The RIGHT time to buy a house | Big mistake 🏠👀

We talk about the biggest mistakes most first time home buyers make when buying / planning to buy a house. We also talk about the interest rates and it's impact on the market / nome buying and talk about the RIGHT TIME TO BUY - today or 6 months from now.
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[@akv9654]

While the prices have come down a bit in the last month, the market is still recuperating from FOMO prices and has a long way to go. Buy only when prices drops down to value based levels. Stop throwing away your hard earned money on over valued shoe boxes. Let’s not ignore RBC’s forecast of a 23% fall in house prices over the next year. We should ideally not be taking advise from anyone who stands to gain from house sales. Like the excel calculator.

[@manishdewan7903]

Uve taken a very simplistic view of the whole situation. A new buyer is buying a property at all time high prices and if this was not enough the rates have started rising from 5000 year low. It's never about if u can currently afford or not, as u said it's a 25-30 year commitment. Raising interest rates has its own set of Domino's, rates rise to cool inflation, this also has effect on slowing down the economy. If the economy slows down considerably due to further rate highs, it has its effect on job market. The whole global economy is just trying to come out covid effect (slowdown) and these rate increases will certainly not make things again. In past couple of years the property prices in North America's region is up by 30-40%, this is not normal. This buying frenzy has a lot to do with speculation, I mean you urself have leveraged urself into buying 3 properties and ur still a newcomer to this market. Think how much the experienced lot are in this game. There is an old saying prices goes up the staircase and comes down by an elevator. I'm not professing that prices would crash 50%, just that things are way overheated and people are leveraged in this sector to the brim. One can certainly wait a bit for things to calm down and rationality to prevail.

[@Potatotalkies]

For sure, agree! All I am saying is buy what you can afford, when you can afford - esp if you are buying your primary residence. I am not a huge fan of timing the market.

[@techthugs]

Hey how about 5 months from now interest rate will be 3% , people will start listing more houses, same process will continue and house will even be lower price. I would suggest to wait for 6 months. Interest rates are increasing and will continue to increase this year.( thats for sure, its linked to inflation) The interest rate will fluctuate for both someone who purchased for 1000K and someone who purchased for 800K . which case you want to be? Also Guys people who work in real estate have vested interest to keep the market going, be smart. Other factors that involves buying a house is Income stability/need and other factors are fine for you.

[@techthugs]

I agree with the other factors added in the second half of the video.

[@Potatotalkies]

👍

[@papajohn325]

Ye kitni achi baat h k hume ghar bethe kitni info mil rahi h. We should keep these two in our prayers for sharing quality info and maintaining utmost transparency. Love you guys🥰.

[@Potatotalkies]

👏👏👏

[@shubhamchugh4480]

When you will be a net buyer of an asset for 30-40 years, the lower the prices get the higher the benefit to buy more. The prices will fall and increase based on macro situation. Timing the market and bottom fishing are very tough. The higher the interest rates go depending the inflation the lower the asset prices historically go. But buying and holding good assets like a home for living for the long term is most suitable for most. Thanks for the content.

[@Potatotalkies]

👏👏👏

[@lalitakeswani1257]

Amazing detailed video with absolute practical sense. Thank u for sharing your experience and wisdom. It definitely helps. Take care

[@tracerbullet1964]

You’re right for the most part. However you’re missing two points. 1) interest rates will go up at least another 1.25% as per boc. 2) that rate increase will lead to a further price drop. These two points are pretty much guaranteed. Wouldn’t the same 3k per month buy you an even better house in 6 months?

