Aspiring New Somali Home Owners Soo Gaala!*Canadians

[merka]

My dad has been looking at houses in Canada. It's really cheap in Ottowa compared to London, I low-key thinks he wants to move back

Might as well live in the wilderness.

 

[Apollo]

I will never buy a house. This scam only worked well for the baby boomer and Gen X generation, but for millennials you are getting into an overpriced market that will under perform for a long time. You might even lose money with real estate. Demographics of Western countries are bad. Fewer people are born, house prices will be shit in the future.

Also, you have fewer economic opportunities when you are tied up with a mortgage. You won't be able to move and take up jobs in another city.

 

[dhegdheer]

Might as well live in the wilderness.

The places he looked at looked pretty metropolitan

 

[VixR]

I will never buy a house. This scam only worked well for the baby boomer and Gen X generation, but for millennials you are getting into an overpriced market that will under perform for a long time. You might even lose money with real estate. Demographics of Western countries are bad. Fewer people are born, house prices will be shit in the future.

Also, you have fewer economic opportunities when you are tied up with a mortgage. You won't be able to move and take up jobs in another city.

I think maybe this is a European perspective? But I feel like in America it's best to own a home in the surburbs of a near, but too near, sprawling city. It doesn't fit the needs of everyone, and makes sense to forego for some ppl, but I don't see it being an irrational investment any time soon.

 

[Mohamud]

My dad has been looking at houses in Canada. It's really cheap in Ottowa compared to London, I low-key thinks he wants to move back

>leaving London for Ottawa

stop the man he is making a terrible mistake. Ottawa is like one of the only cities that doesn't even look good on paper.

 

[maestro]

I will never buy a house. This scam only worked well for the baby boomer and Gen X generation, but for millennials you are getting into an overpriced market that will under perform for a long time. You might even lose money with real estate. Demographics of Western countries are bad. Fewer people are born, house prices will be shit in the future.

Also, you have fewer economic opportunities when you are tied up with a mortgage. You won't be able to move and take up jobs in another city.

That's only if you're in your 20s If you want to start a family and settle down your advice is useless and a house will always be a must.

 

[Jubba_Man]

Sounds like someone is over-invested in the real-estate market.


The propaganda train is in full force. Soon we'll be seeing "get 2 mortgages for the price of one" deals being backed by the government at this rate. The powers that be can see the house of cards is finally starting to crumble. It's too bad the BoC has no control over the bond market.

 

[Deactivated]

I will never buy a house.

You will also never have equity.

I own a Condo in Canada. It's the best decision I have made.

Only a person with no Equity says they wouldn't invest in Equity.

 

[Deactivated]

Sounds like someone is over-invested in the real-estate market.


The propaganda train is in full force. Soon we'll be seeing "get 2 mortgages for the price of one" deals being backed by the government at this rate. The powers that be can see the house of cards is finally starting to crumble. It's too bad the BoC has no control over the bond market.

Do you own a home? If you do this wouldn't be your language. Many young Somalis have no faith in the Economy; and why should they since they aren't apart of it.

I own a property in Canada. And many Somalis my age look at me like I'm crazy.

Equity is important in your personal wealth.

 

[Jubba_Man]

Do you own a home? If you do this wouldn't be your language. Many young Somalis have no faith in the Economy; and why should they since they aren't apart of it.

I own a property in Canada. And many Somalis my age look at me like I'm crazy.

Equity is important in your personal wealth.

Any rational homeowner can see the writing on the wall. You've drunk the Canadian kool-aid of homeownership being the end-all, be-all. And despite that, I still see home ownership as a good thing for a family. But as an investment, it is a lousily-performing asset in the long-tern and barely above inflation.


You said you own a condo? And that it is the best decision you have ever made?

How has it performed in the past 5 years? Those skyrocketing and unstable maintenance fees, special assessments that could easily run you in the $20K+, and horrific management and corruption all around?

When it comes to the condo market, I actually know what I am talking about sxb. That is all I will say. The only way you are even getting close to winning with a condo is with the older ones that have very low maintenance fees per square foot and in a municipality with relatively low property taxes. Finding that in Canada is hard enough as it is, now find me a condo that also hits even close to the 1% rule as an investment property.

