This thread is scary, I just bought a house! Mr Crash, Bust, Bubble whatever they call you, can you delay your appearance for a few more years? Please?

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George Malley: Hey, would you, uh, love me the rest of my life?
Lace Pennamin: No. I'm gonna love you for the rest of mine.
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None of us knows God until someone introduces us - Life of Pi

Education, research, financial responsibility and keeping eyes open are keys for any kind of investment including housing. Market gives you in return what you deserve but not what you want.

Rosenberg, Krugman, Madani, Carney, Jim F and Garth are talking about RE bubble. 80% Canadian do not know who these people are. Damaged is done so It's not a warning. But main street always get slaughter in every bubble.

http://www.theeconomicanalyst.com/
http://greaterfool.ca/

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Originally posted by G13
This thread is scary, I just bought a house! Mr Crash, Bust, Bubble whatever they call you, can you delay your appearance for a few more years? Please?

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Tell me something.. What have you learnt from what is going on in the last 4-5 years.... or put it this way.. What appears to be the fundamental thing that lead to this state today.

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Originally posted by ashedfc

The American Dream (of owning a home) has turned into a nightmare.

http://www.jsmineset.com/wp-content/uploads/2011/07/clip_image002.jpg" border="0" alt="http://www.jsmineset.com/wp-content/uploads/2011/07/clip_image002.jpg" />


Though its happening in US right now (it will eventually spread to other countries where the consumer debt level is high)
Minnesota just went bankrupt today http://abcnews.go.com/Politics/minnesota-government-shuts-amid-debt-fallout/story?id=13973572
New Jersey borrowed 2.25 billion USD money from JP Morgan at 9% interest on 27th June.. http://online.wsj.com/article/SB10001424052702303627104576412172854764168.html

The debt problem is just getting bigger & now bigger players are going insolvent....

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The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM

Debt for emergency is understandable.. Borrow to buy bigger home.. Borrow to invest, Borrow to party.. What the hell ?

I was once advocating the Canadian style multi-store houses in India to my close relatives, some of my relatives built such houses too. Off-late I'd been hearing lot of complaints from them that this type of housing is distancing them from their kids / family. Parents, due to their age squeeze in the 1st floor bedroom. This comment might appear un-related but it relates to the greed, lifestyle, living beyond means.

Time to get back to the old school...............

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Originally posted by ashedfc

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Originally posted by JRF
What appears to be the fundamental thing that lead to this state today.

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Too much Debt, & Living beyond means...
If you want to know more (this piece will explain in detail) http://www.zerohedge.com/sites/default/files/IceCap%20Asset%20Management%20Limited%20Global%20Markets%20June%202011.pdf

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The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM

Thanks for great link.

Another reason is too much over-promise by leaders to make base happy and win votes.

Govt. and anyone who is making money in transaction helped these people to fulfill their over-promised dreams with super low interest rates and no saving/investment.

Everyone is blaming govt, $ value, Federal, banks or bad news spreaders for all these problems but no one is talking about people's greed for what they can not afford so they have all the rights to deserved what they are getting.

It's called political suicide statement.

Quote:

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Originally posted by ashedfc

Quote:

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Originally posted by JRF
What appears to be the fundamental thing that lead to this state today.

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Too much Debt, & Living beyond means...
If you want to know more (this piece will explain in detail) http://www.zerohedge.com/sites/default/files/IceCap%20Asset%20Management%20Limited%20Global%20Markets%20June%202011.pdf

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I’d like to make a calculation for you.
Your gross monthly income: 4500+1300= 5800
Your annual cost:
1. daily cost: 700—1000( according to the current price)
2. your payment for your car: 200
3. cost for some happen-chance: 200
total: 1100—1400
Your ready money: 100000
The first choice for you: 300000
5800-1400=4400, 200000/4400=45.5, 45.5/12=3.8
You need 3.8 year to pay off your house (without the interests for the bank)
The second choice: 400000
300000/4400=68.18, 68.18/=5.7
You need at least 5.7 year to pay off (without the interests for the bank)
Choice needs to be made by you. Hope you find a proper one as per your actual situation.

http://albertabubbleblog.blogspot.com/
http://www.cba.ca/contents/files/statistics/stat_mortgage_db050_en.pdf

Here are the results.

Nevada Pop 2.7 million-foreclosures 10,007 score 1 per 270 residents
Arizona Pop 6.3 million-foreclosures 13,437 score 1 per 469 residents
Georgia Pop 4.6 million-foreclosures 9,715 score 1 per 473 residents
California Pop 37.2 million-foreclosures 54,088 score 1 per 687 Residents
Michigan Pop 9.88 million-foreclosures 12,919 score 1 per 765 residents
Florida Pop 18.8 million-foreclosures 23,769 score 1 per 790 residents
Alberta Pop 3.7 million-foreclosures 4,123 score 1 per 897 residents
Illinois Pop 12.8 million-foreclosure 11,014 score 1 per 1,162 residents
Ohio Pop 11.5 million -foreclosures 8,671 1 per 1,326 residents
United States 310 million-foreclosures 222,749 1 per 1,392 residents
Washington Pop 6.7 million-foreclosures 4,450 1 per 1,505 residents
British Columbia Pop 4.5 million-foreclosures 2,822 score 1 per 1,594 residents
Atlantic Canada Pop 2.35 million-foreclosures 1,420 score 1 per 1,655 residents
Canada Pop 34.5 million-foreclosures 17,121 score 1 per 2,015 residents
Ontario Pop 13.2 million-foreclosures 5,708 score 1 per 2,312 residents
Texas Pop 25.1 million-foreclosures 9,339 score 1 per 2,687 residents
Saskatchewan Pop 1.05 million-foreclosures 362 score 1 per 2,901 residents
Manitoba Pop 1.23 million-foreclosures 307 score 1 per 4,006 residents

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AB is in worst shape even we have low unemployment. It does matter how much make but most important how much you save.