Happy Saturday Norm and Tina; this is one of the most informative videos you’ve done so far. Such a critically important message with house prices falling the way that they are. Thanks for always being on point and clearly addressing current and relevant issues. Enjoy the beautiful weekend weather. Cheers!
I absolutely love you two sitting down and having a coffee/tea and a snack, makes me feel like I'm sat across from you having a good old chat. Watching your very first video during covid did aspire us to sell our home in Ontario and buy a condo in Edmonton where are children and grandchildren live, we was going to sell in spring but I thought we should sell after Xmas before the market got saturated which for us was a good move, it's been a little stressful awaiting the oas etc but it as finally been resolved, we love our condo out here and thanks to you guys, we are now living our retirement. See you next week x
That’s wonderful Lynn we are so happy for you we too are near our son and grandchildren which is a big plus in also enjoying our retirement. We will add that having bought a trailer has also given us experiences that we could not have imagined. Yes when the OAS kicks in life is good Cheers 🍷🇨🇦😎🌺
Offers should always be subject to loan/finance approval! That’s just common sense! I have never made an offer without a finance clause, regardless of pre-approval status!
Here (in Denmark) the buyer usually has a lawyer go over the contract and the lawyer will insist on clauses for stuff like a building inspection and financing. Additionally there will usually be a fallback clause stating that the purchase is contingent in the lawyer approving it. And the lawyer will make sure everything else has fallen into place first.
I never thought the home prices in my area would ever reach the prices people were asking. You were smart to do rent CONTROL. I would never consider personally, renting ever again. Glad it is working for you both. I did put my kettle on. Great show.
Thanks for watching Barbara, we always had a plan to sell our home 🏡 as we retired , when a person we met told us about how he had sold and then rented while investing the money 💰 we were so curious after looking into it , it was an amazing idea and we have never looked back especially with rent control .Have a great week Cheers 🍷😎🌺
Good stuff. We down sized a year ago. We sold for 20% over appraisal and bought at appraised value. We were able to do this with a bridge loan which allowed us to get a new home and the ability to get up to 6 months in our existing home without making monthly payments on our existing home. Good news is that both closings were within a week of each other and got a 3% mortgage.. This allowed us to add to retirement savings and we used part of the funds to personalize our new home. We no longer have the responsibility of maintaining, heating and cooling a 3500 sq foot home. Our costs are substantially lower and we contine to maintain the same income which increases retirement savings. Our retirement target date is in 4 years. Some may wonder why we keep investing in a down market. We are buying at lows which will recover and have greater returns with time.
Thank You! I saw this all coming 3 years ago so we bought our smaller rural home far below market value and paid cash. I waited just a bit until we heard interest rates were going up, I priced my large home just a little below market value and boom got the offer, signed the deal fast with a quick possession date for the buyer. The down sizing is a horrific task that I never want to do again and my wife who wanted a small home doesn't like our new (old)small house.....lol. We are debt free, I have a few years of small projects to upgrade our new(old) house but, I can't rent for what our living costs are now food included! Stretching a shrinking dollar is quite a task but, it can be done.
I love your channel, and always look forward to your Saturday videos. I am wondering how long you've been doing This is Our Retirement now. Great show today!
I am somewhat new here. I enjoy your info and videos. You should do a video about all of the BS the media tell soon to be and retirees about what they are supposed to do in retirement. Downsize, travel, travel, travel, move into a retirement community etc, etc. I am retiring at the end of 2022. I am very happy where I live in my mortgage free home. I enjoy some travel but nothing extreme. I am not taking a cruise around the world. And I believe moving into a retirement community is not healthy and would make me feel old in my opinion. I have a Healthy Young thinking mindset. These are my thoughts. Keep on making your video's. I enjoy your information-:)
Excellent points! My wife and I were looking to relocate this past spring (in the US) in preparation for retirement but ran into what can only be called insane bidding wars (before the valuation issues you discuss) -- GREAT as a seller, horrible as a buyer -- and decided to sit out the market for probably 2-3 years. In hindsight, one of the best decisions we've made! It's taken a load off of our minds and now the market is softening in our target area.
Interesting that you’d consider moving to the US; there are so many retirees from the US moving abroad (e.g, Portugal) because the can’t afford the cost of health insurance in the US. It’s a mad, mad world!
@@13noman1 No apology required - I made the assumption that you’re in Canada. I hope you can find a suitable place to relocate. All the best on your search!
Downsized, paid off my mortgage, and never looked back. Happiest months of my life. We really have much here in the states. After traveling abroad, it really underscored the point. Empty nesters, and we simply didn't need a two story 4-bedroom 2 bath house. We actually haven't downsized that much but the smaller house allowed us to sell our big house and pay off our new construction immediately. People need to do the math, and if it works for you don't hesitate to do it. We even sold the house for less than we could have but NO REGRETS. We made money just not as much as we could have. Still, I have a new place, reasonably sized, to lay my head for now and ever more (gotta pay taxes of course) .... Debt free, homeowner, now looking at early retirement. It is unfortunate that some are losing their shirts in house sales. But if you do it and make money and pay off a new home, RUN don't walk. Gotta do the math.
Only sell if absolutely necessary, for most it's better to keep & rent out for an income (if needed)...plus always having it as your base on returning home.
Thanks for your comment, for others the money from the sale funds their retirement we agree having a base to come back to is great whether it’s a house or apartment they are both home 🏡 Cheers 🍷🌺😎
@@ThisIsOurRetirement Yes sure. For me it's having a base as & when I require, plus its only increasing in value. The main thing is, it's left in my WILL to the beneficiary to be kept or sold after i'm gone.
That is really sad and just awful. I can’t imagine things being enforced that way. You two are very lucky to have the rent set up you do. Thanks for sharing this information.
In Australia we often have a clause in the contract/offer "Subject to finance approval" So if you can't get the finance you lose your deposit but that is all.
I am a realtor here in Colorado, USA and it is critical you have put financing contingencies and selling contingencies into your contract. Here USA we do have appraisal conditions in the contract. We often put in contract selling is contingent on finding a new home OR selling your existing home. If value drops you should be able to negotiate a new price with seller if the value does not meet appraisal value. But, if you really want a home you will waive appraisal condition, but only if you have the cash to pay for it. ALSO, lock in your interest rate when buying with one time ability to drop to current rate if interest rates fall. This has been a tricky time to help buyers and sellers coordinate a move up or a downsize and you and your realtor must think of how you will navigate this market. The huge run up in prices was driven by extremely low interest rates and created a wild market of people offering well over asking price which was not normal historically. I do know in Toronto bidding well over asking was going on for years. But, here in USA, it was unusual and only began late in 2020/ early 2021 with much lower interest rates and people needing to work from home.
Thanks for sharing Diane , Toronto has gone crazy with multiple offers over asking and no conditions 😱now wth prices dropping these problems are occurring have a great weekend Cheers 🍷🇺🇸🇨🇦🌺
"We often put in contract selling is contingent on finding a new home OR selling your existing home." Sellers don't like these sorts of contingencies, especially contingent on finding a new home, and especially in a competitive market. "If value drops you should be able to negotiate a new price with seller if the value does not meet appraisal value." That's why a smart seller will require that a buyer will increase the down payment to cover a low appraisal, up to a certain amount. "The huge run up in prices was driven by extremely low interest rates and created a wild market of people offering well over asking price which was not normal historically." Nobody seems to realize that mass immigration plays a huge role too. It's simple supply/demand. "I do know in Toronto bidding well over asking was going on for years. But, here in USA, it was unusual and only began late in 202" It depends on what city you're in. When I was searching in the Seattle/Bellevue area in 2016, every house had at least 20 offers within a week. Buyers were offering $100-150K over asking on $800K homes.
But closing conditions won't prevent a buyer from failing to close, even after asking for innumerable extensions. Meanwhile the price drops or the market goes dead. Plus resolving the failure to close will involve a lawsuit over the deposit...
You two are a very pleasant couple to listen to. I will be entering retirement soon and in the future if you find yourself RV'ing around the states and we cross paths, a bottle(s) of wine is on me. Cheers!!
Oh my! I hope this changes in Canada. We are in the US and have never purchased a home without a financing contingency. We just signed a contract last night to sell our mountain vacation home and only accepted a cash offer partly to avoid the potential appraisal situation. We've loved having a second home but want to travel more - planning a trip up the east coast to Maine and into Canada late spring next year! Thanks for sharing Tina and Norm. Have a nice weekend!
