The Official Arena Thread Part 6
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11-11-2012, 10:40 PM
Join Date: Nov 2006
Originally Posted by
Well, you make think that its normal that all associated housing expenses go up astronomically in what are supposed non inflationary times with low interest rates. But its not. The middle class consumer being screwed every way you look. Invest money, return is zero, but somehow with essential expenses exponentially rising and far outpacing average increases in income. At least in typical inflationary times investment accrual portfolios match increased outlay.
People have no idea whats coming down the pike. When the real estate bubble here bursts it'll be severe. People walking away from mortgages where they can't manage exorbitant property cost expenses and where principal owing is much greater than any equity.
This happened throughout the states. With much more realistic realestate pricepoints. People should seriously spend 300K on an average bungalow here on the prairies when it costs 12K more per year just for heating, utilities, property tax, insurance? This not even considering the mortgage?
Alberta is dreaming.
This is plain nuts. I can buy a house most anywhere in the States and live there off the grid if I wanted to. Not in some climate that requires extensive use of heating and electricity.
I feel sorry for any young people entering the real estate market and with hardly and possibility of ever establishing clear mortgage title.
Time to pack the bags soon.
Housing markets are going to crash because in no way in hell is a house worth what it's being sold for today. This bubble needs to burst otherwise it'll just keep inflating and thus screwing over even more people. Yeah, it really sucks that people decided to buy houses that are really worth around $150k for $300k+. I guess all they can do is shrug their shoulders and say "Oops".
Taking a house and using it as some sort of investment vehicle is what brought us into this mess in the first place. Every other previous generation bought houses because they signified a place to live. Not some asset to flip in 5 years. Now the recent trend is abandoning mortgages once the principle exceeds the value. A true delusion of grandeur are the people who live cheque to cheque thinking a house is some sort of 5 year investment.
I laugh that you believe the US is somehow better off then we are. Have you been there lately? What you'll save in property taxes will be multiplied many times in the health costs alone. Let's not forget their toxic business culture and severely corrupt politicians that would make Italy red in the face.
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