Housing Market

Emberburn
Emberburn

When is the bubble going to burst? Is real estate overbought right now? Is there even a bubble? All I want is to buy a house, fix it up a little, and rent it out. When is the time to get in?

All urls found in this thread:
http://www.theglobeandmail.com/real-estate/the-market/torontos-hot-housing-market-drives-big-bidding-wars-in-suburbs/article29053048/
SniperGod
SniperGod

Either 2017 or 2018.

It won't be as bad as 08 though.

girlDog
girlDog

Yea fucking realtors, I want a 80k house that is selling for 150k because of the market.

happy_sad
happy_sad

@girlDog
Try living in Australia, where a small house out in the country with almost no land costs $300,000.

SniperGod
SniperGod

@SniperGod
yeah, just much much worse. I cant wait for everyone to lose their houses

TurtleCat
TurtleCat

@SniperGod
only for a tiny handful of people in the business who haven't diversified.

RumChicken
RumChicken

It's impossible to say what will cause it, but that it will happen is certain.

@SniperGod

No it's going to be 10x as bad.

StonedTime
StonedTime

@SniperGod
how do you know it won't be as bad? what are they going to do? give negative interest rates? weren't the rates like 8%+ pre08? they basically gave zero interest rates so everyone invested. what is the plan for the next correction?

Booteefool
Booteefool

I was reading about super hot housing markets that were insanely overpriced on Forbes.com

Basically, a ladie paid $900,000 on a $699,000 starting bid because she knew there were 15 other people already offering more then the start.

This isnt the same article, but its similar.

http://www.theglobeandmail.com/real-estate/the-market/torontos-hot-housing-market-drives-big-bidding-wars-in-suburbs/article29053048/

Evilember
Evilember

@Booteefool
Do not even ask about vancouver.The chinese are doing everything to park their money over there

Spazyfool
Spazyfool

It depends on where you are

In a lot of New England, there isn't anywhere to build near the cities, so even if the market crashes, the prices of houses don't go down much.

There's plenty of towns where just having a property lot is worth 300K+ because of location.

Ask yourself, "Where are the jobs?" and "Can new property lots be created near by?" and "How many?"

Harmless_Venom
Harmless_Venom

@Emberburn
Here in Australia I don't think the bubble is bursting any time soon.

Me and my girlfriend had been looking and saving for over two years, we quickly realized there was little point in trying to save the 20% deposit as we couldn't physically save as quick as houses appreciate.

We finally got a place for 449k, it's a 3 bedroom 1 bathroom unit with double gararge. It's not much but it has good bones and will look great with a bit of renovation and being near the beach and close to a top school it will provide as a good investment for the future hopefully.

My advice, just get in as soon as you can. It is only going to get harder. If I have kids, I doubt they'll ever own a house.

ZeroReborn
ZeroReborn

@Harmless_Venom
Necessity is the mother of invention.

at 23 I was retarded making 35k per year
at 27 I had 2 kids and bought a tiny 1,000 sq ft house for 225Kmaking combined 80k per year between me and wife
now 29 have 3 kids have 1,800sq ft house for 365K and I make 70K per year wife not working anymore. Still have plenty of $ left over each month because we dialed in our spending Veeky Forums style.
Its about needing a home for your family. I have coworkers who are in their 30's and 40's and rent apartments who talk that they can't afford to own. If they needed to own like I did then they would. I'm not raising my kids in an apartment like some Mexican.

viagrandad
viagrandad

@ZeroReborn
Yeah that's true, except me and my girlfriend have no kids, but we know we will have at least one child in the future.

My parents are both extremely knowledgeable when it comes to finance, and they suggest even though me and my girlfriend make very good money for out age (I'm 25, she's 24) we should start off with something small, let equity keep that house but rent it out and get something bigger once a kid comes around.

Most of our friends either rent, or have built huge houses in the outer burbs and are up to their necks in debt; I'm hoping that because I've done the complete opposite to that I should be better off in the long run.

LuckyDusty
LuckyDusty

@viagrandad
You are going to be better off than your peers.

Sir_Gallonhead
Sir_Gallonhead

a stacked-together collection of bricks is worth 320,000 USD here in western Europe
people conform to this shit

Techpill
Techpill

@Harmless_Venom
How much did you get screwed by stamp duty and mortgage insurance though?
For a ~$400K place in Victoria, you'll end up paying the same or more up-front with a 10% deposit than with a 20% deposit because of insurance and not being eligible for stamp-duty concessions. And that's money that could have been spent of the mortgage, rather than disappearing in fees. Plus it's possible you'll get a higher interest rate for for not having a big deposit.

Carnalpleasure
Carnalpleasure

@Techpill
@Harmless_Venom
Or is this an investment property? In which case you wouldn't be eligible for the stamp-duty concession anyway.

TechHater
TechHater

@Sir_Gallonhead
not understanding even the most basic principles

eGremlin
eGremlin

I own a 2 bed terraced house in one of the poorest boroughs of london and the price has gone up from £170k paid 4 years ago to £250k, and it collects £1,200 a month rent, shits crazy

the bubble seems massively fuelled by overseas investors, apartment blocks sell out in an afternoon, 2 years before they are even built, anything newly built by private investors do not come close to being in the possession of Londoners.

In 5 years the plans for Battersea power station saw studio flats originally purchased for £400k+, people have since sold them and doubled their money... its not even due to be built for another year or two

Seriously, a MILLION for a flat with one room....

Its so out of control its hard to imagine that no one can really tell whats going on, how can house prices go up that much and no one have a real explanation for it?

BinaryMan
BinaryMan

@Sir_Gallonhead
The land the bricks are stacked on is the actual value of a house.

PurpleCharger
PurpleCharger

@eGremlin
how can house prices go up that much and no one have a real explanation for it?

because most commoners have absolutely no concept of value, they only see a price tag, and they compare these price tags with other price tags and think ''this is ok''

also, most people think that these property investments basically confirm a job for them, the same thing happens here in The Netherlands in North and South Holland, where prices are insane because; ''this is where all the jobs are''

you're better off earning 30% less, while living in a house thats 50% cheaper AND of the same proportions

pic unrelated

Inmate
Inmate

@Emberburn
When is the bubble going to burst? Is real estate overbought right now? Is there even a bubble?
Years. Yes, but it has room for more. Yes, it's huge.

New_Cliche
New_Cliche

I'm from Eastern Europe. Bought half a hectar of land (5000 square meters) for 20k EUR.

Now will build this beauty on top of it. Won't cost me more than 100k total.

Feels adequate man

Evil_kitten
Evil_kitten

@Booteefool
Another worrying trend is the amount of mortgage fraud happening in the Canadian housing market. The insane push by banks to increase volumes and sell credit protection, ever increasing demands placed on enployees. Working in the field you are almost forced to push mortgages on everyone you can even if you know they can't afford it and especially with CP. I am looking for my exit. The Canadian finance industry is heading towards an abyss IMO.

kizzmybutt
kizzmybutt

@Emberburn
its a bubble for the public but a trough for the government and central bankers you just gotta do the opposite and buy and sell or sell and buy at the opposite time of what they say or do and youll reap all the profit OP follow ur heart

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