Download Free mortgage App to get pre-qualified: dlcapp.ca/app/neethu-ryltsev Get your pre-approval NOW: bit.ly/3uV1uAW Moving to Calgary? Looking for Real Estate Agent? Phone: (587) 889-8393 Email: igor@igorryltsev.com igorryltsev.com/contact/ Igor Ryltsev is a Licensed Real Estate Agent with eXp Realty Neethu Ryltsev licensed mortgage broker with DLC Clear Trust Mortgages Inc. Contact neethu.ryltsev@cleartrust.ca or call 587 889 7096.
I have a Calgary downtown condo. Great location, modern building (near where walking), but it has gone down in value from 425 to 350 in last decade. My mortgage has come down too so not a big deal. For me, it’s just the lifestyle, I like walking to work, along the river, concierge, no snow shovelling and similar. Condo fee includes the heating and water too. I used to own a house but I averaged more than that when factoring in constant maintenance. It’s not an investment, but as a convenient place to live, it’s great.
@@mkyhou1160 but the loan amount u paid will be fixed at the time u took the mortgage.The balance to be paid might have reduced but ultimately you will end up paying the same amount and if the property value is less than the amount you paid you will be in loss
@@Simbatalks422 the mortgage has reduced from 400k to 280k so I have built equity even though the house declined in value. That’s normal in Calgary, most properties don’t go up here long term.
Your input is valuable but doesn't take into account several things: 1) The markets are drastically changing nationwide - there's is a massive migration to Calgary on the horizon as the larger cities have become unaffordable. All properties will be forced to increase in price be that house, condo or a rental residence. This shift will have long term effects and the past two decades are not an indicator for the upcoming market. 2) it is often not a choice to get a larger mortgage for a more desirable property with a payment equivalent to condo fees. The banks do not account for condo fees when deciding how much mortgage to give. I am sure that many people who buy condos do so because this is the maximum value of property they are "allowed" to buy. Rent is going up as well, so waiting for better market may not be such a great decision either. At the end, any person should evaluate every option and decide what fits them.
Incomplete information . The condo fees varies from250-700 a month in canada . And those of you guys that are thinking this is not good, just check the amount to own a house or townhouse other than mortgage amount . You will know it will cost more than condo fees😂
u have missed the point, Condos are a bad investment by the time u pay off the junk the fees would be double plus u have no control over ur finances. Condos are for suckers who are easily fooled by gimmick
As interest rates go up - affordability goes down. I think it's better to put off buying any re, unless absolutely necessary, before the end of next year. There will be quite a bit of depreciation on the housing market. And good luck to you, Igor, finding prospective buyers, - it'll be a much tighter market than now
Tighter market is because of interest groups (realtors, builders, developers, investors, banks etc.) unless Govt does proper policy making it will always be tight and will continue to go up. Correction doesn't appear to be huge.
I'm looking at some precon condos, and they all seem to indicate that water, electric and heat are included in condo fees, so even at 600 a month, that probably isn't too unreasonable. I don't ow if older condos have utils included or not, but it's a consideration. No idea what utilities cost in Alberta but in Ontario, water and electric can easily be a couple hundred and gas is an additional drain for 6-7 months of the year.
Isn't it better to buy a cheap condo and invest the money saved elsewhere? condo fess are just normal expenses that will happen in house as well including lost of time doing maintenance.
Can you do a video about the renting market? In other of your videos you recommend renting for at least 1 year to build up your credit score before buying anything, and newcomers come to rent right away with little to no guidance about the things to look up while searching.
