Getting a mortgage while real estate is crashing

[Canadian]

Originally Posted by heyjude

That's true. I see a lot of houses around where I live, are FOR Lease. I wonder if the owners want to sell them but are waiting for the market to recover and want to lease them to cover their mortgage payments in between...

Two things. First there won't be a recovery in the housing market for quite a while (few years at least). Second, the rent that you can get in Toronto, would cover about 50% of the expenses the owner has - mortgages, taxes, maintenance, etc. I bet all these speculators are waiting for the spring market, and here is a newsflash for them - there won't be one!

[trent]

And even after the real estate market bottoms, there will be a few years with flat prices. Don't expect a V shaped recovery.

[Canadian]

Originally Posted by trent

And even after the real estate market bottoms, there will be a few years with flat prices. Don't expect a V shaped recovery.

Yes, that's a good point, as most people expect after the last month of decline (bottom), to get a few % increase the next. This is simply not going to happen.