tag:blogger.com,1999:blog-7123542260692860177.post4440730261295367962..comments2023-12-02T00:38:46.467-08:00Comments on House Hunt Victoria: Is Marketing A Contract?HouseHuntVictoriahttp://www.blogger.com/profile/07456914359088891317noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-7123542260692860177.post-30389362789219498792007-07-06T09:11:00.000-07:002007-07-06T09:11:00.000-07:00People who can't make the increased payment but ha...People who can't make the increased payment but have so called equity, can get a lower payment by increasing their amortization by 5-10-15-20 years.<BR/><BR/>A lot of equity could disappear quickly if this happens, a kind of reverse wealth effect, if you like.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-52457267902576599522007-07-05T20:55:00.000-07:002007-07-05T20:55:00.000-07:00"vg, just curious how will the 7-8% of upcoming in..."vg, just curious how will the 7-8% of upcoming interest rates be equivalent of 19% interest rates of 1981? "<BR/><BR/>greg's explanation is bang on. Your working with larger sums as in 4 times the price of an average bungalow at the peak of 1981, which was around $100,000. Factor in the average wage didn't quadruple since then either and a 3-4 % renewal increase would be a killer.<BR/><BR/><BR/> Was just talking with a coworker today who got stuck in that 19% rate for one year and it almost put him under,if they hadnt gone back to 15 % range the next year he woulda been toast.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-64104519340256970622007-07-05T09:40:00.000-07:002007-07-05T09:40:00.000-07:00Interesting article in today's Vancouver Sun on th...Interesting article in today's Vancouver Sun on the assignment market:<BR/><BR/>http://www.canada.com/vancouversun/story.html?id=082bcefe-0af7-47b6-9af4-91b20a0dcef2&p=1<BR/><BR/>S2Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-58299841985761693722007-07-05T09:10:00.000-07:002007-07-05T09:10:00.000-07:00It's leverage - 19% on something that cost you 4X ...It's leverage - <BR/><BR/>19% on something that cost you 4X earnings, while painful, is not nearly as bad as 8% on something that cost 8-9X earnings.<BR/><BR/>Don't forget, if you bought with a rate of 4% a few years ago, your payment just doubled, if you refinance at 8%.<BR/><BR/>12% to 19% is not a doubling of your payment....Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-44216765524973145242007-07-05T08:58:00.000-07:002007-07-05T08:58:00.000-07:00We don't need 19$ interest rates to feel the same ...We don't need 19$ interest rates to feel the same effect as early 80's. The debt level new buyers are carrying is so high, 2-3% changes are enough to sink households.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-9177938710323625812007-07-05T08:25:00.000-07:002007-07-05T08:25:00.000-07:00vg, just curious how will the 7-8% of upcoming int...vg, just curious how will the 7-8% of upcoming interest rates be equivalent of 19% interest rates of 1981?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-9151031790014584072007-07-04T19:52:00.000-07:002007-07-04T19:52:00.000-07:00Unfortuneately, when it comes t real estate, we ar...Unfortuneately, when it comes t real estate, we are dealing with contract law. Unlike, a toaster which you can return before 30 days if it is sub standard. The only recourse for real estate is the courts.<BR/><BR/>My thought has been that if the government wanted to protect the consumer of real estate - then a mandatory cooling off period of two weeks should be legislated. If the purchaser changes their mind during that period the deal is over. This would stop the "HIGH" preasure tactics that are too common today. Short closing times, 24 hour clauses etc. Any agent caught circumventing the rules would be fined and censured with their name and agency disclosed to the public in the newspaper. <BR/><BR/>Sounds too harsh - I don't think so!<BR/><BR/>SiobhanAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-6892941365494011562007-07-04T18:38:00.000-07:002007-07-04T18:38:00.000-07:00sorry to change the topic but I just posted on PB'...sorry to change the topic but I just posted on PB's site,just heard on Global that BMO is saying two interest rate hikes coming this summer. If this doesnt stop the insanity then we will definitely be setting up for a 50% crash, you can't keep having panic buying at these levels without the bottom end completely falling out like in 81,same scenario, and no you don't need 19% rates,7-8% would be the equivalent. Spin that one VREB !Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-3723213737360988362007-07-04T14:09:00.000-07:002007-07-04T14:09:00.000-07:00For $300K, they should toss those nanobots in as i...For $300K, they should toss those nanobots in as incentive... who knows, if the condo glut happens as predicted, maybe they will :)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-74877289449240380512007-07-04T13:30:00.000-07:002007-07-04T13:30:00.000-07:00I think that whenever I see the "Care free living"...I think that whenever I see the "Care free living" sign for Centennial Walk. I don't know what definition of "care free" they're using that encompasses a $300,000 mortgage, but I doubt it's the one from the OED. <B>My</B> definition would involve living mortgage and rent free, and maybe have nanobots in my blood so I never get sick.Ryanhttps://www.blogger.com/profile/10104704096049638272noreply@blogger.comtag:blogger.com,1999:blog-7123542260692860177.post-66344650336338412232007-07-04T10:43:00.000-07:002007-07-04T10:43:00.000-07:00I was wondering if I buy one of those condos would...I was wondering if I buy one of those condos would I loose my baby weight. Everyone seems so thin!<BR/><BR/>Would I never get angry? Would I have great clothes? Would I have a great life?<BR/><BR/>This reminds me of the hype in womens magazines. We all fall for it. Finding the perfect dress that will change my life. If I buy this skin cream I will look like Cindy Crawford (even Cindy Craword does not look like Cindy Crawford - saw her in France).<BR/><BR/>It is so bizarre - selling a lifestyle! They used to do that in the 50s, 60s and early 70s with suburbia. Getting people out to the burbs in this big housing developments. They did this in Toronto - Don Mills area (which has the ugliest 60s houses in the world that no one will touch now).Anonymousnoreply@blogger.com