快樂牛郎

53# Ultraman


咁講，俾rent又係俾＄，俾mortgage都係俾＄，俾咗mortgage，供滿咗間屋就係你嘅（呢啲嘢個個人都知），咁喺financial management point of view，有property 就係有asset，經濟上可以多咗option去 ...
fibbi 發表於 2010/1/4 12:24

Zero opportunity cost?

If you assume no appreciation for your house, the rate of return is worse than GIC.
But of course, house prices have been appreciating in the past century.  But who knows what will happen next?

fibbi

65# 快樂牛郎


The house price is always "cycle"...sometimes low (in the early 90s), sometimes high (late 90s...), as long as you don't need to "sell" it at the particular moment, just wait for the good price lor.

Ultraman

56# Ultraman


How much is the rent for 2-bedroom apartment in Vancouver? $1000-ish?
How much is mortgage if buying $300K apartment (not brand new) with $30K down?  (25 yr, 6.7%) $850 (bi-weekly) fr ...
fibbi 發表於 2010-1-4 12:42

Yes, that's likely you will get from banks' website, but that's only "maths". However the fact is, when you actually go apply for a mortgage, the calculation is never like that easy. Do you know how much your min. salary is if you only want to pay a little 10% down payment? Most common guideline is about 1/3 of total household income for the monthly payment. Base on your above example, if bi-weekly payment is $850, so monthly payment is about $1700 (+/-), therefore the total household income should not be less than $5100. In other words, also as you mentioned, people can pay more down payment in order to have the mortgage application approved if their monthly income is lower than required. But than that's the most popular hardest part- a reasonably big amount of down payment! (say at least $10000 or more)

fibbi

67# Ultraman

What about 2 people contributing at the same time?
Say if we want to buy a property 5 yrs after graduating, how much can we save? Can we save $500/month on avg? So that's $30K for a person after 5 yrs?
If two people contributing then there are $60K for down payment already right...

daimo

67# Ultraman

What about 2 people contributing at the same time?
Say if we want to buy a property 5 yrs after graduating, how much can we save? Can we save $500/month on avg? So that's $300K for a p ...
fibbi 發表於 2010-1-4 14:56

i hope you mean 60k ... 600k you don't need a mortgage la...

fibbi

69# daimo


Thank you thank you, you are right. I just edited it...

Catpiano

Rent/Buy

Depends on where la.. if in HK I think renting is NOT bad ..  say a $3-4Million dollor home, ~ $8-9K /month to rent .. that is ~ 0.2% ... and for people who has $30M cash, they can invest in other area for sure .. ( again, assume no appreciation, which never happened in long run)

Here, they city I live, highest rent major city in the Country, $2K plus month for a condo, which can buy for $300K ..  that is ~ 0.7%

It is just life stype  ..  I used to like renting too (12 yr in Edmonton, always RENT as I was young.. )   once close to 30 yr old, is nice to have own home. ^_^

Ultraman

67# Ultraman

What about 2 people contributing at the same time?
Say if we want to buy a property 5 yrs after graduating, how much can we save? Can we save $500/month on avg? So that's $30K for a person after 5 yrs?
If two people contributing then there are $60K for down payment already right...
fibbi 發表於 2010-1-4 13:56

OK, let's do the maths.
Provided that to save $500 per month per person is possible. Then you two will have $60000 for down payment. If you're going to buy a $300K house, at 6.7% (as the example above), monthly payment is about $1600 and thus your (you two together) total income should be around $4800. If you two have a monthly salary of $2400 respectively (average), that's possible.

fibbi

My coworker did buy an apartment in Richmond, 30-yrs old, for around $120K (a couple years ago). And I didn't hear about lots of fixes or high maintanance cost from him as well...
So even 1 person, still able to buy a property ga... in Richmond wor... not talking about Abersford or Langley.

Catpiano

Fibbi .. again ..  depends on luck too ..  may be your friend's appartment was just FIXED before he bought it ..  ( depends on reserve fund )

But it is same as in HK wor .. like my parents, I think couple year ago, the building needed new "Finish" (brick or whatever) they need to pay ~$300K (other tenants too).....  plus noisy construction for months ..  and when they had some renovation ...  it was expensive, plus needed to go though different government department ...

In general, older house or older apartment, higher chance to have problem ...  just like cars or women ...