Quote:
Originally Posted by I-Hate-Hulse
I thought this was an interesting bit that's been overlooked:
The article is your usual Vancouver/Montreal only matter BS but I think it'll have some real meaning here in Calgary/EDM/Sask where the "newly rich" are doing all sorts of stupid things in the name of status. Quite a few people buying houses beyond their means in the (overated IMHO) areas of Aspen in the $1M+ range just like they would buy an Audi A4 or BMW 3 series instead of a Civic or Accord.
http://www.theglobeandmail.com/globe...rticle4365313/ |
The $1.0 million is interesting. I'd be curious how many people purchasing houses at that price range and higher only had a 5% downpayment. To me it seemed unlikely. To be leveraged with that much money (I know 95% of 400k and 95% of $1.2 million might be the same to some people) the interest rate risk on $1.2 million is obscene. Maybe some of these people have investments worth of offsetting the risk but when things tank like they have in the last three months look out!! Suddenly those SU, CNQ, ECA options you're used to getting aren't all that exciting.
Maybe house prices in the upper areas will fall the most. Everyone was thinking the amortization change would result in the lower end of the market, but maybe everyone now buys one step lower and the upper end gets hammered the most?