Condos have had the worst YoY gains across all real-estate, and there are far better performing index funds in the stock market that give nearly 3 times the returns you see in most condos. Now if we're talking detached SFH or even semi-detached, you would have a semblance of a point. But only a fool would suggest a young professional chain themselves to a 1,000,000+ mortgage in a market that is on the brink of correcting. Best to just put that money in a REIT and keep renting. You get the same returns but don't have nearly the same exposure as many of these homeowners. To date, I have not seen a single rent-vs-buy calculator that comes out with the buyer ahead unless we are talking about someone living out in Timmins, Ontario.


But of course, all you kids need to see to be impressed is a concierge and a shiny lobby before asking "Where do I SIGN?!?!?!".

 

[Deactivated]

Any rational homeowner can see the writing on the wall. You've drunk the Canadian kool-aid of homeownership being the end-all, be-all. And despite that, I still see home ownership as a good thing for a family. But as an investment, it is a lousily-performing asset in the long-tern and barely above inflation.


You said you own a condo? And that it is the best decision you have ever made?

How has it performed in the past 5 years? Those skyrocketing and unstable maintenance fees, special assessments that could easily run you in the $20K+, and horrific management and corruption all around?

When it comes to the condo market, I actually know what I am talking about sxb. That is all I will say. The only way you are even getting close to winning with a condo is with the older ones that have very low maintenance fees per square foot and in a municipality with relatively low property taxes. Finding that in Canada is hard enough as it is, now find me a condo that also hits even close to the 1% rule as an investment property.

Condos have had the worst YoY gains across all real-estate, and there are far better performing index funds in the stock market that give nearly 3 times the returns you see in most condos. Now if we're talking detached SFH or even semi-detached, you would have a semblance of a point. But only a fool would suggest a young professional chain themselves to a 1,000,000+ mortgage in a market that is on the brink of correcting. Best to just put that money in a REIT and keep renting. You get the same returns but don't have nearly the same exposure as many of these homeowners. To date, I have not seen a single rent-vs-buy calculator that comes out with the buyer ahead unless we are talking about someone living out in Timmins, Ontario.


But of course, all you kids need to see to be impressed is a concierge and a shiny lobby before asking "Where do I SIGN?!?!?!".

Do you own a property or does your family?

I purchased my Condo Pre-Development and it's still growing in Value. I keep paying down on it from returns off the stock market.

Having a home virtually paid off can help you leverage other loans for other investments like a franchise if I see one or another properties abroad like Penang, Malaysia that I'm look into so I can place it on Airbnb.

The reason it's the best investment is because it is like my "Rich Aboow". When I go to the bank and ask for money they can see I have equity.

I didn't purchase a Condo to make millions. I purchased it to pay it down for equity purpose.

Now please answer my question: Do you own a property? And by the way it looks you don't, so what makes you an expert of home ownership?

 

[RedStar]

You will also never have equity.

I own a Condo in Canada. It's the best decision I have made.

Only a person with no Equity says they wouldn't invest in Equity.

So your advice is to get a mortgage and add to your liabilities? That's right, a property is and always will be a liability.

Investing in money-making assets and cutting down on your liabilities is the way forward sxb. I agree with @Amun 100%.

 

[Jubba_Man]

You sound like the typical RE bull. No numbers, facts, or data. Just "durr durr..home equity...durr durr...refinancing...durr durr...the fine teller at the bank sits up and respects me when she sees my 'equiiitttyyyy'".


It sounds like you are trying to convince yourself more of that fact than me or anyone else sxb. We have the numbers for the laughable YoY performance of the condo market across the board. You even bought into a newer condo and have yet to experience the common trajectory of low initial maintenance fees at the beginning, then special assessments and maintenance fees ballooning out of control, and before you know it your dividend yield can't even cover all of these expenses. Go and read about the Trump Tower debacle. It happens a lot more than you hear about, but that one was the most visible catastrophe for everyone to see.


Building equity is important, I don't disagree with that. But jumping head first into an extremely frothy, overpriced and unstable market?

 

[Jubba_Man]

@LarryThePuntite

Read this not-so-rare disaster that struck these condo owners:

Apathy leads to condo in crisis

Keep drinking that RE kool-aid. Nothing to worry about.

 

[Mohamud]

@LarryThePuntite

Read this not-so-rare disaster that struck these condo owners:

Apathy leads to condo in crisis

Keep drinking that RE kool-aid. Nothing to worry about.

sucks tbh

i remember when a few of the old Dixon condo owners swindled their reserve fund and ran off to Mexico. the rest were stuck pretty much renting cheap because of their incompetence and it took a decade for people to start buying homes again. which is how demographics within a neighbourhood shift from renting from the condo family owner, to the dude who bought a place dirt cheap and started renting out dozens of home as his stable source of income.