[@Potatotalkies]

Maybe, but what if the price doesn’t drop? There are no guarantees when the govt is able to print money at will ;) So buy when you can afford! And keep for 10 years - might drop for a year, but long term, you will win

[@tracerbullet1964]

@@Potatotalkies it’s possible but i’m looking at affordability and it seems that detached homes in GTA and beyond are mostly unaffordable for most people esp immigrants. I fully agree with your 35% rule and going by that logic you need about 275-300k of income to sustain a million dollar mortgage which at today’s rates MAY get you a semi detached in GTA. It is this equation that has me convinced that the fall is going to be nasty and we could touch early to mid 2020 price levels. They said the same thing for the stock market as well and today a lot of stocks are down over 50-80% (netflix, roku, paypal, square, zoom, okta, crowdstrike- all big names). Some of them are touching their covid lows. Inflation is here to stay and if they print more money it will cause even more inflation. As per BoC overnight rates will touch 2.5% or so and that means we have another 1.5%. Which means variable which is at 2.05 will touch 3.55%. Fixed will be 5+. That brings affordability down by approx 20% is my guess. So at least 20% drop in prices and that’s without factoring in market sentiment. I’ve been looking for a home for the last 6-7 months and losing bids. Being a first time buyer i’m very nervous about going in now esp looking at these data points. Being in this industry, you’re obviously aware of mortgage frauds (brampton loans) and people borrowing well beyond their capacity. Forget interest rate hikes. Living costs are up at least 20% due to inflation. That will surely have an impact. It was all these factors that led to 2008 in the US. I suspect it’s going to be just as nasty for us esp in suburbs. My 2 cents. Happy to discuss on call if you want to. Would love to have a healthy debate.

[@manaskar6389]

@@Potatotalkies have you analyzed the ‘89 to ‘99 decade? People lost hundreds of thousands even waiting 10 yrs. People need to plan for inflation and Only buy based on value. Don’t depend on govt printing money.

[@AmandeepSingh-cv5qz]

@@tracerbullet1964 with all that knowledge you can start your own youtube channel buddy

[@Tigerstyle22]

Even with the current situation, the housing prices are still not justified and are still on the higher trend (though not as crazy as it was few months back). In my opinion, one shouldn't restrict himself/herself on this 35% rule. The threshold could vary from individual to individual. One wouldn't want to miss the bus, sticking to 35% rule. For sure, one should hustle to make the ends meet and keep the threshold low.

[@Chandu-zh7xo]

Very true, we find no house in the range of $700k in the market. Only option I see is buy later when you earn more

[@LifeAbroadtanya]

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[@manaskar6389]

You want to make sure the “bus” you don’t want to miss doesn’t turn out to be the “Train to Busan” - look up the movie if you haven’t seen it 😉

[@selfamit208]

amazinggggggg navjot...full of matured decisions man...i love ur videos..will buy a house with ur suggestions only one day..keep it up!!!

[@sohamvyawahare6492]

Amazing video! This helps a lot. I wish realtors, banks and other folks were as honest as you are.

[@dhruvduggal7156]

Don't you think its little bias that you are giving this opinion of buying property since you are in this industry and will be a proponent of the same. Bring in a neutral guy to share his views

[@Potatotalkies]

I repeatedly said to not buy if you can’t afford 😀 I have been saying that when I wasn’t a mortgage broker :) Where is the bias? And my opinions are based on my research and experience! People buy in FOMO, they should not!

[@samphilip1651]

Seems like you didn't understand what he's saying or you didn't watch the entire video. He's made it very clear, buy a house ONLY if you can afford it (35% rule). Other realtors won't be telling you this.

[@manindersaini0uils]

His is a biased guide. Perfect example of manipulative marketeer.

[@amrendrathakur3716]

@@Potatotalkies that’s besides the point brother, this video should have a disclaimer, you are industry and conflict of interest is thus inherent, regardless of your opinion/advice. Legally there should be an intro stating that you are “xyz” ❤️

[@samphilip1651]

@@amrendrathakur3716 sorry to interrupt, but I really don't understand what the fuss is about here. He's clearly mentioned don't buy a house if you CANNOT afford to buy. What's the conflict of interest in that? He's even given an affordability calculator for those who don't know if they can afford one or not. He's doing the exact opposite of what a general realtor would be doing, in my opinion. Here, he's sort of spreading awareness of not falling into a trap of buying when you cannot afford it.

[@AkashSingh-ml6fk]

Ya, except that variable rates are going up even more and no one wants to catch a falling knife.

[@ukshandilya]

You have always been so informative, transparent, and convincing. Keep it up!

[@BrotoBhattacharjee]

This is one of the very best advice that Navjot gave.

