Home Sales Up?! What The..are you serious

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Home Sales Up?! What The..are you serious Have peeps believed that the economy has turned around... Rate Topic: 2 Votes

#36 DocWatson

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Posted 14 August 2009 - 09:20 PM

(604)Trucker, on 14 August 2009 - 10:12 PM, said:

Why do you use CAPITALS for some words and not others. Just what the heck are you getting at Mr. Crazy Pants?

I used caps to emphasize that it's all about the strength of the USD as effects world stability. As the DOLLAR goes so goes the world.
Help any?
Somehow I think it wouldn't.

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#37 (604)Trucker

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Posted 14 August 2009 - 09:24 PM

DocWatson, on 14 August 2009 - 10:20 PM, said:

I used caps to emphasize that it's all about the strength of the USD as effects world stability. As the DOLLAR goes so goes the world.
Help any?
Somehow I think it wouldn't.

Thanks. I guess I need to pick up a Crazy/English Dictionary if I'm gonna make any sense of your posts.

Doc, tell us a bit about yourself. Are you currently institutionalized? What meds are you on?

#38 DocWatson

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Posted 14 August 2009 - 09:32 PM

Ah the usual demonize the messenger trip. Oh so predictable. And the tired old chestnut...mental illness...ha ha ha ha . You're so predictable./ Can you at least try to br original or even creative. LOL

#39 (604)Trucker

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Posted 14 August 2009 - 09:43 PM

DocWatson, on 14 August 2009 - 10:32 PM, said:

Seriously Doc. Tell us about yourself. You should know that you come across as being batshit crazy to the vast majority of posters here. But maybe there's more to you than meets the eye. For starters, maybe share with us the following:

Age.

Occupation.

Hometown.

#40 DocWatson

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Posted 15 August 2009 - 08:05 AM

I have revealed these to only a select few but as for you it shall remain anonymous

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#41 smelly

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Posted 15 August 2009 - 11:18 AM

Unemployment is at an all time high (and rising)
interest rates have only one way to go (up)
There WILL be more taxes to pay for the governments defecit and the olympics.
Banks are allowing people with little money to borrow with little or nothing down
People are taking out 30/35 year mortgages because interest rates are cheap NOW
Foreigners buying as investment properties (and the first thing you do with an investment which starts to drop is to sell)

We're sitting on our own subprime crisis here. No-one has learned ANYTHING from Americas mistakes, and we're doing the same thing over again.

Just because people seem to think that real estate is some magical fairy thing which keeps going up in price even after no-one is left who can afford it!

When (not if) interest rates return to their 20 year average of 8%, which will happen sooner rather than later if the canadian dollar keeps rising.. Then we'll have a shed load of foreclosures, causing a massive down turn in realestate.. and kicking canada into a REAL recession (Which when you consider how many jobs are currently lost - is a scary prospect).

.. and it'll all be created by greed of people who somehow expect prices to keep going up.. and will be the ones crying to the government asking for handouts to save them from their stupidity.

This post has been edited by smelly: 15 August 2009 - 11:24 AM

#42 smelly

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Posted 15 August 2009 - 11:21 AM

watcher, on 14 August 2009 - 07:32 PM, said:

in 5 yrs the same people will be whining about real estate pricing and how inflated it is or isnt but the guys that are buying today and being laughed at by some will have 5 yrs less to pay their mortgage

Most people who are buying today are first timers taking out 35 year mortgages (according to the CHMC).

After 5 years, they wouldnt have actually made a dent in their mortgage - only having paid off the interest... They may as well have been renting for those 5 years for all the good its done them.

Which is a bit screwed up when you consider the current average amount of time most people live in a place before selling it and moving on is 3 years... i.e. in this situation they've lost mone!

Trying to explain simple math like this to the average vancouverite though (who think that property is the ONLY investment worth having) is like talking to a brick wall.

