In Canada, Is This A Good Time To Buy A New House? I Ask You To PLZ Help!

My wife is kinda forcing me to buy a new house.

We live in Canada, and there is a house for about 240k in a good location.
We might make a decision within a few days then have ownership in early January 09.

If we go ahead, once we move in after paying the downpayment we will be almost with about 1k of savings left combined.

Then there is the welcome tax and notary fee, so that's about 3k there.
We'll have to pay the notary early and then 2k around for the welcome tax for new homeowners.

Of course we will be starting from scratch so we will have to save up pennies even for a new stove, fridge, curtains, etc.....

Is this a good time for us to buy a new home in this economic crisis?

[edit on 14-10-2008 by ModernAcademia]

reply to post by ModernAcademia


This is my personal thoughts and alot will not agree with me but the way the markets have been in the past few months -weeks IMO is NOT!! the time to buy,no matter how much your wife is pushing you.
IMO the market is going to fall again and you will be stuck with a home loan of 240k that will be worth 120k Just wait and you will be better off

My Girlfriend has been pushing for the last 6 months and i keep telling her now is not the time We have had many fights over it And now i'm back in the good books because i saved us from the pain Many people are in right now

Id hold off as well from from this idea.
We are going through a major correction and could even be a few years before we see the outcome of all this.
I suggest taking a look into if and when purchasing anything, to be inolved with self sustainment and such.
My parents are looking to sell both homes they own and they are having a hard time becuase of the whole uncertainity of anyone wanting to take a loan out and just how ridiculus price they are commanding for houses.

[edit on 14-10-2008 by GodshipForAll]

reply to post by ModernAcademia


It depends. What is your rent? Finding affordable rent in Canada is a nightmare. Houses are now looking like 1600 plus nearly all over BC, and apartments in Kelowna are now 1200.
Most houses sell for betwwen 350 k and 500 plus k in the interior now, the coast much higher. If it were up to me, and the payments were manageable in an area I'd love to stay in indefinately, I would buy.

reply to post by ModernAcademia


How did your elections go? Do you feel that the winner has a good plan? I'm embarassed that I didn't delve into your elections deeply enough to have an opinion.

Do you trust the U.S., European, Latin American, Asian markets?

Too many questions? It's a tough call; first, I'm hardly a qualified advisor. I think the markets are going to recover, after a few more downward scares, and perhaps more than a little bit of economic hardship.

Can y'all pay your mortgage on just one of your salaries? I sure wish you all the best. For what it's worth (nothing) my Bride and I bet it all on a gamble, and it paid off, but it was very dicey for a couple of years.

I wish you good opportunity

It depends on where you reside, I live in Alberta and would not want to buy, just be patient and wait, my house was about 380k about 4 months ago, now i would be lucky to get 300k for it , definitely a buyers market, but if you can wait it out you may get a better deal, and of course there is economy, just wait for while.

my 2 cents

I live in Mississauga, Ontario - And definitely would not buy now. I'm renting an apartment, and although it isn't cheap, I'm holding out for prices to drop. It seems to be a worldwide thing. Do a search and check how even property prices in Beijing are taking a hit.

reply to post by TortoiseKweek


I'm in the same boat, have been since 2003 (with the nagging gf now wife). I'm one of the few who said no thanks to the "nothing down mortage boom". Prices of houses just got crazy. They went from starter homes for 140k to 220k way to fast.

I've been paying someone else's mortage though, but they'll be selling soon.

If you can afford it and if you are looking for a place to live, then go for it.

What are you affraid of? That the market is going to crash so bad that your $240k house is only going to be worth $120k when you go to sell it? When do you plan to sell your new house and upgrade again, I am guessing in 3+ years. You think your house is going to be worth more then what you paid for it in 3-5 years? I bet most would say it would be worth more in 5 years then it is now, even though it may drop and it be worth less for the next 12-18 months.

Maybe you're worried that your not going to get the best deal possible? Are you affraid that your $240k house can be had for $200k 6 months from now, that the market is going to drop 20%? If you are upgrading to this $240k from your say $150k house for example, you are going to lose $30k on the sale of your house and save $40k on the buying the new house. $10 difference which is likely less then fees you are going to have to pay. What if you wait too long and the market goes up a little, say 5%? Your $150K house now can be sold for $157.5k but the new house will be be $252k.

My major concern would be how stable it your income? Depending on your finacial situation and what industry you are employed in would be more of a factor then the housing market IMO. If you are at risk of losing your job then increasing your debt load at this time is not a great idea. Unless your current situation allows you to have a decrease in income for a period of time I would wait it out until the economy picks up and there is no risk of you losing your job but if you wait for that then your $240k house will surely have a higher asking price.