Cash offer is good , funny you are selling and we are just really enjoying having a second home with our trailer , you are more than welcome to visit Canada 🇨🇦 anytime Cheers 🍷🇺🇸🇨🇦🌺
Yes you are right it’s lovely to go to a place that we feel is our own , we will enjoy while we can and we wish you well with your new plans of travelling Cheers 🍷🇺🇸🇨🇦🌺
Hi Kris M.....you went with your gut about selling your second home👍Two sets of taxes and other expenses💰do drag on people. You know when to sell, invest the money, and travel when you want (and pay for it when you want...not all the time). All the best! 🤗
There are younger buyers who have only ever been in a hot rising price market, so buying on a downtrend is new to some and this valuation clause is not the traditional finance clause. Thanks for watching have a great weekend.
@@ThisIsOurRetirement There may be adequate financing at the time the Agrt of Purchase and Sale is signed but in a falling market the lender may come back and say 'we can't lend against the value of the property today'. The buyer is now short and can't close the deal.
@@marigoldcarter2879 Don't forget, if the buyer can't go through with the deal, you get to keep the deposit and in law the buyer (or non-buyer as it turns out) will then need to make you whole for the difference between the actual sale price of your house and the original price! This is the so-called 'common law', which applies in most anglo-saxon countries. Can be different in other jurisdictions.
@@francois3475 yeah I feel sorry for the buyer in this instance. Although they may get a loan approval, if the bank values the purchase at a lower price, damn that’s a cruel way to lose your life savings for a deposit.
Wow... Reality sets in... All bubbles burst at some point. Nasty if you are caught up in this but there are ways to protect yourself. Thanks for sharing.
Hi T&N what sad news I feel bad for both the seller&the buyer.Here in New York it was announced that the median rent has gone up to 5000 us$a month, in the. outer boughs it is less but not by much.I feel so bad for our young people.Stay safe and see you next Saturday.
Great info but why would someone put an unconditional offer on a home and have no safety net. Always have a " subject to " clause whether its inspection, financing, appraisal. Yikes
Most do have conditions on their offers, it’s just house prices haven’t fallen for 20 years and now they are dropping monthly, so this particular condition of bank valuation is new.
We have rent control in the San Francisco-San Jose Bay Area!! In California, once the buyer-seller settles on a price for a house, an escrow account is established and both parties are legally bound to execute the transaction! The buyer cannot go back to the seller and try to renegotiate the price.
One other risk to renting is you have a place to live at the pleasure of the landlord. A number of tenants especially older ones who have been in a unit for a long time are finding themselves being asked to leave. With ether the excuse of the owner needing the unit to live in or wanting to renovate and a lot of these units are getting converted to short term rentals that net the landlord much larger profits. In Canada tenants have very limited recourse in these cases. It's something someone deciding to move from an owned house to a rental needs to consider.
That is why we rent from a large corporation that has over 90 buildings, their business is too rent together with rent control we do feel in a good position Cheers 🌺🍷😎
Running a day late on watching your video guys. Love this topic. Never, ever use your home as a retirement fund. You have no idea where interest rates will be, what the market will be, etc. Obviously, we look at our home and say to each other, it's worth this or that, but it's all bonus money. I will never jeopardize our future retirement by assuming our house will fund it. See you next Saturday.
Thanks for the great video. Very nice to see that the housing market is falling down quickly. This was suppose to happen with too much money printing and near Zero interest rates. Never put all your eggs in one basket.
Hello 👋 another great video ! I’m sure all the info you have provided will help many people . This is why I really enjoy watching you two. Have a great week 🍷🍺 small town USA 🇺🇸
Thank you so much! we really enjoy you watching our videos Cinde and hope we help others in decisions that they might have to make have a wonderful weekend Cheers 🍷🇺🇸🇨🇦🌺
Thanks for the videos! We have booked a winter in Albufeira because of them, right next to the Pingo Doce. My wife is looking forward to wine carafs as Tina recommended lol
We had thought we would leave the suburb we live in and retire to a quieter country town. But having spent some time in a country town of our choice over the summer we have changed our thoughts. Out suburb has buses, doctors, library, trains, several differing shopping centres, theatre, national park, bike paths and a good sized rate payer base to fund the council. So no having to consider the costs of moving or the higher cost of a new home. Instead we will do some work on our house and sit pretty.
@@sct4040 That would be a waste of money as the smaller house would cost the same to buy as ours to sell and there would be buying and selling costs. Better to hire a gardener and cleaner.
We had grandkids raised in area knew we would retire soon haven't replaced but for selling so nothing needs to follow us but personal items. I have the bay window with good tokens and tell family and friends to take what they want.
A buyer if they wish not to proceed with thier purchase offer can renege on their offer but it will cost them their initial payment typically 10 20% of the homes value. When you proceed with the offer the buyer has to put down a payment to secure the home but if you can't follow through you have to eat that loss. With a 1% rate hike in Canada this week, sellers will have to drop the sky-high prices that their neighbors were asking and getting January February March of this year. In the community of where my husband and I live in Southern Ontario prices have been dropping 50,100,150,000 dollars. Good topic !!
Glad you enjoyed the video Shari , yes it’s crazy what’s happening at the moment with pricing that’s why we thought it would make a good topic have a great weekend Cheers 🍷😎🌺
Hi Tina & Norm it’s very good you are warning people of this tricky situation I think is going to be a very tricky time lots of people say we are looking at a very volatile time . Anyway have a glass of wine with me 🥂and take care 😊Christopher. Barker
Housing prices went cray cray because borrowing money was "cheap". Some have been duped into thinking their homes will always appreciate. Well, not necessarily in a linear line. I hope it works out for those who bought in a difficult part of the pricing cycle. I feel blessed that I own my home and didn't ever factor it's value into my retirement plans. God bless to all.
Same is happening in our area near San Diego (as well as almost everywhere I imagine). My wife and I are recent retirees and secure in our funds but homes in our neighborhood ($1 million+) that were selling within days are now sitting for up to a month with price drops. If I were in the position of buying I would absolutely put an appraisal contingency in my offer. The problem with that of course is a buyer is going to look at all cash offers first and then no contingencies.
We agree the housing market is very scary at the moment , also prices are dropping really fast causing many problems if you have made an offer . Congrats 🥳 Mike on your retirement we hope you are enjoying it Cheers 🍷🇺🇸🇨🇦🌺
Yes right- I am in North County area of San Diego and thinking of downsizing. I have a 4,000 sq ft custom home -mortgage FREE- 12 years old. Homes closest to me sold in days for $2.7 million and $2.9million in 2020 & 2022. All cash offers. So I thought wow great news for me but now I am not so sure.....
Las Vegan, USA here. My husband and I are going to sell our house in around 4 years. Fortunately, we entered into a 15 yr mortgage in around 2018 and locked in a 3.875 interest rate. So while our home appreciated greatly, we’re paying down our mortgage faster. Hopefully the dust will have settled by that time. We’re going to downsize and possibly live back to my husbands province in Winnipeg, MB and live in an apartment in a walkable community. There’s some rent controls there too. We plan on taking whatever appreciation we’ll have after the sale and invest. He’s retired and has a good pension. When I retire in a few years I’ll have a pretty impressive pension to add to his. We understand why ppl would buy a home in a city where there’s no rent controls cause they’ve skyrocketed here. But we simply don’t want the maintenance of a home. Thank you for another informative vlog and have a great day!
Sounds like a wonderful plan that is what we did having the apartment removes the unexpected maintenance and expenses of a home to allow you to enjoy life more . Have a great weekend Cheers 🍷🇺🇸🇨🇦😎
I retired last year from New Home Sales. After 40 yrs in the business, I knew what was coming and didn't have the heart to watch the market crash. It was sad enough in 2008. My former sales partner called and said he hadn't had a sale in over 5 weeks. Thats a killer for a builder. Dark days are coming. Take care!
Yes we are sure dark days are on the way in the housing market both for builders, buyers and sellers we hope you are enjoying your retirement Cheers 🍷🌺😎
Canadian here…you ALWAYS have conditions attached to the purchase offer…subject to financing or buyers approval of the home inspection or my favourite…subject to buyers approval of the financing-which allows you to bail if everything goes sideways interest rate or home valuation wise. Now you must understand that in a hot market lack of conditions is attractive to the seller and you may condition yourself out of contention but…so what? There’s ALWAYS another place up for sale. Just sold my home and bought a condo…had the condo purchase possession date of June 15 and the house possession date of June 30 so I could have two weeks to move and sell two thirds of my stuff (snow blower and weed whips and lawn mowers and downstairs furniture and a forty year accumulation of tools etc). Also had the condition removals staggered so that if the condo sale fell through I could bail on the home sale so I wouldn’t be homeless. I’m fortunate enough that if the reverse happened and the home sale fell apart I had already arranged for financing on the Condo and it wasn’t subject to the sale of my home. Don’t get starry eyed…protect yourself. And one final word of advice to the young ones starting out…buy less home than you can afford! Sure…you might have five kids one day and need (scratch that-WANT) that six bedroom mega palace like all of your recently married friends have just purchased but that financial commitment doesn’t go away and if you have to stretch to make the payment you’re committing to a lifetime of house poverty and as your soon to be divorced friends will attest nothing takes the bloom off the romance like having to count pennies to make it through the day to day. Buy what you need and don’t lie to yourself when you assess those needs. Thirty years ago a banker told us that we qualified for a $300000 mortgage. My wife and I burst out laughing and told him he was out to lunch as there was no way we could afford that. Remember the banks are businesses and want to sell you the most money they can.
