Quote:
Originally Posted by Red
I've been waiting to upgrade for 5 years now. Refused to do it under these crazy conditions and I could easily afford it. But it's just plain stupid to overpay like that. And no, houses in Calgary are not good value. They are a terrible value.
Cash sitting. Saving, saving and saving more. But not getting ahead of this RE mess.
The markets pay nothing. The banks pay nothing. Savers get hurt. Irresponsible people get cheap credit. Soound fair?
With these low interest payments I have been losing out on growth of my money. I shoudl be making 10% returns. Like we used to back in the "normal" days.
Does a flipper or a not so bright 22 year old that bought in 09 feel sorry for me or people like me?
I won't feel sorry for them.
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I hear you. I still live in the same modest house I bought pre-boom, have always paid cash for my stuff, my cc only carries a balance long enough for my expense account check to arrive. I played the investment game instead of trying to save for my wealth, but I still made sure I was living within my means so I can relate the frustration.
Problem is, not all the people who bought over the last 5-7 years are stupid 22 year olds who watched too much TLC, there are some who just did what they've always been taught - college-job-marriage-house-kids.
The days of saving up and paying cash for a home or new car are pretty much gone, that worked back when GM was the number one car maker in the world and Made in China meant it came from a cereal box, but the easy credit driven, everybody gets to live like a millionaire dream that accompanied the latest push towards globalization changed that reality on us.
Is a change like this going to bring down prices in Vancouver, Toronto, or even Calgary, or is it just going to mean more and more people won't be able to afford their own home? Chicken or the egg, did longer amortization periods increase prices or did higher prices lead to longer amortization periods?
Honest questions, I have no idea if my brain is on the right path.