Quote:

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Originally posted by ashedfc

Kya baat hai, bhootnath.........
bahut sapne dikha rahe ho..

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Quote:

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Originally posted by bhootnath
In another 5-10 years you would have anyway paid off some part of your mortgage.

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Web2000,

All the houses everywhere are way over priced. Earlier, GTA was known to be the affordable burb in the whole country. Unfortunately and sadly it's not the case anymore. Where do you go and what would you do, I wonder <sigh>.

I have an honest solution(with no sarcasm): Go back to India to the ancestral house, so at least one wouldn't get caught in the mortgage game. But that's another thing, if people (including yours truly) really want to go back to India?

Another humble solution: Buy a small house that is manageable, instead of aping other people/friends/relatives blindly. By the way, how many times do you guys use the family room which is a considerable size in a detached house? That's a waste of space and hence, the addition of a few hundred mortgage monies.

But hey! I am in Canada and the only way I can flaunt myself is to buy a bigger house, bigger car, and bigger toys. Even if I have to mortgage my whole life. At least, OTHER people will envy me and my lifestyle. Other people!

Ain't it a load of bull? Just an illusion, I must say.

Quote:

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Originally posted by web2000

Quote:

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Originally posted by bhootnath
In another 5-10 years you would have anyway paid off some part of your mortgage.

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I would say
"In another 5-10 years you would have anyway paid off some part of your OVER PRICED HOUSE "

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I think the point is getting diverted from what I am talking about..Numbers and charts can be made look how you want to look at it. The point is rates are low and you can lock them up for next 5 or even for 10 years. If you are certain about the rates and affordability what is stopping you from buying a decent house. Bubble is going to burst? lets say you bought a property at 500K with the rate of 3.89 fixed for next 10 years over 25 years ammortization. Even if property goes down and value becomes 300K next year, how does it affect you? It should not because you will still be paying the same monthly installement. Even if rate goes up you still pay the same, rate is not going to go down any further. But prices could keep going upward and then rate will also start to go up with the inflation..then it could really become impossible to buy a house.
Your charts and numbers does not make sense when you look at the upward trend since last couple of years in housing market. Even today the properties are gone like hotcakes. Same with Silver and gold, the charts that were pointing to reach $100 and $10000 resp never moved beyond $50 and $1800 respectively. When it reaches that level that time houses will appreciate equally.

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Originally posted by ashedfc

You are talking about 5- 10yrs,
See this.. "Taking inflation into account, U.S. home prices are down to 1895 levels".

http://s.wsj.net/public/resources/images/OB-SU071_smhous_NS_20120430170815.gif" border="0" alt="http://s.wsj.net/public/resources/images/OB-SU071_smhous_NS_20120430170815.gif" />


Source: http://www.smartmoney.com/spend/real-estate/why-us-house-prices-wont-recover-1335877657114/?mg=com-sm


Why should Canada be different (in every bubble type situation its always the same statement "this time its different" but it all ends up the same, right from tulip mania to the current one "Spain's housing" )

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It is sure that there will not be a RE crash like other countries but its effect will be painful. Since any loss will be taken by the tax payers which means more taxes in future which will adversely affect the economy.

"
It seems that 2012 will be the year the housing market bubble begins to pop, with the economy slowing down, unemployment rising, and job creation has virtually stalled, according to CIBC, which explained that, “the job market is currently weaker than any non- recessionary period.” Canada is not alone, of course, as the United States and Ireland were just the beginning. It is expected that the U.K., Australia, Belgium, France, New Zealand, Spain, and Sweden are all set to follow suit. Within Canada, however, British Columbia and Ontario will be the most affected. But don’t worry, the Canadian banking sector will survive the pop, because it is actually the Canadian government which owns 75% of the mortgages, meaning that this will then pass to Canadian taxpayers, not the poor disadvantaged millionaire and billionaire bankers.[31] Besides, the risk they have will probably be bailed out by our government. As our Finance Minister stated, “we are prepared to intervene if necessary,” which means that they will take all the bad debts of the banks, and then hand them to YOU.
"

Source

http://www.portlandoccupier.org/2012/04/30/canadas-economic-collapse-and-social-crisis-class-war-and-the-college-crisis/

One should buy a house if they want to live in it themselves and they can afford the monthly payments and have some margin of savings as boothnath said .

the reason is if there is a correction in the RE prices then the interest rates will go up so for somebody who is going to take a mortgage monthly payments will be more or less the same ( High price --- low interest rate OR Low price --- high interest rate ), so if one intends to stay in the house one should go for it ( if you can afford it and still have some savings ) .

but for investors it is a different ballgame altogether, but then with all kind of investment one has to take the risk and risk is there for sure in real estate for the investors .