Mortgage and buying a new house

[Lazymon82]

There are many small business owners who are home owners. It isn't only low level employees being impacted. Many making little actually may have ended up ahead during the pandemic. In some places like Alberta the economy wasn't strong prepandemic. There is no guarantee that the economy will come roaring back. Pandemic is not going away anytime soon between those who will refuse vaccination and needing to vaccinate the rest of the world. We are still likely talking years to get close to where the world was precovid. Even though employers have moved more virtual I don't see people moving away from the big cities. Many will still need to go into the office but employers may now consider remote work for most employees that was unheard of before covid. A large percentage of workers aren't able to work virtually. The major sector that will get hit are the smaller units. There are still many who have no desire to move to the suburbs. Many employers are still not hiring and even the skilled workers usually need a mortgage. Many of the true consequences of covid haven't been seen yet like evictions, bankruptcies, closures, etc. The US is also in for huge economic issues because of minimal economic support after the cares act. There is a segment who will come out of the pandemic with minimal economic consequences but there is a large amount of people who will end up broke. homeless and needing to start over. Canada is a small economy so our recovery is very dependent on the rest of the world. Repaying all the money we have spent is also going to be a huge issue for generations so there will eventually be pushback when it comes to unlimited spending and we may be in for an election next year that could change plans. Would add that the increase in housing prices for the past 20 years isn't a good thing. Yes certain people made money but housing is extremely unaffordable compared to salaries which means current generation is likely to struggle economically more than their parents.

All current issues you mentioned considered i was referring to detached and semi detached properties with more land share in the suburbs are on the price hike. Small businesses are turning to home deliveries and virtual aswell. More over they are opting to move to suburbs. Those industries who cannot will be taking the burden of survival for sure. The price hikes in the suburbs are very well self explanatory as to who are making them, mostly families with good income and impacted less by the pandemic and cannot be ignored as to what this economically stable group is doing to the market (Real estate experts predictions did not stand a chance). As you said earliar with lower interest rates speculatory applicants in the past years already are making use of the opportunity.

Pandemic affected housing market in the coming years will majorly be lower cost condos and lower cost houses that "may be" on foreclosures and will again be flipped by very eager real estate flippers only to boost residential housing growth.

 

[GXSINGH]

I got ita through EE and my AOR is Nov 2020 and looks like it will be a few months before I actually get COPR. My question is can I buy a house in BC Canada and be exempt from 20% tax foreigners pay if they are not canadian citizens? I know there is a law in BC about PNP that if you have a PNP confirmation then you are exempt to this 20% foreign land tax.

 

[vivek901]

Hey guys,

It's been 15 years since I have moved to Canada. I'm an Indian citizen, and a few years back, I got my PR. Now I have a plan to buy a new house in Canada. But, the one I have checked is a bit high in the budget. So we need to go for a mortgage.

Has anyone here recently took a mortgage? Are the rates are lower due to COVID-19? Is there any change in the policies for Indian citizens?

Thanks!

As long as you are a PR it is fine. Yes prices are high, but if you are buying for primary residence and plan to stay there for longer time then it should be ok as long as you can afford your monthly mortgage and are keeping cash aside for emergency expenses (at least 6 months worth expenses) and are having good income

 

[GXSINGH]

As long as you are a PR it is fine. Yes prices are high, but if you are buying for primary residence and plan to stay there for longer time then it should be ok as long as you can afford your monthly mortgage and are keeping cash aside for emergency expenses (at least 6 months worth expenses) and are having good income

no im not PR yet, thats why im confused if I can should buy a house or not. im still waiting for pr application to be approved

 

[YVR123]

no im not PR yet, thats why im confused if I can should buy a house or not. im still waiting for pr application to be approved

You can buy a house. Just pay the foreign buyers tax. You may get refund in certain condition.

https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/additional-property-transfer-tax/refunds

 

[GXSINGH]

So to be on the safe side its better to wait till COPR

 

[YVR123]

It's up to you. No one know the risk in real estate.
There are many things changing, price, mortgage rate, availability, your dream house coming up...etc.
So weight your options.

 

[steaky]

It's up to you. No one know the risk in real estate.
There are many things changing, price, mortgage rate, availability, your dream house coming up...etc.
So weight your options.

Also renovations: 20% of BC homeowners regret renovations:

https://globalnews.ca/news/7692840/bc-homeowners-regret-report/

 

[YVR123]

Also renovations: 20% of BC homeowners regret renovations:

https://globalnews.ca/news/7692840/bc-homeowners-regret-report/

Yeah. It's important to put function, comfort and value over pure aesthetics for renovation.

 

[bhupinderbhatti]

Hey guys,

It's been 15 years since I have moved to Canada. I'm an Indian citizen, and a few years back, I got my PR. Now I have a plan to buy a new house in Canada. But, the one I have checked is a bit high in the budget. So we need to go for a mortgage.

Has anyone here recently took a mortgage? Are the rates are lower due to COVID-19? Is there any change in the policies for Indian citizens?

Thanks!

I suggest that you visit this website https://listingsnearby.com/. Here you found homes according to your budget. Variety of different homes you find here.

 

[canuck78]

no im not PR yet, thats why im confused if I can should buy a house or not. im still waiting for pr application to be approved

Would not buy a home until you have secured a good job and know you will remain in the area for 5-10 years minimum. Would really suggest renting until you secure a job, look at various areas, etc. What if you buy but get a job in another city? Buying a home limits your ability to be flexible and pursue the best opportunities when you originally move to Canada which is important. Would suggest renting for a year so you can explore where you live, get a feel for different areas, figure out what is the most convenient areas, look at different school districts, make sure you are happy in a city, etc.

 

[steaky]

Would not buy a home until you have secured a good job and know you will remain in the area for 5-10 years minimum. Would really suggest renting until you secure a job, look at various areas, etc. What if you buy but get a job in another city? Buying a home limits your ability to be flexible and pursue the best opportunities when you originally move to Canada which is important. Would suggest renting for a year so you can explore where you live, get a feel for different areas, figure out what is the most convenient areas, look at different school districts, make sure you are happy in a city, etc.

Why 5 to 10 years? Do people stay in one place for 5 to 10 years? I don't think so. Minimum 3 years is more likely. In three years, singles might got married and have children. They probably need a bigger place.

 

[canuck78]

Why 5 to 10 years? Do people stay in one place for 5 to 10 years? I don't think so. Minimum 3 years is more likely. In three years, singles might got married and have children. They probably need a bigger place.

Average time in a home before you sell it if you are actually living in the home is not 3 years. In most cases if you sell that quickly you will end up losing money if you subtract expenses. If you plan on starting a family within 3 year then you should be buying a bigger property not committing to a 1 bedroom condo.

 

[YVR123]

Why 5 to 10 years? Do people stay in one place for 5 to 10 years? I don't think so. Minimum 3 years is more likely. In three years, singles might got married and have children. They probably need a bigger place.

single ppl met someone, got married and have children in 3 years.... that's very efficient.
We stayed at my first place for about 10 years, then 4 years for the last place and now 4 years already in my current and we hope to stay in this for a very long time. We are doing renovs bit by bit.

 

[steaky]

Average time in a home before you sell it if you are actually living in the home is not 3 years. In most cases if you sell that quickly you will end up losing money if you subtract expenses. If you plan on starting a family within 3 year then you should be buying a bigger property not committing to a 1 bedroom condo.

Do you really think singles find mr. right or ms. right so predictable? And in many case of older women in particular, pregnancies don't come that easily. Some couples pregnancy was accidental. Finally in some cases, if you sell that quickly you will end up gaining money if you subtract expenses.