As previously suspected, the Canadian Housing market is overvalued. By how much, you ask? see below
http://www.bloomberg.com/news/2015-01-08/canada-home-prices-are-63-too-high-deutsche-bank.html
Finally, the news that will bring much cheers to TK.
http://www.huffingtonpost.ca/2015/01/08/canada-housing-debt-deutsche-bank_n_6438440.html?utm_hp_ref=mostpopular&ir=Canada+Business
Location: God's own country
Posted on: 13-01-15 01:33:31
Why? I think you mean Rahul.
Murali The Krishna
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I am a Gents and not a Ladies.
1) The latest news on the economy front is not good and there are recession fears. Following on the heels of Greek tragedy and the stock market crash in the 2nd largest economy in the world(China)
http://www.cbc.ca/news/business/recession-fears-all-too-real-for-canadians-struggling-to-cope-1.3145118
2) Anyone buying a house now at these sky high prices is making a foolish mistake. combined with a big mortgage and the loss of your job will bring you to the streets or a permanent move back to India.
http://www.msn.com/en-ca/money/topstories/canadas-hot-housing-markets-clearly-detatched-from-reality/ar-AAcJw0f?ocid=mailsignoutmd
Location: God's own country
Posted on: 10-07-15 07:27:20
Then, IMO (and if your situation enables you to), I think one can think of selling the house now and live in a rented condo.. After 1 year, when the situation is more clearer, one can think of buying at lower prices.
Murali
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I am a Gents and not a Ladies.
Location: God's own country
Posted on: 10-07-15 08:29:34
Wow !
After writing this, when I opened Redffmail.com, it says that the wealthy chinese have already taken the cash from the China stock market and will be use it to buy properties in safe heavens like Canada, britain and Australia.
It is not easy to guess that they will target Vancouver in Canada. So prices may actually rise.
http://www.rediff.com/business/report/chinas-rich-seek-shelter-from-stock-market-storm-in-foreign-property/20150710.htm
So Febpreeth, which news are you going to beleive?
Murali
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I am a Gents and not a Ladies.
I don't see the same rate of inflation in the rental market as housing market. The rental market is at par with the increase in wages and inflation of goods. So only housing market is growing too fast – not a very good indication. The house owners are able to meet their financial obligations due to historical low interest rates but there is no guarantee that they will stay same low forever. Only one percent increase in the interest rates will offset a lots of house owner and it will have the domino effect.
If you take the example of Delhi’s housing market, which was NOT based upon the mortgage rates and most of people have no financial obligations against their property, still had a jolt in the last one year and the current house prices are down by 25%. When that house market can hit, I don’t think the Canadian house market is more robust. The key questions are 'when' and 'how much'.
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A Delhite in Toronto
Quote:
Originally posted by Garvo Gujarati
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