Reviews of the Rollercoaster

Tickets are still available to the Vancouver Real Estate Roller Coaster. Critics are calling it the Summer blockbuster that’s not to be missed!

“..a useful image when thinking about asset prices in general today and always. Human behaviour and leverage drive our asset price cycles. If we always keep the roller coaster image in mind, we will never be able to relax and fall asleep after a period of very steep climbs; nor will we be as inclined to throw in the towel after a period of very steep falls.”

Danielle Park – Juggling Dynamite

“..a wonderful illustration of financial storytelling. Metaphor can be a wonderful tool, the reason this one works is that it takes an over used cliché and makes it real.”

Stewart Marshall – Financial Storyteller

“A vomit inducing ride.”

The Georgia Straight

“The only thing I had a problem with is that [it implies] what really is going to happen is we’re going to fall off the roller coaster and sink into the water. Investments are volatile. If you want low volatility then buy low-volatility GICs.”

Tsur Sommerville – UBC Center for Urban Economics and Real Estate

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patriotz
Member
Owners Stop Paying Mortgages, and Stop Fretting A growing number of the people whose homes are in foreclosure are refusing to slink away in shame. They are fashioning a sort of homemade mortgage modification, one that brings their payments all the way down to zero. They use the money they save to get back on their feet or just get by. This type of modification does not beg for a lender’s permission but is delivered as an ultimatum: Force me out if you can. Any moral qualms are overshadowed by a conviction that the banks created the crisis by snookering homeowners with loans that got them in over their heads. “I tried to explain my situation to the lender, but they wouldn’t help,” said Mr. Pemberton’s mother, Wendy Pemberton, herself in foreclosure on a small house a few blocks away… Read more »
DaMann
Member
DaMann

Rates up .5% this morning. Finally some sense from the BOC!

DaMann
Member
DaMann

Correction, up .25% to a total of .5%

I was hoping for a .5% increase. These are still emergency rates and i don't see the emergency.

buff_butler
Guest
buff_butler

@Damann: It got increased to 0.5 from 0.25. More coffee for you! 😛

http://www.bankofcanada.ca/en/fixed-dates/2010/ra

DaMann
Member
DaMann

@buff_butler:

Beat yah to my correction, quit pouring coffee and you would have beat me to it 🙂

XXX
Guest
XXX

25 bpts means nothing. Carney just protecting his ass and saying he's doing something. The fact is the rate should be 200 bpts higher but he'll only go there if the shit hits the fan. The dollar is down half a cent was down a penny so clearly the market was looking for more (50 instead of 25).

buffates
Guest
buffates

Sommerville can eat my ass.

superduperbulltime
Guest
superduperbulltime

Bear variable discounts now prime minus .75 meaning .25 rate hike = zero rate hike on new mortgage. 5 year bond yield down again. What does this mean? It mean that buyer relieved over interest rate panic and huge buying frenzy to begin. This is the begining of vancouver boom 3

Purp1
Guest
Purp1

Tsur "…Investments are volatile. If you want low volatility then buy low-volatility GICs." — It's that kind of thinking that helped get us into this mess. Tsur, my home is not an investment. It is a place to live.

1
Guest
1
patriotz
Member

@Purp1:

Tsur, my home is not an investment. It is a place to live.

You house is an investment, because it's a place to live, which has a marketable value, i.e. rent. That does not means it's a good investment at any given price, any more than a stock is.

An investment is not just "something I expect to sell for more than I paid for it". CSB's and GIC's are investments for example.

joycer
Member
joycer

@superduperbulltime:

Plus now when the housing market starts to plunge the BOC can come to the rescue and drop rates 0.5% instead of 0.25%. Yes, it's all smooth sailing from here on out in Vancouver's housing market ;).

G
Guest
G

Anything can be an investment basically.

I can invest in a expensive washer/dryer or I can go to the laundromat.

It losts me very little each time I go to the landromat to do the laundry (some quarters)

But the machines will cost me a lot of money to start out with. They also could break down at some point. But there is the convinience of not going elsewhere to do laundry. I could also charge for laundry services.

