Comments on: Friday free-for-all! http://vancouvercondo.info/2007/08/friday-free-for-all_10.html?utm_source=rss&utm_medium=rss&utm_campaign=friday-free-for-all_10 Bubble? What Bubble? Thu, 24 May 2012 03:20:42 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Akhen http://vancouvercondo.info/2007/08/friday-free-for-all_10.html#comment-5771 Akhen Tue, 14 Aug 2007 18:16:00 +0000 http://vancouvercondo.info/?p=308#comment-5771 SATV ... then I would hope that your property is fully positive cash flow even in downtown times 'coz when the market starts going down, there's going to be plenty of supply. That would put a real downward pressure on rental rates.<br/><br/>If you've got a mortgage and your investment property is not positive cash flow and on top of that, your job is fully tied to the market ... you better hope that you don't lose your job. Otherwise, it's default time!<br/><br/>Regardless of whether the house is a "real" asset, key is whether you can hold on to it.<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-5771">0</span> <small>(to vote for this comment, please visit the site)</small></p> SATV … then I would hope that your property is fully positive cash flow even in downtown times ‘coz when the market starts going down, there’s going to be plenty of supply. That would put a real downward pressure on rental rates.

If you’ve got a mortgage and your investment property is not positive cash flow and on top of that, your job is fully tied to the market … you better hope that you don’t lose your job. Otherwise, it’s default time!

Regardless of whether the house is a “real” asset, key is whether you can hold on to it.

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]]> By: Akhen http://vancouvercondo.info/2007/08/friday-free-for-all_10.html#comment-5772 Akhen Tue, 14 Aug 2007 10:19:00 +0000 http://vancouvercondo.info/?p=308#comment-5772 Then you'll be rockin' all the way to the sad house if your cash flow aren't able to fully cover your mortgage>>>A mortgage where the principal is higher than the market value. Then the wise will say, "See, I told you so". Remember, GREED and FEAR ... drives prices! Not the rational and prudent! <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-5772">0</span> <small>(to vote for this comment, please visit the site)</small></p> Then you'll be rockin' all the way to the sad house if your cash flow aren't able to fully cover your mortgage>>>A mortgage where the principal is higher than the market value. Then the wise will say, "See, I told you so". Remember, GREED and FEAR … drives prices! Not the rational and prudent!

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]]> By: satv http://vancouvercondo.info/2007/08/friday-free-for-all_10.html#comment-5770 satv Tue, 14 Aug 2007 09:11:00 +0000 http://vancouvercondo.info/?p=308#comment-5770 So...will the Olympics shore up demand ... hehehe ...Oh, I think our water, mountains, Whistler will definitely keep the money flowing in ... NOT! 8/14/07 8:57 AM water,mountains,and whistler does not shake the market every week.for first time buyers real estate is best secure item to purchase because if market crash you still hold your unit to reside,otherside does not pay you shelter after crash.and that side does not depend on w.m.w. I have heard that depend on china.fresh apple will encourage you to buy that, rotten will divert you to walk away.when investing is mandatory in mental state,every body like to swim.we keep it rockinwe keep it rockinwe keep it rockin......countinue. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-5770">0</span> <small>(to vote for this comment, please visit the site)</small></p> So…will the Olympics shore up demand … hehehe …Oh, I think our water, mountains, Whistler will definitely keep the money flowing in … NOT! 8/14/07 8:57 AM water,mountains,and whistler does not shake the market every week.for first time buyers real estate is best secure item to purchase because if market crash you still hold your unit to reside,otherside does not pay you shelter after crash.and that side does not depend on w.m.w. I have heard that depend on china.fresh apple will encourage you to buy that, rotten will divert you to walk away.when investing is mandatory in mental state,every body like to swim.we keep it rockinwe keep it rockinwe keep it rockin……countinue.