In my younger days I used to collect Harley tee shirts, still have a lot of them. Nowadays though I prefer cheap non descriptive tee shirts from Walmart. Don’t have to think about what to wear lol.
Hi Norm and Tina: Great shirt, Norm, and necklace, Tina! We saw Roger Waters last week. What an epic concert. We will be selling and renting, like you. A mortgage Pre-approval is a must, from the Buyer and a bigger down payment may be required from the bank. We had one, when we bought.) Also, we will already line up a place to move to/rent in advance of the sale. A good real estate lawyer and reputable agent are very important for a smooth transition. We are holding steady, and waiting for a while before we sell. House prices have doubled lately, and will go up again, once our mini recession has passed. Cheers and hope you are joying your trailer. We were looking at some last week. That’s another rabbit hole, with constantly changing conditions and hidden fees. Park fees have gone up and there’s lots of fine print. A pad fee of $5000? Perhaps another updated topic…..?
It’s great you have a plan Paul and we wish you well when you sell , we don’t have a pad on our trailer but we think they are around 2-3 K with us ( still a great deal ) as we are really enjoying the trailer see next week’s video!! have a great weekend Cheers 🍷🌺😎
The hardest part of downsizing is you sell your big,beautiful house for a great price and then you end up buying a much smaller house for what you sold your house for.
I've just scrolled broadly along the posted comments and see no one mentioned your yummy treat. Those almond fingers are a delight. We call them 'kanos'. Just thought I'd mention it 😉! Another HOT ITEM on the retirement list of things to know: Now about downsizing. We downsized and bought our apartment almost 7 years before retirement. It was financially a better option than renting. With the changing world, countries trying to recoup their financial losses due to COVID, rental agreements aren't safe like they have been in the past. It pays to research in depth in your own country/state/city what your best options are. Great video- Now what will I get to watch tomorrow? I'm early. 🥰 🍷 😎 🇳🇿 🙋♀️ 🇳🇱
Thanks for joining us on Saturday Anita , we love almond fingers we agree had we not had rent control in Ontario we would probably have bought an apartment too.We have been spending time at our trailer ( see next weeks videos) and just enjoying the summer hope you are too . Have a great weekend Cheers 🍷🇳🇱🇨🇦😎
Holy moly! I'm getting ready to sell, so this info is very timely.... and useful! Thanks for sharing all this. And, yes, you are fortunate to find a rent-control situation. 👍
TRY "Nova Bakery" brand PORTUGUESE TARTS! Find in the frozen cakes section at Food Basics. Pop in the oven from frozen - they are wonderful! They will take you back! Made in Canada.
I am glad I bought a small apartment in a neighborhood I want to retire in. It’s proximity to everything and mass transit. It’s lonely retiring in an isolated place.
Yes and bank valuation, in a falling market house prices can drop weekly. That’s why a subject to bank valuation these days might be a good clause to add.
Buying in the UK is SOOOO different than the US. We learned the hard way how many transactions fall through in England. There is not a binding contract once an offer is agreed upon… so frustrating! And yes, the appraisal game during a booming real estate market is insane! 😳
Very interesting. I see a lot of house sellers now starting to drop there prices. I guess when you do get ready to buy do your homework make sure you list everything in that contract.
Very interesting the buying process in Canada plus rent control. Seeing Pink Floyd T shirt made me think of the song by them 'Money' very apt choice of T shirt considering today's topic. My favourite Floyd song is 'See Emily play'
My old unrenovated house in Sydney was worth about AUD$2,700,000 earlier this year & I know, it's come down by at least $300,000 since then. Im a realist on its value. A residential property in Australia is not included in the aged pension assets test. I'm planning on retiring in the next 2 years, before I get to old. I'll never get the aged pension in Australia, because I fail the assets test, even if I keep my house. However I now many people who get the aged pension, who won't downsize, in fear of losing the aged pension. I don't mind keeping my old house, it's a lot of work to maintain, with large gardens. I'm single & I'm not into gardening. Prefer to travel & not worry about the maintenance & security of an old house.
Unfortunately rent control in Ontario is only in place for buildings built before 2018, which means we can't consider any of the new builds because our income won't allow random rent increases. 😢
In most states in the US, a seller cannot compel a buyer to complete the transaction, only sue the buyer for damages. But most sellers just move on and sell to someone else after a buyer flakes out. Also, an appraisal coming back less than the sale price is typically a basis to renegotiate the contract.
I toyed with selling my home, but to be honest, it's paid for and there is no way I could replace what I have for what I paid for it only 8 years ago! So I am adding a pool, and then do some traveling. I have 'downsized' my belongings and live in one of the smaller bedrooms and rent out the rest of the house to a long time friend. It benefits both of us. My eventual goal is to spend time here when the pool is most attractive, and do the major travel the other months. I come and go right now with work, so no matter what the 'plan' is, there is a process. As I look at how much I have downsized already, I am amazed that there is really more I can get rid of!! I truly want to be able to pack a carry-on, travel for 3 months, and not miss or need a thing I left behind!
Sounds like a great plan Annie , we also have dumped the big suitcases and have travelled the last few years with only carry on its great ( no chance of the airline loosing your luggage either ) have a great week Cheers 🍷🌺😎
@@ThisIsOurRetirement then don't do bait tiles and then take 10 minutes discussing the colour of ur t-shirts while u have a snack...if i wanted to watch a TV chat show I'd buy cable! Get Real !
Hi Tina and Notm Very interesting and personal …..this topic to me. This happened to me in 2008. Offered and made the deposit and by the agreement for the house that I am still living in. But the difference in the offer price and valuation from bank was $17000. Both of us the buyer and seller ready to move further and moving trucks booked. I as a buyer backed off and said to my seller, we need to come to some sort of resolution. I told them plain blank that I am in love with this house Or this toy. But the price dropped. I ready to walk away from this deal. I will loose my deposits but not as much because the interest rates went up. The house was meant to be for me , mortgage rate was locked and we both divided the difference between the valuation price and offer accepted price and settled, and at the same our realtors gave up 1% of their commission. So it was a happy ending. But I hear your advise. Will keep the contingent upon valuation price and lock the rate as soon as possible. Thank you.
Rental accomodation unobtainable on southern Van.Isle.Folks living in camps.We need to build more rental units.I live in a 12x50 moble home (which I like) set up in a mobile home park.The rent for the pad it is set up on is $400.00 per month.This gives me something to repair and improve, which I like doing.CHEERS from HERE!
$400 is fantastic! Most mobile home parks in CA asking $900 to $1500. Unless it is small run down park, it’s rare to see space rent lower than $600. Costal luxury parks in malibu, san pedro, Huntington beach, newport, and laguna beach go for $1900 to $3000 per month.
We dont have that here Darryl, our mobile homes like our trailer are just for May to October but it sounds very reasonable , have a wonderful weekend Cheers 🍷😎🍺🇨🇦
Good information for People who haven't or didn't educate themselves on the legality of a buyer seller contact in this crazy market. Staying safe I personally haven't been in a store since the late Fall of 2019 and won't untill the Covid virus calms down or stops its virulent mutations. When it goes to just a cold status state then I'll feel safe. You guys are looking great.
Moving is very stressful and troublesome. In the UK things are different as there is actually no commitment until exchange and in a lot of cases downsizing does not involve mortgages as the family home is paid for. There are many other issues however and a lot chains fall through with the whole chain being out of pocket having paid for valuations and other costs.
Situation sounds almost like a tall tale, amazing how the fear of missing out will drive people to make bad decisions. No home purchase should be made without conditions dependent on financial approval and home inspection. And the 1% the BOC announced this week came as quite a shocker😱
Hi Tina and Norm. Very interesting video again. What a heartbreaking situation for many people. Good advice to insert that clause about the mortgage valuation!!! Thank you as always. 👏👍⭐
Awesome topic. 👌 Downsizing is the key 🔑 to success. Congrats on reaching 50k subscribers...more coming your way!! Rent has skyrocketed.I read Miami is up 48 percent! Pure insanity. Wow your example was a superb nightmare. Nobody shares this with buyers...frightening!
