“Our landlords are booting us out of the house we’ve been in for 5 years. (She’s divorcing him and booted him out, and we’re next down the eviction chain as he’s moving in when our lease expires in a few months.) So we’re desperately looking for rentals in the same neighbourhood (Cambie) due to schools and work. Or we’ll buy somewhere like North Van and uproot everyone but only once.
After being around these boards for 5+ years I feel that buying now is akin to climbing out of the lifeboat and back onto the Titanic. The wife has been onside until now, but with the threat of homelessness she’s wavering. So I’m trying to decide how big the potential downsides are. Pay $3k in rent for 1-2 years then buy (and deal with 2 moves) or bite the bullet and buy now and pay that much for the mortgage (until rates go up). The potential savings by renting and delaying a purchase is what I’m trying to estimate.”
– /dev/null at VCI 22 Jan 2013 11:21am
“Sorry to hear that. Here is my view. We (a family with 2 kids) are renting half-a-duplex in Burnaby for $2000/month for about 5 years. Good area, decent schools, commute is ok. The landlord is a nice person, but has (and always had) thoughts about splitting the place into two units and rent them for $1500+$800 (this trick worked for a while for the neighbour landlord, until last year when they have started having problems with finding good tenants for the downstairs unit). I am tracking the rental pool in the area pretty closely and found that a lot of 5bdr/SFH in the $2300-$2500/month range entered the market last year (starting late summer I would say, most of them accidental landlords). Places like ours are steady in the $1800-$2100 range for the last 5 years, and the influx of of those 2300-2500 homes definitely helps keep those prices from growing.
Last fall, I had a number of conversations with my landlords and gave them the full picture, mentioning that we would have no problem finding something decent in the very same area. Of course, we were perfect tenants all these years. Apparently, it worked out, everybody seems to be happy now.
Back to your situation. First, I think buying something just because “we have to move out of here anyways” is a plain bad idea. Do the math and then decide. Second, I personally wouldn’t mind renting for another few years in your situation, even if it comes at a bit higher price comparing to the deal you have now. Rental pool in our (yours and mine) sector is improving, it’s renter’s market.
Yes, I know moving is painful. I know your wife wants a nest (mine too). Yes, – peer/parent pressure, accidental landlord risks etc. But the risk of losing money by buying something is just way too high these days. My $0.02.”
– C.Junta at VCI 22 Jan 2013 12:51pm
Great analogy from /dev/null.
Whether you’re on the Titanic or in a lifeboat, the speculative mania is at the very least time-consuming, inconvenient, anxiety-provoking, and distracting.