9. Delaying Buying

delayed_buyer008-copy.jpgFolks who could somehow buy now, but have decided to wait in the hope of price drops.

9 responses to “9. Delaying Buying

  1. I received an inheritance last year and finally have money for a down payment. Well no way!
    After years of being on the sidelines of the feeding frenzy, I’m staying there.
    It’s going to pop and I’m not going to be the one left with the hot potato—a house worth less than i paid for it. (a)

  2. We’re waiting to buy. We have well above average income and savings that, in a different market, could buy a decent house outright.

    Right now, we pay 800/mo rent in a great area, love it, setting aside lots of our money into our savings and various investments.

    Let’s look at it like this: $1K/mo to live where we do, $12,000/yr, over three years that will be $36,000. If we buy a place today for $500,000 in three years we will have spent closer to $80,000 but would have reduced the principal by what? $10k? if that. So, instead of buying now, if the market corrects over that $36,000 in three years, we’re laughing. And really, let’s be serious here, markets are 30-40% over the trend line, that equates to a much larger correction than a measly $36K, over three years I wouldn’t be surprised if that $500K property was selling for $375K. (a)

  3. I’m curious, what investments are most popular among those renters who are accumulating and protecting savings for when the market corrects. It’s not like GICs or T-Bills give much return these days….

  4. I have waited a long time to delay my home purchase, however the price keeps going up to a point where this is it. If I dont’ get it, I WILL be priced out. End result, I bought a place early 2008. I have no regrets even if it goes down because it’s a place I am willing to stay for a long long time.

    People say prices are bound to come down, they have said so for many years. However the conclusion I see, is nothing is guaranteed.
    (a)
    [Thanks, Dabber. This anecdote has been cross-referenced in the '6. Held My Nose And Leapt' thread and archived under that page as well. -vreaa]

  5. hey dABBER,

    good luck to u…but buying property is your biggest investment. do u want to buy something you don’t want but feel you have to get it… like having to take biochem course to graduate. don’t like it but you have to pay and take it…all the work and it may not pay off. I never had to use BIOchem after I graduated. But life is about choices good or bad …it is something you can truly call your own

  6. “. So, instead of buying now, if the market corrects over that $36,000 in three years, we’re laughing. And really, let’s be serious here, markets are 30-40% over the trend line, that equates to a much larger correction than a measly $36K, over three years I wouldn’t be surprised if that $500K property was selling for $375K. (a)”

    and if it doesn’t?

  7. If you haven’t noticed inventory is climbing everyday. There are less and less buyers more and more sellers. Lots of projects getting completed soon which will add up to more inventory. I have $36,000 for a down payment but I’m waiting. Give it another three months before anything real will take place. If a condo that is $300,000 goes down 10% which will be $30,000 that savings just paid for my rent.

  8. Married 10 years, my wife and I have both been working and saving while renting our home. We live in a fantastic suite in an older, but well-maintained house. We’re in a great location and love everything about it. We had our first child 2 years ago and are expecting another in a few months. We hope to be able to make it work, but it’s starting to feel a little tight.

    We have been in a position to buy for many years, and have watched in dismay as prices have soared beyond our reach. I try not to have regrets, we have been very happy in our rented suite, and haven’t EVER seen a rent increase.

    Our savings are good and we have no debt. Have made some good investments, but lately other investments (mutual funds mostly) have not performed so well. I find myself at a loss as to what to do with our saved downpayment. I do not want to risk it, but would of course like it to earn as much as possible while not tied-up in RE.

    It’s hard to believe the there won’t be a market correction at some point given what we’re seeing: US economic crisis, the forestry sector downturn, an Olympic world party that will come and go leaving the province significantly in debt and Olympic ‘speculators’ sadly disappointed (I hope), ever increasing housing supply with little change in demand, the completion of many large construction projects leading to increasing unemployment in that sector… I’m sure you can think of many more.

  9. Pingback: Featured Anecdote: Delaying Buying « Vancouver Real Estate Anecdote Archive

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