Hope you're ready to hunker down in your rabbit cage sized home for the next few years ...unles you want to take a 60% bath on what you paid..lolol...stupid yuppies!

Yeah?

You just keep throwing away that rent money.

There are many pre-sales that haven't even taken possession yet that will get a brand new condo that is worth less then they paid for it. Attention: REGISTER / LOGIN to view the image!

So what is the difference between throwing away rent money versus giving away money to the bank for your mortgage? So, will you do when your mortgage is worth more than your place?

I own my condo outright, You rent. Ha ha. Who's laughing now.

after 20 years, atleast you have something that belongs to you. your rent is paying someone else's mortgage and after 20 years, you have nothing.

Is that suppose to make a big difference? Would you rather be the owner of a detached house?

Are you sure? You're making a lot of assumptions? You're assuming someone will always be renting. What if they buy after a downturn and their payments are half of your payments?

I am happy with my condo. It is a big unit and the building is solid, quiet, well kept.

i was just answering your question re: difference between paying rent and paying a bank.

I just found it quite amusing to see you laugh since any market correction will affect the condo market first and harder than detached homes. So, while the fellow paying rent has loss anything on his net worth, you would be taking a loss on your net worth should the condo market correct.

So, my question to you is, "Are you still laughing"? Attention: REGISTER / LOGIN to view the image!

People paying rent in a condo will be hit. People who bought a condo will hold onto it till the market corrects itself, so basically who would sell at a loss? Nobody so renters will have a hard time finding a place to rent and for cheap.

It is a comfortable home in a nice neighborhood. I plan on living there a long time and I could care less about the value. My family has homes in several cities which will be left to me some day. I couldn't care if the price of my condo goes up or down.

Well how will people renting a code be hit. I think it will be exact opposite. In the market correction of the early 1980 it took almost 10 to 15 years for some people to breakeven and that isn't counting the financing costs. I think if the market corrects, it will in fact be easier for renters. If it is a national economic downturn, those people owning will be concerned about just making the payments.

So, in short, you don't mind giving away money to the banks; ie. your down payment.

if you calculate the difference between the rent and the mortgage payments, and invest that money properly, you'll end up with more money than if you owned the house flat out..

thats by 20 years though. short term, obviously not.

But I'm in early forties, and I've been renting for the last 20 years.

Well, I'm in a southern suburb of Vancouver, where I really couldn't afford a house 10 years ago, so for like 1/3rd to a 1/2 of the price I bought a condo like 10 years ago, and now I have lot's of equity, and it's mine!
I would have loved to been able to get an actual house, but didn't want to commit like 85% of my paycheque to each mortgage payment, so I did what was most economical for me...
My advice: IF you can make it work, BUY!! Sure there are ups and downs in the market, but it IS yours!

a house should never be an investment, it should just be a place for you to live..

I"m not gonna purchase a home until I retire and know I want to spend the rest of my life there..

for now my job requires me to travel extensively, so I can't commit to one city or area.

Finally, someone with gray matter between their ears. Attention: REGISTER / LOGIN to view the image!

Why is it that people automatically assume they are going to be even alive tomorrow, let alone 20 years from now?

You buy when you can afford it and have the pleasure of being an owner.

there's no historical uptrend in house prices if you take account for inflation.

house prices in the US were the same price in 1990 as they were in 1880 (correct for inflation)

that reflects the fundamental fact that housing is a manufactured good, which depreciates by the way..

and if it doesn't depreciate, they can always make more houses..

and thats what happened in the last boom, when home prices go up, housing construction industry goes into high gear and starts to produce more, and eventually, excess supply causes prices to decrease.

look at shangri la right now, the houses are being sold at the same price as the original offers..
they went up at the start, but they've already dropped back down.

The difference is...I'll get my money back someday.

My mortgage will never be worth more than my place because I'm almost paid off.

I hope everyone who owns a house (or condo) will have their home value reduced to $50,000 or less. That would be fantastic.

I hope the whole real estate market is destroyed and devastated, putting all real estate agents out of business.

I would be very very happy to see this.

I agree, but buy next year, not this year. Or maybe the year after. It is fairly certain prices are going to drop in the coming months/year. By how much is, of course, hard to say. I'm pretty sure even if they don't go down anymore they will likely stay flat well into 2009 and probably beyond.

good answer

Wow, what a terrific ray of sunshine you are to the world.

Prices are already correcting and according to REBGV it is detached houses that are dropping first and fastest. That seems odd to me, but that is wahat is happening.

You seem to be assuming everyone bought their condo in the last year.

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