Real Estate

Why people buy houses now?

  • Last Updated:
  • Nov 13th, 2017 7:27 am
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Newbie
May 2, 2017
92 posts
70 upvotes

Why people buy houses now?

Why people buy houses now.
Homebuyers will lose their savings if they buy properties now! It's foolish for them to enter this broken market.
They can buy bigger houses if they wait patiently.
Last edited by Calvin140 on Nov 3rd, 2017 5:34 pm, edited 1 time in total.
38 replies
Deal Expert
Jun 26, 2011
15096 posts
5413 upvotes
GTA
Probably to live in

You're being a bit dramatic. The market isn't insane anymore and that's probably a good thing.
Deal Expert
User avatar
Mar 18, 2005
23686 posts
5125 upvotes
Niagara Falls
Why not just post in one of the other 10000 threads about this?
Member
Jun 12, 2017
377 posts
377 upvotes
Calvin140 wrote: Why people buy houses now?
The governments are crashing the market. They are devaluing Ontarians' biggest asset. They will introduce another policy if the market doesn't collapse. Homebuyers will lose their savings if they buy properties now! It's foolish for them to enter this broken market.
What do you mean why buy now? To live in perhaps?

This is probably the 4th or 5th time I am saying this.. but do you think people who bought at peak in 1989 care today whether they paid what they paid vs 50-100k less that they could have in 1996 at the bottom?

Trying to time the market is a foolish idea on average. One should buy a house if they plan to live there long term and can afford it with a reasonable buffer for higher rates; that is all that matters.

Print this quote and put it on a wall and check back after 20 years. Then you will see what is foolish.
Newbie
Nov 20, 2006
80 posts
38 upvotes
Toronto
because they are not as smart as you
Newbie
Nov 20, 2006
80 posts
38 upvotes
Toronto
Calvin140 wrote: I guess prices will drop 30% in 2018.
you are being too conservative
at least 51.9234586%
as a matter of fact i already sold two properties of mine and currently rent a basement
feels great, no mortgage, total freedom, life has never been better
also no danger of skin cancer becoz of ultraviolet radiation, just awesome!
Sr. Member
Sep 9, 2014
627 posts
594 upvotes
Vancouver
Oh cool, looks like OP can see the future!

Hey OP, who wins the World Cup next summer?
Last edited by Bryan2B on Nov 3rd, 2017 6:01 pm, edited 1 time in total.
Sr. Member
Sep 9, 2014
627 posts
594 upvotes
Vancouver
genjurok wrote: you are being too conservative
at least 51.9234586%
as a matter of fact i already sold two properties of mine and currently rent a basement
feels great, no mortgage, total freedom, life has never been better
also no danger of skin cancer becoz of ultraviolet radiation, just awesome!
If you're gonna be so lazy and round everything to the 7th decimal, you might as well not post here! We want accuracy, not guesses!
Penalty Box
Aug 11, 2005
4175 posts
1432 upvotes
If you are looking to buy today, it would be absolutely idiotic to buy in the next year without knowing how all these new headwinds unfold. The days of 10+% yoy growth are long gone, so if you can buy today, you will not be priced out a year from now, while there is still massive downside potential to revert to the mean.
Political avatars and signature are not permitted.
Member
Jun 12, 2017
377 posts
377 upvotes
Luckyinfil wrote: If you are looking to buy today, it would be absolutely idiotic to buy in the next year without knowing how all these new headwinds unfold. The days of 10+% yoy growth are long gone, so if you can buy today, you will not be priced out a year from now, while there is still massive downside potential to revert to the mean.
Surely you have better things to do with your billions of dollars you made from your ability to accurately predict the economic situation in Canada...?
Deal Expert
Feb 22, 2011
16504 posts
21843 upvotes
Toronto
You're assuming the market is rational, that's a bad assumption. People buy houses for many reasons, not the least of which is they want to own their home. Many people don't care about a single factor you think might be negatively impacting the market. Even if long term there was no financial gain to own my home I would still do it for the sole reason of raising my kids here and never having to move, never having to answer to anyone. If you think I care what hte value of my home is today vs next year you're way off base. Condo investments sure I care a lot, my home? It's basically irrelevant.
Last edited by sircheersa on Nov 3rd, 2017 8:50 pm, edited 1 time in total.
Deal Guru
Feb 9, 2009
12381 posts
11307 upvotes
I listened to Calvin, sold my house and I'm moving to North Korea... heard the fat guy with the bad haircut likes immigrants.
Deal Expert
Feb 22, 2011
16504 posts
21843 upvotes
Toronto
Also even if someone is pretty sure the market will go down, they don't know for certain. So you are faced with a decision, you might over pay or you might never be able to afford your dream home. I don't think it's crazy to risk over paying when the alternative is being priced out forever. I personally know many people who decided to wait 5-6 years ago and have never been able to catch up. It is the single biggest regret of their life.
Penalty Box
Aug 11, 2005
4175 posts
1432 upvotes
trekkie500 wrote: Surely you have better things to do with your billions of dollars you made from your ability to accurately predict the economic situation in Canada...?
So you're saying there's going to be 10%yoy growth next year? LOL
Political avatars and signature are not permitted.
Sr. Member
Aug 7, 2014
563 posts
243 upvotes
Calvin140 wrote: Why people buy houses now.
Homebuyers will lose their savings if they buy properties now! It's foolish for them to enter this broken market.
They can buy bigger houses if they wait patiently.
Your question may be more appropriate if you asked why people buy houses now in toronto or vancouver because, in many other canadian cities, house prices are still reasonable.

