Just thought I'd highlight this chestnut from almost a year ago:
Taipan wrote:Some of the experienced posters on this board remember what it was like with interest rates of 17%. And that is why they are bearish because even a fraction of those sorts of rates with conservative lending criteria will smash real estate markets across the world, especially Vancouver.
And without doubt Canada will be following us. Canada will suffer the same issues as Australia. Eg commodity based, with significant export income. That means constraints and inflation and BOC forced to raise interest rates. Canada is merely following Australia now.
Anybody that followed this advice wasted thousands borrowing money that wasn't really worth that much to being with.
Thankyou for that.
If you want to be smart, you can then advise readers the changes that have been made to mortgages and amortisation terms.
Cmon post them up and explain what the effect is.
But here is a quick refresher of the tightening rules and the effect it will have on the affordability of people in Vancouver to buy property.
Having recently been in the USA (12 hour flight from Aussie - compared to you jokers), what struck me was the lack of finance by financiers for property.
Even if you can afford to repay the loan, it is very hard to get the money unless you almost dont need it.
Property prices are dead or still falling even with very low interest rates. Same thing happened to real estate in Japan over the last 20 years even with low interest rates.
Geezer: "What if somebody listened to Taipan and doesnt buy".
Well, they will thank their lucky stars, that they arent one of the thousands of miserable souls who cant sell their properties in 2013!