Home buying - 300K house or 400K house
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Posted on: 09-02-12 00:31:51
Quote:
Originally posted by rahul_singh23
It's difficult to understand when a person makes money by not understanding it.
Then it is better not to try to understand because even if one understands then he really does not understand the other aspects of it and that understanding either called as wisdom or supidity based on the understanding of the situation that time
"Samaz Samaz ke samaz ko samzo, samaz samazna bhi ek samazh he, yeh samaz samaz kar jo na samaze meri samaz me woh nasamaz he.."
Rahul...I know the tsunami of US real estate downturn was so bad that every one is scared of even normal waves of corrections. From previous posts it looks like you took a hit in condo but if it was a town/semi/detached, your views would have been different.
The vancouver couple may not be able to move because they probably used LOC on luxury (vacation, hummer, boat,etc) rather than investing it (either in stock, gold, forex or real estate). But lets do a poll here and find out how many CDs only on this site lost their money on real estate.
Current rise would have been four times higher if the US market was not in a bad shape..investors took cautious approach in investing in real estate. Yes there are cases who might have taken a loss even in booming prices but solely because of bad decisions/luck..whateever you want to call it.
You know it very well that since last 2 years you were predicting a correction of 25%..the prices already gone up 30 to 40%. so even if there is a correction now, the prices will still hold.
Here is interesting article from a very reputed source and if you think may be one reason of increase in the prices..
http://online.wsj.com/article/SB10001424052970204136404577211902199177954.html
What happens when Canada’s housing bubble pops?
http://www2.macleans.ca/2012/01/26/what-happens-when-canadas-housing-bubble-pops/
A few days ago, Bank of Canada governor Mark Carney released another alarming, albeit muted, warning shot about the state of the Canadian real estate market. Some properties in Canada are “probably overvalued,” the central banker said during an interview with CTV. Last week Finance Minister Jim Flaherty hinted he is also worried about housing: “We watch the housing market carefully and we are prepared to intervene if necessary,” he said.
The Economist figures the Canadian market is overvalued by over 70 per cent. Last month, Merrill Lynch wrote in a report that our housing market is afflicted by “overvaluation, speculation and over supply.” No wonder a recent international survey of housing affordability found Vancouver to be the second-least affordable city in the world!
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Mark Carney and Jim F needs to attend Real Estate board courses to understand how we are different and there is no Canadian sub-prime (low interest rates, 0/40, 5/35, CMHC).
Quote:
Originally posted by rahul_singh23
Last month, Merrill Lynch wrote in a report that our housing market is afflicted by “overvaluation, speculation and over supply.”
Merrill Lynch..? they still exists? Wasn't this company on the verge of bankruptcy and then were magically bought by a bank which itself is fighting for its existance? Now they are called as wealth management division of the bank..man..what a joke/mockery.
These same guys never saw subprime mess or did not raise the alarm knowngly; both are henious crimes when they were making so much in bonuses. And now that even a caveman knows what happened in US and what is happening here, these so called experts are trying to warn...They should really be in jail. I am sure whoever from Merrill reported above, must have bought couple of condos himself...Spread the scare and make most out of it..
Merrill... my a$$.....
I agree with you. If Banks, RE Board or a person make money by not understanding then it's difficult to understand. This (not understanding) is a reason of all the bubble.
Our Real Estate Boards, banks and CMHC are doing same mistake and not telling Canadian about Canadian sub-prime (0/40, 5/35, super low interest rates, CMHC crap, easy money, too much debt ratio). Are these institute also joke/mockery/henious crimes or these people are making money by not telling truth (behind jail?).
How do you rate Mark C (BOC) and Jim F when they are telling indirectly behind the curtain that Canadian have highest debt ratio and RE bubble? Mass media is more interested in printing Re-max report.
Quote:
Originally posted by bhootnath
Quote:
Originally posted by rahul_singh23
Last month, Merrill Lynch wrote in a report that our housing market is afflicted by “overvaluation, speculation and over supply.”
Merrill Lynch..? they still exists? Wasn't this company on the verge of bankruptcy and then were magically bought by a bank which itself is fighting for its existance? Now they are called as wealth management division of the bank..man..what a joke/mockery.
These same guys never saw subprime mess or did not raise the alarm knowngly; both are henious crimes when they were making so much in bonuses. And now that even a caveman knows what happened in US and what is happening here, these so called experts are trying to warn...They should really be in jail. I am sure whoever from Merrill reported above, must have bought couple of condos himself...Spread the scare and make most out of it..
Merrill... my a$$.....
Quote:
Originally posted by rahul_singh23
How do you rate Mark C (BOC) and Jim F when they are telling indirectly behind the curtain that Canadian have highest debt ratio and RE bubble? Mass media is more interested in printing Re-max report.
The problem is that they never came up and said it is RE bubble. I know they may never say that. Now if it is a bubble, they knew it and did not do anything about it, then what can I say..we will be sitting in line with our neighbours with a catora in hand in front of the big wall.
Quote:
Originally posted by ashedfc
Do you expect them to say the RE is on the verge of _ _ _.
They can only give hints, & they are already giving hints, multiple times.
I was expecting some smart RE supporter would question Jim F and Mark C (BOC) statement that these official do not understand Canadian RE.
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We are talking about Canadian sub-prime from long time.
http://www.greaterfool.ca/2012/02/20/canadian-subprime/
“Subprime” simply means lending to people who would not qualify under traditional guidelines. For example, buying a home once meant you needed a 25% downpayment, then the bank would cough up the other three-quarters. Prior to 1999, nobody with less than a 10% down could qualify for mortgage insurance, or get financing. But after that, the feds dropped the bar to just 5% – opening the floodgates for both credit and higher house prices. Suddenly banks were encouraged to give 95% financing, since the taxpayers were wiping away the risk through CMHC. Subprime was born
Buy a home within your means and dont go for the RE talks... today u have a job, tomorrow u may not - whats the back up plan for that? U dont want to dig too deep into your saving.
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