwhile to buy for such a short term. I'd say that renting might be your best option.
People need to look at all factors...is this meant mostly as a smart, short term investment or are is it mainly someone looking for a place to live, in a location they like, while not losing money?
Housing outside the city will continue to appreciate...so will housing inside the city. Condos are riskier because there will be a glut of units on the market soon and value will plateau, or possibly even go down a bit.
1. Property taxes are calculated from the ASSESSED value of the property by MPAC (Municipal Property Assessment Corp) in Ontario, not it's actual market value. The vast majority (I'd say 99.5%) of properties in the GTA (or pretty much anywhere, for that matter) are significantly underassessed, most even for 2004, vs. the property's actual value on the open market. So taxes are NOT 1.5% of market value...not even close.
2. Penalites vary on mortgages...usually they're either 3 months interest or interest rate differential (ie. the rate you got when your mortgage began for vs. today's rates). People breaking mortgages now, who were in higher interest terms from a few years ago, are getting raped on IRD penalties. But IRD won't really mean squat with rates going up instead of down, so figure on your penalty probably being 3 months interest if you break the term.
In any case, you can select a 2 year term instead of the more common 5 year term and thereby avoid a penalty altogether. 2 year rates are substantially lower than 5 year rates anyway...
Or, if you know you'll be there 2 years or less, consider an open variable rate that's below Prime. The Prime rate is tied into the rate set by Bank of Canada based on a variety of economic factors, not bond yields like fixed mortgage rates...fixed rates have been consistently going up this spring while the Prime rate actually went down last month. There's still talk it will drop once more before going up.
3. Vaughan vs. Toronto...um...that's all fine to say "buy in Vaughan"...but a lot of people don't want to live in the burbs. Yes, you're money will go further out there...but it's also "out there" and he's going to UofT. Rent somewhere closeby...you'll LOVE not having to commute!!!!
4. Not all condos are built like shit 
Just like houses, some are built better than others and buyers should know what to look for in building materials. Find out the condo fees, subtract what you'd be paying for utilities anyway in a house, and see if they are really that high. Quite often they are reasonable.
For only two years...I'd say rent and save yourself a lot of hassle. You'll have no up front fees and no worries when you go to leave (like what if something needs to be repaired during those two years). Keep in mind the additional fees with buying...realtor commission at point of purchase and again when you sell, legal fees both times, mortgage interest if you're not buying it outright, land transfer tax if you're not a first time homebuyer, etc. Those fees, prorated over the life of owning a home are minimal...but in a two year span that's A LOT of money that may not be recovered by the home value increasing.
he can always buy and rent out after. i don't think he is thinking of buying and then selling after two years.
Jason, can you be my landlord?? hahahaha.
| quote: |
| Originally posted by TrueToTheCrew I say BUY. |
| quote: |
| Originally posted by Vivid Boy u wanna invest ur money invest it into property in vaughn....honestly.. the goal rigth now is to move people out north vaughn go to woodbrige or more north..invest in property there...with 300 thou u can get anice size lot with a nice size house and 5 years down the line itll prolly double in value |
I already have a car, with great insurance ($140/month including full coverage on a 2k stereo, which was just stolen)
Im just looking @ the options for moving..I know for certain I will be in TO from this Sept-until May 2006. After that I may stay, I may leave.
It pisses me off that I would pay 22K, or something else rediculous, and have nothing left. Ohh Ill have rental experience, but thats not really that great.
I dont see repairs and property depreciation adding up to 22K in 2 years(possibly longer) because I am not the rukus type. If something breaks, it will be plumbing from a bad install. I know how to fill gouges in walls, baseboards etc...so I can maintain no problem. (hey maybe I should be a landlord)
I mean the 300K is just throwing a number out there, I really have no clue how much condos in the downtown area cost. I saw billboards for Bay/Dundas area and I think they started @ 140
I know even the most meager of condos will suit my needs. I can paint, and do all other nice things to make the space mine, as opposed to sticking with whatever colour the place is.
If that really were 140(actual price may be different than what I end up paying) I could not see it going down to 120 in 2 years. Maybe it would go down to 130, which would still be cheaper than renting for 2 years.
Maybe I stay in TO, and just live there.(its a nice location, I lived next to it this year) Now I know that this is one place, thats not even finished, (the ground isnt even broken) so it wont be ready come Sept for me to live in.
Anyways..Im no real estate agent, adn even then, nobody can really predict what will happen 2 years from now.
Hell, Toronto could get nuked, which would just fuck this whole plan up.
I should look to see what is available in the area I want. Which is walking distance to school...but....bah...time to look.
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