Quote:
Originally Posted by godwin
The matter is do we know their balance sheet, income, life/ investment experience? no. There are a multitude of ways I can think of it can be a win.. maybe each individual had invested in high yield stocks?.. The last few months everyone who had invested any ETF would have gain at least 10-15% (Finally the US stock market is gaining quicker than housing in Canada) or maybe they have got another apartment as a mortgage helper? or the smart one (if any) is using the dumb ones, so if they crack early the smart ones go in for a steal? If I remember correctly Vancity's Mixer mortgage I think is tailored for such co ownership.. heck they even include life insurance for each mortgage holder just in case. I get it, you think people by any property in Canada is stupid because they are not like you, but there are so much of the story we don't know, it is hard to make a concrete judgement.
AS for the 5%.. 5% mortgages is not available from CMHC anymore, but they are available by others.. only 2/3 of all Canadian mortgages are handled via CMHC anyways. If you use a mortgage broker chances are they would recommended a non CMHC one because they offer a bit better rate vs equivalent CMHC.
There are just way too much unknown for us to tell how the story will end, other than "Four 30 somethings chip in to for 5% down payment for a 800k house".
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U give them too much credit. From what I remember, the article said they had pretty shitty jobs and one had just sold their condo, so chances are no excess investments. Also the avg cdn won't have much in net assets, that's just based on numbers
And no 5% CMHC loans? Where u getting that from?
And 2/3 mortgages have CMHC insurance, again, where is that coming from? I read somewhere that it was 80%.
I don't care that they're different than me, I just know, in my heart of hearts, that ppl like this are the average sheeple, financially illiterate idiots that have allowed an irresponsible financial institution to give them an idea of getting into loads of debt with other ppl.
I like the rule "don't buy real estate with ppl u don't sleep with", that includes family, friends, it will end badly, but that story will never be in the papers