Real Estate

With interest rate going down, is it the right time to increase the leverage?

  • Last Updated:
  • Sep 12th, 2019 4:10 pm
Banned
May 22, 2019
1469 posts
2121 upvotes

With interest rate going down, is it the right time to increase the leverage?

I mean borrow more money.

I saw many friends nearby are rushing into real estate market again. Is it the right time to get into this foreign buyer free market?

I am always afraid if trade war is over, foreign buyer will flock into the market.
World cup is coming
9 replies
Newbie
Aug 15, 2018
96 posts
117 upvotes
Its always the right time to invest, the only question is where.
Deal Expert
Feb 29, 2008
21738 posts
21353 upvotes
Tarrana & The Ri…
I say borrow as much as you can choose f the opportunity presents itself. At worst you don’t use it. But waiting till you need it has a funny way of not working out sometimes...interest rates go up, lending rules tighten, you may not have a job when you need the money most. Just take it!
Deal Fanatic
Apr 5, 2016
6116 posts
4613 upvotes
Calgary/Vancouver
A lot of people here are awfully pessimistic about the housing market. They are going to tell you, you're crazy to over leverage yourself to buy some properties that's clearly going to tank in the upcoming big recession hit. *sarcasm*

Like worse case if markets do tank, just keep renting to tenants. With the way rent controls are, doubt there'll be a shortage of renters even with markets going down.
Deal Addict
User avatar
Nov 5, 2018
2916 posts
5213 upvotes
Toronto
bomber17 wrote: A lot of people here are awfully pessimistic about the housing market. They are going to tell you, you're crazy to over leverage yourself to buy some properties that's clearly going to tank in the upcoming big recession hit. *sarcasm*

Like worse case if markets do tank, just keep renting to tenants. With the way rent controls are, doubt there'll be a shortage of renters even with markets going down.
I bought two pre-cons last year and everyone thought I was nuts. Now, all of my friends are asking me "how to do it", as they have seen pre-con prices rise significantly from where I bought. NEVER take real estate advice from people who don't even invest themselves.

I mean, if you can afford to hold a property long term and you find a good opportunity for the potential to be at least breakeven in 3-5 years, then it could be good. I am very passionate about condos, floor plans, and Toronto in general, so I love real estate more than any other asset class.
Called the bottom.
Banned
Aug 3, 2005
1235 posts
1177 upvotes
CondoMan98 wrote: I bought two pre-cons last year and everyone thought I was nuts. Now, all of my friends are asking me "how to do it", as they have seen pre-con prices rise significantly from where I bought. NEVER take real estate advice from people who don't even invest themselves.

I mean, if you can afford to hold a property long term and you find a good opportunity for the potential to be at least breakeven in 3-5 years, then it could be good. I am very passionate about condos, floor plans, and Toronto in general, so I love real estate more than any other asset class.
Bears man...they will never learn lol

the best ones are the ones still around from 2010 on this board preaching a crash is still coming hahahah
Deal Addict
User avatar
Nov 5, 2018
2916 posts
5213 upvotes
Toronto
ekcivichb wrote: Bears man...they will never learn lol

the best ones are the ones still around from 2010 on this board preaching a crash is still coming hahahah
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Called the bottom.
Deal Fanatic
Apr 5, 2016
6116 posts
4613 upvotes
Calgary/Vancouver
CondoMan98 wrote: I bought two pre-cons last year and everyone thought I was nuts. Now, all of my friends are asking me "how to do it", as they have seen pre-con prices rise significantly from where I bought. NEVER take real estate advice from people who don't even invest themselves.

I mean, if you can afford to hold a property long term and you find a good opportunity for the potential to be at least breakeven in 3-5 years, then it could be good. I am very passionate about condos, floor plans, and Toronto in general, so I love real estate more than any other asset class.
And what a lot of people don't know is, you don't have to be approved to buy pre con, as long as you have the deposit 5-20% spread over couple years, then you're good. Can even sell on assignment too if you really don't want to complete.

Also, you can get approved for a pre con mortgage once and then never have to go through the process again. At completion, your mortgage will get funded regardless of your financial status.

Now's a good time to buy since so many developers are offering free upgrades, heavy discounts, free car, even paying portion of your mortgage. Lots of incentives going around.
Deal Expert
Feb 29, 2008
21738 posts
21353 upvotes
Tarrana & The Ri…
bomber17 wrote: And what a lot of people don't know is, you don't have to be approved to buy pre con, as long as you have the deposit 5-20% spread over couple years, then you're good. Can even sell on assignment too if you really don't want to complete.

Also, you can get approved for a pre con mortgage once and then never have to go through the process again. At completion, your mortgage will get funded regardless of your financial status.

Now's a good time to buy since so many developers are offering free upgrades, heavy discounts, free car, even paying portion of your mortgage. Lots of incentives going around.
Woah there. Many builders are asking for pre-approvals. They’re even written into the contract. Now, back in the day they didn’t care as long as you had the money. Not saying they all require preapp up front but more are asking for that. Also, you bet your ass the bank will verify everything after giving you the loan.
Deal Fanatic
Apr 5, 2016
6116 posts
4613 upvotes
Calgary/Vancouver
JayLove06 wrote: Woah there. Many builders are asking for pre-approvals. They’re even written into the contract. Now, back in the day they didn’t care as long as you had the money. Not saying they all require preapp up front but more are asking for that. Also, you bet your ass the bank will verify everything after giving you the loan.
Weird, I didn't have to do it. Maybe it's also market dependent. Maybe other banks verify info, but BMO doesn’t after approval. This is only for presale a though.

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