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]]> By: oh please http://vancouvercondo.info/2007/08/friday-free-for-all_10.html#comment-5769 oh please Tue, 14 Aug 2007 08:58:00 +0000 http://vancouvercondo.info/?p=308#comment-5769 Interestingly, <a href="http://money.cnn.com/2007/08/14/news/companies/walmart/index.htm?postversion=2007081412" rel="nofollow">Wal-Mart</a> is saying its US troubles are spreading to Canada and Mexico. The question is, how much of this has to do with Wal-Mart stumbling in the market and how much with the consumer spending slowdown. If that's spreading to Canada then things may begin to change rather quickly. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-5769">0</span> <small>(to vote for this comment, please visit the site)</small></p> Interestingly, Wal-Mart is saying its US troubles are spreading to Canada and Mexico. The question is, how much of this has to do with Wal-Mart stumbling in the market and how much with the consumer spending slowdown. If that's spreading to Canada then things may begin to change rather quickly.

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]]> By: Akhen http://vancouvercondo.info/2007/08/friday-free-for-all_10.html#comment-5768 Akhen Tue, 14 Aug 2007 07:57:00 +0000 http://vancouvercondo.info/?p=308#comment-5768 van-realestate-crash ... <b>Does anyone either than mortgage peddlers (bank economists) and real estate foolish bulls actually believe the Fed can fix the problem?The Central Banks abused monetary policy to the point they no longer have control.</b>It's funny bordering on lunacy, but "experts" and analysts continue to feel that mathematical models and computer algorithms can predict human psychology. This "credit squeeze" problem was exactly that. Spreading the risk across many financiers globally was supposed to contain any fallout, but they underestimated the conservativeness of financial institutions in granting credit in light of risk and market turmoil, and they underestimated market participants fear.Again, it's a question of <b>WHEN</b> before the crunch hits the streets of vancouver and evaporates demand.So...will the Olympics shore up demand ... hehehe ...Oh, I think our water, mountains, Whistler will definitely keep the money flowing in ... NOT! <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-5768">0</span> <small>(to vote for this comment, please visit the site)</small></p> van-realestate-crash … Does anyone either than mortgage peddlers (bank economists) and real estate foolish bulls actually believe the Fed can fix the problem?The Central Banks abused monetary policy to the point they no longer have control.It's funny bordering on lunacy, but "experts" and analysts continue to feel that mathematical models and computer algorithms can predict human psychology. This "credit squeeze" problem was exactly that. Spreading the risk across many financiers globally was supposed to contain any fallout, but they underestimated the conservativeness of financial institutions in granting credit in light of risk and market turmoil, and they underestimated market participants fear.Again, it's a question of WHEN before the crunch hits the streets of vancouver and evaporates demand.So…will the Olympics shore up demand … hehehe …Oh, I think our water, mountains, Whistler will definitely keep the money flowing in … NOT!

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]]> By: van-realestate-crash http://vancouvercondo.info/2007/08/friday-free-for-all_10.html#comment-5767 van-realestate-crash Tue, 14 Aug 2007 07:09:00 +0000 http://vancouvercondo.info/?p=308#comment-5767 I am in disbelief. Does anyone either than mortgage peddlers (bank economists) and real estate foolish bulls actually believe the Fed can fix the problem?The Central Banks abused monetary policy to the point they no longer have control.While the Fed was pushing short rates up, the long yield kept on heading down. What makes anyone think that if the Central Bankers, with a few hundred million dollars from tax payers, can fix a multi trillion dollar problem?The smart money has left the building. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-5767">0</span> <small>(to vote for this comment, please visit the site)</small></p> I am in disbelief. Does anyone either than mortgage peddlers (bank economists) and real estate foolish bulls actually believe the Fed can fix the problem?The Central Banks abused monetary policy to the point they no longer have control.While the Fed was pushing short rates up, the long yield kept on heading down. What makes anyone think that if the Central Bankers, with a few hundred million dollars from tax payers, can fix a multi trillion dollar problem?The smart money has left the building.