People need to look ahead and see if there is a possibility of the shortfall with appraisal going to happen and reevaluate their plans, like do a subject to finance clause always.
Thank you for sharing these ideas. We've been thinking of downsizing because we are older and the yard is too much, but all these things are concerning. If we sell/buy, we will have a lawyer look things over legally.
Thanks for watching when we sold we then decided to rent an apartment and it’s been wonderful, yes you need a lawyer when you sell but we like you wanted to get rid of yard work and unexpected maintenance and expenses of home ownership we wish you well it’s worth the effort so go for it Cheers 🌺🍷😎
We agree Merenie but so have house prices too, we have been in our 1350 sq ft apartment for 6 years and only pay $1500, due to annual rent increase of less than 2%.
Wow this was so very helpful. A point I hadn't even considered- although I am not currently ready to sell/downsize or rent, I am only a short few years away from those plans but you never know what will come up and make me consider it very soon........thanks Norm and Tina
You are so welcome Gayle , we were 58 and 60 when we took early retirement and so glad we did we would highly recommend it to anyone as none of us has a crystal ball 🔮 to know what the future will bring Cheers 🍷🌺😎
The other thing to note, if it hasn’t already been said, is that rents in Ontario are high and rising more as house prices are decreasing. I know someone who just rented a townhouse for $3000 per month. That would be a lot to handle, especially in retirement
Think it’s all relative we started to rent 7 years ago and haven’t looked back our rental is very reasonable and we have rent control so that’s great Cheers 🍷🌺😎
Rent control is only good if you stay at the same place for a long time. I live in the province of Quebec and although we have rent control, rent has gone up dramatically since the last few years because landlords increase the price of rentals much more than what is allowed by rent control when a new tenants arrive. Then new tenant does not know the price paid by the previous tenant so he does not know if the rent increase is fair. What is needed is a registry that people could consult to know what the previous tenant was paying. Renting in Canada is not affordable for many Canadians now.
@@ThisIsOurRetirement But you said in a previous video that those who want to rent the same apartment as yours now pay much more than you. As you can see, those apartments are much less affordable for new renters. With a registry, rents would be the same for new renters as it is for those who have stay there for a long time. It would make renting more affordable.
Happy Saturday Norm and Tina; this is one of the most informative videos you’ve done so far. Such a critically important message with house prices falling the way that they are. Thanks for always being on point and clearly addressing current and relevant issues. Enjoy the beautiful weekend weather. Cheers!
You are so welcome! Libbyann have a wonderful weekend Cheers 🍷😎🌺🌞
Yes you highlighted the pitfalls of selling a property in a over heated market very informative seller beware !!!
@@keithrodgers1030 Thanks Keith
@@ThisIsOurRetirement Please monitor the responses to our comments because someone is soliciting. Thank you.
@@everetteborr From time to time we get imposters on our comments we try to delete them quickly, often they come in the middle or our night.
Making my retirement planning easier. Thanks.
Thanks so much Ian, your encouragement means a lot to us.
I absolutely love you two sitting down and having a coffee/tea and a snack, makes me feel like I'm sat across from you having a good old chat. Watching your very first video during covid did aspire us to sell our home in Ontario and buy a condo in Edmonton where are children and grandchildren live, we was going to sell in spring but I thought we should sell after Xmas before the market got saturated which for us was a good move, it's been a little stressful awaiting the oas etc but it as finally been resolved, we love our condo out here and thanks to you guys, we are now living our retirement. See you next week x
That’s wonderful Lynn we are so happy for you we too are near our son and grandchildren which is a big plus in also enjoying our retirement. We will add that having bought a trailer has also given us experiences that we could not have imagined. Yes when the OAS kicks in life is good Cheers 🍷🇨🇦😎🌺
What a gift you are in my life!
Thank you so much Pat, we so appreciate your support, have a wonderful day, Norm
That’s so nice Pat thank you so much 🌺😎Tina 🤗
Agree with Norm, love the necklace! You both look great, happy and healthy. Enjoy the weekend!
Thanks Joyce! Have a nice weekend.
Offers should always be subject to loan/finance approval! That’s just common sense! I have never made an offer without a finance clause, regardless of pre-approval status!
Yes Carol we agree, the point we are making here is putting a valuation clause in addition to the finance clause.
Have a great weekend!
I blame some of this on realtors not including this clause in the buyer’s offer.
Here (in Denmark) the buyer usually has a lawyer go over the contract and the lawyer will insist on clauses for stuff like a building inspection and financing. Additionally there will usually be a fallback clause stating that the purchase is contingent in the lawyer approving it. And the lawyer will make sure everything else has fallen into place first.
@@vejlin Sounds like great plans in place in Denmark 🇩🇰 Cheers 🍷🇩🇰🇨🇦😎
@@vejlin Hi, you must place a lot more trust in lawyers than what we do in Canada!
I never thought the home prices in my area would ever reach the prices people were asking. You were smart to do rent CONTROL. I would never consider personally, renting ever again. Glad it is working for you both. I did put my kettle on. Great show.
Thanks for watching Barbara, we always had a plan to sell our home 🏡 as we retired , when a person we met told us about how he had sold and then rented while investing the money 💰 we were so curious after looking into it , it was an amazing idea and we have never looked back especially with rent control .Have a great week Cheers 🍷😎🌺
Good stuff. We down sized a year ago. We sold for 20% over appraisal and bought at appraised value. We were able to do this with a bridge loan which allowed us to get a new home and the ability to get up to 6 months in our existing home without making monthly payments on our existing home. Good news is that both closings were within a week of each other and got a 3% mortgage.. This allowed us to add to retirement savings and we used part of the funds to personalize our new home. We no longer have the responsibility of maintaining, heating and cooling a 3500 sq foot home. Our costs are substantially lower and we contine to maintain the same income which increases retirement savings. Our retirement target date is in 4 years. Some may wonder why we keep investing in a down market. We are buying at lows which will recover and have greater returns with time.
Sounds like some great plans in place Paul , we wish you well in preparation for your retirement Cheers 🍷🌺😎
Glad I am in “stay put”. My paid off townhouse is working out great! Good advice!
Nothing wrong with staying put Beverly have a wonderful weekend Cheers 🍷😎🌺
Thank You! I saw this all coming 3 years ago so we bought our smaller rural home far below market value and paid cash. I waited just a bit until we heard interest rates were going up, I priced my large home just a little below market value and boom got the offer, signed the deal fast with a quick possession date for the buyer. The down sizing is a horrific task that I never want to do again and my wife who wanted a small home doesn't like our new (old)small house.....lol. We are debt free, I have a few years of small projects to upgrade our new(old) house but, I can't rent for what our living costs are now food included! Stretching a shrinking dollar is quite a task but, it can be done.
We agree with you down sizing is very stressful and harder to do the older you get have a great weekend Cheers 🍷😎🌺
Hi 👋 guys thanks for helping our community of our age. I always watch your videos. Brooklyn, NY. 🇺🇸👍❤️
Our pleasure! have a wonderful weekend Ramona 🍷🇺🇸🇨🇦😎
@@ThisIsOurRetirement welcome friends! Stay safe and healthy. ❤️❤️
Great video, we’re starting to see this in the states as well. Inflation is starting to nipped at the hot housing market and it’s slowing.
Yes it is going to be difficult in the housing market for the rest of the year.
What a great Heads-up. We had no idea. Very much appreciated!
~ Keep up the good work.
~ from Vancouver Island
Our pleasure! must admit Ben we were very surprised to hear it happening have a wonderful weekend Cheers 🍷🇨🇦🍺
I love your channel, and always look forward to your Saturday videos. I am wondering how long you've been doing This is Our Retirement now. Great show today!
