Economy 52,837 Posted April 18, 2017 Author Share Posted April 18, 2017 14 minutes ago, Letmelivemylife said: That's it I'm moving to Canada hahaha. LA is so freakin expensive LA is even more expensive than Toronto? More than $1.5M for a tiny old shitty house thats attached? Cuz thats the norm now. A decent in better shape place is minimum $2 Million I dont know what the hottest markets in US are right now but i guess LA makes sense! I live in the suburbs in another city by Toronto so its cheaper. U can get decent places for $700,000 to $800,000 in most parts of my city EDIT: with my income alone the bank wont lend me over $400,000 ... This means if i dont get a relationship and a partner to add to income im officially locked out of the market Link to post Share on other sites More sharing options...
shoful 13,304 Posted April 18, 2017 Share Posted April 18, 2017 1 hour ago, DeanWinchester said: I still think this is a different scenario. The US collapse wasn't just housing trouble--banks also sold funds and stocks based on mortgages and people kept applying for loans to get more and more property, which the banks gave easily until nobody could pay anymore. The buyers in Canada (and from overseas/offshore buyers) can pay. Loans aren't problems. There are offshore buyers that can pay the whole amount in cash upfront, and they compete with each other, driving the prices sky high all while squeezing out locals that rely on the usual downpayment+mortgage. Locals can't keep up with the rising listing prices driven by the rich--the exact opposite of the US where locals bit off more than they can chew. 28 minutes ago, Economy said: Canada is a $2 Trillion economy and 10th largest economy in world... way smaller than the $15 Trillion the US was when it had its crash If Canada were to go into a financial meltdown (worst case scenario), the global impact would be much smaller I didnt mention the US at all... "My name is Dita, I'll be your Mistress tonight..." Link to post Share on other sites More sharing options...
DeanWinchester 41,390 Posted April 18, 2017 Share Posted April 18, 2017 1 minute ago, shoful said: I didnt mention the US at all... but we're discussing about potential global market crashes and the most recent example we have is the US so Flyin' like a 1000 Doves Link to post Share on other sites More sharing options...
Economy 52,837 Posted April 18, 2017 Author Share Posted April 18, 2017 Just now, shoful said: I didnt mention the US at all... But u said would affect the world im just pointing out the effects to the world wouldnt be AS bad as the last crash triggered by US Link to post Share on other sites More sharing options...
shoful 13,304 Posted April 18, 2017 Share Posted April 18, 2017 15 minutes ago, Economy said: But u said would affect the world im just pointing out the effects to the world wouldnt be AS bad as the last crash triggered by US Yeah I know. Im just saying. It would still send shockwaves "My name is Dita, I'll be your Mistress tonight..." Link to post Share on other sites More sharing options...
Economy 52,837 Posted April 18, 2017 Author Share Posted April 18, 2017 4 minutes ago, shoful said: Yeah I know. Im just saying. It would still send shockwaves Well yeah. I mean Greece sent shock waves and Canadas economy is 3X to 4X larger. But then again i dont think even the worst case scenario would put us as bad as Greece The world will be fine. Should be more worried about China. Thats the one other Country besides Canada with a really large housing bubble and that would affect world more Link to post Share on other sites More sharing options...
CELINE 747 Posted April 18, 2017 Share Posted April 18, 2017 Vancouver's real estate and housing is absolutely saturated. Beyond that, Vancouver's filming industry is growing tremendously and so is luxury-retail. gotharunway.com Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted April 19, 2017 Share Posted April 19, 2017 @Economy or other Canadian's ... How much of the demand is attributed to foreign investment.? The US and many other real estate markets have a lot of capital influx from emerging economies... Also, US bust in '08 was due largely to Banking deregulation or poor enforcement regarding lending and home loan qualifications....When banks cut off credit, the whole system was forced into cash only transactions, which is/was only a fraction of the whole system. like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
Economy 52,837 Posted April 19, 2017 Author Share Posted April 19, 2017 6 minutes ago, Woolfsmck said: @Economy or other Canadian's ... How much of the demand is attributed to foreign investment.? The US and many other real estate markets have a lot of capital influx from emerging economies... Also, US bust in '08 was due largely to Banking deregulation or poor enforcement regarding lending and home loan qualifications....When banks cut off credit, the whole system was forced into cash only transactions, which is/was only a fraction of the whole system. Sad thing is we dont know We dont have good statistics on who buys the houses because up till recently we simy didnt keep track of that. So recently they started tracking it but no solid numbers out yet All that exists are estimates which say 10% to 15% of purchases are forein. Unknown at this time how accurate those estimates are Link to post Share on other sites More sharing options...