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]]> By: patriotz http://vancouvercondo.info/2007/08/friday-free-for-all_10.html#comment-5766 patriotz Tue, 14 Aug 2007 00:53:00 +0000 http://vancouvercondo.info/?p=308#comment-5766 "When will the market turn?" is the unanswerable question in bubbles. When did the NASDAQ top out in 2000? When did Nortel top out (it wasn't the same time)?Here's a really easy question to answer: "When is RE indisputably overpriced?". Answer: when it yields less than fixed income.All other assets must yield more than fixed income, long term. (I mean capital assets that have a yield, not gold or collectibles). If they don't, supply will simply overwhelm demand. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-5766">0</span> <small>(to vote for this comment, please visit the site)</small></p> "When will the market turn?" is the unanswerable question in bubbles. When did the NASDAQ top out in 2000? When did Nortel top out (it wasn't the same time)?Here's a really easy question to answer: "When is RE indisputably overpriced?". Answer: when it yields less than fixed income.All other assets must yield more than fixed income, long term. (I mean capital assets that have a yield, not gold or collectibles). If they don't, supply will simply overwhelm demand.

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]]> By: freako http://vancouvercondo.info/2007/08/friday-free-for-all_10.html#comment-5765 freako Mon, 13 Aug 2007 21:59:00 +0000 http://vancouvercondo.info/?p=308#comment-5765 <b>When will all this hit the Vancouver home prices? </b>There are way to many random variables to even begin to make such predictions. We know it is coming, and that the more time goes by, the closer it is.It would be nice to know exactly when, but overall it is more important to know the magnitude of future direction than the exact timing of the inflection point. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-5765">0</span> <small>(to vote for this comment, please visit the site)</small></p> When will all this hit the Vancouver home prices? There are way to many random variables to even begin to make such predictions. We know it is coming, and that the more time goes by, the closer it is.It would be nice to know exactly when, but overall it is more important to know the magnitude of future direction than the exact timing of the inflection point.

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]]> By: Michael http://vancouvercondo.info/2007/08/friday-free-for-all_10.html#comment-5764 Michael Mon, 13 Aug 2007 21:18:00 +0000 http://vancouvercondo.info/?p=308#comment-5764 When is still the question. When will all this hit the Vancouver home prices? I thought the market would dip at the beginning of this year, but it didn't, there was no trigger to change the direction of the market. Right now I think we're seeing only small triggers today, after billions of adjustable rate mortgages reset throughout this year and the first half of next year is when the market will take huge hits. Even if there aren't huge numbers of foreclosures which there could be, people are going to be tightening up on their spending which should be enough to bring on a recession. Imagine you could barely afford your 4% ARM before and now its coming due and your mortgage rate resets to 7% and I think alot of people will be paying quite a bit more than 7%, some 8-9%. I know people here in Burnaby that had ARM and they had to start paying 10% when it reset. I don't think these people will be able to hang on to their mortgages for very long.http://tinyurl.com/2qucvyTick tock, tick tock. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-5764">0</span> <small>(to vote for this comment, please visit the site)</small></p> When is still the question. When will all this hit the Vancouver home prices? I thought the market would dip at the beginning of this year, but it didn't, there was no trigger to change the direction of the market. Right now I think we're seeing only small triggers today, after billions of adjustable rate mortgages reset throughout this year and the first half of next year is when the market will take huge hits. Even if there aren't huge numbers of foreclosures which there could be, people are going to be tightening up on their spending which should be enough to bring on a recession. Imagine you could barely afford your 4% ARM before and now its coming due and your mortgage rate resets to 7% and I think alot of people will be paying quite a bit more than 7%, some 8-9%. I know people here in Burnaby that had ARM and they had to start paying 10% when it reset. I don't think these people will be able to hang on to their mortgages for very long.http://tinyurl.com/2qucvyTick tock, tick tock.

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]]> By: blueskies http://vancouvercondo.info/2007/08/friday-free-for-all_10.html#comment-5763 blueskies Mon, 13 Aug 2007 19:48:00 +0000 http://vancouvercondo.info/?p=308#comment-5763 #4 foreign equity locusts are now a footnote in history..... <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-5763">0</span> <small>(to vote for this comment, please visit the site)</small></p> #4 foreign equity locusts are now a footnote in history…..

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