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Topic: Canadian Real Estate could Plunge.
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Steve N
rabble-rouser
Babbler # 2934
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posted 26 October 2008 04:44 PM
quote: Originally posted by Doug: Here's hoping, I would like to afford a condo that is larger than a closet.Oh shoot, I read the article..."except Toronto and Edmonton".
Toronto house prices plummet 15% quote: Originally posted by aka Mycroft: The problem of course is that a) people who own their homes will end up losing a lot of their investment and b) people with mortgages could well end up with a mortgages that are worth more than the house.
a) is a misunderstanding of investment principles. Over an extended period an investment will grow, but over short term it may shrink, or at least grow very slowly. You don't lose unless you sell. If you stay living in your house, you're investment will continue to grow, just not 40% a year (exagerating) like it has been the last few years. If someone bought 2 years ago speculating and hoping to make a quick buck, then it will be a long buck instead. If someone has owned their home for 40 years and is disappointed they didn't sell 6 months ago and make the most, that is unfortunate, but really it is like complaining you didnt buy a lottery ticket last week. You make your profit when you pull the trigger, up until then it is just a possibility.
From: Toronto | Registered: Aug 2002
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Toby Fourre
rabble-rouser
Babbler # 13409
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posted 26 October 2008 05:09 PM
Canadian real estate already has dropped. I think it's a matter of over building as much as anything else. That and the dimwits who watch too much American TV factor. Those are the people who hear that housing prices in Phoenix have plummeted so they panic in Vancouver. Different market.What puzzles me more than anything is the evaporation of real estate pressure by retiring baby boomers. These people have been flooding into the Okanagan for several years and suddenly they stopped coming. The flow didn't slow down, it stopped. Where did these people go? One answer may be that a lot of retirees bought repos in Arizona, etc. I think that many of those will have buyers' regrets. They will wake up and find themselves in the middle of abandoned suburbs with no services and no stores and still have to pay their taxes in $US.
From: Death Valley, BC | Registered: Oct 2006
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QatzelOk
rabble-rouser
Babbler # 15680
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posted 01 November 2008 11:33 AM
quote: I think it's a matter of over building as much as anything else.
It's hard to believe with so much homelessness and so many 2-hour commutes, that there has been a problem of over-building in the cities.I live in a housing coop, and we are preparing to buy our buildings form the city government. I am very worried about the value of our buildings crashing five minutes after we sign our mortgage. However, I am encouraged by the fact that massive numbers of people will all be in the same situation as the members of my coop if the value of our property suddently falls. But this latest mortgage "spectre" just reminds me of how dangerous it is to turn housing into a commodity, like diamond earings and Tang futures.
From: Montréal | Registered: Oct 2008
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New to New West
recent-rabble-rouser
Babbler # 15661
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posted 01 November 2008 03:28 PM
"Those are the people who hear that housing prices in Phoenix have plummeted so they panic in Vancouver. Different market."I know people in real estate in Vancouver and they are suffering. Nothing is selling, and prices are plummeting faster than the media is telling us. This is a full blown crash, my friends. The regional markets are not exactly the same, but there many similarities and the underlying problems exist all over most of North America. Its just a questions of WHEN things break down, and Vancouver is about two years behind the US. There is good reason to panic.
From: New Westminster | Registered: Oct 2008
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Trexx
recent-rabble-rouser
Babbler # 15596
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posted 02 November 2008 08:11 PM
Countries are bailing out their national banks left right and center. The IMF is bailing out entire countries left right and center.Gordon Brown jets off to Saudi to inform the middle east that the IMF is going to run out of money very quickly indeeed. Then entire countries will fail. And then the middle east will not be selling anybody much oil. And so the cash rich middle eastern countries need to lend the IMF a few hundred billion. And people are surprised property values are dropping? It just could be the right time to buy up the back forty and get a few chickens and goats and a milch cow. Sure hope not
From: canada | Registered: Oct 2008
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remind
rabble-rouser
Babbler # 6289
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posted 02 November 2008 09:02 PM
There is only 1 country that needs to collapse, the USA. It has 3 trillion dollars, at least, in NSF cheques, aka the US dollar, littering the world's financial markets. At this point one does not know whether to thank them for causing capitalism to collapse, or scream about ruined lives and future.Most Americans have yet to feel these costs. The price in blood has been paid by our voluntary military and by hired contractors. The price in treasure has, in a sense, been financed entirely by borrowing. Taxes have not been raised to pay for it - in fact, taxes on the rich have actually fallen. Deficit spending gives the illusion that the laws of economics can be repealed, that we can have both guns and butter. But of course the laws are not repealed. The costs of the war are real even if they have been deferred, possibly to another generation.
From: "watching the tide roll away" | Registered: Jun 2004
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remind
rabble-rouser
Babbler # 6289
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posted 03 November 2008 03:49 PM
quote: Originally posted by thorin_bane: I bought my house almost 8 years ago. Up until 2 years ago it had risen all of 10% in 6 years while our city was supposedly booming. However the market crashed in Windsor 2 years ago and has been getting worse ever since, My house is now worse less than I paid for it 8 years ago. I am on 'temporary lay off' so if we don't get our call back in january I will have to sell the house and basically be debt free by the time everthing is said and done(No house,but no debts, or much in savings. Starting from scratch all over again). Which really blows for the 8 years you commit to mortgage payments. I would have been better to rent during this time and would have had the same debt free(ness) with less worrying. Yet I am so hoping that things get even worse so we can ALL start EVERYTHING over from scratch not just all the people at the bottom. We need a revolution. The rich got us into this with being greedy pigs, yet we are going to pay again for their faults...yeah yeah a few of them are getting a nibble in the bum, but that is nothing compared to the arm and leg severing people in the bottom are taking.
Boy, do I hear you thorin, we are in much the same boat, waiting for call backs too. Only at present we would make a bit off of our house, after mortgage debt is paid, but not much. Perhaps not even enough to move our stuff to a larger centre and pay damage deposit and rent. And yes, we the poor again pay for the rich to get richer, and why do more working poor not realize this? There won't be any changes until they do! Moreover, I think the acadamia and middle civil servants play a large part in keeping the status quo!
From: "watching the tide roll away" | Registered: Jun 2004
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dr anonymous
rabble-rouser
Babbler # 15150
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posted 03 November 2008 05:36 PM
Up until 2 years ago it had risen all of 10% in 6 years while our city was supposedly booming--Again location is always key. Our house has went from $586,000 3 yrs ago (when we bought it) to over $850,000 present day. So the boom has been there but again location is vital. Where is your home located? %10 in 6 yrs is terrible. Jane/Finch has probably went up higher than that. I feel for ya dont get me wrong. We are all being ripped off by big brother. We need to stand up and challenge them. But will we?? Only if it doesnt require thinking or work.
From: toronto | Registered: Apr 2008
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George Victor
rabble-rouser
Babbler # 14683
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posted 04 November 2008 03:11 AM
Historically, and again today, hope goes West young man, goes West. And when the H2 S and climate gets a little hard to handle, c'mon back. It's going to be increasingly all about location, location, location. -------------------------------------------- quote: It just could be the right time to buy up the back forty and get a few chickens and goats and a milch cow. Sure hope not
Just 100 years ago, people could benefit from housing these benevolent life forms at the back end of their town lots in some smaller communities.
[ 04 November 2008: Message edited by: George Victor ]
From: Cambridge, ON | Registered: Oct 2007
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