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Agents put on the defensive

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Real Estate Professional | 22 Jun 2015, 11:30 AM Agree 0
Rising home prices has agents fighting an old foe – the idea that renters will have bigger nest eggs than buyers.
  • | 22 Jun 2015, 05:29 PM Agree 0
    I sold a house last year (2014) for $751,000. The owner bought it 70 years ago in 1944 for $4,800
  • Lawrence Kobescak | 22 Jun 2015, 08:56 PM Agree 0
    Wow. I never read the article so I can only assume the writer actually said let's say your downpayment is $400,000... Your kidding right? If a person saved up $400,000 and they didn't buy a property over the decade or more it took them to save the downpayment, they most likely just lost $400,000 from the price of real estate appreciating over the same period. That's 100%, you do the math writer. Ok so let's say you're taking about the average person who world hard to save up a minimal downpayment. 5% down ($25,000) on a $500,000 home in Durham that has appreciated 10%-15% I just the last year has made a return of 100%-150% in one year. The writer is coming from an incredibly bizarre point of view. One where they have no concept on how to invest in real estate to obtain a high rate of return and from a perspective where first time buyers are walking in with $400,000 cash and somehow are not savvy enough to understand how they got there.
  • adnan kazmi | 23 Jun 2015, 11:06 AM Agree 0
    I agree with lawrence, I think write is working for a bank who is going to pay a commission of, lets say, $500 for this
  • Anthony Fernandes | 23 Jun 2015, 12:18 PM Agree 0
    There may be some truth to this. Forget the number provided in the article but i have heard this argument many times. If the monthly cost to rent a home or condo is the same or close enough to paying your monthly mortgage; then there would be some savings you would not have to put out from commissions, taxes, upkeep/renos, and perhaps even utilities. That savings can go towards your rrsps, reits or any other form of investment.
    It is true that one may never be debt free even in your retirement years; but even with home ownership there will always be a fixed monthly cost to keep it.
    I am current a home owner and have obviously thought about this.
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