Thanks for correcting my English and about Boston tea party.

Let’s talk about real issue:

How do you see effect of HST, new mortgage rules, RE price/rent and price/average earning ratio in dangerous zone, higher interest rates into future RE market (second half of 2010)?

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Originally posted by WEST-IS-THE-BEST

I just realized that you not only do not use spell-check, but are confused.

First of all, it is the "Tea party movement". The "tea party moment" is when you have your first cup of "kadak swaad waali brooke bond chai". Then again the tea party movement is confined to the United states. We, in Canada have "tea parties", but did not have a "Boston tea party". Boston, by the way is in Massachusetts, USA.
Also the tea party has nothing against the real estate industry. The movement is against big government spending and big government (if you know the difference).

Here is what Wikipedia has to say about the tea party movement...

The Tea Party movement is a populist United States protest movement focused on fiscal conservatism. It emerged in early 2009 partially in response to the federal government's stimulus package, officially known as the American Recovery and Reinvestment Act of 2009.

The movement originated in anti-tax protests and arose largely in response to the 2009 stimulus package as well as the 2008 bailout and later in revelations about bonuses paid to AIG executives. It has been most visible through a series of Tea Party protests, which have occurred ever since early 2009.

The name "Tea Party" is a reference to the Boston Tea Party, whose principal aim was to protest taxation without representation in the British Parliament rather than protesting taxes in general.

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The Ontario ministry of revenue website says " The HST will not apply to resale homes". Understandably, the HST will apply only to new houses which cost over
$ 4,00,000 or more. The website also states "*

Buyers of new homes will receive a rebate of up to $24,000 regardless of the price of the new home. This rebate ensures that buyers of homes priced up to $400,000 (about three-quarters of new homes built in Ontario) will, on average, pay no more - or possibly even less - tax than under the PST system.

That being said, some will either go in for new houses that are not impacted by the HST (houses costing< $ 400 K ). Those who can afford it won't worry about the HST.

The biggest investment we make here in Canada, is a house, and many a time we wouldn't mind even a higher tax because "there is nothing like a sweet home. Besides, how often do we stop buying stuff, because it becomes expensive?

Thanks ILOVENA & WEST-IS-THE-BEST.

I agree with ILOVENA that HST will not make too much difference in overall RE price. People will hold little less disposable money at the end of the month and little more service charges for every transaction.

We already reached at the top of bubble and Canadian cities are in world most RE bubble market. USA, Dubai, UK, Spain and other EU countries have seen that govt intervention with free market makes things worse but end result is same for all the bubbles. I think July/Aug data will be very interesting.

From Canadian Business magazine, March 15, 2010:
http://www.canadianbusiness.com/shared/print.jsp?content=20100315_10019_10019&adZone=managing/strategy&pubZones=/content/MANAGING/MANAGING_SHARED_HEADER_SPONSOR_AD_HTML.jsp

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How about the effect of new mortgage rules and higher interest rates into future RE market (second half of 2010)?

Quote:

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Originally posted by ILOVENA

The Ontario ministry of revenue website says " The HST will not apply to resale homes". Understandably, the HST will apply only to new houses which cost over
$ 4,00,000 or more. The website also states "*

Buyers of new homes will receive a rebate of up to $24,000 regardless of the price of the new home. This rebate ensures that buyers of homes priced up to $400,000 (about three-quarters of new homes built in Ontario) will, on average, pay no more - or possibly even less - tax than under the PST system.

That being said, some will either go in for new houses that are not impacted by the HST (houses costing< $ 400 K ). Those who can afford it won't worry about the HST.

The biggest investment we make here in Canada, is a house, and many a time we wouldn't mind even a higher tax because "there is nothing like a sweet home. Besides, how often do we stop buying stuff, because it becomes expensive?

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WEST-IS-THE-BEST, I think you are taking all the post from Rahul_Singh too personally.
This is free forum and if you are not interested in reading this particular topic then feel free to browse around but don't teach English here. If you want to take away something from this post take it, but if you have nothing to contribute then please refrain from individual attacks and pin pointing a person.
Rahul is not pin pointing you or anyone else here. I am reading this post from day one. Many people are contributing their opinions. But before I blindly agree to anyone I do my own research. Just listen his perspective and If you have to say anything in this debate please contribute your points, but please do not interfere by correcting history or english.

Carry on Rahul.

Chacha jee - if you think you are going to succeed in giving me a guilt trip, you are sadly mistaken. When you talk of free speech, it applies as much to me as to rahul or anyone else on the forum. Reading your retort, it looks like you are the one who takes it to the heart (read "personally".

As for my "teaching English", thanks for the genuine compliment. Life is a process of learning. If you find it objectionable, too bad for you.

As for not taking Rahul's perspective seriously, even he has not complained..... why would you?

60% of the respondents said they would have trouble making ends meet if their paycheque was delayed by even one week. This group included many first-time buyers.

Canadian Business-


http://www.canadianbusiness.com/managing/strategy/article.jsp?content=20100315_10019_10019


With interest rates set to rise and curb affordability, and with economists speculating about a bubble, staking one's entire financial future on a home is not necessarily a wise bet. In fact, a house just might be one of the most overrated investments around.

Even a one percentage point change in a mortgage rate can increase the monthly payment by hundreds of dollars, and it's unclear how homebuyers will cope down the road. A study by CIBC in December said less than 4% of Canadian households would be vulnerable to rate increases, whereas the Bank of Canada estimated the number was considerably higher, at 5.9%. But so strained do Canadians feel that a survey from the Canadian Payroll Association in September found nearly 60% of the respondents said they would have trouble making ends meet if their paycheque was delayed by even one week. This group included many first-time buyers.

David Rosenberg, the chief economist and strategist now at Gluskin Sheff + Associates who called a U.S. housing bubble back in 2004, has a more pessimistic take. He says home prices in Canada are between 15% and 35% overvalued, and could plummet as far as 20% from current levels. "That isn't cataclysmic, but believe me, that would hurt a lot of people," he says. A drop that steep would wipe out virtually all of the gains made in the past year and could leave some Canadians who bought at the top of the market with negative equity in their homes.


A wait that long can be brutal for those who bought at the top of the market. It can also thwart retirement plans for those expecting to sell their homes and use the profits to downsize and fund their golden years, particularly if they've neglected to save by other means, such as with an RRSP. Canadians have a significant portion of their wealth tied up in real estate

Lol, u are hilarious...

Rahul Singh has waited 2 years for the RE market to crash..



If he waits long enough he will see it one day or the other and all his prophecies will become a reality.. The last crash barely lasted 6 months and then the turn around must have left him spell bound..

World over the Re market is linked to the job market.. If the job market recovers.. there is no stopping the Re market.. because most people like to own their house..

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Originally posted by WEST-IS-THE-BEST

Only you Rahul, can understand your logic. Your sentences make no sense, leave aside the logic. Either you are a master of the abstract or confused........ or both.

What say you?

By the way, who is your favorite economist, and what is his/her theory you like and why?

You get 326 words, & 1440 minutes to answer the question. Negative marks for words spelled wrong and bad grammar. Zero marks if you have no sense of humor.

There should be positively no mention of your favorite "real estate doomsday theory".

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