Why would ANYONE buy a House NOW?

[thecomingdepression]

Since I am the bearer of bad news, I was just wondering why on earth would anyone buy a house/condo NOW? Has anyone looked and shiller's graph? We are heading for a collapse in Real Estate in CANADA. We are NO different than the USA. We actually have higher unemployment per capita than the US! We have just started and will be spiraling down along with the economy for a couple of years REGARDLESS of what anyone says. Read up: http://www.thecomingdepression.blogspot.com
You may want to view Garth Turners Blog Real Estate stats and the comments

[CJB]

Not sure if this is just annoying spam, a forum troll or serious discussion?

I think the question should be, "why on earth did anybody by a house/condo 2 years ago at the peak?". To be honest, I am shopping for my first mortgage and first condo. I am employed, prices are down, and rates are at all time lows. In 30 years I may be asking "Why DIDN'T I decide to buy?"

Also, keep in mind that unemployment data is calculated differently in the USA vs Canada, don't just take the government's figures at face value while doing a direct comparison. It's not all apples out there.

[mfd]

He probably has an alternate site at http ://www.thecomingrecovery.blogspot.com

That way he'll always be right.

[thecomingdepression]

Originally Posted by CJB

Not sure if this is just annoying spam, a forum troll or serious discussion?

I think the question should be, "why on earth did anybody by a house/condo 2 years ago at the peak?". To be honest, I am shopping for my first mortgage and first condo. I am employed, prices are down, and rates are at all time lows. In 30 years I may be asking "Why DIDN'T I decide to buy?"

Also, keep in mind that unemployment data is calculated differently in the USA vs Canada, don't just take the government's figures at face value while doing a direct comparison. It's not all apples out there.

You're not serious are you? The unemployment rate is applied "differently"?? Do you honestly believe we are better off because the Gov't stated we are? "This is Different here".. YOU seriously believe that this is a recovery? Thats FUNNY. Like everything goes up and never goes DOWN? Are you living on MARS? Prices aren't down. They are COMING DOWN. They will be down 50% from the price you are buying today. You may want to do some massive research on the economy and whats coming. You can start with our banks, The derivative exposures of each one is an EXCESSIVE of ONE TRILLION DOLLARS. You have been programed to believe that this downturn has an upturn. It does NOT. It will take YEARS-10-15 years before we see the values of today.

[mfd]

wow, might want to simmer down a bit chicken little. If the entire system crumbles then the money you're making off those depression survival kits will be worthless. Good luck with that.

[Bullseye]

Hmm, actually a pretty good idea this guy has! He fans the flames of fear, drawing readers to his chicken little site, where he probably gets lots of people buying this 'survival kit' (that probably costs him nothing, or next to it). The more he spreads fear, the more sales he probably gets, so he has a vested interest in stoking that fire. A nice opportunistic play on current times.

I'm a bit jealous, wish I'd thought of it!

[CJB]

Originally Posted by thecomingdepression

You're not serious are you? The unemployment rate is applied "differently"?? Do you honestly believe we are better off because the Gov't stated we are? "This is Different here".. YOU seriously believe that this is a recovery? Thats FUNNY. Like everything goes up and never goes DOWN? Are you living on MARS? Prices aren't down. They are COMING DOWN. They will be down 50% from the price you are buying today. You may want to do some massive research on the economy and whats coming. You can start with our banks, The derivative exposures of each one is an EXCESSIVE of ONE TRILLION DOLLARS. You have been programed to believe that this downturn has an upturn. It does NOT. It will take YEARS-10-15 years before we see the values of today.

1. I do not believe any government simply because they tell me some information. It is a good starting point but in order to get the full story you have to look deeper into the data. Anyone can make a chart look any way they wish, and simply yelling that it will continue this way forever makes you no better than those who thought +30% returns would happen ad infinitum.

2. I suggest you take some critical thinking courses and learn more concise methods of argumentation. A good start for you would be "Appeals to the Extreme".

3. Do I believe this is a recovery? No. That may not even happen for 5 or 10 years as you said. Being 25, I have no reason to panic. In the same respect, If prices drop another 50%, it will simply be another great opportunity to buy, even more so than today.

4. Studying the economy? The parchment on my wall gives me some confidence that I have this one covered. So check.

5. Bank exposure? Fine. CDIC FDIC etc tells me no need to run to my bank. Unless you have dropped the dollar as currency altogether and are now accepting canned food as legal tender in which case I have a can of beans here that would like 5 of your kits.

See you in 15 years.

Cheers.

[thecomingdepression]

Originally Posted by CJB

1. I do not believe any government simply because they tell me some information. It is a good starting point but in order to get the full story you have to look deeper into the data. Anyone can make a chart look any way they wish, and simply yelling that it will continue this way forever makes you no better than those who thought +30% returns would happen ad infinitum.

2. I suggest you take some critical thinking courses and learn more concise methods of argumentation. A good start for you would be "Appeals to the Extreme".

3. Do I believe this is a recovery? No. That may not even happen for 5 or 10 years as you said. Being 25, I have no reason to panic. In the same respect, If prices drop another 50%, it will simply be another great opportunity to buy, even more so than today.

4. Studying the economy? The parchment on my wall gives me some confidence that I have this one covered. So check.

5. Bank exposure? Fine. CDIC FDIC etc tells me no need to run to my bank. Unless you have dropped the dollar as currency altogether and are now accepting canned food as legal tender in which case I have a can of beans here that would like 5 of your kits.

See you in 15 years.

Cheers.

So your 25 years old. I am 49 have owned multiple businesses, travelled the world, met and talked with multi billionaires, owned 52 houses, lived in Mexico, USA and 7 cities in Canada. I am related to an individual with close ties to an Ex President of the US ( they are best friends). This person explains the economic situation that cannot and will not be written about on this blog or any blog. I would be flung into a river, I think, if I did.

I only set up this website so "KIDS" like yourself can learn something. The "little kits" are something I offer to the public to get a small token for keeping people informed. I make NO MONEY on this site WHATSOEVER.
Your parchment on the wall is just that, a piece of paper learned at school by a professor rather than the REAL WORLD. Go read the book "When Giants Fall" this will give your "parchment paper" credibility. I don't care if you people believe a word of anything that is stated here, as this will be my LAST POST. Good luck with your "dreams".

[Rickson9]

The only reason to buy home now is:
1. You discover a great cash-flow positive deal
2. You want to live in the home for a long long time

My wife and I are wrestling with both...

[Hodge]

Hey, ...depression, I share some of your pessimism about RE and I, too, read Garth Turner, but I don't think you're really helping your case with all the heavy breathing and hyperbole. Even Turner, who's so bearish I'm surprised he doesn't hibernate during winter, isn't making the catastrophic claims that you are.

That said, I do agree that the uptick in RE sales this spring is probably a false dawn and that house prices are likely to remain depressed for several years to come.