Comments on: What are these home owners thinking?

By: Why 30-year olds are screwed? « MoneySense

Why 30-year olds are screwed? « MoneySense — Wed, 13 Apr 2011 14:54:08 +0000

[...] What are these home owners thinking? [...]

By: Paul Reynolds at PropertyPlace.ca

Paul Reynolds at PropertyPlace.ca — Thu, 07 Jan 2010 18:30:16 +0000

Yesterday’s announcement that our nation’s largest union pension fund is going into the mortgage guarantee business seems to be a counter indicator. They are very thoughtful investors (not bullet proof but thoughtful) and see our mortgage market and practices as fundamentally different than the US experience. http://tinyurl.com/y8fp78q

By: Ashley

Ashley — Mon, 23 Nov 2009 19:38:22 +0000

It’s a bubble within a bubble that just doesn’t end! If you must depend on a tax break or housing credit to afford a home, you need not buy it.

By: The Financial Blogger » Blog Archive » Financial Ramblings

The Financial Blogger » Blog Archive » Financial Ramblings — Sat, 21 Nov 2009 20:26:59 +0000

[...] What are these homeowners thinking? At Canadian Capitalist. [...]

By: gene

gene — Sat, 21 Nov 2009 20:26:17 +0000

I haven’t read all the comments, so sorry if this has been brought up:

I find it unfortunate that home prices are generally determined by a buyer’s ability to pay for them from salary. Thus, low mortgage rates drive house prices up since it makes payments lower. Introducing long-amortization mortgages exacerbates the problem, making houses even more expensive.

Perhaps society as a whole would benefit from interest rates, year in and year out, that are much less volatile, say in the 5-7% range. This would keep homes from appreciating too quickly, bubbling out of control. It’s crazy when homes sell at large multiples of their replacement cost.

By: Chris

Chris — Sat, 21 Nov 2009 02:26:51 +0000

CMHC is ready for the future financial storm:
https://secure.globeadvisor.com/servlet/ArticleNews/story/RTGAM/20091016/wcmhc1016

By: Gordon

Gordon — Fri, 20 Nov 2009 20:43:18 +0000

Well here on Vancouver island, Greater Victoria area, we have an over population of condo’s and the new mini detached houses on strata titles. As soon as one condo development finishes two more start. All my friends are telling me to get into the market. Well Im 14months away from paying off my debts. Bad life choices etc.. I don’t plan to touch the market until I have at least 20% down. Most new owners I know are in the exact boat most of your are talking about. Just enough income to pay the mortage, upkeep and buffering is not even on most of these peoples list. Most condo owners here think their home value is rising every day, which confuses the hell out of me when 3 more condo projects start every other week. My question is once Im done with all my debt, where do i start parking my downpayment money? Gic’s? TFSA? Im looking to save 12000 a year for at least 2 or 3 years. Or half that time if i have a partner doing the same. I know for sure Im done being a slave to debt. I most likely will have to start with a condo, but wont be touching anything other then a 2 bedroom style. thanks for your input.

By: Canadian Dream: Free at 45 » Blog Archives » Winner and Wander Reading

Canadian Dream: Free at 45 » Blog Archives » Winner and Wander Reading — Fri, 20 Nov 2009 12:58:39 +0000

[...] wonders “What are these home owners thinking?“ Actually that statement should be directed at the government, but go ahead and read the [...]

By: Weekly Round Up November 16

Weekly Round Up November 16 — Fri, 20 Nov 2009 11:02:11 +0000

[...] Canadians much of a lesson, an interesting discussion is going on at Canadian Capitalist regarding consumers opting for minimum down payments and 35 year amortization, are we heading for a real estate disaster as [...]

By: Ray @ Financial Highway

Ray @ Financial Highway — Fri, 20 Nov 2009 02:55:29 +0000

In the past little while I have been trying to talk several family members and friends out of this type of decision. Often I find the Real estate agents and mortgage brokers push the idea on consumers. They show them calculations on how much they can save over renting and how much their home can appreciate in a few years, consumers are blown away by this illustration and fall right into the trap. To them it does not make a difference they get paid their commission and who cares if the client can not make payments when interest rates rise.