ashedfc,

Thanks for all the updates and links. There are lot of CD who get benefit from everyone's experience and advice.

I am not sure why people get annoyed or scared. Everyone can bring on logic and share own views and ideas.This is not rocket science as long as people are able to pay attention to the arguments as to why such high prices are unsustainable with record debt and unemployment. Its a question of when. When (sheep) starts asset bust.


Everyone has a right to make good/bad decision. There is nothing wrong in flipping or getting foreclosure as personal or corporate level. Problem is when inefficiency, wrong financial decision and not making profit corporations/people are rewarded by govt social program.

There is nothing wrong to think about profit, money or greed. That drives the business, innovation,competition and free market.

Looking forward for your posts.

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Originally posted by ashedfc

I don't want to scare CD's, as some are getting annoyed with my postings.
Guys, this is reality...... Not knowing facts is like living in illusion. Even if bubble bursts, it will impact different persons differently. Every individual is unique in his finances.
We are getting all sings of housing bubble about to burst, (keep in mind Nasdaq was in bubble for quite some time, & even at the initial fall, people ignored & piled up on Nortel). So, a caution/prudence is required, & it doesn't mean home buying will stop or should stop. Rather, its only an indication that people with uncertain finances should take less risk going forward.

It very important for everyone to know, what are the signs of a bubble, & what happens when it deflates.
Here is something worth watching...... in 2 Parts
Part-1
http://www.youtube.com/watch?v=VWeeTdR7ud8&feature=player_embedded

Part-2
http://www.youtube.com/watch?v=GIRMk8F3YAE&feature=player_embedded

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One more report

Canada and household debt: Almost the worst among G7

"Only Americans are more leveraged, and they're getting their act in gear"

http://www.theglobeandmail.com/report-on-business/top-business-stories/canada-and-household-debt-almost-the-worst-among-g7/article1709705/


keeping the above in view in the present economic times where people's salaries are not going up and will be going up in the near future and community related to real estate wants houses prices to go up. They keep on relasing falls (??) report in the news paper that prices and sales are going up,because of this lots of "uneducated" buyer falls into the trap and get "Royaly screwed"

I will add some more points :-)

Smart-shelter rules of thumb

• Buy a home you want to live in, not flip. Most studies show that in the short run, renting a home is cheaper than buying one. In the first years of purchase, your monthly payments are mostly paying off interest and the only person you’re making rich is your banker.

• Don’t buy during a boom. Markets move in cycles. We’ve been in a strong up cycle over the last decade, but the laws of market gravity will not be defied. What goes up can eventually come down.

• Make the biggest cash down payment you can afford. It’s simple. The more money you put down, the less interest you will have to pay on your property. This could result in substantial savings in the long run.

• Location, location, location. All the funds you’ve invested to improve your home’s “curb value” will be for naught if the neighbourhood is a no-go zone. It’s better to buy a fixer upper in a good neighborhood than having the best house in a run down area.

• Be Realistic. Buying a home is an emotional purchase, but don’t bite off more than you can chew. Make sure you keep within your financial comfort zone. A pool and a picket fence might be ideal – but not when you’re stressed out about paying the monthly dues

Land of the free, home of the tightwad

One of the most enduring changes wrought by the recession is how once free-spending Americans have changed their ways

http://www.theglobeandmail.com/report-on-business/commentary/derek-decloet/land-of-the-free-home-of-the-tightwad/article1712854/


I am sure this one will have effect on Canadian economy sooner or later


"Homesickness What you feel every month when the mortgage is due."

Another proof that higher home prices which are not supported by higher income / salary and growing economy , can start effecting people capacity to save for their kids future such as RESP and also their own future such as RRSP.

We are raising generation of people with debt , our kids start their journey with debt as they hv to take loan to study then they take loan to buy car then take loan to buy house etc etc and we call that house our own which is in fact not our but bank’s. In this process only banker and brokers wins giving an illusion that we won.



Part-time jobs hurting students’ academic performance, profs say

"University students struggle to keep up in school because of part-time jobs, according to almost two-thirds of Ontario professors who took part in an online poll."

http://www.parentcentral.ca/parent/education/article/863540--part-time-jobs-hurting-students-academic-performance-profs-say

Thanks ashedfc & hopesrforever27.

These are really great links and best part "any profession where there are commissions involved, whether it's the guy selling you the tie at Harry Rosen or the plasma television at Future Shop, means that consumers should be vigilant."

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hopesrforever27
"We are raising generation of people with debt"

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I came an across an excellent excel spreadsheet which I am sharing it with CD members. Using this file you can calculate your monthly mortgage amount ,create various what if scenarios’ , in how many years you can pay off if u make extra payment, what will be your monthly interest and principal payment etc etc.

I would say this is a must have tool before you meet any of these so called professional mortgage “BROKER”.



http://www.megaupload.com/?d=QWGHB0P2