This post has been edited by smelly: 15 August 2009 - 11:23 AM

#43 AA Lavey

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Posted 15 August 2009 - 11:51 AM

The average mortgage amount in the GVRD is around 250 000

Its hard to get credit now and forget about being a 5% first timer

Interest rates will go up - 2 reasons - You cant pump billions into an economy without causing expansion and they will need to keep inflation in check the other is if they continue deficit spending the need to make the rates good to attract buyers. Not too good because the dollar is too strong already.

The unemployment rate is up but not for long

I would go with watcher on this one

#44 DocWatson

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Posted 15 August 2009 - 09:22 PM

Smelly gets it

#45 AA Lavey

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Posted 15 August 2009 - 09:36 PM

Wonder what conspiracy caused home values to double every 12 years in the GVRD

Wonder why there wasnt world collapse the last time the US reneged on debt

Life is simply better when you never have to take off the tin foil hat and can hide in a world of childhood fantasy.

#46 DocWatson

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Posted 16 August 2009 - 08:09 AM

spoken as one with some experience

#47 AA Lavey

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Posted 16 August 2009 - 09:53 AM

You have some very convenient tastes in conspiracy.

China Jews and love the bible

Another has Islam

Another has the dems

You would think there would be a melding there somewhere, a crossing of dislikes but no there isnt.

#48 DocWatson

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Posted 16 August 2009 - 10:58 AM

Are you sure you are talking about me

#49 SEVEN

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Posted 16 August 2009 - 11:02 AM

Vancity tried to raise their rates, but it is a credit union and the members said no. They are honoring their original rates.

#50 DocWatson

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Posted 16 August 2009 - 11:15 AM

good

#51 DocWatson

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Posted 29 October 2009 - 04:29 PM

I have noticed a turn around in sales lately based on promises That our Canadian economy is improving...LOL

#52 smelly

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Posted 29 October 2009 - 05:11 PM

watcher, on 14 August 2009 - 07:32 PM, said:

No - in 5 years time you'll have all the people who were gloating - now moaning about how they cant afford their mortgage because the interest rates are too high and how it's all the evil governments fault (and not theirs).

In 5 years time, we'll see a lot of baby-boomer pensioners having to sell their homes due to underfunded pension schemes...

In 5 years time (unless something is done quickly) we're going to get what just happened in America happen to us.. Even Carney agrees with me:

Quote

Bank of Canada governor Mark Carney has repeated his concern that Canadians may be getting in over their heads in the purchase of homes, saying the government has ways of slowing the market. Carney told a Senate committee Wednesday afternoon that the central bank is conducting an analysis of whether Canadians are taking on too much debt, particularly in buying homes. Canada’s housing market has rebounded more strongly than other parts of the economy with sales at times hitting record levels, although prices remain depressed from last year.

The central banker said “exceptionally low” mortgage rates are luring Canadians into taking on mortgage debt to purchase homes. Deputy governor Paul Jenkins said the effective variable rate is currently at 2.25 per cent, a post Second World War low…..

adding: “If this were to persist, there are other options. The housing market is subject to considerable regulation and policy influence.

EDIT : WHOOPS - I didnt realise this was a thread from August! Damn Watson!

This post has been edited by smelly: 29 October 2009 - 05:16 PM

#53 smelly

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Posted 29 October 2009 - 05:13 PM

SEVEN, on 16 August 2009 - 12:02 PM, said:

Vancity tried to raise their rates, but it is a credit union and the members said no. They are honoring their original rates.

ALL the major banks raised their rates by 1% in the last few months.. and that's only the start.

#54 Builder-Expert

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Posted 29 October 2009 - 05:22 PM

DocWatson, on 14 August 2009 - 01:19 PM, said:

It ain't over folks...but here are the stats on home sales. Easy mortgages to make you buy into the same trap.

http://www.reuters.c...431340220090814

Welcome back. I heard you were banned or something. Anyways ... isn't reuters owned by the rockefellers or something. I say even if we are being controlled, what can we do.

Home sales are beyond us. If a family wants a home, they are going to get it while they can now. I dont think anyone is dum enough to know that having a mortgage with low income and the chance to not be able to pay it might put them up for a foreclosure. Yet people take advantage of the fact that they can get their hands on a house and call it their own. Throw a few parties and gatherings while they own it is probably all they care about.

