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CKA Uber
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PostPosted: Fri Nov 14, 2008 12:37 pm
 


Robair Robair:
MLS home sales plunge to weakest level since 2002

Here we go! We may not use the term 'sub prime' but our banks were doing the exact same thing up here with zero down and 40 year ammortization.

It isn't the same thing at all. Someone with a zero down 40 year mortgage won't see their payments jump up after two years. That was the problem in the U.S. Poor people could afford the first two years of the mortgage and then they couldn't. The only reason real estate is being affected here is because of the fallout from the U.S. problem.





PostPosted: Fri Nov 14, 2008 12:46 pm
 


RUEZ RUEZ:
Robair Robair:
MLS home sales plunge to weakest level since 2002

Here we go! We may not use the term 'sub prime' but our banks were doing the exact same thing up here with zero down and 40 year ammortization.

It isn't the same thing at all. Someone with a zero down 40 year mortgage won't see their payments jump up after two years. That was the problem in the U.S. Poor people could afford the first two years of the mortgage and then they couldn't. The only reason real estate is being affected here is because of the fallout from the U.S. problem.


I'm surprised that anybody in Canada would have bought property last month.

prices falling..
equities falling..
no more 40 year MG with nothing down..


poor old Real Estate agents , they might actually have to start working for their paychecks :P


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PostPosted: Fri Nov 14, 2008 12:47 pm
 


I'm glad real estate is dropping. All the flippers and investors will start losing money. Maybe someday families will be able to afford a home again.





PostPosted: Fri Nov 14, 2008 12:51 pm
 


RUEZ RUEZ:
I'm glad real estate is dropping. All the flippers and investors will start losing money. Maybe someday families will be able to afford a home again.


yes.. that way all the elderly people who lost all their retirement funds in the equity markets can also loose that last hope they had for retirement. :wink:


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PostPosted: Fri Nov 14, 2008 12:53 pm
 


RUEZ RUEZ:
I'm glad real estate is dropping. All the flippers and investors will start losing money. Maybe someday families will be able to afford a home again.


True that.


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PostPosted: Fri Nov 14, 2008 12:54 pm
 


mtbr mtbr:
RUEZ RUEZ:
I'm glad real estate is dropping. All the flippers and investors will start losing money. Maybe someday families will be able to afford a home again.


yes.. that way all the elderly people who lost all their retirement funds in the equity markets can also loose that last hope they had for retirement. :wink:

I'm pretty sure most of the elderly bought their homes when they were much cheaper. If they aren't paid off the mortgage payments would be minimal. Which is worse though, an elderly couple that can't make a mint off of their home or a younger couple that can't get into a home because of the rediculous prices?





PostPosted: Fri Nov 14, 2008 1:00 pm
 


RUEZ RUEZ:
mtbr mtbr:
RUEZ RUEZ:
I'm glad real estate is dropping. All the flippers and investors will start losing money. Maybe someday families will be able to afford a home again.


yes.. that way all the elderly people who lost all their retirement funds in the equity markets can also loose that last hope they had for retirement. :wink:

I'm pretty sure most of the elderly bought their homes when they were much cheaper. If they aren't paid off the mortgage payments would be minimal. Which is worse though, an elderly couple that can't make a mint off of their home or a younger couple that can't get into a home because of the rediculous prices?


how are those young couples going to afford the payments anyway....when they're unemployed because of the meltdown. :?


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PostPosted: Fri Nov 14, 2008 1:03 pm
 


mtbr mtbr:
how are those young couples going to afford the payments anyway....when they're unemployed because of the meltdown. :?

I grew up in the 80's when unemployment in BC hovered around 8-9%. It's still 6% so we're doing pretty good.


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PostPosted: Fri Nov 14, 2008 1:12 pm
 


RUEZ RUEZ:
Robair Robair:
Here we go! We may not use the term 'sub prime' but our banks were doing the exact same thing up here with zero down and 40 year ammortization.

It isn't the same thing at all. Someone with a zero down 40 year mortgage won't see their payments jump up after two years.
No it's not exactly the same, I was referring to the effect. They were both making it way to cheap and easy to borrow money for the purpose of securing residential realestate. With nothing left to keep prices in check, buying takes of and houses are bought and sold at levels way above their actual worth.

Bubble. Crash.


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PostPosted: Fri Nov 14, 2008 1:14 pm
 


Robair Robair:
No it's not exactly the same, I was referring to the effect. They were both making it way to cheap and easy to borrow money for the purpose of securing residential realestate. With nothing left to keep prices in check, buying takes of and houses are bought and sold at levels way above their actual worth.

Bubble. Crash.

Ah gotcha.


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