Thursday, July 1, 2010
Happy Canada Day!
It's been a long absence I know. It's just been hard to sit down and blog. Then when I finally get a chance to sit down, there is so much to catch up on it's hard to pick what to write.
Hope everyone is having a great Canada. I spent it getting some much needed sleep and catching up on chores around the home. We are going to see fireworks later. I've taken tomorrow off as well. Because I need it and I have plenty of vacation time owing. I'm driving to visit Sis for the weekend. She wants me to help her and Bil look at a condo they are interested in investing in. Apparently it's a screaming deal.
I'm not sure about her city but there is definitely an over supply of condos in my city. I've also heard that her city lags mine about 6 months when it comes to real estate so wouldn't it be better to wait? Also, in the last year, they have invested in 2 condos developments already in other cities and they are looking at a cross-country move next summer. I know they are considerably higher income than me but I can't help but think they may be overextending themselves.
Yes, I understand that the idea is to rent out the condos when it comes time to take possession so the rent covers the mortgage, but who knows what the rental market will be like. What will they do with 2 mortgage payments (or 3 if they buy a place in the new city or 4 if they buy this other condo as well) plus expenses in the months the condos may have to be vacant?
They are both smart people so I'm sure they know this. However, I've seen their impulsiveness first hand so I'm not sure how thoroughly they thought about this. For example, one of the condos they bought in a weekend. And when I was looking at places, it happened more than once that Sis wanted to buy the places I looked at for investment before I event decide if it's worth being short listed.
I'm not sure what I will say about this on. However, one thing I've learnt is that so called 'screaming deals' are everywhere. You really need to be selective about which ones to go in on.