HawthorneVillager.com

I'm pretty sure most people who would of sold their home & had that amount in equity wouldn't be investing the full amount in the market. It's just too volatile to take such a high risk with money from a sale of home for the majority of us.

Sure, obviously taking a 22k down payment to buy a house worked well over the last 3 years through the use of leverage.
No debating that....the whole point is you are missing the fact the equity market is up 50% in the last 3 years.

You're not comparing apples to apples...you're example of taking the 412k and buying condos with 20% down is obviously using 5-1 leverage. A simple way to look at it is too compare absolute returns over a given time period. Whats the total return on condo prices over three years? I really have no idea...not 50% though.

Listen you could argue of various holding period returns, etc. But it is absolute fact over long period of time, Stocks, have outperformed, real estate, govt bonds, corporate bonds, all other asset classes.

They have to...think about it...Long term the stock market is a reflection of corporate profits, which in turn is a reflection of economic growth. Real estate prices can't grow more than the rate of economic growth unless leverage is used. Over time Stocks have returned inflation + 4%...Bonds INflation +2%, Cdn real estate...inflation +1%. + you have all the costs of home ownership people never want to recogonize.. Dummie's like to say I paid 500 now my house is worth 700k.. They forget the taxes, upkeep, interest..all the other bs....your head is in the sand

I bought here in Milton in 2009 for 345k. Sold a few days ago for 449k.

We did not really spend much on improving the home. Perhaps a few thousand dollars at most, between paint, furnace repairs and fixing a rotting porch.

Just for a real world example.

No they remember all that, its just they subtract the $2000/month they're saving by not paying rent.

Good for you that you finally admitted!

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Enough already Dabills.

Now if only my buddy ol skool can admit he was wrong.....

I kind of miss arguing with that Old Guy, it's a shame that he doesn't post any more.

Looks like a lot of crystal ball scenarios. Lol

I guess it doesn't really matter whether you rent or own as long as you're financially responsible. However, I think cheap credit and the banks willingness to extend high ratio mortgages makes it easier for people to overextend themselves and get into homes they wouldn't be able to otherwise afford.

Just checking in for June.

Realtors say housing sales in the Greater Toronto Area were down by less than 1% in June compared with the same month a year ago.
However, the Toronto Real Estate Board says the average selling price was up by 4.7% year over year at $531,374.

http://business.financialpost.com/2013/ ... =f7b4-0f61

Vancouver market seems to be on the decline now. It appears the $600k range is where Vancouver topped out.

http://business.financialpost.com/2013/ ... =4133-9ef3

The board said the June sales were 22.2% below the 10-year average for the month, while new listings for the month were 11.5% below the 10-year average.
The total number of properties listed for sale on the MLS system in Greater Vancouver was 17,289, down 6% from a year ago and up 0.4% compared with May 2013.
The MLS Home Price Index composite benchmark price for Greater Vancouver was $601,900, down 3% compared with a year ago.

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the deline in GTA home prices is like the end of a rainbow.

They're after me lucky charms!

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It will happen sooner or later, but the market has shown that trying to predict when is pointless. If you think it won't happen (based on the finding the end of the rainbow reference) then you are kidding yourself. The deline is coming, but it may very well be that it is is an insignificant amount compared to how much values have risen in past years by the time it does come.

And when it does... those hoping and praying for a chance to get out of their parents basement and finally buy a house at "rock bottom prices" are going to be very very very disappointed.

Great article on just exactly that situation as it ocured in the United States:
http://www.chicagotribune.com/classifie ... 031.column



Basically the high prices we see today come at historic affordability due to low interest rates. As interest rates increase, house prices drop, but the net effect is that it's likely going to be even less affordable -- even at the reduced 10-15% deline prices. The difference being is that at rock bottom interest rates now, people are actually paying down principal until the rates rise. It's not unlikely the 10-15% deline would already be made up in equity over the low interest rate period.

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