Toronto and its xayawaanimo. incapable of properly taxing commodities like alchohol and gambling and bending over backwards for corporations whilst your little home owner never has a shot at finishing his mortgage payments.

 

[dhegdheer]

>leaving London for Ottawa

stop the man he is making a terrible mistake. Ottawa is like one of the only cities that doesn't even look good on paper.

He's lived there before tbh lmao I just think he wants a nice retirement home there. I hope it's not soon tho I like living rent free and don't fancy relocating to an entirely new continent

 

[Jubba_Man]

sucks tbh

i remember when a few of the old Dixon condo owners swindled their reserve fund and ran off to Mexico. the rest were stuck pretty renting cheap because of their incompetence and it took a decade for people to start buying homes again. which is how demographics within a neighbourhood shift from renting from the condo family owner, to the dude who bought a place dirt cheap and started renting out dozens of home as his stable source of income.

Toronto and its xayawaanimo. incapable of properly taxing commodities like alchohol and gambling and bending over backwards for corporations whilst your little home owner never has a shot at finishing his mortgage payments.

This is the critical thing every prospective condo buyer should know. They need to do their due diligence. There are a number of rules one can follow that can make condo investment a somewhat profitable venture. One of them is looking at the number of renters that live in the building or house complex. Generally, a condo with a high number of owners living in their units has a more responsible board, more involvement, and more accountability. The next thing to look at is if the condo property management company is the same one that was brought on by the developer. If that is the case, expect shady dealings, corruption, and unusually high special assessments that could easily be reigned in by a competent and transparent board.

If you think Toronto is bad, you should look at the property taxes in Mississauga, Oakville, and Vaughan. Toronto is not great, but it's property taxes are a lot more reasonable than those surrounding municipalities.

 

[Deactivated]

This is the critical thing every prospective condo buyer should know. They need to do their due diligence. There are a number of rules one can follow that can make condo investment a somewhat profitable venture. One of them is looking at the number of renters that live in the building or house complex. Generally, a condo with a high number of owners living in their units has a more responsible board, more involvement, and more accountability. The next thing to look at is if the condo property management company is the same one that was brought on by the developer. If that is the case, expect shady dealings, corruption, and unusually high special assessments that could easily be reigned in by a competent and transparent board.

If you think Toronto is bad, you should look at the property taxes in Mississauga, Oakville, and Vaughan. Toronto is not great, but it's property taxes are a lot more reasonable than those surrounding municipalities.

You mention real estate but don't purchase any.

You mention bonds but you don't have a trading account.

What value are you adding this thread other than the typical doom and gloom that comes from people who aren't invested in equity markets or property markets?

 

[Deactivated]

sucks tbh

i remember when a few of the old Dixon condo owners swindled their reserve fund and ran off to Mexico. the rest were stuck pretty much renting cheap because of their incompetence and it took a decade for people to start buying homes again. which is how demographics within a neighbourhood shift from renting from the condo family owner, to the dude who bought a place dirt cheap and started renting out dozens of home as his stable source of income.

Toronto and its xayawaanimo. incapable of properly taxing commodities like alchohol and gambling and bending over backwards for corporations whilst your little home owner never has a shot at finishing his mortgage payments.

Do you own a property?

Than why are you speaking on it?

Telling people to not grow equity and instead rent is the best Xoolonimo I heard all day.

 

[Jubba_Man]

You mention real estate but don't purchase any.

You mention bonds but you don't have a trading account.

What value are you adding this thread other than the typical doom and gloom that comes from people who aren't invested in equity markets or property markets?

Your assumptions of me are not only not wrong, but show exactly the strength of your argument. Unlike you, I don't have my face all over the internet and actually prefer my anonymity.

But even if that were the case, that still doesn't make my argument any less true. The YoY numbers are what they are. Your logic is about as stupid as claiming someone who isn't a gold investor has no business talking about the merits of investing in gold. The irony is, these gold investors use these same line of reasoning to discredit giants like Bill Gates and Warren Buffett who laugh them off.



Maybe it's time to start investing in gold. These uninvested plebs don't understand the secret long-term trajectory of gold that only gold investors are privy to.