[@nerissa5857]

I agree Navjot and thanks for a great video and all the info.

[@my121centss]

Thanks for sharing your inputs so honestly!!!

[@OleCanada]

Fantastic video. Great content towards spreading financial education and understanding concept of affordability. 👏

[@Potatotalkies]

👏👏

[@nochannel7100]

All your calculations makes sense, rule of 35 as well, but then Navjot paaji you missed a big point and that is Over asking on properties. So if you target a house which is listed for 700k, there are very very thin chances that you get for the selling price.

[@Potatotalkies]

Bid on the one that will go for 700K A good realtor will help with that for sure

[@sajjadgolfer]

Nice Video I bought the condo 2 month ago and now interest rate has gone high and valu of the property Is not same as people are buying condo in same building lesser price then mine and I am gonna pay almost 65% pay ment of my income to my morgage . Which is sad. U r right we don't have to buy house if we can't afford

[@khyatiyadav7378]

great explanation paaji. Thankyou for sharing

[@chandreyeehmenon9172]

Excellent video. Thank you so much for sharing your knowledge and making our lives easier. Your explanation is crystal clear and absolutely logical.

[@ans512]

Brilliant video mere bhai......Very genuine and practical.

[@Potatotalkies]

👍👍

[@justforlife4322]

Amazing Perspective Navjot. Thanks for sharing. 🙏🤟 You are doing great content for home buyers in general. Appreciate it.

[@sunitaduggal3290]

Very informative and best advice 👍👌

[@shivamgirdhar5608]

It is not the interest rate, it is the cost of property and yes with this crazy market, interest rate does matter coz of property rates.

[@13Chahal22]

Great Video - Informative and very well explained as always. God Bless.

[@srmashwani]

In your example, you should have explained breakup of $3457 monthly payment. I mean how much interest and how much principal you are paying and after say term of 5 years, how much principal will be left. Only monthly mortgage payment can’t explain that $100 saving is there monthly.

[@777MrSARTHAK]

Amazing explanation. Thank you for your efforts for sharing knowledge with us.

[@allitm4642]

Look forward to your videos on EQ bank products as well as how to invest in bank stocks. Also, how does one (not first time home buyer) purchase a home if they've gone through Bankruptcy (due to Emergencies)? Keep up the great work Navjot and Simran 👍

[@VP-gj6yz]

Sardarji you're doing a very good job.

[@dennisphilip7596]

nice video on property buying

[@bhaskarbhattacharya8113]

The point you made in this video is One of the most sane advise , one can have on home buying 👍

[@Potatotalkies]

👏👏👏

[@akshaynea]

Great video Nav! I enjoy watching all your videos so please keep making such contents. Two questions for you: 1. Whether a first time home buyer go with variable interest rate or fixed interest rate? 2. The extra income from Uber eats or Door Dash, how to declare it to CRA cz i think it gets directly credited without deducting taxes? Looking forward to hearing from you 😊

[@Potatotalkies]

1. Depends on the situation; but looking at today’s scenario - variable makes sense for most. 2. You need to file this income under self employed T4A - talk to an accountant :)

[@sandyds6895]

Very informative superb content

[@vinayvarghese9426]

Housing prices is out of reach for many young canadians now 🥵. Bilkul RIKS nahi lene ka 😁

[@ProfAA-z9u]

Great.. ur story telling skills are very good. Of you havent done CFA .. do it. Atleast part 1 only.

[@sainitheknightrider6891]

Numbers are the best way to see the trend and predict future movements. Very well explained Navjot...

[@Potatotalkies]

👏

[@Reddylion]

Nice

[@gouravchoubey860]

Hi Navjot, Very nice info How should we decide on amortization, if we take 30 year then monthly payment goes down greatly and if we opt for biweekly payment then it further goes down.

[@richardohinds9150]

Great video, this is very deep. My question is this, how do u finance your cash while working on a downpayment? Do u believe in putting your funds in S&P 500?

