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  • Oct 4th, 2020 7:38 pm
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[OP]
Newbie
Sep 17, 2018
76 posts
24 upvotes

Home prices

Would you rather the housing prices keep going up or going down?

And are you a home owner?

Realistically what's your forecast for the next yr with home prices especially in the vancouver or toronto area?
24 replies
Deal Addict
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Feb 23, 2005
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Toronto
if its your primary residence it doesnt matter. my house double in price but i aint richer . unless you can sell and rent and move between houses without too much work. can be done when you are single... much harder if you are married and kids lol.

with the amount of free money given out this year, your money will only devalue faster. if house prices were to fall, it'll be the big million dollar homes that will get affected. basic starter homes will likely be ok.
Newbie
Oct 6, 2008
27 posts
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sonyminidiscman wrote: if its your primary residence it doesnt matter. my house double in price but i aint richer . unless you can sell and rent and move between houses without too much work. can be done when you are single... much harder if you are married and kids lol.

with the amount of free money given out this year, your money will only devalue faster. if house prices were to fall, it'll be the big million dollar homes that will get affected. basic starter homes will likely be ok.
It does matter! It allows you access to cheap forms of debt through cash out refinance or HELOC...
Member
Jan 29, 2007
274 posts
57 upvotes
Markham
sonyminidiscman wrote: if its your primary residence it doesnt matter. my house double in price but i aint richer . unless you can sell and rent and move between houses without too much work. can be done when you are single... much harder if you are married and kids lol.

with the amount of free money given out this year, your money will only devalue faster. if house prices were to fall, it'll be the big million dollar homes that will get affected. basic starter homes will likely be ok.
yes this is exactly the wrong way of thinking.
Deal Guru
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Mar 31, 2008
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Toronto
sonyminidiscman wrote: if its your primary residence it doesnt matter. my house double in price but i aint richer . unless you can sell and rent and move between houses without too much work. can be done when you are single... much harder if you are married and kids lol.

with the amount of free money given out this year, your money will only devalue faster. if house prices were to fall, it'll be the big million dollar homes that will get affected. basic starter homes will likely be ok.
I have a home, an investment home, and will also be planning to 'buy' my parent's home in a pretty prime location (my wife too with her parent's home). Contrary to "oh, I own a home so it doesn't matter", I don't want the house prices to keep sky rocketing. It's bad for society, for my kids, and their future kids if they have any (that's the way I think, and that others are missing the boat on).


But to answer the question, I think house prices have probably peaked for a bit, now that benefits are reduced, condo markets really starting to make waves, I have to think there are many condo owners that bought a house to close, and thought they could close but now can't sell their condo.

I'm also starting to see more condo owners starting to panic because they can't find a tenant or can't even sell at all. With another lockdown coming, winter just going to be bad, food service industry decimated, it's going to mute that wonderful let's go buy feeling we all had once lockdowns started to unlift.
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Feb 23, 2005
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xxfirexx23 wrote: It does matter! It allows you access to cheap forms of debt through cash out refinance or HELOC...
you shouldn't be using your house as a bank account. i don't know why you would want to take a heloc out of your primary residence.
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Feb 23, 2005
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ky.antz wrote: yes this is exactly the wrong way of thinking.
what is the right way to think about this.
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Oct 7, 2007
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I think home prices that are >>>> local incomes is not good for our people nor our country. People who are profiting by flipping homes may feel a short-term "high" that drives them to look for their next fix but our society is disintegrating as a result of this phenomenon in so many ways. If you look at Vancouver, you can see what 20 years of runaway prices have done to a city and what does the City have to show for it? Record high taxes on the people that still live here, record high opioid addiction, record high homelessness, record high crime rates, and the list goes on. Anything that is left that is good is always being eyed by those in power to make less good so that we can all live in a "fair and equal" society.

There is hardly any footage of space between the so many towers that have been bult in the downtown core that no building can stand out even if it wants to because it just concrete and glass all around. And sadly most of the units in these buildings are lights out during the dusk/dawn hours suggesting that may just be "safety deposit boxes". Yet, we still have people in our city advocating for more housing because in their world there just isn't enough.
Member
Jan 29, 2007
274 posts
57 upvotes
Markham
sonyminidiscman wrote: what is the right way to think about this.
more specifically, just the point you made on principle residence rising in price doesn't matter, it does. Particular, if you don't own a home for a principle residence, you're now priced out. This is the poorer getting poorer, and richer getting richer. You noted in your other post that you shouldn't use your house as a bank account. But in my opinion, you definitely should. It's just like any other investment, use your investment to make more money. Money rolls like a snowball and therefore rich becomes richer (if you do it right with discipline). If you don't do that, and like you say, stay comfortable and stale, then sooner or later you'll start to fall in the poorer becomes poorer category (because of the devalue like you noted).

