Dabills wrote:
Thanks Kamato, maybe i am wrong. What is your 5% based on? That would be ideal and salaries could rise to catch up. I wish i had your optimism.
I agree DTC, and you know what. some people do have that foresight, this is why i say people buying right now should really just look at things i realize the massive gains are gone. I will put my name on that actually. i am not out to make exact predictions but people buying today will make no gains in the next 5 years.
when i bought 5 years gave me a great return on investment. i got lucky though.
When my dad and I cleaned out my grandfather's basement a few years ago, I found a stack of Toronto Star's from the 80's and I looked in the New in Homes section. Guess what a 'New' build home cost in 1982 at Younge and Steeles? Care to guess - 42K, that same house in the early 2000's would have gone for over 450-500K. One of his first homes back in the late 60's was on Mt. Pleasant, north of Eglinton, and he paid 21K for it at the time, when he sold at the end of the 70's, they sold it 65K (back then, that was a great return) - 15 years later in the mid 90's, that house would have sold for 500+ and today it would go for 900+ as a tear down and rebuild.
Milton wont ever be like that, but it puts something into perspective, housing prices do fluctuate and they go up, and sometimes they go down. How long has this post been going on for? If people say that bad things are going to happen, most of the time, they eventually will. You have been saying that there is going to be a housing colapse, when will it happen? What is your prediction?
With my first house, my wife and I had to save and make sacrifices, but guess what, we did so, so we could own a home. Would we have liked a 2 car garage 2600 sq ft home at the time, hell yeah, but we couldnt afford it, so be bought within our budget, not everyone does that. You keep saying that these home equitity lines of credit are a bad thing and that if you cant afford it, you shouldnt spend the money? Let me understand something here, if someone has 25K left on their mortgage and they want to borrow 25K against it to do some upgrades on their home, why shouldnt they? They would get a better rate on the interest then if they went to the bank and asked for a loan or put it on their line of credit? Do you also think that people who take a loan or some type of financing shouldnt buy a car?
Why dont you think that people wont make gains in 5 years? If someone bought their house 8 months ago(new build), and the builder keeps raising the price 10-15K each release, then the seller definately has the potential to make a return from the sale, albeit, not at a 25% retun.
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