Quote:
Originally Posted by Mike Oxlong
What I have been trying to say is that in the LONG run real estate has always gone up. Yes there are peaks and valleys but LONG term it continues to rise. I understand the argument that Stocks go up in the long term as well but that is like comparing apples to oranges. With Real Estate your investment (that you likely put a maximum of 25% into) is going up in value while someone else is paying the loan on the rest of the money off. Plus with Real estate the market in a region moves as a whole generally. The Calgary market will usually fluctuate at the same pace throughout the city. With Stocks you have to be far more careful which stocks to pick. Maybe Oil and Gas stocks for the most part are rising but you could potentially pick the wrong company and that stock will go down.
Sorry didn't mean to get snappy and by no means am I boasting about making lots of money. My investments have done well and I am very happy with them and have performed well contrary to some arguments on here.
I am just trying to respond to everyone in this post and likely not doing a great job of it. One thing of note that Shazam said was that if the economy in Alberta caused inflation to rise too much you said the Bank of Canada would step in and raise interest rates to cool inflation. I understand the economics of this on a national level but what would that do to the rest of the country that isn't neccesarily enjoying the same "boom" that Alberta is going through? How can you raise interest rates nation wide and make housing less affordable for the rest of the country just to cool one region? (This is a serious question, I am not trying to be argumentative. I really want to understand how this would affect all of Canada)
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That's one thing I've been thinking about for awhile. On the whole it seems more likely that interest rates would go down then up. Which would bode well for Calgary housing prices.
In my defence I think housing prices will continue to trend upwards.. However I'm concerned about where that trend is going in the next 12 months rather then 15 years. I'm going to be a buyer or renter decision maker in the next 6 - 18 months and thus that's what concerns me.
I'd feel more comfortable buying in 18 months or less if there was a slight correction or plateau then what happened last spring.
Why?
Because regradless of the long term trend I believe we're in for a plateau or correction at some point and I'd prefer to be buying during that.
Why?
Because I'd like to have options, if iI buy pre-correction I have less options then buying post/or during a correction.
My thoughts..