As you may have been able to tell I’ve got my hands full with other things right now, but it is Friday and this is your open topic post!
Whats going on out there? Post your news, anecdotes, links and theories here!
113 Comments
Tony Danza,thank you very much for your comment finally we are able to get that right.Now further support is coming up in articles.Thanks
"when he's 81 and makes that final payment on his home"That's assuming he lives that long (doesn't die of stress at 60) and doesn't get a HELC. He is definitely sudden heart attack material down the line.Sadly, I've discovered too many people in my circles doomed to the same fate.
beta: Teachers are often quite stupid about money matters. Why is he smiling in the picture? Doesn't he realize that his life is a nightmare?A teacher starts on about 42k add about 5k for a Master's Degree. He will go up the pay scale for 10 years at about 2k per year. He says he's been working in low-paid youth work for years, so i'm guessing he has been teaching for less that 5 years. He's probably making 55k. His wife isn't working either, until the kids get older. So yes Beta, his life sounds like a nightmare to me.He's locked into a 40 year mortgage with no downpayment on a townhouse that probably cost 350-400k and makes 55k. Ouch! I wonder if his marriage will survive 2 screaming kids and no diposable income. Ah well… at least they aren't… Read more »
Chief,"foreclosures" ?I ain't a word in Canada;it's only a yank problem. It seems you are very new to the real estate market.The fact is: foreclosures do occur in canada; I have attended the court sale of several of them (at the Smithe & Howe courthouses downtown).
What are those numbers satv?It's 2007 in case you hadn't noticed. Are those your predictions, or is your muddled brain so loose with numbers that you can't tell one year from the next?
Teachers are often quite stupid about money matters.Unfortunately this is not just about this couple, or any particular professional group. It's conventional wisdom. (1) Your main consideration in deciding to purchase a house should be affordability (as opposed to say value, which is meaningless)(2) Affordability is measured in one dimension, that being the lowest monthly payment you can finagle (on whatever terms).(3) Since overall affordability is worsening, you should buy now so you don't miss the opportunity forever.Articles like this that show smiling homeowners (oh how blessed are they) without addressing the lapses in logic don't help things.
michael: Where have you been??Your bizarre interjections were so much more coherent and so much funnier than than those of our current 'blog-fool', satv.—-BTW, WRT your oil/freako statement:If ARU closes below $5, you kinda owe me an 'okay, you did say it was prematurely overvalued at $10'. (that's $20 and $40 before the split)It's currently at about $7.50, and it recently revisited $6..((PS: that's not to say I don't believe PM shares aren't going to be a good speculation at some point soonish).)
"Speculative buying is rare and subprime mortgage loans account for just 5 per cent of the market in Canada – much lower than the 20-per-cent market share in the U.S."Yeah right on the speculative buying. This may well be true on a national average, if you're including all the Truro NS and Port Hardy BC towns. In Vancouver itself? Not likely.
freako….if oil closes above 80.00 you owe me 100.00
"Speculative buying is rare and subprime mortgage loans account for just 5 per cent of the market in Canada – much lower than the 20-per-cent market share in the U.S."Yeah right on the speculative buying.
First, affordability is terrible but no worries, it can be mitigated by using zero-down 40-year am mortgagesTeachers are often quite stupid about money matters. Why is he smiling in the picture? Doesn't he realize that his life is a nightmare?
thanks tony danza……..http://preview.tinyurl.com/2uomrl
Couple of classic articles in the Sun.First, affordability is terrible but no worries, it can be mitigated by using zero-down 40-year am mortgages and by starting lower down on the old property ladder. The highlighted couple, who formerly "thought the market had passed them by" is relieved to have quit renting, and plans to "accelerate payments" in 5 years. Wonder how many 40 year mortgages are being sold on that basis.Second, first-time condo purchasers "who otherwise might worry about their investment in a future condo downturn" need not lose sleep because retiring boomers will keep condo prices rising.
sweet succulent grouper: tinyurl.com, enter the link in the box click on the button, copy and past url into post.I believe that we have only seen the beginning of RE appreciation in Vancouver. Thousands of units added to inventory, thousands of people moving to Vancouver every day to take up jobs at Tim Horton's, many RE agents, baristas, taxi drivers and hairdressers owning multiple properties, front page stories on condo assignment flipping, etc… This market has only one place to go, up. How could it not? Who says you can't use past performance to predict future gains?satv, Chief, thank you guys so much for finally stringing together a cogent argument and opening my eyes to the new paradigm that is Vancouver real estate, the best real estate in the WORLD!!
This coming from one of the big banks no less, sort of shows what they think of the future of their mortgage business.Woah, what is that smell? I think satv, chief and their specubull buddies just filled their diapers and will probably be waddling for the exits now.
Well kids the moment we have been waiting for is now here. Here is official MSM coverage of a Scotia Economics Real Estate Trend Report, taken from ctv.ca news:"A hot Canadian housing market has lifted prices above their long-term trend, raising risks of an eventual drop in prices, says Scotiabank. The evaluation is made in the latest Real Estate Trends report, released Thursday by Scotia Economics. "There is little doubt that current trends are unsustainable," said Adrienne Warren, senior economist for Scotia Economics. "Affordability is becoming increasingly stretched for many would be buyers after almost a decade of rising home prices. "More recently, economic risks have increased in the wake of the intensifying financial market turmoil stemming from the U.S. subprime mortgage problems." From a long-term perspective, the report says there is growing evidence of overvaluation in home prices in… Read more »
Good work SatvYour info exposes bears' deformation of Van RE.Under the leadership of our great leader Gordon Campbell,BC will proper for the decades to come.
good chief you are here till the end.thanx tomorrow.
AHA-AHApatriotz-randallbards,inspired by some articles and predicting end my friend wow, but you did not add any desireable amount of crash to the average price why???because you guys have no idea what is crash,and what is engineering ground wires to connect state of crash or state of bubble elimination.Anyway first of all I like to thanks all poster-users to keep the spirit bulls-or bear after all we are humans. if we do not put both side of coin in thread we can not achieve our goal.I want to tell you guys my post to eliminate bubble was true based on facts, I have provided in genuine post and patch up later.so I do not have to go back and forth right now I can only provide some up date on randall's scenario.Randall,that edmonton issue was brought here before by Squidlly77,but he… Read more »
See bro that is the power of majority who would drown the voice of jealous bulls paying high rent for nothing for the rest of their life.Good work Bulls.
Expect a lot more bull trolls as the tide is now turning.I have noticed that too. Mish, Calculated Risk and HBB also saw a "surge" in bull postings in 2006. This is the end, my friend.
Hi Richard, the story on the pine beetle is interesting, but I would question the source: Don Campbell? What's he selling now? This guy is quite a RE pimp.He is after something.