I wanted to own an expensive condo - this is what I found

Best investment you can make.


What is an investment, when you are paying out the nose for a mortgage on top of it?


one day, owning means you don't pay for it.renting means always paying for something that isn't yours.


And when house avg. house prices are always going up, it really isn't an "investment" if you're making lateral moves or moving up throughout the same vincinity.

Sure, if you're planning on moving to Sask. or Zimbabwe, you're rolling doe, but otherwise, not an investment, just building security for other loans.

Also, even calc'ing out any ammortization table over 25 yrs. and seeing that you're putting triple in of what the principal is, nobody in their right mind would call it an "investment".


edit: smut put it spot on with his argument!
Good logic. I followed that.In reference to Mr. Galt, I can understand that point of view. However, paying a mortgage rate is essentially the same as "paying rent", an amount you pay renting equates to the amount of a "monster" mortgage is what we are getting at. Good luck trying to sell a home, that you "invested" in and have the mortgage to pay it off. If you were a prospective home investor and you needed to purchase the "home of your dreams" on the condition you accept a mortgage, that is the wrong side of an investment idea.

well, whatever, its your perogative.personally, i like the chance that i could one day make a profit. also, i don't prefer to help others pay their mortgages off.

or help landlords live for free

Hey, owning a home is cool and all (course you really only own it if you've paid it off), but it's not an investment if you're rolling a full term mortgage to pay it off.


I do not believe for a second that Sadie honestly thinks she made a bad investment. I think it is ridiculous, to have made the same move myself. My sense of this (e.g. perogative) is not a lack of ambition, but not being in over my head. I am sure those Flames fans in Calgary thought how good they were, are shitting the bed. Hardly like dealing with a mortgage, even if I could afford the principal.

The principal would be easy, the 66+% an avg household is paying into interest over 25 yrs. is what makes not an "investment".

Edit: I'd like to clarify, I have no problems with home ownership, just calling it an "investment" if there's a full term mortgage involved, I must correct.


What does the principal amount to?


The amount borrowed. 2/3 is just a rough figure base on 7-8% rate (If memory serves me correctly

For example, the avg. house price in Calgary is 350,000 and a starter avgs. 280,000. Lets just say for shit and giggles Bank of Canada doesn't dick around with the rate and keeps it contstant at 6.5% (which, all told, is still pretty reasonable) and you had 30,000 down, how would your moprtgage play out?

Month 1: Opening Principal $250,000. Your first mortgage payment based on 25 years is: $1689 where $1354.17 goes to interest and $334.83 goes to payment on principal, leaving you with a remaining principal of $249,665.17.

Good news is as time ticks the amount to interest will drop and the amount applied to principal will rise, so after 8 and some years its $1117.40 to to the bank an $571.60 to pay down your house.Lesson is: put a big fucking down payment, and pay the thing off ASAP.

Ah. I see what we are talking about.

What area in KW is your house in Sadie? That's not by Forest Hill/Forest Heights is it?

Anywhere but not: hickville, ONT.

what does that even mean [to bigc]

Her new house is not located somewhere near a trailerpark. Good punchline, thanks.

As I've said, when I think about how much money I pay in rent in a year - money I'll never see again - that gives me whatever the opposite of "peace of mind" would be. But like I also said, rent is a plausible option for people who are young, want to keep their options open, have unstable jobs or just really, really don't like the idea of being owned by a bank for 20 years.

Do whatchya gotta do.

between renting and owning? BIG difference - one you're putting the money in your own pocket - especially in the later years of your mortgage and you leave with a house. Renting = you piss away your money so someone else can pay off THEIR mortgage. How is that the same?

Like I said, people pay what I'm paying in mortgage in some places for fucking rent.

THAT'S crazy.

I think I've already stated that owning home is cool. You gain an asset and have something to work towards, but it's not really an "investment" because most people aren't making money off of the things. The banks are.

One of the things that impressed me about this thread, is your knowledge is expansive on the subject. So, I am not playing anyone for a fool, although I do think sadie it is difficult to undertake as justified in making her decision. If someone like me, wanted to buy a condo, how should I buy the thing? It seems like a viable option, considering what property taxes might be? Another consideration, is the amount of interest you owe a bank, if you decided to sell with a mortgage you still owe. The banks owns the right to profit on the value of the home, say if it increased in the value, the interest you owe the bank (based on the value you sold) also increases the interest amount. Therefore, the bank is entitled to the interest involved in you selling the house. Correct?