Not buying in 2011 cost me 500k

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Dec 14th, 2018 11:53 pm

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Dec 8th, 2018 9:48 am

noobienoob [OP]: Sr. Member; Sep 13, 2007; 675 posts; 224 upvotes; Toronto

Dec 8th, 2018 9:48 am

Not buying in 2011 cost me 500k

Long story short, by not buying in 2011 vs now, my total house costs (just counting mortgage payments & downpayments) literally doubled. Using the math below, i calculated for the same house i was actually able to buy in 2011 vs 2018 , my total costs would had been 600k vs 1.14 M total these days. This is preliminary math, but even assuming my math's off, i'm looking at essentially anywhere from 300-600k worth of actual costs. Essentially by not buying a 400k house in 2011 in york region, i'm losing almost 500k or more over my lifetime

So i'm going through a lot of emotions right now. YES I MESSED UP. I had a job, but chose not to buy because I didn't want to enter the rat race then, I literally screwed myself over. I'm so dejected. I guess i can't do anything about the past but it's making me really upset.
I screwed over my parents and ppl

Details below

, in 2011-2012, i had an opportunity to buy a decent freehold in the low to upper 400s. I could had put in 75k, get a mortgage in the mid 300s or lower (25k down from my parents), with a mortgage rate of 2-3% . meaning i have a mortgage payment of 18-23k. I thought it was obscure climbing into the property laddar so chose not to buy. Had i brought then, my mortgage would had been under 300s today.

7 years later, i'm so faked. still looking to get into my first house, but really bad. higher mortgage rates, and now i'm looking at mortgage of 450-550k, with annual mortgage payments of 27-30k, for an even crappier house

2011
House - 450k
Mortgage - 350k
Down 100k
Mortgage payments for 7 years- 140k
At 7 years
Remaining Mortgage - 270k
Anticipated mortgage payments left - 360k
Anticipated Total cost (mortgage payments and bank)- 600k
House worth - 850k
Up by 250k and counting

2018
House - 850k
Downpayment 300k
Mortgage 550k
Total mortgage payments (33.86l * 25) = 840k
Total Lifetime Cost - 1140k

Last edited by noobienoob on Dec 8th, 2018 10:17 am, edited 2 times in total.

71 replies

Dec 8th, 2018 9:56 am

booblehead: Deal Expert; Jul 30, 2007; 31251 posts; 17820 upvotes; Toronto

Dec 8th, 2018 9:56 am

... only if you had a crystal ball ... you could also be a billionaire knowing where the stock market was going

+16

Dec 8th, 2018 10:22 am

JerryG62243: Newbie; Sep 9, 2018; 7 posts; 7 upvotes

Dec 8th, 2018 10:22 am

Stop wasting your time over-analyzing... Grab your sack and man up next time... learn and move on bro

+4

Dec 8th, 2018 10:33 am

Marubozu: Deal Addict; Sep 12, 2006; 1503 posts; 438 upvotes

Dec 8th, 2018 10:33 am

What did you do with the $75k over this time? Did you sit on the cash?

S&P500 more than doubled since 2011, and assuming you saved some money too over 7 years... All things being the same, you should be able to buy the same house now...

Regardless, control what you can. Hindsight is always 20-20.

+1

Dec 8th, 2018 10:43 am

BRKAMZN: Banned; Nov 23, 2018; 592 posts; 516 upvotes

Dec 8th, 2018 10:43 am

Buying in 2008-2009 was great. They had a 1-2 month correction time period. After that, it was all the way up.

+1

Dec 8th, 2018 10:47 am

noobienoob [OP]: Sr. Member; Sep 13, 2007; 675 posts; 224 upvotes; Toronto

Dec 8th, 2018 10:47 am

I didn't had money to buy in 2008 nor was in a position to...yes i was a total slacker from 2009 on words. In other words, I was all cash during this time....
2011-2012 was the window where I could had brought....

I guess that's a good financial cost of my poor financial decisions

Dec 8th, 2018 10:49 am

jonkoktosen: Member; May 18, 2015; 484 posts; 683 upvotes; Thornhill, ON

Dec 8th, 2018 10:49 am

Fast forward to the year 2025...

noobienoob thread entitled:

Buying in 2018 cost me 500k - I spent a 1.3M in York region and the same house is now 800k

+6

Dec 8th, 2018 11:01 am

noobienoob [OP]: Sr. Member; Sep 13, 2007; 675 posts; 224 upvotes; Toronto

Dec 8th, 2018 11:01 am

Doubt it will drop like that

And I don't have 1.3M let alone being able to afford 850k house anymore

jonkoktosen wrote: ↑ Fast forward to the year 2025...

noobienoob thread entitled:

Buying in 2018 cost me 500k - I spent a 1.3M in York region and the same house is now 800k

Dec 8th, 2018 11:18 am

jonkoktosen: Member; May 18, 2015; 484 posts; 683 upvotes; Thornhill, ON

Dec 8th, 2018 11:18 am

noobienoob wrote: ↑ Doubt it will drop like that

You doubted it would rise like that...

And btw, 500k drops have already happened in one area that I track. For example, crappy bungalows on and around Fernleigh ave at Bayview and Major Mac were selling for up to $1.5M within days, sight un-seen by overseas buyers at the peak, I kid you not. 2 identical bungalows on that same street just sold for the low 900k's, one this month and one last month... and I'm pretty sure I just saw one either on that street or one next to it asking in the 800k's a couple of weeks ago. That's nearly a 50% drop in less than 2 years.

+1

Dec 8th, 2018 11:45 am

Silver1234: Banned; Jul 8, 2017; 628 posts; 699 upvotes; NA

Dec 8th, 2018 11:45 am

jonkoktosen wrote: ↑ You doubted it would rise like that...

