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Blacktalon
04-24-2009, 07:08 PM
MY wife and I just gave a big pile of money to acquire a pile of bricks, wood, cement and nails.

We just bought a house! For a fantastic price (and mortgage rate to boot).

It's brand-spanking new; they haven't even broken ground yet. They will break ground in late June, with the construction starting in September.

What's neat too, is once we purchased the house, a week later the builder increased the prices of the unsold units by $5,000. Our house hasn't even been built and it's gone up $5K in value already.

The only sad part is that the closing isn't until March of next year...

vangogh
04-24-2009, 07:35 PM
Congrats Sean. That's great news. Sorry you have to wait so long, but it should be an exciting year. And by next March maybe the lots will have gone up another $5,000.

It's a good time to buy. Prices and interest rates are down. Ideally value will pick up again in the next couple of years.

Cool that you get to be the first people to live in it too.

Blacktalon
04-24-2009, 07:57 PM
After having seen so many disappointing resales, we pretty much came to the conclusion that going new was the best bet for those reasons. What's funny is that some of the resales we were originally interested in are still on the market. I think some of them reduced their prices too to help it move faster.

Agh the wait is half the fun. Considering we have to save for closing expenses, this will give us plenty of time to save for it.

It's right near the lake. Only thing that might be that it's on an old site of a psychiatric ward.

I'll let you know of any hauntings that take place.

cbscreative
04-24-2009, 08:09 PM
Congrats! Contrary to what most people seem to think, this is a great time to buy.

Patrysha
04-24-2009, 08:16 PM
Yup, a great time to buy. If we hadn't bought my dream house two years ago...we'd be thinking about it now.

Congrats on the really really new house.

I am not one who could handle all the issues with new houses - too many decisions and too much mess and hassle for me. That and I like houses with character which we couldn't find in any of the newer builds.

vangogh
04-24-2009, 10:19 PM
I'll let you know of any hauntings that take place.

I think hauntings only happen if you build on top of a graveyard. At least that's how it usually is in the movies.

Steve B
04-24-2009, 10:35 PM
I can't imagine who would think this is a bad time to buy? This is a great time to buy!! It's an outstanding to time to buy if you're a first time homebuyer.

cbscreative
04-26-2009, 05:54 PM
That and I like houses with character which we couldn't find in any of the newer builds.

I feel the same way, our house is an "older" one for just that reason. On the downside, little if anything is square or level, energy efficiency is ellusive, and dust is almost like being in it during construction, but it sure does have character.

orion_joel
04-27-2009, 01:00 AM
I think that this is a great time to buy if your personal financial situation allows it. As with buying at discount sales, there is no point buying something on sale if you cannot afford the price.

Blacktalon
04-27-2009, 02:13 PM
The builder accepted our amendments to the contract, so we're all good to go! Now we get to play the Waiting Game...

We wanted to go with resales, however most of them required so much more work to be done it wasn't really worth it. For example, we saw this one place where as soon as you stepped outside and looked up, the screens on one of the windows on the second floor was ripped and torn out of its placeholder. The shingles were starting to curl, and the wood around the edges was starting to show signs of rotting.

The basement had so many spider webs, and the owner had a sheet stapled to some of the rafters, obviously in an attempt to hide something no doubt.

Replacing shingles AND windows would probably run, at least, an extra $15,000. That's being generous. Coupled by the fact that they wanted $229K.

We didn't want to pay a hefty price and then have to invest another $20K in renovations alone. Figured we'd start off brand new that way we could essentially be the first ones to dwell and not have to worry about investing other money that could be covered by warranty if it got to that point.

KristineS
04-27-2009, 03:50 PM
Congratulations. I bought my condo last August and it's the best decision I ever made. I got a lot more house for my money and I'm being optimistic and betting that home prices have to go up at some point. It is a very good time to buy.

Blacktalon
04-27-2009, 05:43 PM
Damn right it is. And it's because of smart decisions like you and I, Kristine, that we'll benefit and profit from it in the long run.

How high up is your condo? Do you have a balcony? Also, when can the SBF clan come over :D

vangogh
04-27-2009, 07:11 PM
I did the same as Kristine and bought a condo this year. I closed in November. One advantage for both of us was a nice credit when we filled out our taxes. 2009 will be a better year to buy for tax purposes. The credit is more and you don't have to repay it. Kristine and I will have to repay what was essentially an interest free loan from the IRS.