Thank you Nikki we started our channel on Feb 14 th 2019 , have a great weekend Cheers 🍷😎🌺
Great advice. Never thought of such before. Often thought those clauses were kinda formality. Thanks for the strong reminder! 👍
We were also surprised too so just wanted to share have a wonderful weekend Cheers 🍷🌺😎
I am somewhat new here. I enjoy your info and videos. You should do a video about all of the BS the media tell soon to be and retirees about what they are supposed to do in retirement. Downsize, travel, travel, travel, move into a retirement community etc, etc. I am retiring at the end of 2022. I am very happy where I live in my mortgage free home. I enjoy some travel but nothing extreme. I am not taking a cruise around the world. And I believe moving into a retirement community is not healthy and would make me feel old in my opinion. I have a Healthy Young thinking mindset. These are my thoughts. Keep on making your video's. I enjoy your information-:)
Thanks for sharing Dan and welcome to our channel, thanks for the idea have a great weekend Cheers 🍷🌺😎
Excellent points! My wife and I were looking to relocate this past spring (in the US) in preparation for retirement but ran into what can only be called insane bidding wars (before the valuation issues you discuss) -- GREAT as a seller, horrible as a buyer -- and decided to sit out the market for probably 2-3 years. In hindsight, one of the best decisions we've made! It's taken a load off of our minds and now the market is softening in our target area.
The market is volatile at the moment, when we sold then we rented and haven’t looked back maybe that might work for you Cheers 🍷😎🌺
Interesting that you’d consider moving to the US; there are so many retirees from the US moving abroad (e.g, Portugal) because the can’t afford the cost of health insurance in the US. It’s a mad, mad world!
@@libbyannstew8775 Sorry, wasn't clear -- I meant to another state in the US; wouldn't move here if I could help it!
@@13noman1 No apology required - I made the assumption that you’re in Canada. I hope you can find a suitable place to relocate. All the best on your search!
WOWWW! This is crazy. Thank you for sharing this important info ⭐hope you two are having the best weekend :)
Our pleasure! hope you having a great weekend too Cheers 🍷🌺😎
Wow! I wasn’t aware of this situation is happening! What a mess!
It was news ! to us too Dennis 🏡 very scary Cheers 🍷🌺😎
Hi Tina and Norm! Again, great advice for all your viewers. Have a wonderful week. See you next Saturday, cheers! 🥂
Our pleasure! have a wonderful weekend Jel Cheers 🍷🌺😎
Downsized, paid off my mortgage, and never looked back. Happiest months of my life. We really have much here in the states. After traveling abroad, it really underscored the point. Empty nesters, and we simply didn't need a two story 4-bedroom 2 bath house. We actually haven't downsized that much but the smaller house allowed us to sell our big house and pay off our new construction immediately. People need to do the math, and if it works for you don't hesitate to do it. We even sold the house for less than we could have but NO REGRETS. We made money just not as much as we could have. Still, I have a new place, reasonably sized, to lay my head for now and ever more (gotta pay taxes of course) .... Debt free, homeowner, now looking at early retirement. It is unfortunate that some are losing their shirts in house sales. But if you do it and make money and pay off a new home, RUN don't walk. Gotta do the math.
Thanks for sharing lots of good plans for a happy retirement Cheers 🇺🇸🍷🇨🇦🍺
Only sell if absolutely necessary, for most it's better to keep & rent out for an income (if needed)...plus always having it as your base on returning home.
Thanks for your comment, for others the money from the sale funds their retirement we agree having a base to come back to is great whether it’s a house or apartment they are both home 🏡 Cheers 🍷🌺😎
@@ThisIsOurRetirement
Yes sure.
For me it's having a base as & when I require, plus its only increasing in value.
The main thing is, it's left in my WILL to the beneficiary to be kept or sold after i'm gone.
So many people didn’t pay their rent during the pandemic, though.
That is really sad and just awful. I can’t imagine things being enforced that way. You two are very lucky to have the rent set up you do. Thanks for sharing this information.
You are very welcome Cheers 🍷😎🌺
In Australia we often have a clause in the contract/offer "Subject to finance approval" So if you can't get the finance you lose your deposit but that is all.
We have that too Maxwell, we were warning that when house prices fall (bubble bursts), you need to add an additional clause "subject to valuation"
I am a realtor here in Colorado, USA and it is critical you have put financing contingencies and selling contingencies into your contract. Here USA we do have appraisal conditions in the contract. We often put in contract selling is contingent on finding a new home OR selling your existing home. If value drops you should be able to negotiate a new price with seller if the value does not meet appraisal value. But, if you really want a home you will waive appraisal condition, but only if you have the cash to pay for it. ALSO, lock in your interest rate when buying with one time ability to drop to current rate if interest rates fall. This has been a tricky time to help buyers and sellers coordinate a move up or a downsize and you and your realtor must think of how you will navigate this market. The huge run up in prices was driven by extremely low interest rates and created a wild market of people offering well over asking price which was not normal historically. I do know in Toronto bidding well over asking was going on for years. But, here in USA, it was unusual and only began late in 2020/ early 2021 with much lower interest rates and people needing to work from home.
Thanks for sharing Diane , Toronto has gone crazy with multiple offers over asking and no conditions 😱now wth prices dropping these problems are occurring have a great weekend Cheers 🍷🇺🇸🇨🇦🌺
"We often put in contract selling is contingent on finding a new home OR selling your existing home."
Sellers don't like these sorts of contingencies, especially contingent on finding a new home, and especially in a competitive market.
"If value drops you should be able to negotiate a new price with seller if the value does not meet appraisal value."
That's why a smart seller will require that a buyer will increase the down payment to cover a low appraisal, up to a certain amount.
"The huge run up in prices was driven by extremely low interest rates and created a wild market of people offering well over asking price which was not normal historically."
Nobody seems to realize that mass immigration plays a huge role too. It's simple supply/demand.
"I do know in Toronto bidding well over asking was going on for years. But, here in USA, it was unusual and only began late in 202"
It depends on what city you're in. When I was searching in the Seattle/Bellevue area in 2016, every house had at least 20 offers within a week. Buyers were offering $100-150K over asking on $800K homes.
But closing conditions won't prevent a buyer from failing to close, even after asking for innumerable extensions. Meanwhile the price drops or the market goes dead. Plus resolving the failure to close will involve a lawsuit over the deposit...
@@joevarga5982 Yikes 😱 thanks for sharing Cheers 🍷🇺🇸🇨🇦😎
@@Jane-xt4lu Thanks for watching Jane have a wonderful weekend Cheers 🍷🌺😎
Thanks for the warning.
Any time!
You two are a very pleasant couple to listen to. I will be entering retirement soon and in the future if you find yourself RV'ing around the states and we cross paths, a bottle(s) of wine is on me. Cheers!!
Thanks for the lovely offer and we wish you all the best for your retirement Steve Cheers 🍷🇺🇸🇨🇦😎
Oh my! I hope this changes in Canada. We are in the US and have never purchased a home without a financing contingency. We just signed a contract last night to sell our mountain vacation home and only accepted a cash offer partly to avoid the potential appraisal situation. We've loved having a second home but want to travel more - planning a trip up the east coast to Maine and into Canada late spring next year! Thanks for sharing Tina and Norm. Have a nice weekend!
Cash offer is good , funny you are selling and we are just really enjoying having a second home with our trailer , you are more than welcome to visit Canada 🇨🇦 anytime Cheers 🍷🇺🇸🇨🇦🌺
Yes you are right it’s lovely to go to a place that we feel is our own , we will enjoy while we can and we wish you well with your new plans of travelling Cheers 🍷🇺🇸🇨🇦🌺
Hi Kris M.....you went with your gut about selling your second home👍Two sets of taxes and other expenses💰do drag on people. You know when to sell, invest the money, and travel when you want (and pay for it when you want...not all the time). All the best! 🤗
Agreed. And interest rates are up which requires people to think a lot harder about buying.
Very interesting video, Norm and Tina. I’m surprised the contracts aren’t contingent on the buyer obtaining adequate financing.
There are younger buyers who have only ever been in a hot rising price market, so buying on a downtrend is new to some and this valuation clause is not the traditional finance clause. Thanks for watching have a great weekend.
@@ThisIsOurRetirement There may be adequate financing at the time the Agrt of Purchase and Sale is signed but in a falling market the lender may come back and say 'we can't lend against the value of the property today'. The buyer is now short and can't close the deal.
Wow! I had no clue. I’m just about to sell and move to a 55+ community. Definitely need to research this further so I avoid this. Thanks so much!
@@marigoldcarter2879 Don't forget, if the buyer can't go through with the deal, you get to keep the deposit and in law the buyer (or non-buyer as it turns out) will then need to make you whole for the difference between the actual sale price of your house and the original price! This is the so-called 'common law', which applies in most anglo-saxon countries. Can be different in other jurisdictions.
@@francois3475 yeah I feel sorry for the buyer in this instance. Although they may get a loan approval, if the bank values the purchase at a lower price, damn that’s a cruel way to lose your life savings for a deposit.
This is such great advice. I feel for people that got caught up in that mess...
We agree Kathi not a good place to be have a wonderful weekend Cheers 🍷🌺😎
You can put a clause in the APS that protects you from a low valuation and financing so this doesn't happen.....