Real estate, including houses, is a depreciating asset in "real terms." What do I mean by that. Every year your real estate gets older and shows more "wear and tear" and will need more maintenance and more money invested into it to keep your "quality of living" to a certain standard. Now, the reason why people think that real estate is a good investment is because "it always goes up overtime". Yes, in nominal value, that's often the case but not in "purchasing power." What's happening is that our currency is losing value faster than the real estate. So, it appears like your house is going up, but in reality, it's just money itself being worth less and less. Think about it let's say you had a brand new house built 30 years ago for 100,000K, and now you want 450,000 for it? You let's say did no improvements to it whatsoever just basic maintenance. From the practical point of view this house is less valuable than it was 30 years ago because it is "dated" and shows some "wear and tear". The reason why it's 450,000 is that the same house would probably cost more $ to build today than it did 30 years ago - think of material, labor, etc. The real question is: Does 450,000 buy more today than 100,000 did 30 years ago? If the answer is no , then it was a poor investment - even if nominally it went up. Nominal numbers don't matter. It's your PURCHASING POWER that matters the most. Also, 100K is not your true cost basis. If you did a 30-year term 20% down with 5.5% interest as an example, you would pay 82K in interest and 30 years of property taxes and whatever maintenance you had to do. Now if you sell it for 450K and deduct from it purchasing price, interest expense, property tax, maintenance, etc. - your annual percentage gain or ROI will be pretty low! That's why residential housing (owner occupied) is not an investment but an expense! On the other hand, though, if you can be a landlord and have positive cash flow year after year and you can put depreciation on your tax returns - that's a whole different story. In that case, real estate can be a good investment because it brings you money in. If you are a "private citizen" with a mortgage you are putting away high % of your income towards an asset that's cash flow negative for you. For most people it would make sense to live in something smaller and put more towards investments that will compound over time like stocks or REITs if you want to be exposed to real estate. And condo fees - yes, they can be annoying, but what do they usually cover - heat, maintenance, reserve fund contributions, insurance, sewer, waste removal, water. All of those will apply to your single detached home or townhouse. You will want to insure it, you will use water and heat, you will be hooked up to a sewer, you will need your waste removed. You will have to do maintenance on the house yourself or pay someone to do it. And as for a reserve fund. You will have to put money aside or you will have to get a loan for bigger repairs that will inevitably happen sooner or later. The last point about "recently houses appreciated or hold-up their value better than condos." I call this "recency bias." Expecting that things will always be the same as recently when that is rarely the case. Usually, things like revert to their mean. So, in conclusion, residential real estate owner occupied is an expense, not an investment, and its for you to live in it and if you break even consider yourself lucky! Investments should be cash flow positive from day one and compound over time! What I do agree with is that houses give you more freedom to do "as you please" compared to condos! You have to bear in mind though that those are mostly for people with families. Single people or couples with no kids don't need 4 bedrooms and 3 bathroom houses...
A little caviat about amortization as well. Let's say you bought for 215,000 with 20% down and 5.5% interest. After five years your equity in the house went up by only $18,554 and your interest expense was $44,292. So, if you decide to sell after five years, for example. And you get 250,000 for it - you still don't even break even when you factor in interest expense, property taxes and real estate agents fees that get paid by the seller...
even when you own a house you are paying 500-700 under different utilities as hydro, water, gas, garbage collection, etc. the real problem with condos in Calgary is that their price has remained stagnant or gone negative in the last 10 years. That means a minimum of 20% depreciation assuming 2% inflation each year. Realtors are giving last 2 years data only to buyers which is a malicious act on their part.
Igor, if people can afford to live in such luxury its fine.... ❤ Some people love luxury condominium living, swimming pool indoor, 24 hr door men security... As for the special assessment thats not good for sure! Avoiding a building that has NOT been maintained properly avoid a property there, it wouldn't be for me.
townhouse has condo fee. and downtown condo offers you urbanized lifestyle. and Calgary condo is damn cheap, compared to Vancouver and Toronto. it is a steal right now. thus my opion is yes, you should buy condo, in Calgary.
I was thinking about buying a condo in future due to the low maintenance on my responsibility. I currently rent one and I love the fact that I don't need to worry about any maintenance at all.. no snow removal, no law, no furnace repairs.. not even the appliances. All I need the administration is there to provide. Of course that all this comes with a cost when you are owner (even a renter).. but I'm wondering if that isn't a good option depending on what you value most. Any thoughts?
thank you my friend, you are absolutely right, those condos are money pits, I also want to stay away from those HOA things that even make you change the vehicle you drive in order to make the neighborhood look better.