Long story short, what i'm trying to say if people with that mindset will get complacent and miss out on good money making opportunities.
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Sep 9, 2007
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sonyminidiscman wrote: you shouldn't be using your house as a bank account. i don't know why you would want to take a heloc out of your primary residence.
To fund any business activities you may want to undertake.
Member
Jul 18, 2020
300 posts
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sonyminidiscman wrote: you shouldn't be using your house as a bank account. i don't know why you would want to take a heloc out of your primary residence.
I used that back in March to invest in the stock market and I just replaced my summer car and more than 1/2 of it come off from that profit.
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Sep 14, 2006
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sonyminidiscman wrote: you shouldn't be using your house as a bank account. i don't know why you would want to take a heloc out of your primary residence.
You shouldn’t be doing that to fund your purchases at the mall but you can definitely use it to invest and make more money. People use it if they need to purchase another property and need the down payment cash before they sell their place. Tons of reasons why you should and shouldn’t use your HELOC.
TEAM CANADA!!!!!!!!!!!
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Feb 23, 2005
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lechan wrote: I used that back in March to invest in the stock market and I just replaced my summer car and more than 1/2 of it come off from that profit.
so you risked your house to buy a depreciating asset. thats not recommended. its great you made money from it i am happy for you.
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bobbings wrote: You shouldn’t be doing that to fund your purchases at the mall but you can definitely use it to invest and make more money. People use it if they need to purchase another property and need the down payment cash before they sell their place. Tons of reasons why you should and shouldn’t use your HELOC.
My rule to myself is that HELOC from your primary home should be last resort. But many use heloc to buy a pool, buy a car, get a nice fridge and nice kitchen cabinet. yes, certain time, math does make sense. but what I got from OP is that he is a first time home buyer trying to decide if he should buy now or wait till next year for his primary home. none of these heloc stuff would apply to him for a while as he won't have enough equity in the house to use heloc.

I am just answering his question what i think house prices will go next year... my take is free money out there devaluing our cash. thats my opinion, i can be wrong. i hope i am, cause i want my cash to be able to buy more next year. but i really don't think thats the case.
Member
Jul 18, 2020
300 posts
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sonyminidiscman wrote: so you risked your house to buy a depreciating asset. thats not recommended. its great you made money from it i am happy for you.
I use the heloc to invest in march, if my investment is down I wouldn't cash out to buy a car.
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Feb 29, 2008
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sonyminidiscman wrote: you shouldn't be using your house as a bank account. i don't know why you would want to take a heloc out of your primary residence.
I'm glad not everyone thinks like this. You shouldn't take out a loan against your house to buy clothes, but I see no problem doing so to fund investments.
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Feb 23, 2005
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JayLove06 wrote: I'm glad not everyone thinks like this. You shouldn't take out a loan against your house to buy clothes, but I see no problem doing so to fund investments.
that depends on what you call investments. investing in your business or investing in stocks are 2 different thing. wouldn't recommend anything to take heloc to buy stocks.
[OP]
Newbie
Sep 17, 2018
76 posts
24 upvotes
sonyminidiscman wrote: if its your primary residence it doesnt matter. my house double in price but i aint richer . unless you can sell and rent and move between houses without too much work. can be done when you are single... much harder if you are married and kids lol.

with the amount of free money given out this year, your money will only devalue faster. if house prices were to fall, it'll be the big million dollar homes that will get affected. basic starter homes will likely be ok.
In my area basic starter houses start at 800 and up for townhouses....million dollars won't even cut it for a basic stand alone house.

I am a home owner. My house is already paid for...a long time ago in fact....I'm just more concerned about my soon to be adult children and how they will be able to afford anything resembling a house......

And yes devalue currency and savings is pretty much on my mind as I will be soon thinking about retirement.
Last edited by Carymay on Oct 4th, 2020 6:25 pm, edited 2 times in total.
[OP]
Newbie
Sep 17, 2018
76 posts
24 upvotes
ky.antz wrote: more specifically, just the point you made on principle residence rising in price doesn't matter, it does. Particular, if you don't own a home for a principle residence, you're now priced out. This is the poorer getting poorer, and richer getting richer. You noted in your other post that you shouldn't use your house as a bank account. But in my opinion, you definitely should. It's just like any other investment, use your investment to make more money. Money rolls like a snowball and therefore rich becomes richer (if you do it right with discipline). If you don't do that, and like you say, stay comfortable and stale, then sooner or later you'll start to fall in the poorer becomes poorer category (because of the devalue like you noted).

Long story short, what i'm trying to say if people with that mindset will get complacent and miss out on good money making opportunities.

Perect example of why the housing market keeps exceralating....yet all the blame is shifted to...those greedy foreign buyers.....not oh it's actually the locals going loco.

But it was a system designed to use leverage to enslave us ....of course in the disguise of a free market.
Last edited by Carymay on Oct 4th, 2020 6:11 pm, edited 1 time in total.
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Sep 14, 2006
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sonyminidiscman wrote: that depends on what you call investments. investing in your business or investing in stocks are 2 different thing. wouldn't recommend anything to take heloc to buy stocks.
That’s your risk tolerance and you seem more risk averse than others but that’s fine. Some people will borrow to fund investments in risky stocks or RE or anything that could potentially hit a home run. Imagine going all out on Tesla stocks before the surge this year.

Remember, there’s no right or wrong to how people spend their money or what they do with the money they borrow.
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