Comments on: Welcome home! http://www.greaterfool.ca/2009/11/27/welcome-home/ Book and Weblog - Authored by Garth Turner Wed, 08 Feb 2012 18:56:14 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Tony http://www.greaterfool.ca/2009/11/27/welcome-home/comment-page-3/#comment-53186 Tony Wed, 09 Dec 2009 00:31:25 +0000 http://www.greaterfool.ca/?p=4180#comment-53186 Sounds to me Jamie like by the time you have 25 percent to put down in say 10 years time the place you sold in May will be selling for triple what you sold it for. Alberta is seriously undervalued compared to the rest of Canada. You sold when you should've been buying streets full of townhouses and apartment buildings... the two things that fell the most in price. When something falls 50 percent in price while the rest of the country sees real estate appreciate 10 percent per year that's an all out buy signal not a sell signal. Also when the mortgage payments are less than half of what rent is a month that also is an outright buy signal. Bye-bye and in life you rarely get a second chance. Sounds to me Jamie like by the time you have 25 percent to put down in say 10 years time the place you sold in May will be selling for triple what you sold it for. Alberta is seriously undervalued compared to the rest of Canada. You sold when you should’ve been buying streets full of townhouses and apartment buildings… the two things that fell the most in price. When something falls 50 percent in price while the rest of the country sees real estate appreciate 10 percent per year that’s an all out buy signal not a sell signal. Also when the mortgage payments are less than half of what rent is a month that also is an outright buy signal. Bye-bye and in life you rarely get a second chance.

]]> By: Soju http://www.greaterfool.ca/2009/11/27/welcome-home/comment-page-3/#comment-52063 Soju Tue, 01 Dec 2009 03:59:29 +0000 http://www.greaterfool.ca/?p=4180#comment-52063 Why did this fool sell his place? Why did this fool sell his place?

]]> By: Mr. D - Ottawa http://www.greaterfool.ca/2009/11/27/welcome-home/comment-page-3/#comment-52004 Mr. D - Ottawa Mon, 30 Nov 2009 18:27:10 +0000 http://www.greaterfool.ca/?p=4180#comment-52004 Reply to #119 "Garth, Help! Can the Bank of Canada really hold interest rates at 0.25% till 2015?" The article in the Financial Post and Reuters both stated rates could stay at 0.25% until 2010. By 2010-11 the bank rate could rise to 2%. This would mean the prime rate would rise to 4%. These rates are still very low, but no where did I see the 0.25% rate lasting beyond 2010. Personally, I don't see how rates can remain that low for a very long time due to the amount of debt that will need financing and refinancing around the globe. Higher rates will be needed to attract sufficient capital. Reply to #119
“Garth,
Help! Can the Bank of Canada really hold interest rates at 0.25% till 2015?”

The article in the Financial Post and Reuters both stated rates could stay at 0.25% until 2010. By 2010-11 the bank rate could rise to 2%. This would mean the prime rate would rise to 4%. These rates are still very low, but no where did I see the 0.25% rate lasting beyond 2010.

Personally, I don’t see how rates can remain that low for a very long time due to the amount of debt that will need financing and refinancing around the globe. Higher rates will be needed to attract sufficient capital.

]]> By: Dave http://www.greaterfool.ca/2009/11/27/welcome-home/comment-page-3/#comment-51983 Dave Mon, 30 Nov 2009 16:15:04 +0000 http://www.greaterfool.ca/?p=4180#comment-51983 Dave; it’s a game of ‘beggar thy neighbour’ by all governments. If we raise our interest rates faster than other countries, then our dollar rises, causes our goods to be less competitive than our neighbours. According to Mish Shedlock, governments are trying to reinflate the bubble by keeping interest rates low. It’s a race to the bottom. Yeehaw! ------------------------------------------- Understood. This is why I mentioned emerging markets. There's incentive to keep rates low when you don't have anything going on. Some countries have been reasonably fiscally responsible and can bail out of that game sooner than we can. A stronger dollar makes our exports less attractive, but a weaker dollar makes our imports more expensive. Dave; it’s a game of ‘beggar thy neighbour’ by all governments. If we raise our interest rates faster than other countries, then our dollar rises, causes our goods to be less competitive than our neighbours.

According to Mish Shedlock, governments are trying to reinflate the bubble by keeping interest rates low. It’s a race to the bottom. Yeehaw!
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Understood. This is why I mentioned emerging markets. There’s incentive to keep rates low when you don’t have anything going on. Some countries have been reasonably fiscally responsible and can bail out of that game sooner than we can. A stronger dollar makes our exports less attractive, but a weaker dollar makes our imports more expensive.

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