Comments on: Friday Free For All! http://vancouvercondo.info/2008/07/friday-free-for-all-30.html?utm_source=rss&utm_medium=rss&utm_campaign=friday-free-for-all-30 Bubble? What Bubble? Thu, 24 May 2012 08:06:05 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Esoteric http://vancouvercondo.info/2008/07/friday-free-for-all-30.html#comment-22937 Esoteric Tue, 22 Jul 2008 14:18:37 +0000 http://vancouvercondo.info/2008/07/friday-free-for-all-30.html#comment-22937 I can't for the life of me understand why people can't wrap their heads around the fact that 40 amortizations are every bit as toxic as "teaser rates", ARM's, and all the rest of the sub-prime fiasco's evil products. The problem, the FUNDAMENTAL PROBLEM with these products is that over the first 5-7 years, the home buyers' accumulate very little if any equity in the home. They are mostly paying off interest and barely paying down any principle. You can use any mortgage calculator on any bank website to check this if you would like. If a home buyer has 0-5% equity in their home but the value of the home drops 10%, that is negative equity. Negative equity is what prompts the most foreclosures. When people are in a negative equity situation, they WANT to default on their mortgages. They want to walk away and so they stop paying their mortgage payments. Now in Canada, the fact that people CANNOT walk away from their mortgages actually will make our housing correction last LONGER. People will still be paying mortgage payments that they cannot really afford and will not be able to save any money to get BACK into the housing market. In Canada, we may not have a "crash" the way that the US is having... but it will be just as painful overall except that it will take longer to get back to a "boom". <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-22937">0</span> <small>(to vote for this comment, please visit the site)</small></p> I can't for the life of me understand why people can't wrap their heads around the fact that 40 amortizations are every bit as toxic as "teaser rates", ARM's, and all the rest of the sub-prime fiasco's evil products.

The problem, the FUNDAMENTAL PROBLEM with these products is that over the first 5-7 years, the home buyers' accumulate very little if any equity in the home. They are mostly paying off interest and barely paying down any principle.

You can use any mortgage calculator on any bank website to check this if you would like. If a home buyer has 0-5% equity in their home but the value of the home drops 10%, that is negative equity.

Negative equity is what prompts the most foreclosures. When people are in a negative equity situation, they WANT to default on their mortgages. They want to walk away and so they stop paying their mortgage payments.

Now in Canada, the fact that people CANNOT walk away from their mortgages actually will make our housing correction last LONGER. People will still be paying mortgage payments that they cannot really afford and will not be able to save any money to get BACK into the housing market.

In Canada, we may not have a "crash" the way that the US is having… but it will be just as painful overall except that it will take longer to get back to a "boom".

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]]> By: JC http://vancouvercondo.info/2008/07/friday-free-for-all-30.html#comment-22925 JC Tue, 22 Jul 2008 12:43:17 +0000 http://vancouvercondo.info/2008/07/friday-free-for-all-30.html#comment-22925 Replying to Vansanity about the friend selling his place for $378k. I don't think his carrying costs are as high as you said, but you make a nice point. His profits from selling are not $378k - $320k. His carrying costs are probably around $40k for 3 years. His RE fees should be around $12k when he sells eventually. I initially thought he was making a huge profit, but now it doesn't look like that much. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-22925">0</span> <small>(to vote for this comment, please visit the site)</small></p> Replying to Vansanity about the friend selling his place for $378k. I don't think his carrying costs are as high as you said, but you make a nice point. His profits from selling are not $378k – $320k. His carrying costs are probably around $40k for 3 years. His RE fees should be around $12k when he sells eventually. I initially thought he was making a huge profit, but now it doesn't look like that much.

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]]> By: patriotz http://vancouvercondo.info/2008/07/friday-free-for-all-30.html#comment-22885 patriotz Tue, 22 Jul 2008 08:40:33 +0000 http://vancouvercondo.info/2008/07/friday-free-for-all-30.html#comment-22885 John, you just sound flat. Try running through a translator to, e.g, German and back again: "BC is the best place on the earth to invest, and yes, what boats a good investment are. If you bought 17 ft double eagle last year, as a petrol was inexpensive, you would have made at least 2 splendidly, in the meantime. Albertans to dear boats and some Asians also. I buy boats and freehold flats and sometimes big SUVs as investments." <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-22885">0</span> <small>(to vote for this comment, please visit the site)</small></p> John, you just sound flat. Try running through a translator to, e.g, German and back again:

"BC is the best place on the earth to invest, and yes, what boats a good investment are. If you bought 17 ft double eagle last year, as a petrol was inexpensive, you would have made at least 2 splendidly, in the meantime. Albertans to dear boats and some Asians also. I buy boats and freehold flats and sometimes big SUVs as investments."