[@anup9034]

I like to keep my downpayment funds in a High Interest Savings Account (HISA) - Eq bank. I do this since my target date of purchase is within 1-2 years and investing downpayment in stocks is risky as per my risk tolerance. If my target date would have been around 5 years - 10 years, I would have invested in a Growth ETF like XGRO, VGRO (80% eq, 20% bond), if target date was about 10 years or beyond, would have invested in SPY (S&P500) or 100% equity ETF like XEQT, VEQT. This is just me based on my risk tolerance. Each person is different and since this is personal finance, it can be different for everyone! Good Luck

[@Potatotalkies]

Agree with Anup. If I am buying within 1 year, I just keep it in my EQ

[@tapojitroy77]

Very informative. Thanks

[@saurabhparandekar89]

Great explanation. Always love to see the laptop view. Great work Nav, Thanks for the awesome help you provided to me, 5 min discussion regarding refinancing and saved lots of money for me.

[@Potatotalkies]

Thanks Saurabh :)

[@purushottamkumar9732]

Amazing explanation !!!!

[@saurabhbabbar2631]

Great content. Nicely explained ✌️✌️

[@shaileeagrawal9166]

You should also tell how much of the monthly EMI goes towards interest and how much goes towards loan so that people know they build their equity after a while! Also, in Canada noone keeps a home for 10 years. They are always flipping on renting :D

[@Potatotalkies]

The appreciation of the house over 10 years trumps the pay down differential due to interest rates by a mile :) Seasoned investors rarely sell! Buy, borrow, die :)

[@shaileeagrawal9166]

@@Potatotalkies whether you’re a seasoned investor, first time buyer, second time or third they keep buying, flipping, selling, renting but don’t keep for 10 years for sure 🙂

[@saleemakhtar87]

Good analysis and computation.....

[@shahwaadkhan675]

Best advice Nav 👌

[@lavish532]

there's a slight difference I've seen here. Most of the financial experts say the 30-35% rule to be of your gross income and not after tax . Can you shed some more light

[@Potatotalkies]

If you want to truly enjoy life and invest your money, I think you should look at net income :)

[@ramakrishnang55]

Thats what I also thought. 35% of net income looks very conservative. Agreed it is a 25 to 30 year commitment. But in parallel our income also will raise easing pressure off the payments down the years. Only the first few years will be tight.

[@Potatotalkies]

@@ramakrishnang55 I would rather buy an invest property with the buffer income But every one is different :)

[@MohsinKhan-ez1dw]

(UGC )University Grants Commission of India new notification has come that you can do 2 degrees simultaneously, so please make a video on it that how can we increase CRS score by doing 2 degrees simultaneously

[@siddhantwadhwa198]

Great explanation! Are you well versed with US Housing Market or have suggestions for Realtors in New Jersey who can provide this transparent guidance to us?

[@guruinibm]

The 32-35% rule is valid. It’s safe bet to buy home only when we can afford it. The intentions are good and clear.

[@salujasaurabh]

its better government should do something about realtors board to Stop blind bidding keep it open just like Australia , realtors tend to take undue benefits

[@gamerstv2444]

It's the best time to exploit the panic Sellers..

[@Potatotalkies]

I won’t say exploit :) but yeah, it is a golden period for people who can buy.

[@CreativeReaper90s]

Though I don't particularly like this saying but for this particular comment I would say this fits perfectly...it's a wall street saying 😅😅.. "Let's go fishing when there is blood in the water"

[@safiyas.2546]

100% and I keep telling my husband the same thing - get better jobs and side hustles lol make more $$$ lol

[@CreativeReaper90s]

Hey, Navjot Bhai I do have a suggestion can you make a video related to RRSP or was it RRSV not sure which one is the correct one and heloc n how they can help home buyers... would greatly appreciate it 🙏🙏🙏🙏

[@nipunrajsingh]

Keep it up 👍

[@dsinghr]

How did we come up with 35 percent number?

[@lovelinkumar9938]

How can person buy a home if he/she works on minimum wage earning $3.5k a month? According to your calculations, that person is not able to afford. Please elaborate how can that person be eligible for mortgage nd be able to buy home. Thanks

[@Pradeep.Singh.d]

hello sardar ji please make some more videos on how to go canada from india. please make videos for 35+ PR options. that would be really great.

