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Old 11-29-2008, 12:31 AM
trent trent is offline
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Join Date: Jun 2008
Posts: 387
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For me a mortgage with 40 year amortization and 0% down is equivalent to a subprime mortgage as far as the risk of default is concerned. Everybody in Canada thinks that we are somehow special and we'll avoid the housing meltdown plaguing almost all developed economies. If you insist on comparing Canada and US then comment on the fact that both the median price and the price per square foot in Canada are way above that of the US. How about the fact that most major Canadian cities are overbuilt which inevitably leads to decline in prices?

Obviously I or nobody else for that matter will be able to convince you that close to double digit yearly rise in prices is unsustainable while real incomes fall. You are right that real estate is highly cyclical and the facts are that transactions are falling with breathtaking speed, and prices will follow shortly after. A year from now property values will likely be at least 30% down from current levels.

Now answer me this, why would anybody buy in a crashing real estate market? Why not wait for 10%, 20%, 30% or lower prices and buy then? You said it already, that it's better to buy low and sell high, but it seems that you are not following your own advice.

Enjoy your weekend!
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