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Old 08-08-2016, 09:18 AM   #7595
CivicBlues
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Quote:
Originally Posted by CivicBlues View Post
I live in a condo in Coal Harbour. My Price to rent ratio is 29.76.
Price-to-Rent Ratio Definition | Investopedia

My Landlord is practically paying me to live there. I reinvest the difference in Index funds and ETFs. Sure I didn't get 30% yoy but I'm not losing sleep either.

So trade my "greedy landlord" for a "greedy market" which is likely at it's peak?

Stop trying to tell people what to do, just live your life and don't try to time the market. If you need a house, buy one. If you don't wait a bit.

Oh, regarding buyers on the sidelines - don't try to catch a falling knife.
Heh, so not too long after posting this my landlord approached me about buying her place since she needs the cash (and I'm guessing is spooked by the 15% tax). This would be a private sale without realtor BS, or having to put it to the market and deal with bidding wars.

I'm seriously considering this as if the price is what I think it'll be, the carrying costs (mtg payment + condo fees +taxes) won't be much more than my current rent since I'm also sitting on a pile of cash (liquid investments) and it'll definitely be less than what I would find with a new rental for a comparable place. I'm thinking equity markets are peaking soon as well.

Worst case scenario, I lose some equity in a market correction, but I can rent it out again for $2000/mo probably. But then I'd need somewhere else to live.

What d'yall think?
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