Home buying - 300K house or 400K house
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Posted on: 12-10-11 12:03:28
Quote:
Originally posted by rahul_singh23
I am still trying to understand how Canadian can pay so high for housing when taxes, HST, food, car, gas, flight,hotel and everything is so expansive as compare to USA or Canadian media is so weak that truth is not coming out.
Same way how people in India are paying so high for the houses over there..despite much much higher interest rates..
Quote:
Originally posted by rahul_singh23
I am still trying to understand how Canadian can pay so high for housing when taxes, HST, food, car, gas, flight,hotel and everything is so expansive as compare to USA or Canadian media is so weak that truth is not coming out.
Because there is no other option left for normal Canadians but to freaking pay! pay! pay! .....and pay !.
Anyway here is what I think , Few reasons why housing prices are still going up despite other expenses ;
1. The banks are keeping the interest level low for mortgages. Thus from the long gone era of detached for 300k- 400k and now 500k-600k house the monthly payment is almost same. Thus no complains from media also.
2. Chinese are getting loads of money and they are buying houses on cash and several chinese bid for same house thus increasing its price, one house sold on higher price lifts the mkt for other nearby houses. morons!
3. Toronto, Vancouver is a situation where there is high demand less houses on likeable locations thus high prices on whatever is available and with traffic increasing and public transit getting time consuming the demand for condos in downtown or where-ever jobs are more will further soar.
Quote:
Originally posted by bhootnath
Same way how people in India are paying so high for the houses over there..despite much much higher interest rates..
India has big RE bubble same like Dubai. Lot of areas around Delhi (Sonipat, Rohtak, Dharuheda) start feeling negative equity now. There are tons of speculation in thinking that if I put 20 lakh on 1.5 crore and no possession for a yrs then I will flip before possession.
Saving, family money and black money also play big role in Indian RE. House registry happens on very low price and big amount is paid cash. I do not think anyone can afford good housing in south Delhi with a great job even. Most of the people have generational home and living there (on parent's head).
Here in North America people people do not have any saving, family money and no black money. Only thing they have credit number and monthly pay check.
Quote:
Originally posted by san-hugo
Because there is no other option left for normal Canadians but to freaking pay! pay! pay! .....and pay !.
Anyway here is what I think , Few reasons why housing prices are still going up despite other expenses ;
1. The banks are keeping the interest level low for mortgages. Thus from the long gone era of detached for 300k- 400k and now 500k-600k house the monthly payment is almost same. Thus no complains from media also.
2. Chinese are getting loads of money and they are buying houses on cash and several chinese bid for same house thus increasing its price, one house sold on higher price lifts the mkt for other nearby houses. morons!
3. Toronto, Vancouver is a situation where there is high demand less houses on likeable locations thus high prices on whatever is available and with traffic increasing and public transit getting time consuming the demand for condos in downtown or where-ever jobs are more will further soar.
Excatly same logic was selling in 2002-2006 when I was living in US. My city is different, our street is different, best school, everyone wants to live here, Freddie/Fannie dirty mortgage insurance, AAA rating bonds.
1. USA has low interest rate for 30 yrs mortgage.
2. Chinese card is not playing any more. Vancouver SFH is not moving anywhere and renting making more sense than mortgage.
3. There are tons of housing in all the cities and GTA is the condo capital of north America.
Canadian sub-prime ( 0/40, 5/35/ super low interest rate) starts late along with CMHC is hiding all the dirty mortgages. Canadian govt does not need to sell dirty mortgage to anyone so third party companies can not see the books.
Quote:
Originally posted by rahul_singh23
India has big RE bubble same like Dubai. Lot of areas around Delhi (Sonipat, Rohtak, Dharuheda) start feeling negative equity now. There are tons of speculation in thinking that if I put 20 lakh on 1.5 crore and no possession for a yrs then I will flip before possession.
Saving, family money and black money also play big role in Indian RE. House registry happens on very low price and big amount is paid cash. I do not think anyone can afford good housing in south Delhi with a great job even. Most of the people have generational home and living there (on parent's head).
Here in North America people people do not have any saving, family money and no black money. Only thing they have credit number and monthly pay check.
Oh boy...the doomsday is near...Not a single countrly left in this world where it is safe to buy a house..More houses than popoulation.
So what is the best investment/alternative?
There are lot of good place in USA where you can make good deal and rent/own ratio makes sense. Why does someone want to mortgage renter when renting is cheaper than owning?
Renting < mortgage interest+ taxes+ condo fee+maintenance+ loosing investment return on down payment+ no worry about negative equity
There is other miscellaneous cost, commission and closing cost while in owing process.
Housing is just a part of investment portfolio and there are tons of other investment to own which makes more sense than over price housing which is most illiquid asset.
Only thing I can see in housing that you can rent the mortgage (without or little money) and feel like owner but other investment really needs good financial discipline and savings.
Quote:Quote:
Originally posted by rahul_singh23
Oh boy...the doomsday is near...Not a single countrly left in this world where it is safe to buy a house..More houses than popoulation.
So what is the best investment/alternative?
Well, I wanted to write a big list of the jokes as the one I wrote below, but I decided to limit.
Quote:
Originally posted by rahul_singh23
Yes salary are hiking with slow rate and job market is growing in some areas. But depends whom you asking this question.
Quote:
Originally posted by JRF
We're getting a 15% pay hike every year, job market is growing, all the insurance premiums are cutting down.
-----------------------------------------------------------------
The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
No loans...
Quote:
Originally posted by bhootnath
Oh boy...the doomsday is near...Not a single countrly left in this world where it is safe to buy a house..More houses than popoulation.
So what is the best investment/alternative?
-----------------------------------------------------------------
The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
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