‘Getting in’ is actually the easier part. Being in, while prices drop, is going to be the tough part. -vreaa
From ‘Getting into a tough market’, burnabynewsleader.com 21 May 2010 -
“For most of her life, 56-year-old Royal City resident Jackie Olds thought owning a home was nothing more than a pipe dream. The market in the Lower Mainland was spinning out of control. There was no way she could ever afford to own, she couldn’t pay for those tricky, hidden costs. Or, so she thought.
“During my last experience trying to rent a place it was just a nightmare,” she said. “Everything was overpriced and filthy. I went to this one apartment and lifted up the bread board and it was covered in bugs. I left in tears.”
Once the tears dried up, Olds decided to sit down and take a long look at her budget and see if she could manage the daunting jump into home ownership. “It’s so scary, you just never feel like you know you can do it,” laughed Olds, now the owner of a condo in New Westminster’s Brow of the Hill neighbourhood. “But, if you do your homework and you don’t rush in, it’s amazing.”
I wonder what this 56-year-old did for financing. Please don’t tell me it’s a 25 year amortization.
From the article: “According to Angela Calla, a mortgage broker with Dominion Lending Systems and the host of CKNW’s Mortgage Show, 70 per cent of the province’s real estate purchases last year were first-time buyers.”
If this is true, wow. Just… wow.
I am fearful for this lady. Many folks have been conditioned to believe that buying a home is the ultimate goal and to believe that renting is a waste of money.
The original article tells us little about her finances. However if prices continue to drop then she may soon regret her decision to buy at this time, as her condo may have dropped in value already.
So much for feeling more secure in those circumstances. Unexpected issues can crop up, such as major structural repairs or bad neighbours. Suddenly, that condo feels more like a really bad idea if it’s worth less than when you signed on the dotted line. If she has to sell, it may cost her dearly.
At least you have options if you rent. Sure, for some it doesn’t offer enough security. (That conditioning rears it’s head again). For others, it may allow the flexibility they need to respond to any major life changes – without the worry of selling up and all the costs involved.
I really hope it works out for her, but the signs aren’t looking good.