And btw, 500k drops have already happened in one area that I track. For example, crappy bungalows on and around Fernleigh ave at Bayview and Major Mac were selling for up to $1.5M within days, sight un-seen by overseas buyers at the peak, I kid you not. 2 identical bungalows on that same street just sold for the low 900k's, one this month and one last month... and I'm pretty sure I just saw one either on that street or one next to it asking in the 800k's a couple of weeks ago. That's nearly a 50% drop in less than 2 years.

How come houses that are south of Major Mac doesn't experience a 50% drop. I don't see any bayview hill houses that were selling at 2.5 M at the peak are selling at 1.25 M now.

Dec 8th, 2018 11:50 am

JayLove06: Deal Expert; Feb 29, 2008; 17321 posts; 14715 upvotes; Tarrana & The Ri…

Dec 8th, 2018 11:50 am

Man, I bought a few properties before that time and I still kick myself for a) Not buying more b) Not taking more of a chance. I was way too conservative.

OP, none of us thought the market would get so out of hand so quickly. No point getting pissed about the past. Find a way to make moves now.

+5

Dec 8th, 2018 12:06 pm

Silver1234: Banned; Jul 8, 2017; 628 posts; 699 upvotes; NA

Dec 8th, 2018 12:06 pm

BRKAMZN wrote: ↑ Buying in 2008-2009 was great. They had a 1-2 month correction time period. After that, it was all the way up.

In order to take advantage of that, you need to born in the right place at the right time, so it is nothing but luck.

Dec 8th, 2018 12:21 pm

Furcorn: Deal Addict; Jun 7, 2017; 1043 posts; 831 upvotes; BC

Dec 8th, 2018 12:21 pm

Silver1234 wrote: ↑ In order to take advantage of that, you need to born in the right place at the right time, so it is nothing but luck.

Losers always attribute their failures to misfortune and never take personal responsibility.

+4

Dec 8th, 2018 1:01 pm

JayLove06: Deal Expert; Feb 29, 2008; 17321 posts; 14715 upvotes; Tarrana & The Ri…

Dec 8th, 2018 1:01 pm

Silver1234 wrote: ↑ In order to take advantage of that, you need to born in the right place at the right time, so it is nothing but luck.

Then what happened to all those people born at the right time that still didn't buy. Luck can only get you so far. It's the ability to capitalize on opportunities.

Dec 8th, 2018 1:40 pm

Smart123: Member; Nov 5, 2017; 246 posts; 232 upvotes

Dec 8th, 2018 1:40 pm

2008-2009 we saw great financial crisis, the crisis was once in a lifetime. At that time I did not know what is recession forget about great financial crisis. Buying beyond their means brought some home buyers to their knees.
Point is there should not be any regret for not buying house or selling stocks, consider it a valuable lesson. At that time no one expected intrest rate will stay near zero for so long and no one knows what's going to happen in next decade. If you can afford to buy Today, really need it and can face downturn or upturn, buy it.

Dec 8th, 2018 1:45 pm

noobienoob [OP]: Sr. Member; Sep 13, 2007; 675 posts; 224 upvotes; Toronto

Dec 8th, 2018 1:45 pm

Ppl were buying in a bad area...that Crosby area and richvake...I still would not buy a detached for 900k let alone a freehold for sub-700k

jonkoktosen wrote: ↑ You doubted it would rise like that...

And btw, 500k drops have already happened in one area that I track. For example, crappy bungalows on and around Fernleigh ave at Bayview and Major Mac were selling for up to $1.5M within days, sight un-seen by overseas buyers at the peak, I kid you not. 2 identical bungalows on that same street just sold for the low 900k's, one this month and one last month... and I'm pretty sure I just saw one either on that street or one next to it asking in the 800k's a couple of weeks ago. That's nearly a 50% drop in less than 2 years.

Dec 8th, 2018 1:52 pm

noobienoob [OP]: Sr. Member; Sep 13, 2007; 675 posts; 224 upvotes; Toronto

Dec 8th, 2018 1:52 pm

Anyways can the trolls stop trolling

Point is that...I made a mistake and giving an estimated quantification of my mistake based on what I could had afford in 2011, the house price at that time and house price now.

I regret it and while I wish prices would drop to justify my decision not to buy back then, I need to accept I made a decision and make the best one right now.

Dec 8th, 2018 2:10 pm

BRKAMZN: Banned; Nov 23, 2018; 592 posts; 516 upvotes

Dec 8th, 2018 2:10 pm

Silver1234 wrote: ↑ In order to take advantage of that, you need to born in the right place at the right time, so it is nothing but luck.

You are right. At that time I was doing my final semester. So I guess I couldn't have bought anything even if I wanted to.

Dec 8th, 2018 2:21 pm

Donnie740: Penalty Box; Aug 19, 2008; 1925 posts; 502 upvotes

Dec 8th, 2018 2:21 pm

noobienoob wrote: ↑ Anyways can the trolls stop trolling

Point is that...I made a mistake and giving an estimated quantification of my mistake based on what I could had afford in 2011, the house price at that time and house price now.

I regret it and while I wish prices would drop to justify my decision not to buy back then, I need to accept I made a decision and make the best one right now.

Yes, you made a dumb decision to not purchase a home in 2011.

Just don't make another dumb decision in 2019 by not purchasing a home again.

Licenced Realtor and P.Eng

+1

Dec 8th, 2018 2:30 pm

noobienoob [OP]: Sr. Member; Sep 13, 2007; 675 posts; 224 upvotes; Toronto

Dec 8th, 2018 2:30 pm

I do plan to buy. This time got an agent, bra etc

Just gotta swallow my pride

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