Comments on: Ya think? http://www.greaterfool.ca/2008/05/23/ya-think/ Book and Weblog - Authored by Garth Turner Wed, 08 Feb 2012 17:27:12 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: sss http://www.greaterfool.ca/2008/05/23/ya-think/comment-page-2/#comment-1892 sss Thu, 12 Jun 2008 20:43:05 +0000 http://www.greaterfool.ca/?p=230#comment-1892 Peter, Your friends simly mistaken, buying unaffordable property from the very first payment. It is nothing to do with the RE bubble. Why they not buy, lets say, 400K property? Even it would be overpriced, it would be affordable, though. Most of people buy affordable homes in terms of mortgage payments. If those folks went with theirs given limit - that means the "bubble" exists in theirs heads. Another thing. Most people taking mortgage for a five years, so the market fluctuations do not affect their payment plan for that period. So, what the hell, people decided to sell their homes after 1-2 years from the purchase date, if most of them still have the same income and same mortgage payments? I guess those ones are flippers, who did not plan and can not keep the property for a long run. But for those I don't feel sorry. Peter, Your friends simly mistaken, buying unaffordable property from the very first payment. It is nothing to do with the RE bubble. Why they not buy, lets say, 400K property? Even it would be overpriced, it would be affordable, though. Most of people buy affordable homes in terms of mortgage payments. If those folks went with theirs given limit – that means the “bubble” exists in theirs heads.
Another thing. Most people taking mortgage for a five years, so the market fluctuations do not affect their payment plan for that period. So, what the hell, people decided to sell their homes after 1-2 years from the purchase date, if most of them still have the same income and same mortgage payments? I guess those ones are flippers, who did not plan and can not keep the property for a long run. But for those I don’t feel sorry.

]]> By: Jeannie http://www.greaterfool.ca/2008/05/23/ya-think/comment-page-2/#comment-1444 Jeannie Wed, 28 May 2008 01:30:30 +0000 http://www.greaterfool.ca/?p=230#comment-1444 I can't recall so much pessimism and gloom, and I've lived through several Alberta booms and Busts. Do the so-called 'survivalists have it right, and is this the time to practise a simpler lifestyle ? Is anyone moving to a smaller community, and going back to the land? Or..could one still make it in the big city with a good support group? I can’t recall so much pessimism and gloom, and I’ve lived through several Alberta booms and Busts.

Do the so-called ‘survivalists have it right, and is this the time to practise a simpler lifestyle ?
Is anyone moving to a smaller community, and going back to the land?
Or..could one still make it in the big city with a good support group?

]]> By: Peter http://www.greaterfool.ca/2008/05/23/ya-think/comment-page-2/#comment-1390 Peter Mon, 26 May 2008 16:58:37 +0000 http://www.greaterfool.ca/?p=230#comment-1390 I feel sick for those people who still wish on buying overpriced homes and condos when they keep saying they can flip them 2 years later or saying they are long term hard asset investor when they can hold onto their homes as a long term investment tool...Those who take this theory will eventually suffers once they find out they are outta a job due to downsizing or plant shut down or they wont be able to ride on debts....My friend recently bought a big 20 years built home for close $ 600,000, they took the home during a crazy bidding war from 10 offers (so they really bought it overvalued and they dont know who put those bid on these offers), once they went in, they found that home were full of smell, major clean up and renovations is needed (over 50K more need to put in) but they are out of CASH, now they are stuck, wife plan to save money to renovate it by eating cheap instant noodles everyday, husband need to save money by not going out to eat...All I can say is they are really POOR couple now, no savings, no insurance...if their home price went down, i am sure they would cry hell out of it...this is how sad a couple took possession of a home when price is overvalued !!! I feel sick for those people who still wish on buying overpriced homes and condos when they keep saying they can flip them 2 years later or saying they are long term hard asset investor when they can hold onto their homes as a long term investment tool…Those who take this theory will eventually suffers once they find out they are outta a job due to downsizing or plant shut down or they wont be able to ride on debts….My friend recently bought a big 20 years built home for close $ 600,000, they took the home during a crazy bidding war from 10 offers (so they really bought it overvalued and they dont know who put those bid on these offers), once they went in, they found that home were full of smell, major clean up and renovations is needed (over 50K more need to put in) but they are out of CASH, now they are stuck, wife plan to save money to renovate it by eating cheap instant noodles everyday, husband need to save money by not going out to eat…All I can say is they are really POOR couple now, no savings, no insurance…if their home price went down, i am sure they would cry hell out of it…this is how sad a couple took possession of a home when price is overvalued !!!

]]> By: David http://www.greaterfool.ca/2008/05/23/ya-think/comment-page-2/#comment-1366 David Sun, 25 May 2008 20:02:39 +0000 http://www.greaterfool.ca/?p=230#comment-1366 Jas, the market is so grossly over priced a 10% correction is really nothing of consequence. A 75% correction is in order so just keep waiting while the market goes up in flames. Jas, the market is so grossly over priced a 10% correction is really nothing of consequence. A 75% correction is in order so just keep waiting while the market goes up in flames.

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