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What real money he has invested it remember?



You choose to invest your money in investments and other choose to invest theirs in their home. It's the same difference. You are all still investing money. Purchasing a home can be a bad investment, but so can many other investments.

If everything is going to crash like old skool suggest and we are going to be in a huge depression. Do you honestly think you will get your money out from where ever you invested it? Do you think they are just going to hand it over to you?

Cold hard cash... if you want to believe old skool that what he say's. Cash, cash, cash no banking system, investment, at least with my house maybe it will be paid for by the time this so called depression comes, then a least I will have someplace to live. Other will be trying to figure out how to get there money out of whatever system they invested in

Savings... so you think you will get your money from your investment groups, I have my money in various properties & land and other sources. This land that we have can always be sold or used to farm crop, food can be harvest, animals can be housed and slathered for food, I even have a smoke house to smoke the food for winter months if we have no electricity, and I have a working flowing well with good water if needed.

Getting money from an investor may be easy, but in a depression I think it may be harder then you think.

I don't believe there will be a depression in the near future, so I'm not too worried, but you on the other hand do follow some of the advice given by some negative thinking people on this thread. So just something to think about.

Houses are not just houses

If you run into a so called depression and you have no resources... your house can provide this for you.

If you purchase the right house with a wood stove you can heat it yourself, grow your own crop, have a cow or goat for milk, chicken for eggs and food and a fish pond in your yard. A good Well can give you water and you and your family can live on the land that you own.

However if you have money in a system that you can not get anything out of what do you have?

Hahaha...I don't see no goat in my near future! Unless the goats in my freezer

I don't think something like this will ever happen in our lifetime.
If something like this does happen, it will be a war zone in Canada... and that in it's self does not make sense...

Anyhow I don't think it's that bad, if times get rough and people are having a hard time making payments on their house's, just sell them and move in with family. You may loss a few thousand but they will build themselves back up and things will be fine.

How much do you actually think house's will drop. $100,000 tops. Most these house's in Milton where purchased 6 years ago for 300,000 now are selling for 460,000 if the market drops $100,000 they are still above $60,000.

It's not that bad...

... but to get back to the original topic, I still don't see a decline in house prices.

Two house's have sold on my street, and both have made over $150,000 in just over a year after closing.

So far only 2 house have been listed on my street both sold with record timing and both have made huge money. The only thing I see is a huge increase in pricing and money to be made to those who wish to move.

I have to admit I have not been following the housing market cause I am content in my home, but if my neighbors keep selling at the ridiculous prices in record time I may just list my house too

Let's take the worse case scenario and take off $50,000 they still take home $100,000 in one year after closing, I don't see a 10% drop

Look them up for yourself Wettlaufer Terrace no renovations, no finished basement, no fence. Just some upgrades 43' lots for lot's selling for $690,000 to $710,000

Even if you compare Todays mattamy pricing (not 2.5 years ago) with today's lot premiums and upgrades they are still making big money.

DTC you're looking at a prime example of exactly what you described . I've done exactly that. My wife loves gardening but can't do it any more and we had a large lot so the opportunity was there with Mattamy to buy a house with a smaller lot, plus a few upgrades, add a few dollars in my pocket that we can spend on the kids and travel a bit. No need to do the rush hour thing so commute doesn't come into it and I'm not ready for the condo appts life yet.

I get the feeling you enjoy telling people that " I told you so". Your research and quotations may make one reach the conclusions that you predict, however if your prescient nature is such an asset, you should get paid handsomely for counseling people to avoid a horrible housing commitment. I've come through the horrible '70s, 80s,'90s and some of these with disastrously high interest rates(15-20%) and survived. Why would it be any different to-day?

I agree with the down payment statement, however, I was making peanuts as my wife wasn't working and if she did work, only 25% of her earnings would be included in the total earnings to qualify for a mortgage. Needless to say our life didn't have many extras, and that is the only real vulnerable aspect of to-day's generation, and that is that all extras are considered necessities.

So according to CMHC a market correction is not in the works (at least for this year and next).

http://business.financialpost.com/2011/ ... ards-cmhc/

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I agree.. pending total economic meltdown globally. The feds guarantee of low rates will mean Canada will not raise rates either for another 2 years. That puts us well into 2013. If anything, rates may be reduced even further.

That means the first collection of 5 year fixed mortgages taken out in 2006, 2007, 2008 will be renewing again for another 5 at a low rate. It's likely the rates could be low even longer still.

As long as the rates stay low, the number of new SFH developments stays low (which it is currently due to lack of subdivision suitable GTA land) there will be no crash.

There will be no 10% deline this year or next folks.

You will however see rents start to go up to cover the costs of higher property taxes etc. as we are experiencing abnormally low vacancy rates now. I believe in the 1.x% range.

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ok.. before buying house i was reading about house price will fall, market correction etc etc... only to find out the house which was sold last year for 350K is now 420K .. lol..

I am not an economist or banker.. but I collected all available data, such as # of immigrants coming in, # settling in GTA, toronto, oakville, mississauga, burlington, house prices, age, income, total # of graduates every year from ryerson, u of t, wlu, , york, mcmaster, humber, sheridan, george brown college, salaries and total number of houses being built

plugged it in matlab and noticed couple of things.. which may sound common sense to some experience blogger here in this forum lol..

1) price fix, which i called channeling..
2) artificially inflated price
3) not building enough to meet demand, where in US.. they kept building it..and keep giving away bad mortgages

also, gta communities are clustered,

In canada I don't see mortgages being given away and houses being built in excess..

soo.. i concluded.. there is no point pullin my hair and complainig about the prices or waiting it to crash.. just buy it..

i got the appointment and i bought it...

housing may stablize, may go down by 5% but it will be for very brief period..and mattamy will for sure will release only 60% of lots compared to total release in 2009-2011 period to keep prices high and maintain profitability..

if you want to see something interesting... try to find data on

1) mortgage rates (2005-2011)
2) house price in milton
3) total number of lots released
4) months, year

plug the numbers into excel and make graph

It's easy enough to just keep predicting the same thing over and over and over again
Sooner or later you get the chance to stand up and say you were right

And house prices may drop well below 10%...

Historical significance
This is the house where a tornado once hit so +10%