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05-25-2013, 01:56 PM
  #37
InglewoodJack
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Join Date: Jun 2009
Location: Châteauguay
Country: Canada
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Quote:
Originally Posted by Oleg Petrov View Post
Here's the problem you are only using 20 years worth of data. 2000-2013 has seen the highest average appreciation in the history of the statistic. Average Homes are no longer affordable for the average income, thus meaning they are over-priced and will have to be corrected. Some cities will be hit harder then others (TOR, CGY, VAN).

As for Montreal, I feel that when prices began to increase here in 2000 they were already under-priced which has created a buffer, I see a more levelling off effect, but it depends on what you own. If you own a condo, forget it, that will depreciate. However, if you own a nice piece of property with a house or a duplex that will maintain it's value (but will not rise like many "expect" them to as based on the last 15 years).
I did only use 20 years of data, but my point stands: the value of your house should increase over the years. But like every investment, there is risk. You could buy a house, and your neighborhood could get crappy, there may be some unforeseen events (Ex. property in Chateauguay drops when the mercier bridge is closed, but shoots up when it gets fixed). Condos will also most certainly rise, depending on where you buy. Do you think a nice downtown condo is going to depreciate? Will a condo that costs 850 000 today cost 500 000 in 20 years? 200 000 in 30 years? No. With good upkeep, your house WILL rise, unless like I said, something out of the ordinary rises. And I can guarantee your house will always rise. Hell, my dad's childhood house in NDG was sold in like 1975 for 13 000, and we almost bought it back in 2009 for 298 000. Yeah, ~35 years and the effects of inflation do contribute to that, but houses have never not raised in value. Year to year they may drop, but in the long run your property will always rise in value (of course unless you own a factory or whatever)

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