Comments on: Prelude to crisis? http://www.greaterfool.ca/2008/04/27/prelude-to-crisis/ Book and Weblog - Authored by Garth Turner Wed, 08 Feb 2012 20:01:56 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Burnaby Real Estate Agent http://www.greaterfool.ca/2008/04/27/prelude-to-crisis/comment-page-1/#comment-39316 Burnaby Real Estate Agent Wed, 19 Aug 2009 00:18:28 +0000 http://www.greaterfool.ca/?p=178#comment-39316 Well, the US is still suffering, but Canada has bounced back quite strongly. It does concern me, though, that things are so strong so quickly. We have a new Harmonized sales tax on the way, which will increase the burden on buyers, and interest rates are likely to rise soon, so we may have some serious cooling effect on our markets. With regard to our economic relationship to the US, I would hope we could diversify more so we do not rely on their well being so much. We have been at their mercy, which they have take advantage of in the past. About the house qualities, i am not sure about the accuracy of the statements above. Although i do agree there are some crappy houses now, there actually have been for a long time. Even a crappy house will last the life of the mortgage, i think, although it may need some extra work along the way. It will still be better than an old house with single pane glass and serious ventilation all over the place. Hopefully it just does not leak. Well, the US is still suffering, but Canada has bounced back quite strongly. It does concern me, though, that things are so strong so quickly. We have a new Harmonized sales tax on the way, which will increase the burden on buyers, and interest rates are likely to rise soon, so we may have some serious cooling effect on our markets.

With regard to our economic relationship to the US, I would hope we could diversify more so we do not rely on their well being so much. We have been at their mercy, which they have take advantage of in the past.

About the house qualities, i am not sure about the accuracy of the statements above. Although i do agree there are some crappy houses now, there actually have been for a long time. Even a crappy house will last the life of the mortgage, i think, although it may need some extra work along the way. It will still be better than an old house with single pane glass and serious ventilation all over the place. Hopefully it just does not leak.

]]> By: David http://www.greaterfool.ca/2008/04/27/prelude-to-crisis/comment-page-1/#comment-769 David Fri, 02 May 2008 00:10:57 +0000 http://www.greaterfool.ca/?p=178#comment-769 Albertan you are correct. Most of those 700K clapboard palazzos in Calgary and Edmonton could barely withstand a mild chinook. The worst apartments in the former Soviet Union were called "Khruschev Slums" and these slums of concrete and steel are still standing. Most of the the shabby new developments in Alberta wont be standing up in the next five years. Only 35 years left to pay right? Albertan you are correct. Most of those 700K clapboard palazzos in Calgary and Edmonton could barely withstand a mild chinook.
The worst apartments in the former Soviet Union were called “Khruschev Slums” and these slums of concrete and steel are still standing.
Most of the the shabby new developments in Alberta wont be standing up in the next five years. Only 35 years left to pay right?

]]> By: Another Albertan http://www.greaterfool.ca/2008/04/27/prelude-to-crisis/comment-page-1/#comment-766 Another Albertan Thu, 01 May 2008 21:52:11 +0000 http://www.greaterfool.ca/?p=178#comment-766 @David: My cousin is a civil engineer whose practice is principally restoration and insurance claims. He wouldn't consider living in any wood-framed structure built in western Canada in the last 10 years. It's all junk. @David:

My cousin is a civil engineer whose practice is principally restoration and insurance claims. He wouldn’t consider living in any wood-framed structure built in western Canada in the last 10 years. It’s all junk.

]]> By: David http://www.greaterfool.ca/2008/04/27/prelude-to-crisis/comment-page-1/#comment-748 David Thu, 01 May 2008 17:16:02 +0000 http://www.greaterfool.ca/?p=178#comment-748 Most of the overmortaged McMansions are so poorly constructed the 40 year mortgages will long out last the economic usefulness of the house. It is quite common to see McMansions built during the boom showing early signs of aging and decrepitude. Aesthetic issues aside, the mortgage will long outlive the house. Even after 10 years of diligent payment little if any equity will be built up and those leaky windows and mould and bowed roofs will be in desperate need of repair. It seems almost impossible to envision a happy future for Canadian real estate. http://www.oftwominds.com/blognov07/mcmansions.html Most of the overmortaged McMansions are so poorly constructed the 40 year mortgages will long out last the economic usefulness of the house. It is quite common to see McMansions built during the boom showing early signs of aging and decrepitude. Aesthetic issues aside, the mortgage will long outlive the house. Even after 10 years of diligent payment little if any equity will be built up and those leaky windows and mould and bowed roofs will be in desperate need of repair. It seems almost impossible to envision a happy future for Canadian real estate.
http://www.oftwominds.com/blognov07/mcmansions.html

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