I'm actually studying the fundamental and residential course at this point and just crossed the condominium unit. I think if I'm not into the real estate course then I'll not able to understand what you say as this information is a little bit advance haha
You, sir, deserve a medal. The concept of FIDUCIARY is lost on realtors/ financial advisors....hmmmmm, ......wonder what that would be...hhmmmmm...could it be SELF INTEREST.....LOL
Hi Igor how are you? My name is Thuy .You were talking about cleaning job I really like to start my own business .Could you help me I don’t know how to start. Can I call you? Thanks
Condos are a bad investment ANYWHERE. By the time u pay of the house those condo fees will be double. The nonsense can increase dramatically within minutes
Condo for those who enjoys metro style life and want walking distance to work in downtown. Otherwise single house makes your life more enjoyable. Of course if the house is in good community
A building that has condos , ownership is individual , meaning each person owns his condo , while in a building with appartments one can not own a single unit but has to own the whole building . this is the difference between the term condo and the term appartment
![Buying NW Calgary Houses for Sale [Pros and Cons]](/img/n.gif)
Download Free mortgage App to get pre-qualified: dlcapp.ca/app/neethu-ryltsev
Get your pre-approval NOW: bit.ly/3uV1uAW
Moving to Calgary? Looking for Real Estate Agent?
Phone: (587) 889-8393
Email: igor@igorryltsev.com
igorryltsev.com/contact/
Igor Ryltsev is a Licensed Real Estate Agent with eXp Realty
Neethu Ryltsev licensed mortgage broker with DLC Clear Trust Mortgages Inc. Contact neethu.ryltsev@cleartrust.ca or call 587 889 7096.
I have a Calgary downtown condo. Great location, modern building (near where walking), but it has gone down in value from 425 to 350 in last decade. My mortgage has come down too so not a big deal. For me, it’s just the lifestyle, I like walking to work, along the river, concierge, no snow shovelling and similar. Condo fee includes the heating and water too. I used to own a house but I averaged more than that when factoring in constant maintenance. It’s not an investment, but as a convenient place to live, it’s great.
How did your mortgage come down when the value came down??
@@Simbatalks422 paying it off over time. When you rent you are paying someone else’s mortgage, when you own it just comes down over time.
@@mkyhou1160 but the loan amount u paid will be fixed at the time u took the mortgage.The balance to be paid might have reduced but ultimately you will end up paying the same amount and if the property value is less than the amount you paid you will be in loss
@@Simbatalks422 the mortgage has reduced from 400k to 280k so I have built equity even though the house declined in value. That’s normal in Calgary, most properties don’t go up here long term.
May I ask which building you're in and if you like it there? I'm looking for a home in the area. Thanks.
Thank you, your videos are always so nice and helpful! Have a great day!
Can you do another video on townhouses with no condo fees?
Your input is valuable but doesn't take into account several things:
1) The markets are drastically changing nationwide - there's is a massive migration to Calgary on the horizon as the larger cities have become unaffordable. All properties will be forced to increase in price be that house, condo or a rental residence. This shift will have long term effects and the past two decades are not an indicator for the upcoming market.
2) it is often not a choice to get a larger mortgage for a more desirable property with a payment equivalent to condo fees. The banks do not account for condo fees when deciding how much mortgage to give. I am sure that many people who buy condos do so because this is the maximum value of property they are "allowed" to buy.
Rent is going up as well, so waiting for better market may not be such a great decision either. At the end, any person should evaluate every option and decide what fits them.
Incomplete information . The condo fees varies from250-700 a month in canada . And those of you guys that are thinking this is not good, just check the amount to own a house or townhouse other than mortgage amount . You will know it will cost more than condo fees😂
u have missed the point, Condos are a bad investment by the time u pay off the junk the fees would be double plus u have no control over ur finances. Condos are for suckers who are easily fooled by gimmick
As interest rates go up - affordability goes down. I think it's better to put off buying any re, unless absolutely necessary, before the end of next year. There will be quite a bit of depreciation on the housing market. And good luck to you, Igor, finding prospective buyers, - it'll be a much tighter market than now
Tighter market is because of interest groups (realtors, builders, developers, investors, banks etc.) unless Govt does proper policy making it will always be tight and will continue to go up. Correction doesn't appear to be huge.