Good to know Donny thanks.
Thank you for this video. Scary information and so important to be aware of. Thank you for sharing. "Dependent on mortgage evaluation" is a must.
You are so welcome! have a great day Robin Cheers 🍷😎💰
Such a great, informative video. How sad this is impacting people's lives in such a serious, destructive way. As always, Tina and Norm are great!
Thank you so much! glad you enjoyed it Cheers 🍷🌺😎
Wow... Reality sets in... All bubbles burst at some point. Nasty if you are caught up in this but there are ways to protect yourself. Thanks for sharing.
You are right Jim and people should be careful, have a nice week!
Hi T&N what sad news I feel bad for both the seller&the buyer.Here in New York it was announced that the median rent has gone up to 5000 us$a month, in the. outer boughs it is less but not by much.I feel so bad for our young people.Stay safe and see you next Saturday.
Wow that’s staggering numbers 😱 for rent Barbara ( we wouldn’t be renting at those prices ) have a great weekend and see you next week 🍷🇺🇸🇨🇦😎
Great info but why would someone put an unconditional offer on a home and have no safety net. Always have a " subject to " clause whether its inspection, financing, appraisal. Yikes
Most do have conditions on their offers, it’s just house prices haven’t fallen for 20 years and now they are dropping monthly, so this particular condition of bank valuation is new.
We have rent control in the San Francisco-San Jose Bay Area!! In California, once the buyer-seller settles on a price for a house, an escrow account is established and both parties are legally bound to execute the transaction! The buyer cannot go back to the seller and try to renegotiate the price.
That’s sounds like a great plan Frank Cheers 🍷🇺🇸🇨🇦😎
One other risk to renting is you have a place to live at the pleasure of the landlord. A number of tenants especially older ones who have been in a unit for a long time are finding themselves being asked to leave. With ether the excuse of the owner needing the unit to live in or wanting to renovate and a lot of these units are getting converted to short term rentals that net the landlord much larger profits.
In Canada tenants have very limited recourse in these cases. It's something someone deciding to move from an owned house to a rental needs to consider.
That is why we rent from a large corporation that has over 90 buildings, their business is too rent together with rent control we do feel in a good position Cheers 🌺🍷😎
Running a day late on watching your video guys. Love this topic. Never, ever use your home as a retirement fund. You have no idea where interest rates will be, what the market will be, etc. Obviously, we look at our home and say to each other, it's worth this or that, but it's all bonus money. I will never jeopardize our future retirement by assuming our house will fund it. See you next Saturday.
Thanks Mark have a good week, see you next Saturday.
Great video Norm and Tina. I see many people getting into trouble just as your video says.
Thanks for watching yes it’s going to be very sad 😢 for lots of people Cheers 🍷🌺😎
We downsized but up priced!! However our monthly costs are 1/3rd of what they were
Thanks for the great video. Very nice to see that the housing market is falling down quickly. This was suppose to happen with too much money printing and near Zero interest rates. Never put all your eggs in one basket.
Good point! thanks for watching have a great weekend Cheers 🍷🌺😎
Hello 👋 another great video ! I’m sure all the info you have provided will help many people . This is why I really enjoy watching you two. Have a great week 🍷🍺 small town USA 🇺🇸
Thank you so much! we really enjoy you watching our videos Cinde and hope we help others in decisions that they might have to make have a wonderful weekend Cheers 🍷🇺🇸🇨🇦🌺
Thanks for the videos! We have booked a winter in Albufeira because of them, right next to the Pingo Doce. My wife is looking forward to wine carafs as Tina recommended lol
Awesome Joel we hope you have a great time!
What a crazy scenario. Thanks guys. Cheers
Yes it’s a very scary time have a wonderful week Cheers 🍷🌺😎
Great information on sell/buying a home with regard to mortgage evaluation. Oakville is going nuts, but it has levelled off.
We agree Nick all around Toronto is a crazy housing market at the moment have a wonderful weekend Cheers 🍷🌺😎
We had thought we would leave the suburb we live in and retire to a quieter country town. But having spent some time in a country town of our choice over the summer we have changed our thoughts. Out suburb has buses, doctors, library, trains, several differing shopping centres, theatre, national park, bike paths and a good sized rate payer base to fund the council. So no having to consider the costs of moving or the higher cost of a new home. Instead we will do some work on our house and sit pretty.
Thanks Amanda for watching and sharing your thoughts, it’s good that you thought things through.
Or move to a smaller house in your neighborhood. It’s a lot to manage and clean once you get older.
@@sct4040 That would be a waste of money as the smaller house would cost the same to buy as ours to sell and there would be buying and selling costs. Better to hire a gardener and cleaner.
We had grandkids raised in area knew we would retire soon haven't replaced but for selling so nothing needs to follow us but personal items. I have the bay window with good tokens and tell family and friends to take what they want.
Good luck thanks for sharing Cheers 🍷🌺🍺
A buyer if they wish not to proceed with thier purchase offer can renege on their offer but it will cost them their initial payment typically 10 20% of the homes value. When you proceed with the offer the buyer has to put down a payment to secure the home but if you can't follow through you have to eat that loss.
With a 1% rate hike in Canada this week, sellers will have to drop the sky-high prices that their neighbors were asking and getting January February March of this year. In the community of where my husband and I live in Southern Ontario prices have been dropping 50,100,150,000 dollars.
Good topic !!
Glad you enjoyed the video Shari , yes it’s crazy what’s happening at the moment with pricing that’s why we thought it would make a good topic have a great weekend Cheers 🍷😎🌺
Hi Tina & Norm it’s very good you are warning people of this tricky situation I think is going to be a very tricky time lots of people say we are looking at a very volatile time .
Anyway have a glass of wine with me 🥂and take care 😊Christopher. Barker
We agree Christopher very scary times and yes it’s nearly time to toast you with a glass of wine Cheers 🍷🌺🍺
Housing prices went cray cray because borrowing money was "cheap". Some have been duped into thinking their homes will always appreciate. Well, not necessarily in a linear line. I hope it works out for those who bought in a difficult part of the pricing cycle. I feel blessed that I own my home and didn't ever factor it's value into my retirement plans. God bless to all.
Thanks for sharing Ray , although we owned our home our plan was to always sell and fund our retirement which for us has worked out Cheers 🍷🌺😎
Same is happening in our area near San Diego (as well as almost everywhere I imagine). My wife and I are recent retirees and secure in our funds but homes in our neighborhood ($1 million+) that were selling within days are now sitting for up to a month with price drops. If I were in the position of buying I would absolutely put an appraisal contingency in my offer. The problem with that of course is a buyer is going to look at all cash offers first and then no contingencies.
We agree the housing market is very scary at the moment , also prices are dropping really fast causing many problems if you have made an offer . Congrats 🥳 Mike on your retirement we hope you are enjoying it Cheers 🍷🇺🇸🇨🇦🌺
Yes right- I am in North County area of San Diego and thinking of downsizing. I have a 4,000 sq ft custom home -mortgage FREE- 12 years old. Homes closest to me sold in days for $2.7 million and $2.9million in 2020 & 2022. All cash offers. So I thought wow great news for me but now I am not so sure.....
Las Vegan, USA here. My husband and I are going to sell our house in around 4 years. Fortunately, we entered into a 15 yr mortgage in around 2018 and locked in a 3.875 interest rate. So while our home appreciated greatly, we’re paying down our mortgage faster. Hopefully the dust will have settled by that time. We’re going to downsize and possibly live back to my husbands province in Winnipeg, MB and live in an apartment in a walkable community. There’s some rent controls there too. We plan on taking whatever appreciation we’ll have after the sale and invest. He’s retired and has a good pension. When I retire in a few years I’ll have a pretty impressive pension to add to his. We understand why ppl would buy a home in a city where there’s no rent controls cause they’ve skyrocketed here. But we simply don’t want the maintenance of a home. Thank you for another informative vlog and have a great day!
Sounds like a wonderful plan that is what we did having the apartment removes the unexpected maintenance and expenses of a home to allow you to enjoy life more . Have a great weekend Cheers 🍷🇺🇸🇨🇦😎
I downsized into a +55 condo at 52..... nothing that a little grey hair dye couldn't acheive for me.
Sounds great Ron have a wonderful weekend Cheers 🍷😎🍺
Buying a cheap house rural was a blessing for me. Room for a dog too.
Sounds wonderful Roy Cheers 🍷🌺😎
Great message!
