Insane Real Estate Prices
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It's Showtime**
Joined: May 2002
Posts: 2,085
Likes: 42
From: Edmonton
Originally Posted by G-Force
You tell me how to do it ...
Does anyone else find it funny that a guy with an M5 is asking where does the money come from.
Does anyone else find it funny that a guy with an M5 is asking where does the money come from.
I bought my house in Sylvan Lake Alta 3years ago for $186,000 its a nice house nothing real fancy it was 2 years old 1200sq/ft bungalow double attached garage in a nice nieghbourhood I can walk to the beach from my house but its not real close. Today I could easily sell it for $400,000+ that is crazy. The house 3 doors down from me sold for 100% of the asking price within 24hrs of being listed the for sale sign never even got to the lawn. I guess everyone that works in the oilfield with six figure incomes can get mortages very easy and since they require zero down in most cases it is even easier. I am an oilfield worker and I am a little scared that bust is coming soon, I have already sold most of my toys (except the G) just in case.
Last edited by Sylvan lake V35; Apr 24, 2007 at 04:12 PM.
Joined: Nov 2003
Posts: 30,233
Likes: 175
From: Rothesay, New Brunswick, Canada
Originally Posted by RBull
You should check Saint John where Canuck lives and prices are only 60% of here.
Yep, that is true Deane. Saint John real estate prices rose 7% in 2006 with the average home only costing $125,500. My guess is that we will see a sharper increase in real estate prices in the next couple of years with the LNG Plant and second Irving Refinery coming. Now's a great time for investing in rental properties.
Originally Posted by Garnet Canuck
Yep, that is true Deane. Saint John real estate prices rose 7% in 2006 with the average home only costing $125,500. My guess is that we will see a sharper increase in real estate prices in the next couple of years with the LNG Plant and second Irving Refinery coming. Now's a great time for investing in rental properties.
Joined: Nov 2003
Posts: 30,233
Likes: 175
From: Rothesay, New Brunswick, Canada
Originally Posted by RBull
The CREA has your prices as of March '07 vs '06 at 143.7 and 124 or nearly a 16 % increase. It might be time to pull the trigger.
Originally Posted by telegramsam
I have a hard time processing the rapid rise in real estate prices here in Edmonton. The average price in Edmonton this March was $ 398,000.00 up from $ 220,000.00 a year ago. The average condo price is $246,000.00. Houses in the 2000 sf. range are over $ 500,000. A nice house in a decent neighborhood is $ 800,000.00+.
Where the hell is this money coming from? How is a young couple starting out suppose to buy a home when a down payment on a $hithole house is $ 25,000.00.
What is really sad is so many people are sucking the equity out of their homes to buy toys. Our neighborhood is fully of Escalades, Hummers, Bimmers, Mercedes etc. and it is essentially a blue collar area. Boats, motorhomes, motorcycles are everywhere. God help these people when the market corrects. I have seen this before where there were sales signs on every house, car, boat and motorhome on a street.
Good time to have some spare cash, when this bursts. Lots of buying opportunities.
Where the hell is this money coming from? How is a young couple starting out suppose to buy a home when a down payment on a $hithole house is $ 25,000.00.
What is really sad is so many people are sucking the equity out of their homes to buy toys. Our neighborhood is fully of Escalades, Hummers, Bimmers, Mercedes etc. and it is essentially a blue collar area. Boats, motorhomes, motorcycles are everywhere. God help these people when the market corrects. I have seen this before where there were sales signs on every house, car, boat and motorhome on a street.
Good time to have some spare cash, when this bursts. Lots of buying opportunities.
Thread Starter
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It's Showtime**
Joined: May 2002
Posts: 2,085
Likes: 42
From: Edmonton
Originally Posted by fbw5595
Where did you get your data?
Well, this could become a good thread. I don’t really know much at all about Canadian real estate nor Edmonton’s qualities for that matter.
Here in Philly, some stuff going on. I understand it. There was a lot of new housing going up; specifically condos. A few years ago, I left my apartment because they were going condo. My landlord wanted 220,000USD for a 625sq. ft.apt. with parking, stainless appliances and view. I was the first person to live at the residence. It sure seemed like a lot to me for a cracker box. Funny thing is I moved to a larger apt, gaining an increase in square footage for a fraction of my rent increase. ($.4usd per sq. ft. )
The reason why I pointed this out is that sometimes renting, especially for a youngster, is better. If housing prices don’t go up, I think it is kind of pointless to begin owning unless you are protected with other people green.
Real estate prices have moderated in the US for a number of reasons. Being in the situation where I could not buy anything I considered “value”, I was forced to rent again. I read somewhere that only 65% of the US population owns a house or has a mortgage on one. This is almost as good as a coin flip. (Sad life fact) Renting turned out to be a good call for me. US housing prices sure have had an uneven decline, with the Northeast holding the cup for the smallest decline.
Something was passed to me today. I thought I would pass it along.
World data download/upload speed test site.
North America’s performance:
http://www.speedtest.net/global.php?...53&continent=1
I think this site shows where the money is. The highest speed results equal the best place to hold real estate during a downturn. If this is not true then why are the top download speed countries as follows?
USD
Canada
Bahamas
Cayman Islands
Puerto Rico
Anguilla
Jamaica
Bermuda
Costa Rica
Mexico
Top download US Regions:
N.J.
Massachusetts
Delaware
New York
Washington
New Hampshire
Illinois
Connecticut
Rhode Island
Indiana
Is it odd that the top Upload country is the Bahamas in the North American region?
One word comes to mind, Corporation!!!! Okay, maybe two, Hedge Fund, or three, Private Equity. No one can deny where the Big money is. It is where the best, biggest and safest return is going to be. Where is the next huge tax break going to be located?
