First time buyer regrets

A new report from TD Canada Trust shows that many first time home buyers wish they had done things differently.

Despite being the single largest purchase of most peoples lives, research doesn’t seem to play a big role for most first time buyers.

More than half of those surveyed said they would have preferred to have a bigger down payment and bought sooner.

Many first-time homebuyers said they could have been better prepared and more thorough when budgeting, the poll found. Thirty-seven per cent of those surveyed did not budget for ongoing costs such as maintenance and utilities, while 17 per cent overlooked some of the one-time charges like inspection fees and five per cent didn’t budget for anything beyond the down payment and mortgage payment.

That article quotes a mortgage broker who advises that you make sure you’re able to make the monthly payment, don’t worry so much about the down payment or the timing of your purchase.

Some of the extra costs that some first time home buyers don’t seem to be budgeting for are inspection, appraisal, property transfer tax, legal fees, CMHC fees, Strata fees or mortgage rate increases.  Then of course there’s ongoing maintenance and insurance.

I suspect a ‘bigger down payment’ will always be on the wish list, but if the Vancouver market does the bubble pop dive you may see the ‘bought sooner’ wish drop right off there.

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Devore
Member
Devore

Some of the extra costs that some first time home buyers don’t seem to be budgeting for are inspection, appraisal, property transfer tax, legal fees, CMHC fees, Strata fees or mortgage rate increases. Then of course there’s ongoing maintenance and insurance.

The strata fees are kind of a shocker, as it’s no mystery every condo has them, and everyone complains how high they are. It’s also something omitted from the “own for less than you’re paying for rent”-style marketing.

HipsterBear
Guest
HipsterBear

37% MIS-budgeted maintenance, now figure how many bought new or near-new and wouldn’t have much maintenance for the first few years anyways. So the fraction who bought “good” or less condition who got blindsided is probably over half.

Original flooring- cool. Getting rid of creaks and water damage in original flooring- not as ironic as I hoped.

G
Guest
G

I like Ian Watt’s video. I watched many of them. The last few ones are mostly about “suggesting” changes in market. The newest video just “begging” sellers to drop their price.

http://www.youtube.com/watch?v=ruBkG47kLCQ&feature=player_embedded

GonePeteTong
Guest
GonePeteTong

@G Yeah me too… at first I couldn’t stand him. Now I find he provides at least another little window into what’s happening on the ground.

Islander
Guest
Islander

http://news.ca.msn.com/top-stories/45percent-of-canadians-have-no-emergency-savings

I’m wondering what they mean by ‘no emergency savings’ . My guess is that they are only factoring cash on hand in savings/chequing accounts. Many have rrsps or have equity in their home they can withdraw. If someone is truly desperate they can sell their car or visit the pawn brokers or money mart or borrow from friends and family.

Anonymous
Guest
Anonymous

@G:

The number one reason your Vancouver condo is not selling is because it’s overpriced.

Wish he would rent our some billboards to say that instead of just posting videos on YouTube.

patriotz
Member

@Islander:
“Many have rrsps or have equity in their home they can withdraw.”

Nobody has equity in their home they can “withdraw”. A home is not a bank account nor is any other asset one might use for collateral. Borrowing is borrowing. You have to pay it back.

That’s exactly the fallacy that got so many people in trouble in the US and is getting so many people in trouble in Canada.

As for RRSP’s, note what the second “R” stands for. That’s the purpose of the account, and people who use it to pay for current expenses are going to be in trouble later.

registered
Member
registered

@5 Islander: Forced to borrow is the definition of ‘no emergency funds’.

Anon
Guest
Anon

News Flash: people are dumb. Carry on.

Bo Xilai
Guest
Bo Xilai

@G:

Ian Watt Video… He tells Vancouver condo prices have “plataued” at a 5% loss yet tells owners they should further knock down the asking price of their “VANCOUVER CONDO”.

How does one square that circle?

VMD
Member

in other news:
Squamish just lost its only movie theatre
“talking about turning the lobby into a dollar store…
That a town of 17,000 residents or so is unable to support a movie theatre is either a strong indicator of how tough times are or of how shitty Hollywood movies are these days.”

SunBlaster
Guest
SunBlaster

I think everyone is smart about something, maybe two things, but its imposible to be smart about everything.

Anonymous
Guest
Anonymous

@SunBlaster: stupid bears said they are smart about everything! But, they could not survice in one city, they just keep moving around and make their own situation worsen.

Anonymous
Guest
Anonymous

@VMD: why are you so dumb? it’s not 17000 cannot afford movie tickets. it’s cuz they enjoy their surround sound system in the comfort of their homes.

GonePeteTong
Guest
GonePeteTong

@Bo Xilai

Whenever I hear anyone in the real estate industry say “plateau” I mentally translate that into: “Prices are falling but don’t panic” or “Hopefully prices will only fall in real terms”

VMD
Member

August 9, 2012: Canaccord Financial slashes 76 jobs
Canaccord Financial says it has cut 76 jobs as part of a move to slash costs as it swung to a loss in its fiscal first quarter. The financial services company said Wednesday it lost $20.6 million, or 24 cents per diluted share, in its first quarter of 2013.
That compared to a profit of $13.2 million, or 16 cents per diluted share, in the year-earlier quarter.
Canaccord is an independent, full-service financial services firm, with operations in wealth management and global capital markets.
(Canaccord is based in Vancouver, BC)
http://www.vancouversun.com/business/Canaccord+Financial+slashes+jobs/7062896/story.html

Anonymous
Guest
Anonymous

@Islander: “someone is truly desperate they can sell their car or visit the pawn brokers or money mart or borrow from friends and family.”

Or go into prostitution, or sell an organ, or rob a bank. What’s the problem?

Anonymous
Guest
Anonymous

@VMD: “how shitty Hollywood movies are these days”

Amen brother!

gokou3
Guest
gokou3

“That article quotes a mortgage broker who advises that you make sure you’re able to make the monthly payment, don’t worry so much about the down payment or the timing of your purchase.”

So, cause they have more difficulty / take longer getting the loan approved if you can’t show them you can make the monthlys! Don’t waste their time!

Regarding whether you need to buy mortgage insurance (with low down payment) or whether you will lose money later (timing), they don’t give a damn.

Anonymous
Guest
Anonymous

@Anonymous:
“Or go into prostitution, or sell an organ, or rob a bank. What’s the problem?”
is that how bears make their money? no wonder they voted your post up.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

Still waiting for the crash…

bullshit
Guest
bullshit

we all should have bought sooner eh

Makaya
Member
Makaya
Check out this comment posted on the Sun’s article “First-time homebuyers wish they had a second chance: report” During the downfall of 2008, I was hoping the market would crash, so I can afford to buy a home in Vancouver westside where I grew up. Suddenly, I see the light. Me and my employees pool money together and purchase 10 condos for $250 – $350g and rent them out. By early 2009, the market was rebounding. Fist time buyers entering the market. We started to use the rental money to finance detach house. We were able to finance 5 and also rent them out, renovated them. as first time buyer market gets hot in 2009-2010. We sold those condos and houses to finance purchase of homes in Vancouver westside. Most of the condo almost double their value and 35%-55% ROI… Read more »
mattymatt123
Guest

@Makaya: Yup, that about says it all! That’s why we are in this mess. Greed!

Shizelle
Guest
Shizelle

Hmmm….

The language, grammar, tone and content of that comment sure sounds like something that would come from a “particular” real estate forum…

The naivety is overwhelming…

Yes, “lets rally together” because it’s your “patriot duty” to protect home values….

Sounds like someone learned a lot under Chairman Mao’s reign…

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