Blacktalon
04-28-2009, 11:39 AM
How much has the value of your condos gone up or down since you purchased? And did you get them when the market was considered to be "bottoming out" for real estate prices?

Things seem to be stabilizing here in the GTA, however I held my breath in saying that just now.

KristineS
04-28-2009, 12:49 PM
I have a basement, a main level and an upstairs. No balcony, but I do have a deck.

As if I'd tell you lot where I live. :D

vangogh
04-28-2009, 01:39 PM
My condo appraised for about $7k or $8 more than I paid for it immediately. Another property in the same community sold for a little more just about the same time. I don't put much weight in the value of an appraisal though. This place will sell for what it sells for. So much can happen between now and then.

Blacktalon
04-28-2009, 03:22 PM
One has to look out for resale value whenever they invest in a house or property. It's bad enough to put out so much $$$ for a property that eventually devalues after some time due to some weird circumstances.

Take a townhouse just down the road from where I live now. Five years ago, it was valued at roughly $229K for a four-story 1,000 sq ft unit. (To give another comparison, our apartment right now is 1,097 sq. ft. That house is roughly a tenth smaller than where we life now). Five years later, they can't even get rid of it for $209K.

The wife and I went to go see it; the way it was laid out had it so that if we were to purchase that place, about two-thirds of our furniture wouldn't fit, no matter how much we would be able to try otherwise. The reason why it's bad is because the family who wants to sell is being stretched beyond their financial capacity; they are now forced to sell at a loss. From the looks of it, they're barely getting by as it is (a family of four with the father being the sole "bread winner."

That's the choice one took when they bought at the "peak" of the housing market.

Steve: $7 - 8Gs right off the bat? That's fantastic. There must be some great access to commerce, transportation, social facilities (parks, schools, etc) where you live.

vangogh
04-28-2009, 10:32 PM
Sean what I meant by not worrying about it so much is that I've come to see how some real estate is appraised. My condo appraised for the extra money simply because someone else in the area sold a similar unit for that price. I could list a half dozen reasons why that place sold for more. It's the more desirable of the two units.

If I were to turn around and try to sell my condo today there's no reason to think it would get that price.

However I am concerned with the value of the place. I bought this place for less than the previous owner paid 6 years ago. Part of my reason for buying was that prices were probably close to their lows and that I think the market will have rebounded by the time I'm looking to sell a few years from now.

I just don't put absolute faith in some of the numbers. This place will ultimately sell for what it sells for. The timing will be a factor. My financial situation at the time will be a factor. And yes the most recent appraisal will be a factor.

Blacktalon
05-05-2009, 06:34 PM
Appraisals are usually a hit-and-miss, and I've taken them with a grain of salt for the most part. A lot of the resales we saw had prices listed I wouldn't have ever considered paying given the condition they were in. Had they taken the time to clean up the place and presented it in a presentable fashion, then maybe I would have considered.

There was this one place the wifey and I saw. The owners had their radio on in the kitchen to give it a bit of ambience. While the outside wasn't all that spectacular, the inside was amplified because it was warm and portrayed that ambient feeling.

That place I would have considered for sure.

But when someone has a sheet stapled to the rafters in the basement with a farmer's field-worth of spider webs, a torn window screen and stained carpets, then something is definitely amiss.

Update:

I ventured out East a little bit to where the builder has a few furnished models constructed at another project they're doing. From what I've seen, I've made an excellent choice. The outside looks rather tiny, but the interior is much larger than it looks.

The place is so well-laid out, space is not wasted or obstructed.

Why does it have to take so long for it to be done?! Why?!

*sob*

vangogh
05-05-2009, 07:43 PM
I feel your pain. The wait is going to be agonizing and it's going to be even harder as you get closer to the big day.

Great news about the area. Sounds like it's only going to increase the value of your property. For me this choice was just a win. I've been renting till now so even if I can't sell the property for more than I paid I'll still come out ahead in the savings in taxes and whatever I've put into the place between the time I bought it and sell it.

I anticipate being able to make a profit though. I bought at what was close to the low point in the market and have a hard time not thinking the value will go up over the next few years.