Thanks for the info! 👏
The problem is, if you need to be downtown, you cannot buy a single family home for the $350k you can get a condo for, even paying an extra $600.
I'm looking at some precon condos, and they all seem to indicate that water, electric and heat are included in condo fees, so even at 600 a month, that probably isn't too unreasonable. I don't ow if older condos have utils included or not, but it's a consideration. No idea what utilities cost in Alberta but in Ontario, water and electric can easily be a couple hundred and gas is an additional drain for 6-7 months of the year.
Isn't it better to buy a cheap condo and invest the money saved elsewhere? condo fess are just normal expenses that will happen in house as well including lost of time doing maintenance.
Igor, what about now when properties have values going very high in 2023 in Calgary? Does that outweigh the costs you discuss?
Well said. Igor.. Good video...!!!
It depends u don’t have to clean the snow if u own a condo and i find it much more safe living in condo and less drama
Condo are great that way, but condo fees and condo boards can be annoying.
Can you do a video about the renting market? In other of your videos you recommend renting for at least 1 year to build up your credit score before buying anything, and newcomers come to rent right away with little to no guidance about the things to look up while searching.
Real estate, including houses, is a depreciating asset in "real terms." What do I mean by that. Every year your real estate gets older and shows more "wear and tear" and will need more maintenance and more money invested into it to keep your "quality of living" to a certain standard. Now, the reason why people think that real estate is a good investment is because "it always goes up overtime". Yes, in nominal value, that's often the case but not in "purchasing power." What's happening is that our currency is losing value faster than the real estate. So, it appears like your house is going up, but in reality, it's just money itself being worth less and less. Think about it let's say you had a brand new house built 30 years ago for 100,000K, and now you want 450,000 for it? You let's say did no improvements to it whatsoever just basic maintenance. From the practical point of view this house is less valuable than it was 30 years ago because it is "dated" and shows some "wear and tear". The reason why it's 450,000 is that the same house would probably cost more $ to build today than it did 30 years ago - think of material, labor, etc. The real question is: Does 450,000 buy more today than 100,000 did 30 years ago? If the answer is no , then it was a poor investment - even if nominally it went up. Nominal numbers don't matter. It's your PURCHASING POWER that matters the most. Also, 100K is not your true cost basis. If you did a 30-year term 20% down with 5.5% interest as an example, you would pay 82K in interest and 30 years of property taxes and whatever maintenance you had to do. Now if you sell it for 450K and deduct from it purchasing price, interest expense, property tax, maintenance, etc. - your annual percentage gain or ROI will be pretty low! That's why residential housing (owner occupied) is not an investment but an expense! On the other hand, though, if you can be a landlord and have positive cash flow year after year and you can put depreciation on your tax returns - that's a whole different story. In that case, real estate can be a good investment because it brings you money in. If you are a "private citizen" with a mortgage you are putting away high % of your income towards an asset that's cash flow negative for you. For most people it would make sense to live in something smaller and put more towards investments that will compound over time like stocks or REITs if you want to be exposed to real estate. And condo fees - yes, they can be annoying, but what do they usually cover - heat, maintenance, reserve fund contributions, insurance, sewer, waste removal, water. All of those will apply to your single detached home or townhouse. You will want to insure it, you will use water and heat, you will be hooked up to a sewer, you will need your waste removed. You will have to do maintenance on the house yourself or pay someone to do it. And as for a reserve fund. You will have to put money aside or you will have to get a loan for bigger repairs that will inevitably happen sooner or later. The last point about "recently houses appreciated or hold-up their value better than condos." I call this "recency bias." Expecting that things will always be the same as recently when that is rarely the case. Usually, things like revert to their mean. So, in conclusion, residential real estate owner occupied is an expense, not an investment, and its for you to live in it and if you break even consider yourself lucky! Investments should be cash flow positive from day one and compound over time! What I do agree with is that houses give you more freedom to do "as you please" compared to condos! You have to bear in mind though that those are mostly for people with families. Single people or couples with no kids don't need 4 bedrooms and 3 bathroom houses...
