Thanks as always Pramod ji .

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Fido.

http://www.oftwominds.com/blogapr09/housing04-09.html?ref=patrick.net
Why a 50% Drop in Housing Is Not the Bottom

In other words: "These homes are half off! They're screaming bargains! They can't get any cheaper than this!"

The psychology behind this euphoria is accessible to us all. It's easy to forget where housing prices were before the bubble and focus instead on how much they've dropped from the bubble peak. The same is true in any bubble, be it collectables, real estate, stocks, or tulip bulbs.

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http://www.greaterfool.ca/2009/04/18/sure-thing/#comments

Hmmm. This is interesting. If these assumptions turn out to be correct, the lad would have to collect $355,000 in rent over 20 years to carry just the mortgage ($130,000 in interest and $225,000 in principal), plus enough to cover condo fees, insurance, property taxes and any special assessments. That should come to about $450,000. Plus there is the matter of the $20,000 downpayment. Had that been invested for 20 years at just 5%, it would turn into $53,000. So now we have a half-million dollars at play, plus twenty years of recruiting, vetting and cleaning up after tenants.

At the end, the kid would be 45 years old with a box in a 20-year-old building worth $245,000, paid for by $500,000 in cash flow. As equity was built up in the unit and the interest portion of the mortgage reduced, rental income would become taxable in Joseph’s hands. If he ended up in the top tax bracket by middle age, that could account for 50% of what a tenant paid. Then there is the certainty that today’s interest rates – at the lowest point in history – will increase. That could mean a higher monthly cost after every mortgage renewal.