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Any comments?
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Put down at least 20-25% of the value of your home, stay away from adjustable rate mortgages, and maintain a high FICO score. Otherwise you may find yourself in trouble one day.
 
scarberiankhatru said:
Credit Crunch - Tridel's latest, found in the cereal box aisle.
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Just heard a commercial- 'Who else? (builds large, ugly and quickly outdated condos) TRIDEL!

Give them full credit though. I believe they sell more units each year than any other developer. And compared to Concord's lego city their projects are actually appealing.
 
Chuck said:
Put down at least 20-25% of the value of your home, stay away from adjustable rate mortgages, and maintain a high FICO score. Otherwise you may find yourself in trouble one day.
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Sadly your criteria only describes the minority of purchases in the new condo market in 2007.
 
Pay cash for a house in Hamilton--ie a house under $130,000. Never use a credit card, never take out a loan, never buy anything. I keep all my money (gold coins) in a jar buried somewhere....

But just when the major media is hyper-ventilating about the big CC, you know it has got to be nearing the end.
 
urbandreamer said:
Pay cash for a house in Hamilton--ie a house under $130,000. Never use a credit card, never take out a loan, never buy anything. I keep all my money (gold coins) in a jar buried somewhere....

But just when the major media is hyper-ventilating about the big CC, you know it has got to be nearing the end.
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Hamilton real estate will not keep pace will inflation. Owing there is a giant risk than should be avoided unless completely necessary.
 
Some of Downtown Baltimore neighbourhoods are full of commuters to Washington, DC and the jobs dispersed throughout the DC area, as the new condos, row houses and gentrfying housig stock become a viable urban alternative to DC, which is become more expensive. Downtown Hamilton could easily become Toronto's Downtown Baltimore - it just needs better GO Train service and more people wanting an urban lifestyle and priced out of Toronto. Downtown Baltimore has access to two MARC routes to Union Station (MARC fare also includes all MTA Maryland local bus and rail), as well as Amtrak and two freeways.

Though if Stinson's thinking this way, I wonder if I'm wrong.
 
Credit crunch affecting Canadian real estate

Hi all, been reading here for a while, I keep coming back as you guys are really knowledgeable. I was hoping to hear some opinions.

I have been reading a lot about this credit crunch and how the worst is yet to come. Banks in the States are just deferring their losses and World banks are trying to keep everything from blowing up by using their most aggressive strategies. See (http://www.rgemonitor.com/blog/roubini). So something is up.


I am a first time home buyer and i bought a townhouse in Vaughan for 300K. My parents bought in Hamilton in 1990 for 160K a bungalow. I always try to justify the 300K as being closer to the city etc, etc. If house prices are said to be over inflated in the US (bubble), and their bubble bursts, how does that affect my real estate?

I would think that the real question is whose bubble is bigger. I hear that Canadian Real estate is "cheap" in world standards, but how is that measured?


Thanks
yogz
 
I am a first time home buyer and i bought a townhouse in Vaughan for 300K. My parents bought in Hamilton in 1990 for 160K a bungalow. I always try to justify the 300K as being closer to the city etc, etc. If house prices are said to be over inflated in the US (bubble), and their bubble bursts, how does that affect my real estate?

I would think that the real question is whose bubble is bigger. I hear that Canadian Real estate is "cheap" in world standards, but how is that measured?
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This is a bit of a loaded question, and you didn't provide enough information for anyone to give you an accurate answer. If you have a fixed rate mortgage, you can currently afford your monthly payments, and you plan to stay in your house in the long term, a Canadian credit crunch would have absolutely no impact on you whatsoever if it were to materialize. That is because the monthly payments which you can already afford won't change, and regardless of the present value of your house you're moving in 15 years anyway.

If on the other hand you are barely scraping by, have a mortgage rate that is going to be reset in a few months, or plan to move in the short term, it's anyone's guess what the future will hold. But even then you'll walk away relatively unscathed so long as the present value of your house is greater than the amount left on your mortgage.
 
yogz said:
I would think that the real question is whose bubble is bigger. I hear that Canadian Real estate is "cheap" in world standards, but how is that measured?


Thanks
yogz
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Flawed logic. Real estate prices are set locally,ultimately. The foreign demand scooping up speculative units will eventually unwind. Toronto is not expensive compared to Montreal, Vancouver is not cheap compared to New York and Calgary is not expensive compared to Halifax. Each housing market is determined by local population and employment stats, in the long run.

Don't get sucked in by reckless media hype emanating from the ridiculously conflicted real estate brokerage houses. Housing pundits will pitch whatever bullsh*t they can get away with regardless of its efficacy. You can buy an iPod in New York and enjoy it in Toronto. You can't consume cheaper Toronto real estate in London so the argument is ridiculous.

I wish someone with an audience would finally put an end to it.
 
Flawed logic. Real estate prices are set locally,ultimately.
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Absolutely. The housing bubble isn't even affecting the entire US! Whereas housing prices have fallen drastically in much of the sun belt, the northern US has been largely unaffected.

I'm not in the industry so I can only speculate, however I believe that the only reason why the credit crunch has been felt across the entire US is because while real estate trends exist locally, lending institutions operate nationwide. With millions of foreclosures occurring in the south, the money is made up from home owners across the country through higher interest rates.
 
It's most of the rust belt as well - Buffalo, Cleveland and Detroit are badly hit, particularly where the weak economy meets the credit crunch. It has not hurt, however, metropolitan areas on the northeast coast, such as New York or Baltimore-Washington.

But California is hurt.
 
SeanTrans said:
It's most of the rust belt as well - Buffalo, Cleveland and Detroit are badly hit, particularly where the weak economy meets the credit crunch. It has not hurt, however, metropolitan areas on the northeast coast, such as New York or Baltimore-Washington.

But California is hurt.
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It's hurting where rampant speculation was apparent. I predict similar patters emerging in various pockets of Canada.
 
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