Actually I’m thinking of getting out of leverage investing. So far I have yet to like it.

Trac,

Don’t look to me to come up with a calculator THAT good. I’m good at some excel stuff, but not that good! Otherwise I agree with your points.

Nobleea,

I do want to downsize later on, so right now this market is more entertaining than anything.

Will,

Ouch. Sorry to hear you got burned already.

Tim

Count me in as one who bought at the peak. Last year the pressure was on to buy sooner rather than later to avoid being pinched by ever increasing property values. All signs pointed to continued growth (around March ‘07) and my wife and I bought in. Unfortunately, as the market stalled, investors got cold feet and flooded the market with product (7-8x the average number of listings I believe). This led to a reversal in buyer/seller relations and forced a market correction.

Our net experience has been a slight devaluation in our current home (from Mar. ‘07 levels – though it appreciated from our purcahse date of Apr. ‘06). Unfortunately, that devaluation will carry into our upcoming mortgage on the new home and result in higher mortgage, longer amortization and increased carrying costs.

Not a pleasant pill to swallow. Our saving grace is that the increase in mortgage payments won’t go up significantly, though we will be paying over a longer period (on paper anyway). The reality is that we will eventually receive monies to cover our mortgage and won’t need to worry about paying it off ourselves.

Regardless, we’re a little more stressed about the move than we’d like to be, and the first year will be tougher than we planned, but we’ll manage. The silver lining is that, should we look to build again, we’ll be making more of a lateral move than an upgrade, and will be more likely to benefit from an upturn in the market (which IS anticipated again between now and the end of ‘09). I don’t know if we’ll take the plunge for sure, but we’ll be watching!

Unless, of course you’re planning on selling or buying in the next little while.

Though home ownership comes down to more of a personal preference than a financial call most of the time, I think another major thing in favour of home ownership is that your obligation ends eventually. Even from your first payment you can feel the end approaching, and it gets closer and closer with every dollar you put toward the mortgage.

I purchased a house last April on the east coast (the real east coast, not Ontario) and am spending a ton more than when we were renting, though for a much bigger place. Having a great set of neighbours, a nice street, a deck to BBQ on , and a yard to kick a ball in have already more than paid for the place. If there are financial advantages, that’s just a bonus, they are not the primary factor in us moving.

P.S. values in my city aren’t going crazy yet, my house was 102K and more than enough for a family of 4, it’s close to a library, elementary and middle school, walking trails, 24 hour grocery, malls, and movie theaters. It wasn’t much of a decision wasn’t we found it and did our first tour.