I love it when people are right but their reasoning is flawed... they fool themselves into thinking they are smart. When they aren't.
I've always said I would rather be lucky than smart. Works for ETB
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I love it when people are right but their reasoning is flawed... they fool themselves into thinking they are smart. When they aren't.
I've always said I would rather be lucky than smart. Works for ETB
Eyes has not made a lot of money on his house, he is sitting on a lot of "potential" profit which he has chosen not to realize. It may increase or it may evaporate, nothing in life is certain.Yes Eyes you have made alot of money on your house.
But, you theory is wrong. At least I think so.
Ban foreign ownership & make all current foreign owners sell their place. I know this is unrealistic but if it did happen then watch how prices would tank. Immigration would not matter at that point unless they are rich immigrants. After all Syrian refugees will not be buying houses in Vancouver. Then you would only have local incomes buying local homes. Without foreign money high prices would go back to low prices based on local incomes.
Does that sound slightly familiar???The Japanese asset price bubble (バブル景気 baburu keiki?, lit. "bubble economy") was an economic bubble in Japan from 1986 to 1991 in which real estate and stock market prices were greatly inflated.[1] The bubble was characterized by rapid acceleration of asset prices and overheated economic activity, as well as an uncontrolled money supply and credit expansion.[2] More specifically, over-confidence and speculation regarding asset and stock prices had been closely associated with excessive monetary easing policy at the time.[3]
But don't worry, just like the Japanese used to say, "it's different here".By August 1990, the Nikkei stock index had plummeted to half its peak by the time of the fifth monetary tightening by the Bank of Japan (BOJ).[2] By late 1991, asset prices began to fall. Even though asset prices had visibly collapsed by early 1992,[2] the economy's decline continued for more than a decade. This decline resulted in a huge accumulation of non-performing assets loans (NPL), causing difficulties for many financial institutions. The bursting of the Japanese asset price bubble contributed to what many call the Lost Decade.[4]
According to Geyser's "long term historical average", you need a 25% correction first, then 50% correction fllows, then another 50% correction again, all three corrections together will bring the market back to "normal".Prices have gone so far out of whack, what type of correction is required to bring them back to "normal"? 50%? 60%? More?
Yes, why not?! Let those greedy sellers dry to death!Why not ban foreign ownership on any property over 2million?
Immigrant buyers are different than non-resident buyers! I like your 2 million idea though. Or maybe they can only buy properties in West Van & Richmond. That's it ... nowhere else.Banning foreign ownership would be very anit-Canadian. We are a country built on immigration and inclusion.
Why not ban foreign ownership on any property over 2million?
Immigrant buyers are different than non-resident buyers! I like your 2 million idea though. Or maybe they can only buy properties in West Van & Richmond. That's it ... nowhere else.
that is totally bs.What is anti Canadian is having Canadian citizens unable to buy homes in their own country. Our home buying rules favour foreigners over Canadians. In the USA the laws favour local citizens. Property taxes are higher for foreigners & the IRS can confiscate your house if it was bought the proceeds of crime (money laundering). In Canada, we have very low property taxes & CRA doesn't care about money laundering on non-residents not reporting capital gains. No wonder all the foreigners want to buy here. This is anti- Canadian to me. But nobody cares as long as their home is going up in value.
I think that realistically a rollback to 2002 prices is probably our worst case scenario.According to Geyser's "long term historical average", you need a 25% correction first, then 50% correction fllows, then another 50% correction again, all three corrections together will bring the market back to "normal".Prices have gone so far out of whack, what type of correction is required to bring them back to "normal"? 50%? 60%? More?
Ah, that's only a release of 40 years pressure built up.
This is the funniest and stupidest statement I've heard here for a while.I think that realistically a rollback to 2002 prices is probably our worst case scenario
Economic comparisons to Japan is the new Godwin's Law.I think that realistically a rollback to 2002 prices is probably our worst case scenario.According to Geyser's "long term historical average", you need a 25% correction first, then 50% correction fllows, then another 50% correction again, all three corrections together will bring the market back to "normal".Prices have gone so far out of whack, what type of correction is required to bring them back to "normal"? 50%? 60%? More?
Ah, that's only a release of 40 years pressure built up.
BTW, it wasn't my "long term historical average", it's what actually happened. But like I said, we don't need to worry because of two important facts - "it's different this time" and/or "Vancouver is different", just like it was different in Tokyo during their real estate bubble and before their home prices collapsed by 90%. Yes, 90%! That's not a typo, if you don't believe me Google it.
Unfortunately the only way out of this mess involves a lot of pain for a significant portion of our population. Let's pray for a moderate correction, a price drop of no more than 50%, followed a decade or two of flat prices while wages and rents catch up. We've lived through that before and most of us can survive it again.
So you think Tokyo's population shrank by 90% during their 90% home price collapse? And how come the antsy buyers didn't step in then? Do you think Vancouver's population was shrinking by between 40% and 50% when our home prices fell by those percentages in 1982? No antsy buyers rushing in at 15% discount then either. Human nature often makes people stand on the sidelines when prices are collapsing. It's all about two emotions, fear and greed. Currently I believe we are mostly witnessing rampant speculation and extreme greed, and its effects are quite impressive, but fear can be even more powerful.This is the funniest and stupidest statement I've heard here for a while.I think that realistically a rollback to 2002 prices is probably our worst case scenario
My house was 300k in 2002.
What about the 700k population we gained since 2002? Are those people going to disappear?
As I've said, discount of perhaps 15% before buyers get antsy and step in...developers have a wholesale #...and it isn't 600% off.
Yer a farking idiot geyser
I cant continue to dignify Geyser with replies...his views are inane and reeks of envy.lol at the japan being the same as vancouver thing