Location: Canada-Glorious and Free
Posted on: 15-08-07 09:10:28
Quote:
Originally posted by rahul_singh23
There are 12k home under construction in Calgary. More than 10 k is on sale already. Mortgage standards are tightening every day. Stock market is trembling.
Wait for next 6-7 months and see how this market looks like? Any thoughts?
I believe the market in Calgary is not saturated yet. Indication from friends in the Calgary area is that there is still so much pent up demand that the 25 k homes will barely cover them for the next year. There are people living in hotels and motels because they cannot find homes. Not to mention the thousands that are immigrating into Calgary from the rest of Canada on a monthly basis. Why? Because the jobs are still paying $15 as minimum wage. Because there are companies scouring the Atlantic provinces for workers.
I love the fear-mongering that goes on here. I wonder why? This is how it is done. You make a statement without exploring the reasons for the layman out there. Stock markets are trembling???
The stock market has been trembling for months now with fears that the prices have outpaced values. The sub-prime is just another excuse. Smart investors will see this as an opportunity to make some serious cash. Sub-prime exposure will hit financial institutions more than resource stocks. Investors can ride out this "trembling" by moving to a safer resource stocks at this point. We know the demand for oil, aluminium, steel, lumber, uranium, gold and other resources that Canada exports is not going to diminish in the near future.
BV
Quote:
Originally posted by Big Vee
There are people living in hotels and motels because they cannot find homes. BV
may be because they can not Afford !
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Mumbai Maazi Ladki ...
Quote:
Originally posted by Big Vee
I believe the market in Calgary is not saturated yet. Indication from friends in the Calgary area is that there is still so much pent up demand that the 25 k homes will barely cover them for the next year.
A large number of the 25k (exaggerated?) homes that are available (?) would likely be older homes or homes that have issues with them (often structural defects, contamination in the area, etc). As the market was 'hotter' in the past, such homes often sold at inflated prices. Vendors trying to sell at the inflated prices of the past aren't able to sell, therefore the mark-downs.
At the same time, better properties, including condos in upper middle-class neighbourhoods often sell out in hours. As an investor putting out a condo for rent, there is still an 8% - 10% return that is possible in rent alone, before considering the upside potential of future appreciation in prices.
Availability of apartments on rent continues to be extremely low. Many condo complexes are so full that even an extra parking spot rents at $75-$100. The low availability of apartments for rent caused the University of Calgary to issue an appeal to home-owners to consider renting out rooms in their homes! (this happened in the past 2 weeks).
People can fear monger all they want. Chances are we can revisit this thread after 6 months and the much anticipated 'crash' would not have happened.....guys like rahul singh have been predicting a crash 'in the next few months' for over a year now.
KNOWLEDGE AND EXPERIENCE IS POWER
We have over the past few weeks have heard many high powering words in this segiment of charcha.
After over 29 years in the Mortgage Lending business I think I may qualify to make a comment on the state of affairs in the housing market in relation to the bleeding of the stock market and the losses at he subprime market.
We must not let the gloom of the market and subprime effect our mental state. Huge majority of us are borrowers in the A market or Prime.
Majority of my clients are from East Europe, Poland, Phillipines, Greece etc and our desis that are refered by family and friends. How differently each culture looks at the oncoming opportunity?
The outlook of each one is different. If you take woodshavings, shraded papers, iron filings, some butter and meat and throw them all in the fire you will notice that they all act differently to the same element, some will melt(butter) while other will get harder (iron) while others will react differently. The point I am making is it depends upon each one of us as to how to let the situation effect us.
My suggestion is that if you own a home and have fixed your mortgage than go about your business and not panic. Make you monthly payment and build your equity. If you have variable please do not panic because whatever goes up in the mortgage business comes down quickly. Historically, the rates are still decent.
My ask to every Desi is that you do not lose your sleep worrying about the markets and mortgage rates. As recent as last week Firstline is known to have given my clients a rate of 5.60 for his home in Edmonton. As long as you have your job and afford to make your payment keep calm. *
Unless you have investment property/s (you need a roof over your head and let's not call the home an investment property) there is little to worry about.
Sky is not falling and does not look like it will fall any time soon.
If you donot own your own home and can afford to buy (zero % down option is available) think seriously about buying. Yes, for every dollar you can rent a bigger house than you can buy but with renting there is no equity built. Very soon there may be a good opportunity to buy with housing market fast stablizing.
I am expecting floods of reaction to this, my different outlook. I believe that ones own home is still the best investment any family can make.
Warm Regards
*On a personal note, I have never had a fixed mortgage.
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S. kanji
I may not agree with your opinions, but I will fight to death for you be able to air your views.
Location: Canada-Glorious and Free
Posted on: 16-08-07 09:09:57
Quote:
Originally posted by kanjis
KNOWLEDGE AND EXPERIENCE IS POWER
We have over the past few weeks have heard many high powering words in this segiment of charcha.
After over 29 years in the Mortgage Lending business I think I may qualify to make a comment on the state of affairs in the housing market in relation to the bleeding of the stock market and the losses at he subprime market.
We must not let the gloom of the market and subprime effect our mental state. Huge majority of us are borrowers in the A market or Prime.
Majority of my clients are from East Europe, Poland, Phillipines, Greece etc and our desis that are refered by family and friends. How differently each culture looks at the oncoming opportunity?
The outlook of each one is different. If you take woodshavings, shraded papers, iron filings, some butter and meat and throw them all in the fire you will notice that they all act differently to the same element, some will melt(butter) while other will get harder (iron) while others will react differently. The point I am making is it depends upon each one of us as to how to let the situation effect us.
My suggestion is that if you own a home and have fixed your mortgage than go about your business and not panic. Make you monthly payment and build your equity. If you have variable please do not panic because whatever goes up in the mortgage business comes down quickly. Historically, the rates are still decent.
My ask to every Desi is that you do not lose your sleep worrying about the markets and mortgage rates. As recent as last week Firstline is known to have given my clients a rate of 5.60 for his home in Edmonton. As long as you have your job and afford to make your payment keep calm. *
Unless you have investment property/s (you need a roof over your head and let's not call the home an investment property) there is little to worry about.
Sky is not falling and does not look like it will fall any time soon.
If you donot own your own home and can afford to buy (zero % down option is available) think seriously about buying. Yes, for every dollar you can rent a bigger house than you can buy but with renting there is no equity built. Very soon there may be a good opportunity to buy with housing market fast stablizing.
I am expecting floods of reaction to this, my different outlook. I believe that ones own home is still the best investment any family can make.
Warm Regards
kanji S
http://www.hlcmortgages.com/salimkanji" rel="nofollow">LINK
1 800 265 2694
*On a personal note, I have never had a fixed mortgage.
I have never had a fixed mortgage either. But I think that is dependant on ones personal tolerance to debt. And your post summarizes the points I have been trying to put across to fellow Desis beautifully. Well done.
Since you brought up different communities you deal with, please share your experiences vis-a-vis debt / mortgage / current market! I think that will bring an interesting perspective to this discussion. We (desis) tend to do a lot of navel gazing and we miss the fact that we live in a wider community.
BV
Yesterday's Calgary Herald front page headline was "Subprime Woes Hit Canada".........now I don't have the time to pull up and repaste every bulls quote that adamantly stated "WE ARE DIFFERENT HERE".....but you get my point.
I think Monday or Tuesday Calgary Herald has something like CIBC has $ 196 million in sub-prime US market.
US stock market continually loosing ground even after feeding with EU, Canadian banks on Friday last week.
Every road/corner in Calgary has realtor boards and some are with reduced price.
