Buy a house?

Discussion in 'General foundry chat' started by Zapins, Jul 12, 2020.

  1. Is it a good time at all to buy a house? The prices are skyrocketing, and most house owners just try to make as much as possible, even if their shed does not cost even half of the price they ask for.
     
  2. crazybillybob

    crazybillybob Silver Banner Member

    I'm in the process of selling a house. I'm planning on using the profit to cover the cost of my next shed. The wife's place is much bigger and nicer than my hole was... So moving in to hers and building a new shed this fall.
     
  3. Petee716

    Petee716 Gold Banner Member

    Nows your big chance to build it like you want it!
     
  4. Zapins

    Zapins Gold

    Yeah prices are going nuts. Houses, gas, food. Pretty irritating especially since my garden got so much rain most of my veggies got blight and didn't produce a decent crop to justify the work I put in. Then again I'm one county over from all those flooding counties in Eastern Kentucky so I suppose it is just unfortunate.

    Thinking of putting up a hoop house greenhouse over my vegetable plot to keep the rain off next year. Might also get some extra weeks of planting out of the garden that way too.
     
  5. Zapins

    Zapins Gold

    What do you guys think of taking out a home equity loan to buy another piece of property? The rate is 6.8% and I could pay it back fairly quickly.
     
  6. In Australia I wonder how sustainable these high prices are: $575K for a 1940's two bedroom timber frame fibre cement clad shack down the road from me. I understand there are a lot of investment companies fueled by cheap stimulus money buying a lot of property which drives the prices artificially high. In answer to your question, I'd be playing it safe for now and not take any risks.
     
  7. Mantrid

    Mantrid Silver

    One thing ive learnt about property bubbles is they always burst.
     
  8. Mantrid

    Mantrid Silver

    If the property market is in a trough where you are then its good to buy.
    If not then you could still buy so long as you understand that your investment will need to be held long term before it starts to grow in value.
    Most importantly make sure you can cover the payments, ie secure job, plenty of savings etc
     
  9. rocco

    rocco Silver

    Prices in my area are crazy, it'll be interesting to see what happens to the market if interest rates go up a few more points.
    Anyways, in my area, this is what $549K Cdn. gets you, a house you'd actually consider living in without doing a gut job, starts at about $750K.

    40254938_5_2.jpg
     
    Tobho Mott likes this.
  10. Zapins

    Zapins Gold

    Damn thats a lot of cash for that house.

    I dont think the property will cost too much maybe 20 to 25k? Unsure but will have an exact value soon. Will probably need more investment to clear the derelict buildings but I can mostly do that myself slowly over the winter with my dad. Or hide a dozer and pull it all down in an afternoon...

    Mostly want to block scum from buying it and having issues in the future. Maybe nice to have a bigger garden too. May also be worth building some rental places for students next to me in the future. Gives nice options.
     
  11. Mantrid

    Mantrid Silver

    All that for a timber house? It must be a nice area
     
  12. rocco

    rocco Silver

    Yes it's an all timber house and it's not a particularly great location, a hundred metres or so from a busy 6 lane highway. To put that into a little perspective, my Dad's house sold for $1.2M a few months ago. It's also an all timber house, similar size and about the same age but in good shape and on a very nice lot.
     
  13. I was wrong, it sold for Australian $555K this year, $495K in 2020, $470K in 2016, $442K in 2014 and $150K in 2001 and $35.5K in 1984.


    house 1.jpg
     
  14. My wife and I have been saving money for more than 7 years to be able to afford a house now, but it turns out it’s not that easy, and we still lack a part of the sum we need for a decent house. Is it a good idea to take a loan from a nonbank organization like Loan Connect to cover this part of the price? We did some research on https://www.greedyrates.ca/blog/how-to-get-a-personal-loan-with-bad-credit/, and it looks like they usually have better conditions than banks.
     
  15. rocco

    rocco Silver

    In case anyone's interested, I did the math and the ROI on the initial investment in 1984 averages out to 10.32% per year.
     
  16. Which is a solid return, long term. The early uneven jumps in price would be from government policy: throughout the mid 80's to 90's negative gearing where you could deduct your investment loan interest from your taxable income was introduced and tax discounts on the gains made by your residential (and investment) property were introduced. There was also at one point a massive casino being planned two suburbs over that caused a recent price spike before the dodgy idea fell over.
     
  17. rocco

    rocco Silver

    For reasons I'd rather not disclose publicly, this year I'm taking a crash course on the tax implications surrounding the change of use and/or sale of properties. And, the tax rules vary a lot from one jurisdiction to another, in Canada where I am, loan interest on a principle residence is not deductible, which sucks, but on the upside, the gain in value for the time it was your principle residence, is not taxable.
     
  18. I wonder whether it’s a good time at all to buy a house? The prices are rising, but there’s no hope they will fall soon, so it seems better to take action now than wait. I have some savings, which would be enough to buy a house in my area. Not a big one but a good one.
     
  19. Jason

    Jason Gold

    Yes buy a house, actually buy 2. You have 3 posts in this forum, all in this thread and not a single one related to metal. :rolleyes:
     
  20. Zapins

    Zapins Gold

    Buying a house would let you do some projects thats for sure. But I think its not a good time to buy. Interest rates went so high, you'd be paying a lot long term in interest. If you can, live with family and keep saving.
     

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