In the end it is up to the person which option will save the most money long term.

joycer
Member
joycer

Now that rate changes are here, if you haven't read the post I put on the forum about changing rates vs. home prices you can find it here:
http://vancouvercondo.info/forum/topic/rate-hold

Lots of numbers and charts for those of you that like that kind of thing. It also shows why it's better to wait for higher rates and let your pre approval at a lower rate expire. Basically the amount of money you will save by locking in at the lower rate is less than the amount the price of the house will have to fall in order to maintain the same monthly payment.

Purp1
Guest
Purp1

@patriotz: I understand Patriotz, but my contention is with the statement about volatility. I don't think it's good for society to have the housing market act like a highly volatile stock market because of the speculation it encourages.

jesse
Member

Investments are volatile. If you want low volatility then buy low-volatility GICs

If I want low PRICE volatility I will buy in Dallas or Boston. INCOME volatility from rents are likely about the same regardless of the city.

I'll get on at the bottom, thanks.

Devore
Member
Devore

“The only thing I had a problem with is that [it implies] what really is going to happen is we’re going to fall off the roller coaster and sink into the water. Investments are volatile. If you want low volatility then buy low-volatility GICs.”

But I thought it only went up?! A sure thing?!

Oh, how quickly they turn, hedge their bets, and cover their asses in carefully coached language.

And the coaster doesn't "imply" anything, it's just an illustration to make a point.

Dialetics
Guest
Dialetics

I love how Patriotz comments are so predictable and standard…

Make a statement and the underemployed 40 something professor wannabe goes "corrects" each poster. He always takes a snippet from a post and then proceeds to show how they are wrong – bulls and bears alike. Even when it's a bear posting with 50 plus points, he always has to correct one portion of the comments as part of his "one upmanship."

Well trained in the art of critical analysis, yet unable 90% of the time to add anything of his own. Very reflective of a pessimistic attitude and insecurity…

Best place on meth
Member
Best place on meth

Don't fret about the rate increase being only 25 points.

At 25 points every 6 weeks it will add up quickly, not that this bloated pig of a real estate market even needs it – it's already collapsing.

VRENGD
Guest
VRENGD

@Dialetics:

Incorrect facts and analysis should be corrected.

Do you think that it is better to perpetuate misinformation and bad thinking?

“one upmanship”, as you put it, it not the point. The point is to arrive at the truth. If those with lazy thinking get corrected, it is better for everyone, even if they get their egos bruised.

Vrengd
Guest
Vrengd

@patriotz:You should take your retirement today,You can't even understand plain english.

Tell me how can you live in stock portfolio?

VRENGD
Guest
VRENGD

VANCOUVER RE PRICES DROP FURTHER MONTH-OVER-MONTH

Adding to the MOM price drop last month, April to May prices for the average detatched dropped almost 5%.

A 5% MOM drop is quite huge. And that was before rate hikes and before the HST and while many buyers could still qualify under the old easy money CMHC rules.

The Vancouver Real Estate price collapse is proceeding according to this blog's predictions. Well, maybe prices are dropping FASTER than anticipated.

http://www.yattermatters.com/real-estate/mays-wil

patriotz
Member

@Dialetics:

If you don't want to hear from a "professor wannabee", why don't you turn off your computer and turn on the the Bill Good Show or Global and hear from a real "professor" or "economist"?

The choice is yours.

Gordon C.
Guest
Gordon C.

incorrect facts and analysis should be corrected.

Do you think that it is better to perpetuate misinformation and bad thinking?

“one upmanship”, as you put it, it not the point. The point is to arrive at the truth. If those with lazy thinking get corrected, it is better for everyone, even if they get their egos bruised.

The "truth"! You can't handle the truth.

The points and stars on this blog are just meant to stroke the egos of a select few who probably have multiple accounts and vote many times for themselves and allow them to piss on those that challenge them. What this does is drive away people from an uninhibited exchange of ideas leaving unimaginative regurgitation of falsehoods. Tell a lie enough times and people believe it to be a "truth".

Bob Lucas
Guest
Bob Lucas

Bank of Montreal LOWERS fixed mortgage rates after BOC rate announcement: http://www.montrealgazette.com/business/fp/lowers

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