Thanks so much Annie have a wonderful week Cheers 🍷🌺😎
I retired last year from New Home Sales. After 40 yrs in the business, I knew what was coming and didn't have the heart to watch the market crash. It was sad enough in 2008. My former sales partner called and said he hadn't had a sale in over 5 weeks. Thats a killer for a builder. Dark days are coming. Take care!
Yes we are sure dark days are on the way in the housing market both for builders, buyers and sellers we hope you are enjoying your retirement Cheers 🍷🌺😎
Thanks Tina & Norm for this great information.
Our pleasure! Thanks for watching Cheryl have an awesome week Cheers 🍷🌺😎
Canadian here…you ALWAYS have conditions attached to the purchase offer…subject to financing or buyers approval of the home inspection or my favourite…subject to buyers approval of the financing-which allows you to bail if everything goes sideways interest rate or home valuation wise. Now you must understand that in a hot market lack of conditions is attractive to the seller and you may condition yourself out of contention but…so what? There’s ALWAYS another place up for sale. Just sold my home and bought a condo…had the condo purchase possession date of June 15 and the house possession date of June 30 so I could have two weeks to move and sell two thirds of my stuff (snow blower and weed whips and lawn mowers and downstairs furniture and a forty year accumulation of tools etc). Also had the condition removals staggered so that if the condo sale fell through I could bail on the home sale so I wouldn’t be homeless. I’m fortunate enough that if the reverse happened and the home sale fell apart I had already arranged for financing on the Condo and it wasn’t subject to the sale of my home. Don’t get starry eyed…protect yourself. And one final word of advice to the young ones starting out…buy less home than you can afford! Sure…you might have five kids one day and need (scratch that-WANT) that six bedroom mega palace like all of your recently married friends have just purchased but that financial commitment doesn’t go away and if you have to stretch to make the payment you’re committing to a lifetime of house poverty and as your soon to be divorced friends will attest nothing takes the bloom off the romance like having to count pennies to make it through the day to day. Buy what you need and don’t lie to yourself when you assess those needs. Thirty years ago a banker told us that we qualified for a $300000 mortgage. My wife and I burst out laughing and told him he was out to lunch as there was no way we could afford that. Remember the banks are businesses and want to sell you the most money they can.
Thanks for sharing a very interesting comment have a great weekend and enjoy your new Condo Cheers 🍷🌺😎
Valuable information from the lovely Tina and Norm.
Our pleasure! thanks Ann have a wonderful weekend Cheers 🍷🌺😎
In my younger days I used to collect Harley tee shirts, still have a lot of them. Nowadays though I prefer cheap non descriptive tee shirts from Walmart. Don’t have to think about what to wear lol.
Walmart has great T-shirts both plain and printed have a great weekend Michael Cheers 🍷🎸🏍🍺
Hi Norm and Tina: Great shirt, Norm, and necklace, Tina! We saw Roger Waters last week. What an epic concert. We will be selling and renting, like you. A mortgage Pre-approval is a must, from the Buyer and a bigger down payment may be required from the bank. We had one, when we bought.) Also, we will already line up a place to move to/rent in advance of the sale. A good real estate lawyer and reputable agent are very important for a smooth transition. We are holding steady, and waiting for a while before we sell. House prices have doubled lately, and will go up again, once our mini recession has passed. Cheers and hope you are joying your trailer. We were looking at some last week. That’s another rabbit hole, with constantly changing conditions and hidden fees. Park fees have gone up and there’s lots of fine print. A pad fee of $5000? Perhaps another updated topic…..?
It’s great you have a plan Paul and we wish you well when you sell , we don’t have a pad on our trailer but we think they are around 2-3 K with us ( still a great deal ) as we are really enjoying the trailer see next week’s video!! have a great weekend Cheers 🍷🌺😎
The hardest part of downsizing is you sell your big,beautiful house for a great price and then you end up buying a much smaller house for what you sold your house for.
Thanks for sharing! guess another reason we decided to rent Anthony have a great weekend Cheers 🍷😎
Yes that’s what we did but now only 1/3rd of the monthly costs….
I've just scrolled broadly along the posted comments and see no one mentioned your yummy treat. Those almond fingers are a delight. We call them 'kanos'. Just thought I'd mention it 😉! Another HOT ITEM on the retirement list of things to know: Now about downsizing. We downsized and bought our apartment almost 7 years before retirement. It was financially a better option than renting. With the changing world, countries trying to recoup their financial losses due to COVID, rental agreements aren't safe like they have been in the past. It pays to research in depth in your own country/state/city what your best options are. Great video- Now what will I get to watch tomorrow? I'm early. 🥰 🍷 😎 🇳🇿 🙋♀️ 🇳🇱
Thanks for joining us on Saturday Anita , we love almond fingers we agree had we not had rent control in Ontario we would probably have bought an apartment too.We have been spending time at our trailer ( see next weeks videos) and just enjoying the summer hope you are too . Have a great weekend Cheers 🍷🇳🇱🇨🇦😎
Holy moly! I'm getting ready to sell, so this info is very timely.... and useful! Thanks for sharing all this. And, yes, you are fortunate to find a rent-control situation. 👍
You are so welcome! glad it will be helpful to you Cheers 🍷🌺😎
TRY "Nova Bakery" brand PORTUGUESE TARTS! Find in the frozen cakes section at Food Basics. Pop in the oven from frozen - they are wonderful! They will take you back! Made in Canada.
Please don’t Google Portuguese Tarts
Why not 🤔
We have seen them at Food Basics although not tried them Cheers 🍷😎🌺
thanks for the good information, why are people not buying subject to financing ?
They are buying subject to financing they are not including a valuation clause.
I am glad I bought a small apartment in a neighborhood I want to retire in. It’s proximity to everything and mass transit. It’s lonely retiring in an isolated place.
That’s wonderful you are retiring to where you want to be, being in the country was isolating for us.
Isn't the sales contract contingent on the mortgage approval? All my three house contracts were over the years.
Yes and bank valuation, in a falling market house prices can drop weekly. That’s why a subject to bank valuation these days might be a good clause to add.
Wow! The average price here for a hike is $200 thousand! Huge difference! That’s scary stuff!!
Yes prices here have gone very high 😱hope you are well and enjoying a great weekend Cheers guys 🍷🇺🇸🇨🇦🍷
You guys are legit content providers! 🍻
Thanks so much
You should always make the contract based on the appraisal. I agree.
Guess that doesn’t seem to be happening, there is a difference between the sellers appraisal and then the buyers bank’s valuation Cheers 🍷😎🌺
Buying in the UK is SOOOO different than the US. We learned the hard way how many transactions fall through in England. There is not a binding contract once an offer is agreed upon… so frustrating!
And yes, the appraisal game during a booming real estate market is insane! 😳
Yes very different housing rules in the different countries Cheers 🍷🌺
Very interesting. I see a lot of house sellers now starting to drop there prices. I guess when you do get ready to buy do your homework make sure you list everything in that contract.
Absolutely! we agree Mike have a wonderful weekend Cheers 🍷🌺🍺
Very interesting the buying process in Canada plus rent control. Seeing Pink Floyd T shirt made me think of the song by them 'Money' very apt choice of T shirt considering today's topic. My favourite Floyd song is 'See Emily play'
So glad you enjoyed it have a wonderful weekend Cheers 🍷🎸🍺😎
My old unrenovated house in Sydney was worth about AUD$2,700,000 earlier this year & I know, it's come down by at least $300,000 since then. Im a realist on its value. A residential property in Australia is not included in the aged pension assets test. I'm planning on retiring in the next 2 years, before I get to old. I'll never get the aged pension in Australia, because I fail the assets test, even if I keep my house. However I now many people who get the aged pension, who won't downsize, in fear of losing the aged pension. I don't mind keeping my old house, it's a lot of work to maintain, with large gardens. I'm single & I'm not into gardening. Prefer to travel & not worry about the maintenance & security of an old house.
Thanks for sharing yes we have heard about the means test in Australia 🇦🇺 seems so unfair we don’t have that in Canada 🇨🇦 Cheers 🍷🇦🇺🇨🇦🌺
Good advice, thanks!!
Glad it was helpful! have a great weekend Candy Cheers 🍷🇺🇸🇨🇦😎
Unfortunately rent control in Ontario is only in place for buildings built before 2018, which means we can't consider any of the new builds because our income won't allow random rent increases. 😢
No but there is lots of choice of buildings before 2018 Cheers 🌺🙂
Yes, good idea to have contingencies listed in the offer!
Absolutely! We agree Julie cheers 🍷🌺😎
In most states in the US, a seller cannot compel a buyer to complete the transaction, only sue the buyer for damages. But most sellers just move on and sell to someone else after a buyer flakes out. Also, an appraisal coming back less than the sale price is typically a basis to renegotiate the contract.
