Hot Tip: Buy Now!

The Province has published a list of top tips from financial professionals, most of these are the handy standards like diversify, keep an eye on interest rates, etc. There is one stand-out hot real estate tip from Carey Ellingson, a Scotiabank branch manager in Sherwood Park, Alta.: BUY NOW!

Ellingson says the new mortgage options of zero down payment and amortization periods up to 35 years can help first-timers to buy a home before prices rise out of reach. He expects real-estate prices in some provinces to rise further. If you are a borderline buyer today, “the longer you wait, the less opportunity you will have,” Ellingson says. “Take the leap of faith” and buy while you can.

In some provinces price may rise further! You can take that to the bank, so buy now before you and everyone else is priced out forever. Certainly don’t waste your time trying to save up a down payment!

I’m guessing once we reach the ‘price out’ stage all home owners will be billionaires and there will be no more buying and selling of houses? First we sell to locals, then maybe Americans (as long as their economy doesn’t take a nose-dive) and then to countries further afield, perhaps even buyers from other planets! The Japanese might have an advantage here with bold 60 year mortgage terms.

Now some of you ‘sceptics’ will think that a bank representative would encourage ‘zero down & 35 year terms’ simply because it means several hundred thousand dollars more in profit from each customer. This is simply not true!

A long amortization period can enable low monthly payments initially. But as your income rises, Ellingson advises you to “pay it off early” and save interest costs.

His tip doesn’t advise on what to do if your income drops or sees an interruption in the next 35 years, but if you’re bold and brave enough to buy in Vancouver right now I’m sure you will be able to see your way through any adversity.

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Gianni33
Gianni33
13 years ago

Hey gianni33, got any tips on decent income / housing cost ratio places in canada?Depending on your career, you might be able to find a decent income/housing cost ratio in places like Edmonton, Winnipeg, or Ottawa. I mean, sure the weather sucks but I'd rather make 20% less in salary, but pay off a HOUSE in 15-20 years, than make more here and pay off a shoebox in 35 years.

bc_cele
bc_cele
13 years ago

patiently waiting said… Ellingson is a lowly local branch manager not a PR flak from the head or regional office. Should he have been speaking to the media at all? Probably wasn't the smartest thing he's done.

bc_cele
bc_cele
13 years ago

Anonymous said… Thanks but I was sports man so in education I hardly pass my graduation called B.A and I had 2 year degree in software.I always have hard time writing anything but I got in me is true honest person I keep my self going into write fast tracks direction instead of making fun of things so we can deal with problem from heart and soul. I think if we could understand you we could more effectively deal with the issues you raise. However, right now I'm not sure what they are.Serious question: did you suffer one too many blows to the head? Did you, perhaps, play football without a helmet?

patriotz
patriotz
13 years ago

it doesn't get any worse than Vancouver, but wheres the best bet?The most affordable million+ cities are Edmonton, Ottawa, and Montreal. Edmonton's nickname is "Deadmonton", Montreal is great but has lingo issues and high taxes, which leaves Ottawa, which is a really great city if you can take the winters (no worse than the other 2 though).

patiently waiting
patiently waiting
13 years ago

Ellingson is a lowly local branch manager not a PR flak from the head or regional office. Should he have been speaking to the media at all?

Tulip Mania
Tulip Mania
13 years ago

Wanaget, seriously, and I know once in a while I do joke around, but isn't the banker in the article unusually brash maybe, a little inexperienced, too blunt, or maybe he is one of those baby boomers with more money than brains.Joking aside don’t you think it is unusual?

wannaget2calgary
wannaget2calgary
13 years ago

Actually, I wouldn’t be surprise if this bank guy gets transferred to Moose Jaw next month, for not thinking before speaking.Hmmmm … found this on the web … Al Capone lived in Moose Jaw for a while, and Moose Jaw was once called "Little Chicago".

Tulip Mania
Tulip Mania
13 years ago

Actually, I wouldn’t be surprise if this bank guy gets transferred to Moose Jaw next month, for not thinking before speaking.Normally the talking head types from banks, only insinuate, in carefully crafted catch phrases that: “better hurry before you get priced out”.

Anonymous
Anonymous
13 years ago

Anonymous said… Anonymous @ 11:41 AM, is there any chance I could convince you to start your own blog?I know I'd check on it every day! 1:30 PM Thanks but I was sports man so in education I hardly pass my graduation called B.A and I had 2 year degree in software.I always have hard time writing anything but I got in me is true honest person I keep my self going into write fast tracks direction instead of making fun of things so we can deal with problem from heart and soul.

patiently waiting
patiently waiting
13 years ago

Is there any way for a buyer to legally go after Ellingson if his advise turns out to be horribly wrong? Surely, he can't deny that he is aware of the current real estate slowdown, particularly in Vancouver and Calgary.

Anonymous
Anonymous
13 years ago

Anonymous @ 11:41 AM, is there any chance I could convince you to start your own blog?I know I'd check on it every day!

Anonymous
Anonymous
13 years ago

I'd rather move to a different part of the countryHey gianni33, got any tips on decent income / housing cost ratio places in canada? From what I've seen it doesn't get any worse than Vancouver, but wheres the best bet? I'm thinking its about time to cash out and try something new.

betamax
betamax
13 years ago

but there is always more room to anything where we never end.for my personel experiance I will encourage people to take advantage from this.I was skeptical, but I'm now convinced by your cogent arguments and lucid prose. I will take advantage from this soon.

digi
digi
13 years ago

we can pay off by any period lets say 5 year 10 year or 15Wow! That would be some wage inflation if you needed to rely on a 35 year term to buy and then paid it off in 5 or 10 years. Sounds like a lotto winner to me, but hey, you never know!Go Sherwood Park!

Anonymous
Anonymous
13 years ago

Thats awesome————-And people's you are not locked for 35 year small periods goes like 3year 5 year and give us chance to pay 15 percent directly take off orignal left over amount so 35 year is to make it easy for us but if any change to our monthly income by any fact than we are not waiting for 35 year we can pay off by any period lets say 5 year 10 year or 15I respect people when they respond to any issue according to knowledgebut there is always more room to anything where we never end.for my personel experiance I will encourage people to take advantage from this.

Gianni33
Gianni33
13 years ago

If prices rise any further, I'd rather move to a different part of the country rather than get strapped down for the next 35 years. But thanks for the "tip", Carey. I'm sure quality of life would be just peachy dropping over 50% of my after-tax earnings on a shoebox in this town.

the pope
the pope
13 years ago

A tip o' the hat to BCubbins for that link. Now don't be wasting your time around here, get out there and BUY SOMETHING!