With the current crisis its hard to see a scenario of 5% per year for the next 5 years. Fair to say its a buyers market, and that can't raise the prices, specially considering the inventory sitting there. I have a condo for sale in Montreal, 475 sqft and only 2 visits in the last month with no offers, and the price is 278K, which seems like a fair deal to me when I study the area of current listings and those sold. A buyer could easily negotiate this price down.

Thank you for this great educational video. Keep up the good work!

@Bondy-Sawyer_RealEstateTeam

22 күн бұрын

Will do. Thanks for watching!

But how do we know, it will go up 5% per year i next 5 years? There been a scenario like Lost Decade in the past.

@Bondy-Sawyer_RealEstateTeam

2 күн бұрын

Good question @aman4u18 The answer is, we can't know for sure how much values will actually go up (or down). No one has a crystal ball! In the video I propose 2 scenarios (both of which are below the 40 year average): - one where values appreciate 3% per year - one where values appreciate 5% per year It's of course possible that neither of those numbers are accurate, and that values will appreciate at a lower (or higher) rate for the next few years. Feel free to take the numbers I used in the video and run a few other value-appreciation scenarios for yourself to see how those would play out. Thanks for watching!

What a great comparison - thank you so much !

@Bondy-Sawyer_RealEstateTeam

18 күн бұрын

Glad you liked it!

Thanks for sharing this insightful comparison. Could you please do the same comparison for two bedrooms condo?

@Bondy-Sawyer_RealEstateTeam

25 күн бұрын

Thanks for watching @samben8915 That’s a great idea for a future video.

Great video! Only thing you forgot is selling costs!

@Bondy-Sawyer_RealEstateTeam

21 күн бұрын

@howy333 Thanks for watching, Howard! I didn't cover selling the condo in this video. I'm thinking of doing another video that compares: i) selling the condo to buy a larger property versus ii) keeping the condo and putting the equity towards buying a larger property (or an investment property).

Totally misleading analysis. There is 90,000 CAD differential which renter was saving why you are not adding that to an investment. The simplest thing you can do is put that in an ETF. 10% growth on a minimum. Second part buying a home means you have to stay at one place meaning job losses is a problems for you now. Second if somewhere there is better opportunity you can not go. Consideration - You have super stable job owning seems to good idea - You will not get more money if you move owning seems to be a good idea. - Kids Then definitely you don't want shitty shoeboxes . Its better to rent and move where you can raise your children. - Real estate is very illiquid - You are not diversified. All you money is put in one city. What is it goes the Texas way. Investment is all about risk. - Renting your house is not passive income Dividend from stock is. - You have 10 millions dollars and like to waste money owning house makes sense.

@Bondy-Sawyer_RealEstateTeam

20 күн бұрын

Thanks for taking the time to comment @leetcse In the video I do acknowledge the question, "What if I were to just rent instead, and take all of that extra money that I would've otherwise spent on owning and invest that elsewhere?" And I go on to say that, for some people, that actually might be the better path forward! I do plan on doing another video that compares buying VS renting & investing in the S & P 500. - Ultimately, this video is not a comparison between someone who buys VS someone who rents and invests the saved money elsewhere; it's a breakdown showing where you'd be if you bought (and spent the $90,000 extra over 5 years) VS someone who just rents.

Does the land transfer tax rebate for first-timers happen immediately, or is it paid up-front and then returned the next year?

@Bondy-Sawyer_RealEstateTeam

22 күн бұрын

@CassiusJohnAdams Great question! It's typically applied immediately at the time of closing. This means that eligible first-time homebuyers do not need to pay the full amount of land transfer tax upfront and then wait for a rebate. Instead, the rebate is deducted from the total land transfer tax payable at closing, reducing the amount the buyer needs to pay directly.

Nice summary. What about 1.) out of pocket costs for repair/maintenance issues in the unit? Sink/toilet leak? 2.) shitty renter - misses a payment? 3.) special assessments from condo board for bigger repairs over time? It seems to me your P/L should include some estimates for those three items. For the renter, with so many tax free accounts (FHSA, TFSA, RRSP) and index funds like VOO (earn 7% on average doing nothing) savings options have never been better. Now that interest rates have normalized ‘investing’ in real estate looks an awful lot like a speculation (not an investment) - singularly hoping bubble prices go ever higher. Could happen. But if prices go sideways for 5 years the investor will lose a boatload of money. If prices actually go lower the investor will be bleeding cash. Eyes wide open…

@Bondy-Sawyer_RealEstateTeam

15 күн бұрын

Thanks for watching & commenting @vikingvancouver9832 These are all fair points! For point #2 (“shitty renter”) I would say that my comparison is focusing on renting a condo vs owning a condo as your PRIMARY RESIDENCE (as opposed to owning a condo as an investment property to be rented out). - You're right though, when looking at a condo as an investment to rent out, you definitely need to factor in vacancy rate (or unpaid rent from a bad tenant). - And yes, if the value does not appreciate at the rates I used in the video (or if they don't appreciate at all, or even go down in value!) then your financial position would be quite different.

@robocop581

6 күн бұрын

​​​​@@Bondy-Sawyer_RealEstateTeam He also assumes 2008 or Dotcom crash will never happen again. Also never mentioned eviction as vacancy rate in major places like Vancouver is less than 1%. There's also leverage which I can't do for stocks unless I trade on margin which is extremely risky. I own seven properties, six of which are rentals. The income from those properties are now getting piled into my Dividend Portfolio while the equity in those properties is used to buy more properties so I have a double edge sword. Try using stocks as collateral to buy properties.

Didnt they get rid of the first time home buyers incentive rebate?

@Bondy-Sawyer_RealEstateTeam

16 күн бұрын

That's right @matt9955, as of March 31, 2024, the First-Time Home Buyer Incentive was discontinued.

why didn't you just do it based off a condo bought 5 years ago today, we have the interest rates and prices and rental costs of the past. and then compared it vs just renting and buying s & p 500 with the difference

@Bondy-Sawyer_RealEstateTeam

21 күн бұрын

@paulshealthfitness7922 Great question, Paul. I wanted the video to appeal to someone who is CURRENTLY looking at whether they should buy or rent. I thought that using current sale/rental values and current mortgage rates would be the best approach. You're right though, if I would've used a condo bought/rented 5 years ago I wouldn't have to speculate about what MIGHT happen with future value appreciation :-) And yes, I'm planning on doing another video that compares buying VS just renting and investing in the S & P 500!

@leetcse

20 күн бұрын

He either forgot it or trying to mislead us. 90K CAD plus growth on it assuming S&P 500 was missing from entire calculation.

Who needs lower mortgage rates? 1% Who needs lower home prices? 99% ⏰️ It's time to wake up⏰️ #GTAOntario