You may also ask why people buy stocks now, when the stock markets have been rising steadily since 2009 and are at or near all time high (comparing the toronto housing prices that have been falling since April, at least for detached houses). Many stock investors have made very good money since 2009. Your argument may again be: they "will lose their savings if they buy... now!" Regression to the mean may kick in anytime soon, and some people may lose their savings to buy now.

I do agree with you that, comparing to stocks, buying houses now in toronto as an investment, pose higher risks and more headwinds due to new govt housing policies and mortgage rules. As you can see from another thread here, people in RFD are still debating whether the toronto house price has hit its bottom. I guess you are in the camp that the bottom is yet to come, i.e., why buy now when you can get it cheaper later. In other words, why catch a falling knife with your fingers being chopped off?
Sr. Member
Jul 5, 2010
613 posts
323 upvotes
Toronto
rjg4235 wrote: You're assuming the market is rational, that's a bad assumption. People buy houses for many reasons, not the least of which is they want to own their home. Many people don't care about a single factor you think might be negatively impacting the market. Even if long term there was no financial gain to own my home I would still do it for the sole reason of raising my kids here and never having to move, never having to answer to anyone. If you think I care what hte value of my home is today vs next year you're way off base. Condo investments sure I care a lot, my home? It's basically irrelevant.
Very true.


HOUSING
If you have none, you are short
If you have one, you are flat.
If you have more than one then you are long
Deal Addict
Sep 5, 2009
3301 posts
1486 upvotes
I bought a detached house in toronto 2 weeks ago. I paid what I thought the home is worth and what I could afford. I have been looking for 3 years and finally found something I liked. Nothing else mattered to me.

I’m also going to list my home in the next week or so. I will get what someone else thinks is fair and i don’t feel at all stressed about the decline in prices since April.
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Sr. Member
Aug 7, 2014
563 posts
243 upvotes
dgnr8 wrote: I bought a detached house in toronto 2 weeks ago. I paid what I thought the home is worth and what I could afford. I have been looking for 3 years and finally found something I liked. Nothing else mattered to me.

I’m also going to list my home in the next week or so. I will get what someone else thinks is fair and i don’t feel at all stressed about the decline in prices since April.
I am curious why you list your home in the next week or so, after you just bought it in toronto only 2 weeks ago. Buyers remorse? Do u think that you will get back what you paid for, including closing costs?

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