All I can say is that people are responsible for their own decisions and everybody has access to information these days about what may and may not happen.

Close people that I know bought a home and they are suffering the effects. I hope they lock in their mortgage before interest raises or else bam... bankrupt .. back to zero ... nada .. all gone...

good luck with your future conspiracy and stuff you do. Its interesting read

This post has been edited by Builder-Expert: 29 October 2009 - 05:24 PM

#55 MASCOTA

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Posted 29 October 2009 - 05:37 PM

Welcome back, welcome back. Posted Image

We might not alwats agree with you

#56 DocWatson

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Posted 02 November 2009 - 09:24 AM

Builder-Expert, on 29 October 2009 - 06:22 PM, said:

yes there is very little we can do but lock them in as you say. The rates will eventujally go up but not in the fro seable future. it's having jobs to pay for the mortgages that I worry about. The economy is still on the skids no matter what the Bank of Canada says or our politicians. Pay off your debts folks. Credit cards, car payments etc. etc.
Money is controlled by a very few elect. They can create disaster if they want. This is a prime example. Money is an invention and can be created out of thin air. Your bank notes are just promissory notes...NOTHING! Paper!
Wealth can be created out of anything too, dependent on what is considered currency is at the moment. Mostly it's your labour...in all it's partitions

#57 DocWatson

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Posted 02 November 2009 - 09:26 AM

MASCOTA, on 29 October 2009 - 06:37 PM, said:

Welcome back, welcome back. Posted Image

We might not alwats agree with you

#58 .or?

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Posted 03 November 2009 - 11:14 AM

commentator, on 14 August 2009 - 05:15 PM, said:

keep crying..the people will keep coming and bringing money and the price will keep going up up up..

you salary doesn't dictate market demand and what people are willing to pay does...

Rich Chinese/EI are sinking money into safe investments that is metro Van RE and not US dollar...

CAnada is seen as a friendly place to live...

What you say is probably true. They are the ones largely with most of the money, the non-white population, who are making the market go.

I've met a number of them, and they say that Vancouver is considered a safe place to park their money, given the turmoil in the US and which crops up frequently in Asia.

Asia can be good for a couple of years...but not always terribly stable in many places. They can go up big time, but go down big time as well.

Mind you, if the Chinese decide to pull their money out of Vancouver, this market could tank as well.

But for now, they appear satisfied, given the downturn virtually everywhere else.

Still, BC is quite vulnerable.

The 2 things which could do this RE market in are substantially higher taxes and the electon of an NDP government. Higher taxes will come after the Olympics in order to pay off the debt. But the election of an NDP government could push taxes even higher, prompting the Asians to take their money and park it elsewhere. And if they do, then watchit. Cuz it send RE values plummeting. And not just Vancouver, but Victoria and Western Canada as well. Gotta remember what happened in '95-97, when new tax laws were introduced and the NDP kept pushing taxes higher. It chased foreign investment (including RE) out and depressed their values. So if an NDP government gets in in 2013 or 2017, it could change the RE market here dramatically.

RE is an extremely fluid commodity. One year, one market is hot, and in another year, another becomes hot, and the former cold.

Who knows where the next Big Growth will be? New Zealand? Eastern Europe? Depends on where the money is parked and where the guys with the gold decide to park it.

#59 GraveDigger

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Posted 03 November 2009 - 12:19 PM

or rent and throw your money away

#60 Kaylee 7

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Posted 03 November 2009 - 12:30 PM

I hope to God nobody gets bailed out of their mortgages when things tank, and I hope the banks get #@$%!* so hard they have to be nationalized.

When all of this is over I want to see people with ridiculous mortgages out on the street, or worse, renting.

#61 .or?

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Posted 03 November 2009 - 02:04 PM

GraveDigger, on 03 November 2009 - 12:19 PM, said:

or rent and throw your money away

...well, that depends on when a person buys and what they buy.

