Buying your first place

[LiquidTurbo]

I would like some advice from anyone.. is this a good time for a yuppie to just buy a place?

Should the strategy be just to buy the cheapest place I can afford and try to rent it out, then sell it down the line? Or should I be saving for a larger downpayment for in the future?

Basically, I still live at home w/ a full time job, but have some savings and looking to invest it. Any inputs welcome.

[dignatas]

[Bonka]

I've noticed the strata market starting to stagnate around Vancouver and the surrounding areas. There are more price reductions and increasing re-sale inventory coming up and the amount of pre-sale construction still going on is a little worrisome. Days on market are getting longer though prices are holding steady, but the feeling I get is that we won't get that usual summer price bump we've seen in past years. Other than that, the market is great

The detached market is still a different beast and continues to steam ahead steadily, with a few blips (ie: West Richmond). A land value property in a mediocre part of East Vancouver with a 33' frontage will fetch at minimum the low $600k.

We are in the summer market and it looks like it won't be as lively as in past summer markets, but of course it all depends on which area you're looking into.

I'd break out a pencil and paper and work out the cashflow numbers. Can the current rental market rates cover your entire mortgage and associated expenses? Are you willing to make up the difference? Timeline to sell?

[LiquidTurbo]

^ Thanks for the detailed reply. I'm having a little trouble grappling with the idea of selling an unpaid mortgage at a later point in time.

How does it work?

[Bonka]

Are you talking about mortgage penalties? If so, it would depend on the mortgage terms if you discharge early to pay off the balance.

[TRDood]

I just know buying a detached home is very difficult. With 20% down, that means I will need $120k cash to buy a $600k East Vancouver shitty detached.

I like downtown apartments but monthly strata for $500 just kills.
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[waddy41]

How old are you?
Are your parents kicking you out?

I'd stay home as long as possible to save for a bigger down if you really want to be a home owner.
Then again, not everyone can/should/want to be a home owner. There's a great thread regarding buy versus rent. I'd go read through that, it has lots of great information.

[tool001]

give it a month or 2, markets are gonna tank in the US (already are). canada being in close proximity will see some tanking aswell.

anyhow... do u homework.
find the area u want to buy into, calculate mortgage + taxes+ fees + water/sewage bills. see if u can live on that budget for 2-3 months.
plus if u have to commute to work, see if u can handle the commute (morning + evening)
more importantly, u want to have large down payment. if u dont have that, best bet is to save up and then some.

i bought a place last year,
needless to say, your lifestyle changes quite alot

[Jermyzy]

^Yep, my weekends are now spent taking care of the lawn/garden and fixing miscellaneous things around the house...