A little caviat about amortization as well. Let's say you bought for 215,000 with 20% down and 5.5% interest. After five years your equity in the house went up by only $18,554 and your interest expense was $44,292. So, if you decide to sell after five years, for example. And you get 250,000 for it - you still don't even break even when you factor in interest expense, property taxes and real estate agents fees that get paid by the seller...
even when you own a house you are paying 500-700 under different utilities as hydro, water, gas, garbage collection, etc.
the real problem with condos in Calgary is that their price has remained stagnant or gone negative in the last 10 years. That means a minimum of 20% depreciation assuming 2% inflation each year. Realtors are giving last 2 years data only to buyers which is a malicious act on their part.
Igor, if people can afford to live in such luxury its fine.... ❤ Some people love luxury condominium living, swimming pool indoor, 24 hr door men security... As for the special assessment thats not good for sure! Avoiding a building that has NOT been maintained properly avoid a property there, it wouldn't be for me.
townhouse has condo fee. and downtown condo offers you urbanized lifestyle. and Calgary condo is damn cheap, compared to Vancouver and Toronto. it is a steal right now.
thus my opion is yes, you should buy condo, in Calgary.
Absolutely right. I don’t know why this guy gives incomplete information in a honest way
U are gullible and dont understand finance
I was thinking about buying a condo in future due to the low maintenance on my responsibility. I currently rent one and I love the fact that I don't need to worry about any maintenance at all.. no snow removal, no law, no furnace repairs.. not even the appliances. All I need the administration is there to provide. Of course that all this comes with a cost when you are owner (even a renter).. but I'm wondering if that isn't a good option depending on what you value most. Any thoughts?
It’s a good idea to buy a condo for personal living not as an investment in calgary.
Good information
thank you my friend, you are absolutely right, those condos are money pits, I also want to stay away from those HOA things that even make you change the vehicle you drive in order to make the neighborhood look better.
Just in time!
I'm actually studying the fundamental and residential course at this point and just crossed the condominium unit. I think if I'm not into the real estate course then I'll not able to understand what you say as this information is a little bit advance haha
The build quality of condos in Canada is a problem. That's included in the low price.
You, sir, deserve a medal. The concept of FIDUCIARY is lost on realtors/ financial advisors....hmmmmm, ......wonder what that would be...hhmmmmm...could it be SELF INTEREST.....LOL
Hi Amigo, grasias por la informasion .
Ha good video. I was about to call you about buying a condo but now I’ll save up a bit more for a townhome. You are such an honest guy.
Hi Igor how are you? My name is Thuy .You were talking about cleaning job I really like to start my own business .Could you help me I don’t know how to start. Can I call you? Thanks
Thank you
Condos are a bad investment ANYWHERE. By the time u pay of the house those condo fees will be double. The nonsense can increase dramatically within minutes
Привіт із Кітченер Онтаріо!
Погоджуюсь із кожним словом!
So 9 months later, have you seen the influx of Ontarians coming here buying the condos?
Condo for those who enjoys metro style life and want walking distance to work in downtown. Otherwise single house makes your life more enjoyable. Of course if the house is in good community
Happy to pay $600+++ to not have to shovel and cut grass
What means of condo
It’s another word for apartment but you have to pay fees at the end of every month
Thank you for your information
A building that has condos , ownership is individual , meaning each person owns his condo , while in a building with appartments one can not own a single unit but has to own the whole building . this is the difference between the term condo and the term appartment
This guy is new in to Realestate talking from his stomach
@@muridpopalzai2324 actually, I was born and raised in Canada. He speaks the truth.
It is impressive how your English is still so average after so many years in CA
In India we pay society fees😂
Lol, this sure aged badly
Игорь сними видео для новых украинцев которые прибывают по куает программе. Как нам снять жильё и чего опасаться. Подводные камни
Fy