It's somewhat reminiscent of the Tech Boom.

Lots of people bought Nortel Stock with the mantra 'Stay Invested' or they'd miss out.

And then it crashed.

Nortel went from $100 a share down to virtually 0 within 10 years.

Now while RE likely wouldn't suffer the same zero fate, the idea is somwhat the same.

Buy at the wrong time when prices have peaked or near that level, and it's somewhat of a risky proposition.

#62 smelly

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Posted 03 November 2009 - 02:53 PM

GraveDigger, on 03 November 2009 - 12:19 PM, said:

or rent and throw your money away

Long term, unless you play the market well - buying performs no better than inflation.

Factor in the interest you've paid, repairs, etc - and you'll find that you've actually thrown money away buying.

If you rent cheap and invest well - you stand to be better off long term.

Especially if you're one of the idiots who have bought at the top of the bubble (like those buying now)

#63 smelly

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Posted 03 November 2009 - 03:01 PM

Case in point.. Average price in vancouver is around 500k

A 30 year mortgage for 500k at 8% (which is the average interest rate over the last 30 years) gives you $820k paid in interest alone.

Someone who has rented a place at $1k a month for 30 years has only spent 360k in rent. Even at a high rent of $2k a month - it's still lower than the interest above. (yes i know i'm not factoring in yearly increases here.. this is just an example)

Factor in repairs on your property (inevitable over a 30 year period), and historically that price increases wouldnt increase higher than inflation (i.e. house prices wont be worth much more in 30 years factoring in inflation than they're worth now) - and you've lost money.

Now take the money you're saving monthly by renting - and invest it wisely.. And you'd make a good profit over 30 years over the money you could've thrown away by renting:

CAVEATS :

Obviously i'm not factoring in yearly rental increases here.. But im also not factoring in that we're at the top of a bubble which is increasingly likely to pop and send your property value spiralling down either. Im also not factoring in that 80% of the mortgages currently sold are 35 years (or so i read).

This lesson in simple investment math has been bought to you by smelly (watch as 99% of people fail to get this simple concept)

This post has been edited by smelly: 03 November 2009 - 03:04 PM

#64 Nat

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Posted 03 November 2009 - 03:32 PM

Easy credit, soaring prices raise new housing fears

http://v1.theglobean...NStory/Business

#65 schmoozer

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Posted 03 November 2009 - 03:54 PM

Kaylee 7, on 03 November 2009 - 01:30 PM, said:

I hope to God nobody gets bailed out of their mortgages when things tank, and I hope the banks get #@$%!* so hard they have to be nationalized.

When all of this is over I want to see people with ridiculous mortgages out on the street, or worse, renting.

I couldn't help but laugh at the irony
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#66 schmoozer

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Posted 03 November 2009 - 03:56 PM

smelly, on 03 November 2009 - 04:01 PM, said:

Case in point.. Average price in vancouver is around 500k

A 30 year mortgage for 500k at 8% (which is the average interest rate over the last 30 years) gives you $820k paid in interest alone.

Someone who has rented a place at $1k a month for 30 years has only spent 360k in rent. Even at a high rent of $2k a month - it's still lower than the interest above. (yes i know i'm not factoring in yearly increases here.. this is just an example)

Factor in repairs on your property (inevitable over a 30 year period), and historically that price increases wouldnt increase higher than inflation (i.e. house prices wont be worth much more in 30 years factoring in inflation than they're worth now) - and you've lost money.

Now take the money you're saving monthly by renting - and invest it wisely.. And you'd make a good profit over 30 years over the money you could've thrown away by renting:

CAVEATS :

Obviously i'm not factoring in yearly rental increases here.. But im also not factoring in that we're at the top of a bubble which is increasingly likely to pop and send your property value spiralling down either. Im also not factoring in that 80% of the mortgages currently sold are 35 years (or so i read).

This lesson in simple investment math has been bought to you by smelly (watch as 99% of people fail to get this simple concept)

problem is that nobody will actually do that.. NOBODY

you and your texbook economics... I laugh in your general direction...
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