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COVID and the housing market
- Thread starter mimico_polak
- Start date
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Deleted member 50930
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LightCycle is so optimistic 
Mad Mike
Well-known member
It was OK for swimming. The most fun part of the experience drunken Jimmy's to dive into the Merlot vat.
His wife had to pressure wash him twice to get the stain out.
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Deleted member 50930
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Lets say I want to move to Calgary. Should I
A) Put a down payment and get something further from downtown for cheap
B) Rent for $1400 closer to downtown until I can afford something
Everything I am reading is saying prices will go up so I think A is the safer bet?
Assumptions
Partner will still work remotely for her current employer (~50k)
I'm the one hoping not to get fired
A) Put a down payment and get something further from downtown for cheap
B) Rent for $1400 closer to downtown until I can afford something
Everything I am reading is saying prices will go up so I think A is the safer bet?
Assumptions
Partner will still work remotely for her current employer (~50k)
I'm the one hoping not to get fired
Lets say I want to move to Calgary. Should I
A) Put a down payment and get something further from downtown for cheap
B) Rent for $1400 closer to downtown until I can afford something
Everything I am reading is saying prices will go up so I think A is the safer bet?
Assumptions
Partner will still work remotely for her current employer (~50k)
I'm the one hoping not to get fired
Calgary RE is due for a rebound, they've been hit pretty hard.
Buying depends if you're there for the long haul. Anything under 3 years and you may not recoup your transaction costs after buying and then selling, depending on RE appreciation.
sure lets just apply it to water, roads, parks, schools, medical care too...... I think that free-for-all is called lassiez-faire.
I just call it predation.
Everytime we fail to learn from history it is just more costly
In come the waves
The worldwide rise in house prices is the biggest bubble in history. Prepare for the economic pain when it pops
In early 90s housing and incomes were not badly aligned.....been mostly ****** up ever since.
The damage predatory and speculative housing and housing anxiety does to society is horrendous.
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Also needs to look at commute cost and time. Much of the viability depends on how far out further is (unless he buys further out and rents out the purchased dwelling).
I think it’s silly to buy a house in another province without getting a feel for the area and property market there first.Lets say I want to move to Calgary. Should I
A) Put a down payment and get something further from downtown for cheap
B) Rent for $1400 closer to downtown until I can afford something
Everything I am reading is saying prices will go up so I think A is the safer bet?
Assumptions
Partner will still work remotely for her current employer (~50k)
I'm the one hoping not to get fired
What type of area is it in?
What’s the commute like?
How long you plan on being there?
There’s so many questions that need to be answered.
What’s the plan if your wife gets called back into the office and you’re in Calgary instead of the GTA? Can you float it solo while she looks for a new job.
My opinion would be to rent and then get a feel for it. Sure it’ll be more expensive, but not as expensive as buying and then having to sell shortly after.
AB real estate is much more cyclical than Ontario. Booms and busts all around.
Years back I was offered a transfer to Sarnia but was warned it was a boom / bust town. When the refineries were expanding house prices went high. When they tightened the belts prices dropped. It could be a long wait to get your money back out. I assume Calgary is similar.
Toronto is pretty cocky with our double digit RE gains. Did my guarantee get lost in the mail?
2% mortgages funding 10-20% ROIs with inflation somewhere in the middle. To me it sounds like a grenade with the pin pulled. However if public intelligence drops at the same rate ROI's increase the problem will take care of itself.
I'm just hoping the predicted raise in interest rates at the end of January doesn't come through. I literally signed my variable mortgage last week and the first payment is in 2 weeks. I'd still have to get prime up to 4.09% to match my 2.79% fixed rate....I think I've got some buffer.
I'll keep the prepayments at the current $150/biweekly, just more will go toward the principal now.
If/when we decide on the second mortgage, the $300/month will go toward that payment.
There are now subdivisions near Barrie with most sales starting with a 2. Yikes. Don't get me wrong, they are nice houses but the only way that works is if the new owners sold something else for a ridiculous price. It's hard for that many people to earn enough to buy those houses by working at a job.
Low interest rates are part of the problem, but I strongly believe it's the unchecked foreign investment that's blowing up this bubble. Domestic speculators are just ambulance chasers by comparison.
Feds are unwilling to turf them out of the country, so that only leaves market forces to demonstrate to them that Canadian real estate is not the safe haven that they've been led to believe.
Unfortunately, a lot of Canadian non-speculator home-owners will be caught in the implosion, getting a severe haircut in the process. There'll be a lot of pain all round, but a reset will be healthy not just for the real estate market, but for the overall economy that's way too dependent on RE.
I'm sure there's an aspect of good ol fashion money laundering happening also. Buy house, repairs for all cash, upgrade, sell for clean money.
I wonder if I'd make a good criminal.
I'd be labelled a racist if I had said, "Hiding money from the Chinese government", so I thought a generic "foreign investment" would be more politically correct.
Then again, looking in the mirror, maybe I could have gotten away with that statement...
You'll know the Canadian real estate market has returned to normalcy when house prices no longer have six "8"s in the sale price.
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Deleted member 50930
Guest
^
It is called the Vancouver model money laundering
It is called the Vancouver model money laundering
I like her. She gets things done. I would take her working for us one day a week over JT pretending to work for us full-time.
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