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printing homes

Mcgyver said:
It is nuts. But we've been able to say its nuts for a long time. I remember in 2003 I guy I know (fairly well to do, owned a finance company so wasn't (or shouldn't) have been clueless around economics) was absolutely convinced prices had become so outrageous in Toronto he was going to cash out. Buy back in in the coming crash. He sold and rented.

At time, given he was credible and prices did same crazy, I wondered if he was right. Good think inertia kept me in place!

Detached houses have gone up about 250% since then. That's a heck of lot. You might counter that the DOW has gone up 267% however two things 1) You need a place to live so rent would have severely cut into the sell and buy stocks scenario (the benefit of the house isn't just appreciation, its also use), and 2) unless you are mortgage free, you're getting leverage with the house not available (to that extent and as inexpensively) in the shock market.
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The problem lies in the fact that the appreciation may not be real... it only works if you sell before the collapse.

One strategy works well, buying a home to live in for your entire life and not caring about the market.

One strategy is fraught with risk... trying to flip and flip leveraging yourself more and more thinking that you can predict a downturn and get out in time. These are the type of people I know plenty of because they've been my client base for years.

Myself, I sold our home and found a rental townhouse for $1300 a month to sit tight in until wife retires. We are saving substantial money every month. I don't worry what the market does or need to try to time the market. We can leave TO any time in any conditions. The rent is trivial and we carry no debt of any kind and have investments that do well. As far as our hypothetical economic position, we are about even, however that should shortly change since the latest interest rate hike is going to push the thousands of homeowners who were on the cusp of disaster over the edge. If that happens we will be way ahead. If not, meh being even is better than being down.

That said I'd be quite happy to see the market correct along with municipalities opening up their long held single family strongholds, because I would then be well positions to start building infill 4 to 12 unit) multiplexes to sell... with current prices it is too costly for the typical investor.
 
Dan Dubeau said:
I really (really) wish we kept our 2bdr downtown condo when we bought the farm and moved out to the country. Didn't see this coming at all. But we were all in at that point

But is it sustainable? rungs on the ladder just keep getting farther and farther apart, and eventually people just won't be able to climb on.
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It is very telling that 75% of condo purchasers over the last 10 years have been investors who were gorging on free money at what were essentially negative interest rates..

My wife and I moved downtown to a condo in liberty village just to assess the lifestyle so we could decide if we wanted to own a condo as a second home for when we eventually depart Toronto.

Now I despise condos for many many reasons, but I love my wife so I went along with the experiment.

But my wife finally got to see most of my practical concerns first hand so we never had to address the whole building science, poor management and eventually reserve fund catastrophes that will hit so many glass towers when they hit 30 years old.

A much better solution is to just suck it up and stay at a boutique hotel the few times a year we'd come back to the city to see a show or something.

As far as being able to reach that bottom rung now, we've just about exhausted the supply of the most common trampoline, which was parents remortgaging their paid off properties to assist thei kids in purchasing their own homes. When this wealth gets beaten down it will be a very long recovery.

once again I'm thankful that my wife and I consciously decided not to have kids.
 
Doggggboy said:
Without a doubt the most fiscally and environmentally sound decision you could possibly make.
If our civilization as we know it falls apart, it won't because of a lack of procreation.
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Dunno. Someone besides the recent imports and the Indians, has to have them.

I did not, not from any particular concerns about the environment, or money, but because I utterly lack empathy towards a screaming baby's cries. Decided early in life, to deal with that.
One of the responses I got, was from a friend of my mother's, who suggested that it was selfish of me to decide I wasn't cut out for parenthood. My answer to her was, "Is it more or less selfish, than having a kid around that you resent or hate?".

I don't hate kids. I just realize that I am not parent material! LOL! Told a co-worker, that I did not want to see pictures of his daughters, until they are signing their Stripper Name, on them. He was suitably offended, but stopped bothering me! :)

Gotta wonder where/when the crash is gonna happen. My best guess is that the folks will finally figure out that living in or around a super-city, is not going to do them any good.
One of the few 'good' effects of the Covidiocy we all endured, was that folks found they could live about anywhere, and still get the work done that formerly had them assigned a cubicle in a cube farm somewhere.
 
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