OT ~ Real Estate speculation in Ontario

[SandraC]

Hi All ~ Anyone want to speculate on Ontario real estate? Will be prices go down, when should they hit rock bottom? Thanks! S

 

[tone.def]

It's speculation that festers and feeds fear mongering and that's not good for anyone who needs to sell (like me).

I personally do not understand this whole non-buying hysteria because buying and selling in this market is all relative. So we take a little hit right now on our sales, that's no big deal. We're also paying less for other properties. What's important is the return in a couple years. I fully expect to take a hit on the house I'm trying to sell and I'm okay with that. Not because I'm desperate, but because I know I'll make it in time.

Anyone want to buy a gorgeous, brand new in May, 3 bedroom house in Ajax? Owner must re-locate (like last month would have been nice). Reduced price!

 

[SandraC]

Would anyone actually like to address my question? I'm looking to buy a recreation property, but want to buy low. S

 

[tone.def]

Would anyone actually like to address my question? I'm looking to buy a recreation property, but want to buy low. S

well then you should have been more specific

speculating... no we haven't hit bottom yet

 

[DutchsMommy]

I would suggest that recreational property falls into 2 categories 1- non-essential for middle class folks, therefore one of the first things to go if times get tights, and 2 playground for folks with more $ and therefore not likely to be impacted as much by economic slow-down. So, I would say that if you are in the market for the 1st optoin (and I think you mentioned you were looking at land to build on) then I think now is a great time. Also, coupled with the time of year (cottage sales will pick up in the spring as people look to buy for next summer). I would say not to worry about it too much, it could be a matter of a few thousand either way, but in my opinion there will not be a drastic change in the next few months, and in fact could see a slight rebound in the spring given the type of property you are looking at. Also, if you are looking at building, trades-work is also likely more reasonable as things are slower for them too.

Best of luck and remember - even the best economists did not predict what is happening now, so everyone is just trying to speculate better than the next guy!

 

[cdnmickeylover]

Have to agree with Dutchsmommy. Since it's a recreational property you are looking for now would be a good time to sell -- anytime really before next spring but this is true any year.

It also depends where you are looking to purchase -- there is a LOT of price differences with recreational properties. Do you want to be on an established lake, not so established or no lake at all? Location makes a big difference in terms of cottage properties.

tone.def -- It's not the fact that there's fear mongering. The market is also slowing because people can't get financing. CMHC just tightened their rules and you can no longer 100% finance and can no longer finance over 40 years. This has meant that a lot of potential first time home buyers can no longer buy at this time. And if first timers can't get into the market people can't move up in the market because they can't sell their properties.

 

[tone.def]

tone.def -- It's not the fact that there's fear mongering. The market is also slowing because people can't get financing. CMHC just tightened their rules and you can no longer 100% finance and can no longer finance over 40 years. This has meant that a lot of potential first time home buyers can no longer buy at this time. And if first timers can't get into the market people can't move up in the market because they can't sell their properties.

True... they may have just done that (effective October 15), but the fact is - my house and another one on my street have been for sale since August and one behind me since September - when the hysteria really started. There is now a lot of houses for sale and not enough buyers. It's really sad for those of us in my position. I feel for everyone who is in need of selling their homes and properties for whatever reason - lay offs, break ups, etc. People who have disposible income can make a real good investment right now.