Originally Posted by av.pallino
First, let me say it's very important to get a good fixed interest loan. Next to put down at least a 20% down payment (so that you always have some equity). It's best NOT to invest in your primary residence as a leveraged short term asset.
So, you're doing the right thing here. I would ALSO add, never ever buy a depreciating large value asset on long term credit. That includes cars and TV etc.
Lastly, why would your assessed value go up IF the market is going down or sideways? I can't think of ANY place where real estate prices are going up fast.
Finally, the sad thing is that the whole bank bail out is designed to allow banks to do the same things that got us in the mess in the first place - cheap money to banks. I guess debt is the American dream now. sadly.
1. The fixed interest offer is only about .6% higher than variable. (that's how bad variable got)
2. I've already got over 25% downpayment ready for the closing, so that's good.
3. 141 is no go for now...
4. Assessed is going up because the 3 (or is it 4) year assessment freeze is ending. Basically houses were worth more than assessed before.
I certainly picked a rotten time for a closing. I signed the agreement in May
when things were good and figured the long wait until January would be cool.
Jokes on me, I guess... this is my first house (after owning a small condo).
Ahh well, this is a 141 thread, so I better refrain from hijacking it anymore. I
just feel like I'm paying for things I didn't do. Heck, houses here in Toronto, Canada
are ridiculously expensive because of the antics of the market. It's very difficult
to own anything other than a condo... and even those prices are skyrocketing!
Anyhow, there's a chance of 10g for me after all... which is not exactly what I want.
I gotta stick to priorities. This seriously makes me tip my hat to you guys that refrain
from hastily making large purchases and, instead, opt for for the greater good of the
spouse and kids.