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Gridlock · 10-04-2012, 07:29 AM

This isn't a "is Vancouver worth it" thread, its about real estate. Each person can decide for themselves if the pay to play price for Vancouver works for them.

You have a catch-22 situation. Real estate, like everything else, has no value. It's dictated by demand. I can say I live in a house that's worth 1 mil, and act as if, but its not liquid. I need to sell it, or borrow against it.

As we witnessed in the states, its quite possible for real estate prices to go down. The problem is, there are 3 groups of people that affects:

1. Long-term owners. They got all happy when their homes value went up, and sad when it went down. But, overall, they didn't "lose" anything except a number on a page. You had a house. You still have a house.

2. New Buyers-You bought high, and value is low. You are screwed.

3. ATM's-The people that borrowed against that increased value. You are also screwed.

The problem here is no one wanted to mitigate the fact that cheap money allowed the house market to inflate. The so called "solution" to the real estate bubble was everyone wanted to re-inflate it, to protect #2, and #3 in my list. If you are doing everything possible to maintain the value of a house, including 0% interest, literally, we will give you the money, for FREE for you to hand out, then all you can ever do is extend the time for a market correction to take place. The hope, is that the economy heats up to take over the drive for that demand.

Make no mistake...a market correction WILL occur. It ALWAYS does. How do I know there was a bubble to begin with? There were news reports of people going to house showings with a house inspector in tow, on spec. Buy buy buy. Buy now. I'll pay more than asking. Buy it.

And the economy has, I think held on in Canada, but hasn't really improved. It was more just not as bad as expected, so people think its good. As noted earlier, manufacturing and exports are being hammered. The only real thing driving the North American market is cheap money. We're living off the credit card.

So, we had jacked up prices, with a not so hot economy and everything wants to find an equilibrium.

I see it coming down. While it screws some people, it makes opportunities for others. That, friends, is a free market economy. Take your hands out of the pie and let the free market sort it out.

10-04-2012, 07:29 AM	#49
Gridlock Banned By Establishment Join Date: Dec 2003 Location: New West Posts: 3,997 Thanked 2,982 Times in 1,135 Posts Failed 284 Times in 109 Posts	This isn't a "is Vancouver worth it" thread, its about real estate. Each person can decide for themselves if the pay to play price for Vancouver works for them. You have a catch-22 situation. Real estate, like everything else, has no value. It's dictated by demand. I can say I live in a house that's worth 1 mil, and act as if, but its not liquid. I need to sell it, or borrow against it. As we witnessed in the states, its quite possible for real estate prices to go down. The problem is, there are 3 groups of people that affects: 1. Long-term owners. They got all happy when their homes value went up, and sad when it went down. But, overall, they didn't "lose" anything except a number on a page. You had a house. You still have a house. 2. New Buyers-You bought high, and value is low. You are screwed. 3. ATM's-The people that borrowed against that increased value. You are also screwed. The problem here is no one wanted to mitigate the fact that cheap money allowed the house market to inflate. The so called "solution" to the real estate bubble was everyone wanted to re-inflate it, to protect #2, and #3 in my list. If you are doing everything possible to maintain the value of a house, including 0% interest, literally, we will give you the money, for FREE for you to hand out, then all you can ever do is extend the time for a market correction to take place. The hope, is that the economy heats up to take over the drive for that demand. Make no mistake...a market correction WILL occur. It ALWAYS does. How do I know there was a bubble to begin with? There were news reports of people going to house showings with a house inspector in tow, on spec. Buy buy buy. Buy now. I'll pay more than asking. Buy it. And the economy has, I think held on in Canada, but hasn't really improved. It was more just not as bad as expected, so people think its good. As noted earlier, manufacturing and exports are being hammered. The only real thing driving the North American market is cheap money. We're living off the credit card. So, we had jacked up prices, with a not so hot economy and everything wants to find an equilibrium. I see it coming down. While it screws some people, it makes opportunities for others. That, friends, is a free market economy. Take your hands out of the pie and let the free market sort it out.