Thanks for sharing have a great week Cheers 🍷😎🌺
I toyed with selling my home, but to be honest, it's paid for and there is no way I could replace what I have for what I paid for it only 8 years ago! So I am adding a pool, and then do some traveling. I have 'downsized' my belongings and live in one of the smaller bedrooms and rent out the rest of the house to a long time friend. It benefits both of us. My eventual goal is to spend time here when the pool is most attractive, and do the major travel the other months. I come and go right now with work, so no matter what the 'plan' is, there is a process. As I look at how much I have downsized already, I am amazed that there is really more I can get rid of!! I truly want to be able to pack a carry-on, travel for 3 months, and not miss or need a thing I left behind!
Sounds like a great plan Annie , we also have dumped the big suitcases and have travelled the last few years with only carry on its great ( no chance of the airline loosing your luggage either ) have a great week Cheers 🍷🌺😎
8:15..the actual problem/danger
Omg wish people would just get to the point...I'm not getting any younger here.
We do a 10 min video to share with others , if you don’t have the time in your life please don’t join us 🤔
@@ThisIsOurRetirement then don't do bait tiles and then take 10 minutes discussing the colour of ur t-shirts while u have a snack...if i wanted to watch a TV chat show I'd buy cable! Get Real !
Guess the difference is you pay to watch cable 💰 and we are Free your choice 🌺
@@ThisIsOurRetirement I'd rather watch you than cable.
@@ThisIsOurRetirement you are one of the few subscriptions I always watch. Don’t mess with success.
Great information and thanks for sharing guys! I was unaware of these risks. Very valuable.
Our pleasure! have a wonderful weekend Mark Cheers 🍷🌺😎
Hi Tina and Notm
Very interesting and personal …..this topic to me.
This happened to me in 2008. Offered and made the deposit and by the agreement for the house that I am still living in. But the difference in the offer price and valuation from bank was $17000. Both of us the buyer and seller ready to move further and moving trucks booked. I as a buyer backed off and said to my seller, we need to come to some sort of resolution. I told them plain blank that I am in love with this house Or this toy. But the price dropped. I ready to walk away from this deal. I will loose my deposits but not as much because the interest rates went up.
The house was meant to be for me , mortgage rate was locked and we both divided the difference between the valuation price and offer accepted price and settled, and at the same our realtors gave up 1% of their commission. So it was a happy ending.
But I hear your advise. Will keep the contingent upon valuation price and lock the rate as soon as possible.
Thank you.
Sorry. Norm*. I stand corrected.
Wow thanks for sharing your story Asha glad it worked out with a happy ending for you , hope you have a wonderful weekend Cheers 🍷🏡🌺😎
Rental accomodation unobtainable on southern Van.Isle.Folks living in camps.We need to build more rental units.I live in a 12x50 moble home (which I like) set up in a mobile home park.The rent for the pad it is set up on is $400.00 per month.This gives me something to repair and improve, which I like doing.CHEERS from HERE!
$400 is fantastic! Most mobile home parks in CA asking $900 to $1500. Unless it is small run down park, it’s rare to see space rent lower than $600. Costal luxury parks in malibu, san pedro, Huntington beach, newport, and laguna beach go for $1900 to $3000 per month.
We dont have that here Darryl, our mobile homes like our trailer are just for May to October but it sounds very reasonable , have a wonderful weekend Cheers 🍷😎🍺🇨🇦
Thanks for sharing Jen , we think Darryl owns the home and just rents the pad 🤔have a great weekend Cheers 😎🍷🌺
Good information for People who haven't or didn't educate themselves on the legality of a buyer seller contact in this crazy market.
Staying safe I personally haven't been in a store since the late Fall of 2019 and won't untill the Covid virus calms down or stops its virulent mutations. When it goes to just a cold status state then I'll feel safe.
You guys are looking great.
Yes it’s a crazy market in homes 🏡 at the moment, hope you have a wonderful weekend Cheers 🍷🌺😎
Giant Tiger got a new shipment in this week. Lol. All different band shirts. Love your videos. 🇨🇦
That is awesome! thanks for the info Kim Cheers 🍷🇨🇦😎🎸
Moving is very stressful and troublesome. In the UK things are different as there is actually no commitment until exchange and in a lot of cases downsizing does not involve mortgages as the family home is paid for. There are many other issues however and a lot chains fall through with the whole chain being out of pocket having paid for valuations and other costs.
Thanks for sharing Simon we agree moving is very stressful and harder to do the older you get , have a wonderful weekend Cheers 🍷🇬🇧🇨🇦😎
Situation sounds almost like a tall tale, amazing how the fear of missing out will drive people to make bad decisions. No home purchase should be made without conditions dependent on financial approval and home inspection. And the 1% the BOC announced this week came as quite a shocker😱
The housing market is very scary at the moment Cheers 🍷😎🌺
what a nightmare!
Yes we can’t imagine ! real horror stories 😱enjoy your weekend Lyn Cheers 🍷😎🌺
Hi Tina and Norm. Very interesting video again. What a heartbreaking situation for many people. Good advice to insert that clause about the mortgage valuation!!! Thank you as always. 👏👍⭐
Our pleasure! glad you enjoyed the video have a great weekend Cheers 🍷😎🌺
Awesome topic. 👌 Downsizing is the key 🔑 to success. Congrats on reaching 50k subscribers...more coming your way!! Rent has skyrocketed.I read Miami is up 48 percent! Pure insanity. Wow your example was a superb nightmare. Nobody shares this with buyers...frightening!
Yes! Thank you! 🥳 glad you enjoyed our video Johnny Cheers 🍷🇺🇸🇨🇦🌺
People need to look ahead and see if there is a possibility of the shortfall with appraisal going to happen and reevaluate their plans, like do a subject to finance clause always.
Thanks for sharing Mike Cheers 🍷😎🌺
Thank you for sharing these ideas. We've been thinking of downsizing because we are older and the yard is too much, but all
these things are concerning. If we sell/buy, we will have a lawyer look things over legally.
Thanks for watching when we sold we then decided to rent an apartment and it’s been wonderful, yes you need a lawyer when you sell but we like you wanted to get rid of yard work and unexpected maintenance and expenses of home ownership we wish you well it’s worth the effort so go for it Cheers 🌺🍷😎
Also if you are retiring now rents have gotten crazy. They are starting so high!
We agree Merenie but so have house prices too, we have been in our 1350 sq ft apartment for 6 years and only pay $1500, due to annual rent increase of less than 2%.
In New York the appraisal contingency (or valuation contingency) is standard. Frightening to hear this story.
That’s great that you have that thanks for sharing Cheers 🍷🇺🇸🇨🇦😎
Wow this was so very helpful. A point I hadn't even considered- although I am not currently ready to sell/downsize or rent, I am only a short few years away from those plans but you never know what will come up and make me consider it very soon........thanks Norm and Tina
You are so welcome Gayle , we were 58 and 60 when we took early retirement and so glad we did we would highly recommend it to anyone as none of us has a crystal ball 🔮 to know what the future will bring Cheers 🍷🌺😎
You Guys are always very entertaining with all kinds of fun facts and information..👍 You Guys Rock!!!😎
Thanks so much Jeff Cheers 🍷🎸😎
The other thing to note, if it hasn’t already been said, is that rents in Ontario are high and rising more as house prices are decreasing. I know someone who just rented a townhouse for $3000 per month. That would be a lot to handle, especially in retirement
Think it’s all relative we started to rent 7 years ago and haven’t looked back our rental is very reasonable and we have rent control so that’s great Cheers 🍷🌺😎
Rent control is only good if you stay at the same place for a long time. I live in the province of Quebec and although we have rent control, rent has gone up dramatically since the last few years because landlords increase the price of rentals much more than what is allowed by rent control when a new tenants arrive. Then new tenant does not know the price paid by the previous tenant so he does not know if the rent increase is fair. What is needed is a registry that people could consult to know what the previous tenant was paying. Renting in Canada is not affordable for many Canadians now.
Not sure how that can happen🤔as with us the yearly increase is about 1,2% have a wonderful weekend Cheers 🍷🌺😎
@@ThisIsOurRetirement But you said in a previous video that those who want to rent the same apartment as yours now pay much more than you. As you can see, those apartments are much less affordable for new renters. With a registry, rents would be the same for new renters as it is for those who have stay there for a long time. It would make renting more affordable.
@@mikhailbulgakov1472 What we said is you might be paying $300 a month more, but when you get started you realize what a great deal it is Cheers 🍷🌺😎