JusKeepBreathin 19,311 Posted April 19, 2017 Share Posted April 19, 2017 My house in Miami went up 120k in about 4 years. My mom purchased it in 08 after the bubble burst and the the Obama incentive loan that pretty much reignited the US real estate Market after the crash slowly. We used that money to turn the garage into an efficiency we rent out. In 2008 it was rented for $400. We currently rent it at $700 and the house value went up 100k. Needless to say we are happy, but also scared of the bubble bursting at any minute. This hike in rent and home values started about 4 years ago in Miami. In Miami some new home builders are actually selling brand new homes with a one bedroom already built into the plans of the home that can be rented. It's really gotten insane. On Topic, I'm glad it hasn't gotten as bad as Canada. That's just outrageous...how are new home buyers supposed to afford anything. Without new home buyers there will be less loans for banks to give out, which will hurt them in the long run. Your crash probably won't be as disastrous as the US real estate market crash because horrible lending practices aren't a factor so that might making finding a solution easier before the bubble bursts. Maybe subsidising loans for new buyers that have never owned a home will help the banks. "Nothing in the world is more dangerous than sincere ignorance and conscientious stupidity." -Martin Luther King Jr. Link to post Share on other sites More sharing options...
Economy 52,837 Posted April 19, 2017 Author Share Posted April 19, 2017 7 hours ago, JustLikeHoney said: My house in Miami went up 120k in about 4 years. My mom purchased it in 08 after the bubble burst and the the Obama incentive loan that pretty much reignited the US real estate Market after the crash slowly. We used that money to turn the garage into an efficiency we rent out. In 2008 it was rented for $400. We currently rent it at $700 and the house value went up 100k. Needless to say we are happy, but also scared of the bubble bursting at any minute. This hike in rent and home values started about 4 years ago in Miami. In Miami some new home builders are actually selling brand new homes with a one bedroom already built into the plans of the home that can be rented. It's really gotten insane. On Topic, I'm glad it hasn't gotten as bad as Canada. That's just outrageous...how are new home buyers supposed to afford anything. Without new home buyers there will be less loans for banks to give out, which will hurt them in the long run. Your crash probably won't be as disastrous as the US real estate market crash because horrible lending practices aren't a factor so that might making finding a solution easier before the bubble bursts. [b{Maybe subsidising loans for new buyers [/b]that have never owned a home will help the banks. That will only further increase demand from people currently locked out of market (such as myself). Subsidizing an already ludicrous market will only make it worse Anyway i dont know a tone about Miami specifically but a $100K increase in 4 years after a crash hardly seems like a bubble to me (especially since after the crash it was probably undervalued to begin with) If i had to guess id say the housing market is merely warm to kinda hot based on what you described. Doesnt sound like a bubble Then again, my perspective given I live where every house is being bid above asking price by hundreds of thousands even in the suburbs, my judgement of whats not a bubble may be clouded Link to post Share on other sites More sharing options...
JusKeepBreathin 19,311 Posted April 20, 2017 Share Posted April 20, 2017 1 hour ago, Economy said: That will only further increase demand from people currently locked out of market (such as myself). Subsidizing an already ludicrous market will only make it worse Anyway i dont know a tone about Miami specifically but a $100K increase in 4 years after a crash hardly seems like a bubble to me (especially since after the crash it was probably undercalued to begin with) If i had to guess id say the housing market is merely warm to kinda hot based on what you described. Doesnt sound like a bubble Then again, my perspective given I live where every house is being bid above asking price by hundreds of thousands even in the suburbs, my judgement of whats not a bubble may be clouded I hope you are right...keeping my fingers crossed that a bubble doesn't burst here in Miami. "Nothing in the world is more dangerous than sincere ignorance and conscientious stupidity." -Martin Luther King Jr. Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted April 21, 2017 Share Posted April 21, 2017 On 4/19/2017 at 8:12 PM, JustLikeHoney said: I hope you are right...keeping my fingers crossed that a bubble doesn't burst here in Miami. I think Miami's real estate market like most of the US is safer from huge bubble deflating events now with the greater control and regulations in place . Plus 100k is small potatoes unless the property was worthless to begin with. As far as Canada, their banking system has had regulations in place for some time, so major collapse is unlikely. like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
Economy 52,837 Posted April 21, 2017 Author Share Posted April 21, 2017 1 hour ago, Woolfsmck said: I think Miami's real estate market like most of the US is safer from huge bubble deflating events now with the greater control and regulations in place . Plus 100k is small potatoes unless the property was worthless to begin with. As far as Canada, their banking system has had regulations in place for some time, so major collapse is unlikely. Yeah $100k is not much especially since after crash it was probably undervalued to begin with As for Canada... i dont think major defaults are likely given our lending standards are much tighther and also we cant just walk away from mortgages like you used to be able to do in US Also new rules, now in Canada banks must assume a future 2% rise in mortgage rates when people are assessed if they qualify for loan Whats likely to happen in Canada i think isnt big defaults or credit freezing in banks I just see prices at some point falling quite a bit and will hurt consumer spending as some people will be in underwater mortgages, and others who arent will still not feel the phychological wealth effect of a valuable asset Link to post Share on other sites More sharing options...
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