[Caelon]

raydan raydan:

The problem is never those that plan to keep their home, as long as they control their finances. One thing a drop in home prices does is that it may remove any possibility of consolidation if you do lose control, or if you take a hit in your revenues. A rate hike seems unlikely, but would probably be brutal.

Are you suggesting a forced home sale due to financial crisis? Or using the equity to finance debt consolidation.

If it is the latter then the rules are you cannot exceed 80% of your home value between the mortgage and a secured LOC. You can have an unsecured LOC if the finance institution feels you are worth the risk. The difference is a LOC at 3.5% to 4% versus a LOC at 7 or 8%. If you were that close to the 80% rule that you miss it with a drop in house prices then the available credit you did have would most likely not have been sufficient anyways.

If we are talking forced sale due to lost income, etc. then yes it will hurt. Conversely if housing prices are down more renters will buy a home and that would put downward pressure on rental prices. The market will come to an equilibrium. While the market is working itself out some individuals may face a bigger financial crisis than others.

[bootlegga]

jj2424 jj2424:

Got a pile o cash at hand waiting for the crash. Bring it on Baby! Gonna Be Arizona 2009 crash Alberta style!


Condo owners like Boots in Edmonton are up shit creek.

Shows what you know shit tech - I'll just keep doing what I did when the economy crashed in 2008 - rent it out. The guy in there right now is an electrical engineer fresh out of school and he signed a 2 year lease.

It's a long term investment and I plan on renting it out for the next 20-30 years and don't plan on selling it until AFTER my kids are done university.

[bootlegga]

Caelon Caelon:

Don't panic!! Remember journalists are paid to write not to be right.

If your portfolio was properly diversified there is very little concern. The fundamentals are there for strong growth. This is just one of the little dips on the way up. People who panic and sell off their equities and then wait for the market rise to feel 'safe' only make 25% of those that stay the course for the long term. Trying to time the market means you lock in losses while time in the market will protect you in the long run.

As for housing it is not 1981 with 22.75% interest rates. There is not a predicted increase in interest rates until latter part 2015. Even that prediction is suspect because they were saying the same thing every 6 months since 2011. The Bank of Canada rate has been a steady 1% since 2010. When it does start to rise expect increases of 0.25%. We had a housing correction in 2008 and prices are higher now than then. We may have a small reversal, but a year from now prices will be rising once more.

If you bought your house over 20 years ago it is probably worth 3 to 4 times what you paid. Do you care if the price dips 10% for a year or so? If you bought last year you plan to stay there for awhile so again do you care what the price is until you are ready to sell? If you plan to sell and move then the new place will be a little cheaper to buy as the whole market is relative. No big deal.

^ This!

[jj2424]

bootlegga bootlegga:

jj2424 jj2424:

Got a pile o cash at hand waiting for the crash. Bring it on Baby! Gonna Be Arizona 2009 crash Alberta style!


Condo owners like Boots in Edmonton are up shit creek.

Shows what you know shit tech - I'll just keep doing what I did when the economy crashed in 2008 - rent it out. The guy in there right now is an electrical engineer fresh out of school and he signed a 2 year lease.

It's a long term investment and I plan on renting it out for the next 20-30 years and don't plan on selling it until AFTER my kids are done university.

So did you sell one of them? Or is it that you can't remember how many lies you posted before

"I'm far from a real estate guru, but when we bought out house in 2009, we kept our condo and started renting it out. Then a couple of years ago, when prices dropped thanks to the recession, we bought another condo here for about 160k and are renting it out too. "

jibber-jabber-f9/ont-liberal-majority-t109102-105.html?hilit=condos

[jj2424]

[martin14]

Today, the Russians raised interest rates from 10.5% to 17%.

In one day.

[bootlegga]

jj2424 jj2424:

bootlegga bootlegga:

jj2424 jj2424:

Got a pile o cash at hand waiting for the crash. Bring it on Baby! Gonna Be Arizona 2009 crash Alberta style!


Condo owners like Boots in Edmonton are up shit creek.

Shows what you know shit tech - I'll just keep doing what I did when the economy crashed in 2008 - rent it out. The guy in there right now is an electrical engineer fresh out of school and he signed a 2 year lease.

It's a long term investment and I plan on renting it out for the next 20-30 years and don't plan on selling it until AFTER my kids are done university.

So did you sell one of them? Or is it that you can't remember how many lies you posted before

"I'm far from a real estate guru, but when we bought out house in 2009, we kept our condo and started renting it out. Then a couple of years ago, when prices dropped thanks to the recession, we bought another condo here for about 160k and are renting it out too. "

jibber-jabber-f9/ont-liberal-majority-t109102-105.html?hilit=condos

Maybe I sold one, maybe I didn't - either way, it's none of your business.

[martin14]

Russia's Ruble currency continues to collapse - now 100 to euro, 80 to dollar .

It was 60 to the USD yesterday.

Russia's economy was $1.2 trillion a few hours ago - now it less than a trillion as Ruble collapses.


Going to be a cold winter.

[raydan]

martin14 martin14:

Today, the Russians raised interest rates from 10.5% to 17%.

In one day.

Inflation...

[stratos]

PublicAnimalNo9 PublicAnimalNo9:

Baddragon Baddragon:

I can never figure out the relationship of price per barrel to price per litre at the pump. If oil went down nearly 50% shouldn't the price per litre not follow suite, or is it all taxes?

No no. You see, since the gasoline at the pumps and the gasoline that's still waiting to be distributed to those pumps was refined when the price of oil was higher, if they lower the price at the pump before that "reserve" is gone, they will lose money. That's their explanation for it anyway.
Problem with their explanation is, when the world price of oil goes up, it takes all of about 10 seconds for the inevitable price increase to show up at the gas pumps.

Public got it right. That is the line they stick to.

[stratos]

Don't know how it is in Canada but late in the summer I remember hearing about an oil glut (?). More oil being pumped out of the ground then what the world was using. About a month ago I noticed the price of gas going down just this morning I seen gas at $2.25 it was at $2.29 when I filled up my car at the same station on Friday.