Tracking where the “new" money is going will also be important in the future. Where is someone fresh-out-of-college going to buy because they consider it valuable and/or affordable?
Real estate must go up and down; it is part of the equilibrium of the capital markets. However, Greenspan said that the markets would not go up if there was pure equilibrium. Rising prices in housing is healthy for capitalism. As credit is cheapish, it makes people have the ability to reach higher. Population increases also must have a large effect on regional pricing advancements.
From a search of Alberta, Canada on the speed site, Sherwood Park looks to be better real estate than Okotoks and Sherwood will sustain a smaller price decrease if the Canadian market corrects.
Is it odd that the top US regional download speeds are located in the area where housing has had the smallest decline?
I am just guessing. This is highly contrarian.
I believe that where the fastest download/upload speed is in the future will be best real estate performance area.
I guess, I will keep an ear to the ground of the media utility companies’ takeovers and platform upgrades, given that this site is correct in their performance results.
Here in Philly, some stuff going on. I understand it. There was a lot of new housing going up; specifically condos. A few years ago, I left my apartment because they were going condo. My landlord wanted 220,000USD for a 625sq. ft.apt. with parking, stainless appliances and view. I was the first person to live at the residence. It sure seemed like a lot to me for a cracker box. Funny thing is I moved to a larger apt, gaining an increase in square footage for a fraction of my rent increase. ($.4usd per sq. ft. )
The reason why I pointed this out is that sometimes renting, especially for a youngster, is better. If housing prices don’t go up, I think it is kind of pointless to begin owning unless you are protected with other people green.
Real estate prices have moderated in the US for a number of reasons. Being in the situation where I could not buy anything I considered “value”, I was forced to rent again. I read somewhere that only 65% of the US population owns a house or has a mortgage on one. This is almost as good as a coin flip. (Sad life fact) Renting turned out to be a good call for me. US housing prices sure have had an uneven decline, with the Northeast holding the cup for the smallest decline.
Something was passed to me today. I thought I would pass it along.
World data download/upload speed test site.
North America’s performance:
http://www.speedtest.net/global.php?...53&continent=1
I think this site shows where the money is. The highest speed results equal the best place to hold real estate during a downturn. If this is not true then why are the top download speed countries as follows?
USD
Canada
Bahamas
Cayman Islands
Puerto Rico
Anguilla
Jamaica
Bermuda
Costa Rica
Mexico
Top download US Regions:
N.J.
Massachusetts
Delaware
New York
Washington
New Hampshire
Illinois
Connecticut
Rhode Island
Indiana
Is it odd that the top Upload country is the Bahamas in the North American region?
One word comes to mind, Corporation!!!! Okay, maybe two, Hedge Fund, or three, Private Equity. No one can deny where the Big money is. It is where the best, biggest and safest return is going to be. Where is the next huge tax break going to be located?
Tracking where the “new" money is going will also be important in the future. Where is someone fresh-out-of-college going to buy because they consider it valuable and/or affordable?
Real estate must go up and down; it is part of the equilibrium of the capital markets. However, Greenspan said that the markets would not go up if there was pure equilibrium. Rising prices in housing is healthy for capitalism. As credit is cheapish, it makes people have the ability to reach higher. Population increases also must have a large effect on regional pricing advancements.
From a search of Alberta, Canada on the speed site, Sherwood Park looks to be better real estate than Okotoks and Sherwood will sustain a smaller price decrease if the Canadian market corrects.
Is it odd that the top US regional download speeds are located in the area where housing has had the smallest decline?
I am just guessing. This is highly contrarian.
I believe that where the fastest download/upload speed is in the future will be best real estate performance area.
I guess, I will keep an ear to the ground of the media utility companies’ takeovers and platform upgrades, given that this site is correct in their performance results.
Last edited by fbw5595; Apr 26, 2007 at 09:35 PM.
The best reason I can see to buy instead of renting is that for the same cost to rent you can own and actually start building equity as opposed to giving someone else your money for 5-10 years and having nothing to show for it in the end. Thats why I bought a house for $1200/month as opposed to renting an apartment for $1000-$1200/month. Thats why people rent houses out because they make money at it or at least have the renter cover the mortgage cost. I also belive in the US the interest on your mortgage can go towards your earnings for income tax that is a huge bonus I wish we had in Canada.
Last edited by Sylvan lake V35; Apr 26, 2007 at 06:49 PM.
Originally Posted by 03 Skyline
The best reason I can see to buy instead of renting is that for the same cost to rent you can own and actually start building equity as opposed to giving someone else your money for 5-10 years and having nothing to show for it in the end. Thats why I bought a house for $1200/month as opposed to renting an apartment for $1000-$1200/month. Thats why people rent houses out because they make money at it or at least have the renter cover the mortgage cost. I also belive in the US the interest on your mortgage can go towards your earnings for income tax that is a huge bonus I wish we had in Canada.
Originally Posted by fbw5595
What is the point if housing prices are flat or decline? Money is better off elsewhere.
As you know the answer is not a simple one. Generally house pricing only remain flat or decline for short periods of time or for understood reasons. Often these offer good buying opportunities. There are a lot of potential reasons some of which are:
-long term horizon for price appreciation/depreciation, demand in local housing market and future economic indicators
-projected future employment rates, income levels, business investment
-expected rate of return on investment for down payment equivalent and tax rate of individual
-current and projected cost of rental and type of property availabile in local market
-amount of mortgage interest to be paid (rate, term, ammortization length)
-capital gain exemption from personal residence (only good if eventually house is sold for move to rental) versus taxed on investment dividends/capital gains or interest income
-ability to eventually live mortgage free
