Comments on: The emotional house

By: Islander

Islander — Sun, 25 May 2008 10:03:06 +0000

Not that I don’t agree with much of what Garth say, because I do, but The Strategy recommended people borrow up to their necks against their houses and pile into the stock market, just as NASDAQ was about to melt down and DJIA, S&P and S&P/TSX 60 flatline in inflation-adjusted terms.
Now you’re looking to this failed politician for his crystal-clear view of real estate’s future?
Baaaaaaahhhhh!!!!

Wrong. Re-read the book. I argued against mantaining a large amount of static, non-proucing real estate equity, suggesting you borrow against it with a tax-deductible investment loan, putting the money into diversified basket of financial assets, including well-run mutual funds. Not stocks. Had you done that, with today’s stock market at a record high, you’d have achieved both goals – gaining financial wealth and also remaining exposed to real estate. I gather you have a reading comprehension problem. — Garth

By: been there

been there — Sun, 04 May 2008 18:39:09 +0000

I live in Regina and have 2 grown sons interested in purchasing a home. My strong discouragement and reiterating the high interest rates of the late 70′s, early 80′s when house prices jumped considerably and interest rates followed resulting in many walking away from their mortgages, has had some effect on their decision to bank money for now.
While interest rates have remained consistently low, the cost of homes has made up for this resulting in ridiculous payments and making builders/ realtors wealthy as a result of this current bubble.
History is repetitive despite what we are brainwashed into thinking.

By: Alleyne

Alleyne — Thu, 01 May 2008 15:39:58 +0000

Hi Garth,

What are your thoughts on the Montreal Real Estate Market? I just purchased a 1002 square foot 2 bedroom with indoor parking condo in Old Montreal for 337,000 with a 20% downpayment. This will be my principal residence. My bank evaluated the property at 346,000 so I believe that I paid a fair price for it. Economic Reports that I read say that housing in Quebec should increase by 5% in 2007 and 3% in 2008. I earn approx 115k a year and have approx 100k in RSP. After reading your blogs I am wondering if I should have rented! What are your thoughts on the Montreal Real Estate Market

By: Peter

Peter — Wed, 30 Apr 2008 07:08:20 +0000

Of course they dont want to publish the real CPI, or inflation figures… if yes, our banks will be going belly up with the storm down south and a storm brewing up north, plus, our interest rates would have to go skyrocketed to 12 % or 13 % or even more…Obviously, the govt just have lots that you don’t want to know or they don’t let you know before some crap hits the fan…good luck !! Good thing to know is that my fiancee got a pay raise of 8 % this year instead of 3 % (which they generally do that every year) from her company, my fiancee ask her colleague and she was told that the company make some good money last year (not important). Secondly, her colleague told her including herself got a 8 % wage increase because she heard from the managers saying that this is to curb some of the inflation this year with high gas prices and groceries…