Buying a house in cash
If you could buy a house in cash at yonge/finch, would you?
Jan 17th, 2011 2:37 pm
Jan 17th, 2011 2:38 pm
Jan 17th, 2011 2:51 pm
Jan 17th, 2011 3:12 pm
Electricute wrote: ↑the question:
1. would i buy a house in cash?
yes
2. would i buy a house at yonge and finch?
no
therefore.
would i buy a house in cash at yonge and finch?
no
Jan 17th, 2011 3:26 pm
Jan 17th, 2011 8:30 pm
Jan 17th, 2011 8:50 pm
I side with your statement regarding equities > real estate. Like you, I like the liquidity they offer so that you can move in and out with the snap of a finger.netwise wrote: ↑I wouldn't, but that's me.
I'm from Alberta, so I can't say much about the *area*. But a quick search shows that lower priced 2 bedroom apartment style condos are sellign for 250K+, and renting for about 1600/month. I"m very sure that will vary widely based on local, features, etc. But if you look at that as true, you're making $1600 - (condo fees, property taxes, vacancy allowance, insurance, potential property management, etc - lets say $400/month) = $1200/month * 12 = $14,400/year. On $250,000, that's what 5.76% plus potential appreciation? With all the potential issues with Ontario's tenant laws, the potential that my numbers are very low, etc, its hard for anyone to say "yes or no". You'd really have to do math similar to the above to see if the return on investment makes sense. There are many dividend based stocks that pay as well as 5.76%, and are a lot easier to move in and out of if needed, etc.
That's just one internet weirdo's view on it though.
Jan 17th, 2011 8:57 pm
Jan 17th, 2011 10:35 pm
Combine the two. Pay cash, take out a HELOC, invest as per the Smith Maneuvre, write off the borrowing costs, use the money twice effectively. HELOC costs (baring whatever changes the announcement today brings) are month to month generally about 2/3 the cost of a mortgage payment, meaning you can 'own/borrow' for less than the cost of rent, and write off the interest portion as an expense. Many wins, all around.
Jan 17th, 2011 11:02 pm
netwise wrote: ↑Combine the two. Pay cash, take out a HELOC, invest as per the Smith Maneuvre, write off the borrowing costs, use the money twice effectively. HELOC costs (baring whatever changes the announcement today brings) are month to month generally about 2/3 the cost of a mortgage payment, meaning you can 'own/borrow' for less than the cost of rent, and write off the interest portion as an expense. Many wins, all around.
Jan 18th, 2011 5:58 pm
Jan 18th, 2011 6:14 pm
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