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HUFFPOST SUPER USER
SofaProfessor
11:31 AM on 08/28/2012
This overpriced housing market will come crashing down in a big way soon enough. Bad news for those that own homes currently. Great news for people like me who are renting and setting aside money while we wait for this inevitable market correction.
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KenKo
12:16 PM on 08/28/2012
In which case, you will be waiting for a very long time. Market corrections of the size you are hoping for only occurs in unstable economies, which does not describe Canada's. Even in Toronto which has overbuilt on condos, the demand for single freeholds as described above is very strong. I do not say this out of glee as I do own such a property and I am shocked with the increase in values (and subsequent impact on taxes), for what people are willing to shell out. The demographic change will have a bigger impact on double storey homes than anything else, but that won't change the long term trend.
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HUFFPOST SUPER USER
JUSTBAKERS135
02:00 PM on 08/28/2012
And in actually the "cooling condo market" only applies to the
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HUFFPOST SUPER USER
stopgeorge
Paper Ballots WORK. Unverifiable e-voting doesn't
02:35 PM on 08/28/2012
It's already starting to happen. Vancouver real estate sales are the lowest in 10+ years.

Next stop -- reality.
11:21 AM on 08/28/2012
Get over it! You do not need to own a home to be successful. It's a myth propagated by the banks and the real estate lobby. Only 30% of Europeans own their homes and their economies and lives are not suffering. Rent, save and get on with your life!
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HUFFPOST SUPER USER
JUSTBAKERS135
02:03 PM on 08/28/2012
Bad advice. My mortgage/maintenance on my condo is CHEAPER than when I was renting for $1400/mo. I am saving money by owning and saving money with my house.

Even if the market corrected 10%, I'd still have equity. Rent is money out the window forever.

Also, Jimmy, seriously? Europe as an economy we want to emulate. Only 50% of Greeks pay taxes, can't we mirror that instead?
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TwoZeroOZ
02:46 PM on 08/28/2012
False.

Renting might be better in SOME economies as viewed from a month-to-month basis, however home owners will be richer in the long term. A home owner typically pays slightly more than rent in average monthly costs, but instead of 100% of your "rent" going down the drain, you get to bank most of it in the form of equity.

No, you don't "need to own a home to be successful" - In fact, I have never heard that statement before today. But, it is a better financial decision to make - it's a smart decision that smarter people will make.
03:13 PM on 08/28/2012
Having owned and rented, I would agree with the poster who said there is a message out there that if you don't own a home, you are not successful and I do believe you just used the 'smart vs dumb' example to support it. Dumb if you rent - smart if you buy. That is the standard thought process that should be removed from the argument because there are many things to consider when renting vs buying. A person never ever owns their home because property taxes in the thousands of dollars every year, mean you essentially rent your land and if you don't pay up - that house can be sold to pay the taxes. A person is never guaranteed that their equity will remain stable or even exis - take divorce for example, something 50% of all people will face. That one event has removed equity from a great many millions of people who thought that their home was their retirement and their investment return. You get laid off you can pick up and move when you rent - when you buy you are locked into a geographical area until you can sell or are forced to leave. Buying is good, renting is fine. One must look at their own circumstances and goals and not succumb to the mindset that if they do one over the other, it necessarily makes them of greater or lesser value.
10:39 AM on 08/28/2012
Darn entitled youth expecting to have the same opportunity to buy a home and start a family as their parent's generation. They're just SO selfish with their iphones and computers, am I right?
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JUSTBAKERS135
02:07 PM on 08/28/2012
Seriously! Kids these days with their long hair, can't tell boys from girls. So selfish living with their parents at 27 because they "can't find a job".

It's definitely not the baby boomers borrowing hundreds of thousands on home equity lines to upgrade their homes 10 years before retirement! Damn kids.
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HUFFPOST SUPER USER
PiperSniper
09:42 AM on 08/28/2012
This is nothing new. We had to wait until late 30s to buy our first house. Of course, by this time a "starter" home didn't quite fit as we had four children by then.
09:31 AM on 08/28/2012
I still have a few more years until I can afford a house as I have decided I won't buy without having a 20% down payment to avoid mortgage insurance and such. I would also never buy a condo as condo fees can skyrocket or the condo board can all of a sudden tell everyone they need x amount of money to fix a roof or something and you have to cough up as per your contract.

We have decided to wait until the market cools before we buy, even if we have the 20% as we are quite afraid of what it will do. These days, also, the young need to follow the jobs so I'm happy in an apartment until I am settled into a job quite nicely.
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Louise Montgrain
Curieuse et passionnée!
09:14 AM on 08/28/2012
Great article! It's important to talk/write about how real estate and FAMILY trying to make a living for their family while also in need to have a roof over their heads! Real estate has become a subject of investment, we must not loose sight of the basics! Thank you!
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arachne646
Peace with Justice
12:55 PM on 08/28/2012
Many people in the US thought of real estate as an investment.
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Louise Montgrain
Curieuse et passionnée!
12:19 AM on 09/12/2012
Right! It would have been without the schemes from the freakin bandits that are back at it again, as we (kind of) speak! History is repeating itself...BTW good thing i did not have to click on your Avatar to reply cause I wouldn't! Not even with my mouse! Yark! LOL
09:14 AM on 08/28/2012
Here is an article that shows what happened to an imploding major American west coast real estate market between 2006 and the present that saw housing prices drop:

http://viableopposition.blogspot.ca/2012/04/vancouver-vs-los-angeles-real-estate.html

Welcome to Vancouver's future.
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HUFFPOST SUPER USER
arachne646
Peace with Justice
01:33 PM on 08/28/2012
The US had a sub-prime mortgage forgery and super-easy credit bubble, in which mortgage companies were taking people without even documentation of their employment income and lending them money for real estate purchases because the investment banks wanted to play with exotic bonds on the market. All that easy money made anyone who wasn't mortgaged to the hilt think they were missing out. People in Black and brown neighbourhoods who qualified for regular mortgages got sub-prime or worse mortgages because that's what the mortgage brokers in those neighbourhoods got commissions for writing.
http://www.responsiblelending.org/tools-resources/headlines/Racial-Disparities-Persist-in-Mortgage-Industry-Report-Finds.html

This is the reason for the overall vast implosion of housing values across the US, and probably much of the associated global economic implosion, along with US deregulation of financial trading generally. About financial bubbles, John Kenneth Galbraith's "A Short History of Financial Euphoria" is an excellent short book to read.
09:10 AM on 08/28/2012
Hopefully a housing correction will help new young buyers. Unfortunately it will likely devastate the young buyers who entered the market over the past three or four years. It's time to have standards and gov't oversight in the real estate industry.
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JUSTBAKERS135
02:12 PM on 08/28/2012
We have TONS of standards and government oversight in the real estate industry. If you have less than 20% down CMHC charges an insurance premium against your default.

I'm young, I bought into the market, with a 10% correction in housing I'd still have equity in my place. The ramp up in home prices has nothing to do with young people - our places are
07:18 PM on 08/29/2012
There's lots of standards and oversight protecting lenders, not so much for buyers. And next to nothing controlling your agent. Also I'm not blaming young people for the bubble - I see you as the victims.

A 10% drop would be nice. Strap yourself into that lazyboy, it's going to be a bumpy ride.