[@anildaita]

so many people reached out to me - good strategy to generate interest. Average mortgage agents were not getting any calls these days!! 😂😂

[@Reddylion]

Bank ki math suno bada bada....hmm 👍

[@shubhamb264]

What is the concept of max 400$ per 100k which most of the realtor say

[@harjotsingh2379]

Paji tuhanu kisse naal koi matlab nhi hai, ehh sab tuc jaan ke paunde ho kyunki tuhadi apni halat kharab ho rhi hai, tuc property buy kitti hoyi hai mehnge price teh naal tuhada loan chal reya hai and hunn market jaa rhi hai thalle and tuhanu tension hai ki hun tuhadi property ghaate ch teh vikugi and ehh ghatta tuc jhel nhi paoge

[@suchitkulkarni3421]

Need to book appointment , not getting link in description

[@Potatotalkies]

It is in the description. Thanks

[@workpulkit]

How to contact you for buying a property?

[@Potatotalkies]

Do book a call from the description 👍

[@ranjandudeja1984]

Just want to know.. What's the price of a 2bhk apartment.. I mean what's the range

[@Potatotalkies]

Depends on where you are buying. In Kitchener it ranges from 600K - 700K

[@ranjandudeja1984]

@@Potatotalkies this price is for fully furnished or unfurnished

[@lifeindubaiindia1700]

Too much into real estate investing has proved dangerous historically..look around for other alternatives as well..you guys are overworked it seems already..

[@dhruvtrehan1]

And what about the impact of nri tax on real estate holding which has been increased to 20% and in many areas its straight 0 to 20%. What about house flipping taxes proposed?? You missed these points which would definitely lower the prices

[@VP-gj6yz]

The economy is going to crash... Houses will come down by 30 % in next 2 years. Buy it then...

[@Potatotalkies]

Love your optimism. Timing the market is impossible and has taken many people down :)

[@VP-gj6yz]

Housing prices are going to come down by 30% in next 2 years.

[@Potatotalkies]

Sure 👍 How about the next 30 years?

[@swastikrajghosh]

First ❤️

[@ZeeMan2.0]

Om g paa ji

[@rohanbajaj2438]

Bhai , I know you will buy 5th one soon . 😂

[@vineetvaid831]

Hi Nav, Nice to give view on Mortgage shouldn’t cross 35% or max 40% of new take home !! Concur this approach. Regret there reality is different specially related to household debt and property prices. Although I am a new immigrant and would be landing somewhere June ! Have done some pre landing research specially on Real Estate there as here in india I am here handling Mortgages delhi/ncr with bank for quite some time now.. we keep doin research how property mkts are faring across..specially west…there is no logic which supports such price to value at moment there. Few insights were u also pls let me know real perceived value bcz data show’s a scary scenario at-least for time being. Canadian housing mkt is one of the highest inflated MKT across globe which can have it’s own repercussions in terms of cooling off further. Latest data shows Mortgage debt is all time high @96% of canadian GDP which is way above average debt of max 50% even in west. This is calling for over leveraging big time and with inflation catching up it it set up for further correction as income’s there are not catching up same way prices have increased. 2) Value of Homes 300 times of canadian GDP which is unattainable in real world . Kinda steps govt is taking there is to discourage more investments or obnoxious bidding to curb demand & dats right . 3) Inflation will peak all time high by late 22 which would affect daily meets thus housing at such wouldn’t make sense for many. 4) I have heard lot many talking abt Lots of new immigrants coming but what study we have founded only 30% can afford DP when they are coming with savings bcz at such prices and with even 80k CAD avg household income buying up at such prices not viable at all. Nut shell seems It’s time to wait At least for those who doesn’t have spare money to absorb correction. Regards

[@vaibzz17]

Hi brother we are based in waterloo How can i contact you?

[@Potatotalkies]

Link in the description

[@vaibzz17]

@@Potatotalkies done

[@TheMonodeep]

Sir, how do I add you guys in LinkedIn?

[@Potatotalkies]

Navjot Bindra

[@TheMonodeep]

@@Potatotalkies Sent you a connection request. Thanks. Hope to speak with you more