Canadian Capitalist

A recent UBC report that found real estate in many Canadian cities to be overvalued got much play in the media. It found that home prices are over-priced by as much as 25% in some cities. The surprising part is the cities mentioned wouldn’t be the first ones that come to mind as overvalued: Montreal, [...]

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House Lust by Newsweek reporter Daniel McGinn is an eye-opening account of the obsession that many Americans have for their homes, which first led to one of the biggest boom in housing prices and later turned into a bust with far-reaching consequences. A Washington Post columnist quoted in the book probably defined the term best [...]

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The news on the housing front out of the U.S. continues to be bleak - prices were down 12.7% on average in 20 markets in February 2008 compared to the same time last year, with prices dropping 20% or more in Las Vegas, Miami and Phoenix. In Canada, at least one analyst boldly declared the [...]

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There is a kernel of truth in the widely held belief that the home is the ‘best investment’ that most people make (of course, assuming that all housing-related expenses fit comfortably within a household budget). We know that it is not due to the usual claims (”this house is worth twice what we paid”) because [...]

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A reader left the following comment on an earlier post: “For someone who frets over a difference of 50bps paid to a mutual fund company, I find it surprising that there isn’t a mention of the 6% commission you pay to purchase the roof over your head and the 6% commission you pay to realize [...]

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The buying-versus-renting debate has gone on forever because the answer depends on assumptions you make about the future, your local housing conditions, interest rates, your income tax rate, future tax rates, inflation, future interest rates etc. The latest in this series is a post by Millionaire Mommy Next Door (thanks to Four Pillars for referring [...]

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Financial Jungle wondered in a recent post why some people leave out the value of their home from their net worth statement. A common reason advanced is that “my home doesn’t provide me with an income”. While it is true that a home you live in doesn’t produce a positive cash flow, it provides you [...]

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RE/MAX Canada made news today by reporting that the average price of a home appreciated 264 per cent over a 25-year period, rising from $76,021 in 1981 to $277,000 in 2006. An executive with the real estate company had this to say:
Conventional wisdom used to be that real estate was a relatively safe, long-term investment [...]

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In a recent post, Frugal Canadian discussed the size of the downpayment she should put down and whether she should pre-pay her mortgage. It is a question with no right or wrong answer because a number of variables (interest rates applicable till the mortgage is paid down, annual returns from a diversified portfolio during the [...]

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Rob Carrick points out in today’s column in The Globe and Mail that mortgage insurance that homeowners have to buy for a high-ratio mortgage is getting cheaper:

Insurers are setting premiums for borrowers who are getting a mortgage for 100% of the value of their home based on the credit score. Competition among the insurers has [...]

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