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]]> By: Drachen http://vancouvercondo.info/2008/07/friday-free-for-all-30.html#comment-22883 Drachen Tue, 22 Jul 2008 08:21:23 +0000 http://vancouvercondo.info/2008/07/friday-free-for-all-30.html#comment-22883 <b>BOP</b> You're mean. But I like it ;) <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-22883">0</span> <small>(to vote for this comment, please visit the site)</small></p> BOP

You're mean.

But I like it ;)

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]]> By: Burden of Proof http://vancouvercondo.info/2008/07/friday-free-for-all-30.html#comment-22882 Burden of Proof Tue, 22 Jul 2008 07:32:23 +0000 http://vancouvercondo.info/2008/07/friday-free-for-all-30.html#comment-22882 Nothing is selling. It is time to make very low ball offers, like 50% off list. Even if they don't bite immediately, it will demoralize owners and their realtors, contributing to negative psychology. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-22882">0</span> <small>(to vote for this comment, please visit the site)</small></p> Nothing is selling. It is time to make very low ball offers, like 50% off list. Even if they don't bite immediately, it will demoralize owners and their realtors, contributing to negative psychology.

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]]> By: Burden of Proof http://vancouvercondo.info/2008/07/friday-free-for-all-30.html#comment-22881 Burden of Proof Tue, 22 Jul 2008 07:31:01 +0000 http://vancouvercondo.info/2008/07/friday-free-for-all-30.html#comment-22881 Recently Rob Chipman posted quotes from Sir John Templeton. He left out Templeton's real estate advice. Here it is: "After home prices go down to one-tenth of the highest price homeowners paid, then buy.” <a href="http://traceysmarketupdate.com/2008/07/09/lessons-learned-from-john-templeton/" rel="nofollow">http://traceysmarketupdate.com/2008/07/09/lessons...</a> <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-22881">0</span> <small>(to vote for this comment, please visit the site)</small></p> Recently Rob Chipman posted quotes from Sir John Templeton. He left out Templeton's real estate advice. Here it is:

"After home prices go down to one-tenth of the highest price homeowners paid, then buy.”

http://traceysmarketupdate.com/2008/07/09/lessons…

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]]> By: Anonymous http://vancouvercondo.info/2008/07/friday-free-for-all-30.html#comment-22872 Anonymous Mon, 21 Jul 2008 22:38:16 +0000 http://vancouvercondo.info/2008/07/friday-free-for-all-30.html#comment-22872 19845 units for REBGV. We're 155 away from 20K folks! <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-22872">0</span> <small>(to vote for this comment, please visit the site)</small></p> 19845 units for REBGV. We're 155 away from 20K folks!

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]]> By: john http://vancouvercondo.info/2008/07/friday-free-for-all-30.html#comment-22871 john Mon, 21 Jul 2008 22:03:18 +0000 http://vancouvercondo.info/2008/07/friday-free-for-all-30.html#comment-22871 BC is the best place on earth to invest and yes boats are a good investment. If you bought a 17 ft double eagle last year when gas was cheap you would have made at least 2 grand by now. Albertans love boats and so do some asians. I buy boats and condos and sometimes big SUVs as investments. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-22871">0</span> <small>(to vote for this comment, please visit the site)</small></p> BC is the best place on earth to invest and yes boats are a good investment. If you bought a 17 ft double eagle last year when gas was cheap you would have made at least 2 grand by now. Albertans love boats and so do some asians. I buy boats and condos and sometimes big SUVs as investments.

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]]> By: Anonymous http://vancouvercondo.info/2008/07/friday-free-for-all-30.html#comment-22870 Anonymous Mon, 21 Jul 2008 21:48:17 +0000 http://vancouvercondo.info/2008/07/friday-free-for-all-30.html#comment-22870 "Investor lose 29%" Who told them to buy in USA buy in Canada specially in Vancouver British Columbia <b>"*The*Best*Place*On*Earth*"-bdk?</b> <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-22870">0</span> <small>(to vote for this comment, please visit the site)</small></p> "Investor lose 29%"

Who told them to buy in USA buy in Canada specially in Vancouver British Columbia "*The*Best*Place*On*Earth*"-bdk?

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]]> By: mk-kids http://vancouvercondo.info/2008/07/friday-free-for-all-30.html#comment-22869 mk-kids Mon, 21 Jul 2008 21:44:51 +0000 http://vancouvercondo.info/2008/07/friday-free-for-all-30.html#comment-22869 oops, i meant boats... <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-22869">0</span> <small>(to vote for this comment, please visit the site)</small></p> oops, i meant boats…

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