I recently talked with a new home buyer. He has many concerns for his family and his financial position. Like all major decisions there is uncertainty, but adequate expert opinion and up-to-date information should help to erase the anxiety.
Hi Jason,
Thanks for your message . Be sure to call your lawyer and get his take on the joint ownership matter. No need to wait if he has the info you asked for regarding the Condominium management portion of the property.
The best advice I could have offered back when the tech stocks were booming, had I known you then, would have been to buy real estate in Ottawa. I did this for myself and for my children over a period of many years beginning in 1989. We own four houses now and I’ve sold three . These investments have netted over a million dollars where as, my tech stocks lost more than a hundreds thousands dollars! You lost a lot of money in the stock decline, right? It hurts to loose hard earned money!
If is was 2005 I would have said the same thing. You were renting back then. The average value of a home was $244,000. Today the average price is $370,000. We are still talking about the average price home as back then! Value increase. It is a simple truth.
The house on Strongnet cost the sellers $248,716 on March 18, 2008 and the highest price paid for a unit with an additional bathroom in the first level was $349,000 this year. I’d suggest that buying real estate especially one you can live in is the first and most important step in wealth creation.
Do you recall I indicate that buying additional properties in the complex and rent them out would be smart if you had the down payment available? The true value of investment is apparent when you watch the investment grow year after year and the rent pays off the mortgage interest and principal. Taxation on a rental investment is favourable as well. There is simply not much choice land in the centre of Ottawa to build on. Land and housing will continue increase in value.
I predict your Strongnet Pvt investment will be valued at $600,000 in ten years; 2022. Seems improbable now but history has proved this to be true. I would have said the same of the current owners. Their house has increased in value nearly $100,000 in four years. Good investment! When you think about it, inflation has kept pace at about 2%. So you could make a reasonable judgement saying every year their investment increased $25,000 or about 10% per year. Renting is great if you need to buy time but you actually loose investment opportunity in a major way when you rent!
There really isn’t much holding back on finalizing your sale. Many many people are fearful when they purchase their first home. It is normal to feel that way. Ask your brother how he felt when he bought his first house. This home is a good personal and financial investment. After all, you can live in it and enjoy it, watch the community develop. You don’t have to worry about anything except walking away and loosing a great opportunity. This is a corner property and corner properties usually sell at a premium. I am absolutely certain someone else will buy it and you will have nothing. Move forward.
I’m available to talk with. Call me.
Best wishes,
Martin
