Why house price will always go up

cum2soon
cum2soon

housing becomes increasingly unaffordable
market crash
everyone tries to buy the dip
bidding wars on limited housing supply
house price remains same pre-crash, if not more because no one is willing to sell their house after a crash

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theglobeandmail.com/report-on-business/rob-magazine/a-tale-of-three-cities-the-asian-force-behind-vancouvers-housing-boom/article30146306/

Inmate
Inmate

interest rates go up
make many mortgages that were already stretched, unserviceable.
forced to sell to escape bankruptcy, or just give it to the bank

Emberfire
Emberfire

Your assuming everyone buys the dip, but what if the country in below full employment, are there other exogenous factors like a slow down consumption of that countries or your own. If suddenly the populations houses are worth less people feel less wealthy and are less inclined to buy items to drive aggregate demand. In turn more people lose jobs. This is why when there is speculation of a bubble, the aim is to deflate it slowly and stop speculation through prudential regulations. Personally I would love a good crash, but if a crash were to happen and banks tighten up lending people might find it very hard to take advantage of it.

Snarelure
Snarelure

make many mortgages that were already stretched, unserviceable.

OP is Canadian and talking about Toronto or Vancouver. There's a lot of Chinese coming and paying straight cash.

The actual City of Vancouver (pop. 600k) has an average house price of 1.5 million USD. Almost half of those houses are bought by Chinese, and 70% of them do so without a mortgage.

Vancouver is like Asian Miami.
theglobeandmail.com/report-on-business/rob-magazine/a-tale-of-three-cities-the-asian-force-behind-vancouvers-housing-boom/article30146306/

Playboyize
Playboyize

The Chinese outbid all my clients an it's fucking hell. Show them 15 properties. All of them have at least 5 offers on them. They get outbid in each one. Every offer is 100% cash, no subjects at all. Show more properties. All the people that were also outbid now go see these ones too. Clients get outbid again. The cycle continues.

Unless you know some Chinese people first hand, and speak Mandarin, you can't make it as an agent here. Plus everyone sees the 1 000 000 dollar over asking price deals and jumps into the real estate profession. There's like 15 000 agents now in BC. A population of 4 000 000. That's 1 agent for every 266 people. Take out the people who don't own a house, and it's basically 1 agent for every 40 people. And more are entering.

Methshot
Methshot

It's rough for everyone right now. My parents sold their home on the west side for 1.3 million in 2011. Guarantee it would be twice that now.

My cousin works for Activision in Shanghai, says it takes about a year of immersion to learn Mandarin.

I moved from Vancouver to Victoria after graduating. Now I'm going to have to move again if I ever want to buy a house. Fuck, it's not that nice in BC.

Our economy isn't exporting as much, and the only good thing we are doing in Canada is bringing in rich people. If we could only stop bringing in poor people things would be ok in the long run.

Did you do the UBC real estate program? I know a lot of people who did, only to find a bunch of other graduates of it working for nothing. I can remember getting the cold calls in Vancouver.

RavySnake
RavySnake

baby boomers start to die off
suddenly more supply than demand

farquit
farquit

Take your country back. Kick out the invaders and reclaim your homeland. Slanty eyed dog eaters didn't build your societies, the white man did. It belongs to you.

haveahappyday
haveahappyday

Miami actively promotes non-stop condo construction. Its why Miami's locals are far less cucked than leftist NIMBY cities like Toronto and San Francisco.

farquit
farquit

Bingo, we have a winner

takes2long
takes2long

Tell that to Detroit.

Techpill
Techpill

Demographic trends don't support high real estate prices in the long term, it's only high now because the stock market is stagnant, negative interest rates have made bonds shit, and the global economy in general is shaky, so rich people are seeking other safe assets

Emberburn
Emberburn

and people on this board say rentals are a bad investment oh hahaha

hairygrape
hairygrape

Yea I took the course like last year. Things were tough then but now it's pure insanity my friend. I know a few guys who took the course and now they run around all day trying to get a listing. 0 dollars for 12 hours of running around. An agent at my office made 3000 dollars after 6 months of work.

Nobody lists because if they sell, they won't be able to buy anything. And why sell now if the prices will just go up another 40 000 next month? It's a viscios cycle. The only winners are the top 1% of real estate agents. Everyone else is getting eviscerated.

Gigastrength
Gigastrength

Sorry for double posting but can you explain what you mean by non stop condo construction?

TreeEater
TreeEater

i had this same thought years ago.
however, i worry that they will leave it to their children as inheritance. so... ??
i'm not banking on that anymore.

OP is retarded. Housing will crash once again.

Spazyfool
Spazyfool

If housing as an investment is so great why did so many house flippers go broke 2007 - 2010?

Bidwell
Bidwell

Reminder that these home are old and full of holes but baby boomers are senile and legitimately can't tell how shit their shitty homes are

Methshot
Methshot

most houses need their entire electrical redone, depending on size, that can cost 40 grand

TreeEater
TreeEater

are you trying to say Toronto is not building a million condos?

Carnalpleasure
Carnalpleasure

US? We have laws in AU where foreigners can only buy apartments until they become citizens for 4 years and are not used for investments.

Evil_kitten
Evil_kitten

Is toronto building a million condos?

SomethingNew
SomethingNew

Dont forget chinese investors trying to preserve their wealth outside of china.

Especially the case in Canada and Australia

RavySnake
RavySnake

No. Vancouver. It's also not just the Chinese. Lot's of Indians inherited lots of land in India. Since the population in India is massive a lot of them sold the properties for lots of money. They bring it here to buy stuff. Not as much money as the Chinese, but a few hundred thousand cash to fuck around with is no laughing matter. A lot of the Indians are going to Lanley to fuck shit up there.

Techpill
Techpill

It's very simple, the amount of people keeps rising, but the space remains the same.

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