Personal Finance

There is no such thing as real estate bubble

  • Last Updated:
  • Jul 17th, 2012 3:27 pm
Tags:
None
[OP]
Banned
User avatar
Jul 14, 2012
132 posts
8 upvotes
TORONTO

There is no such thing as real estate bubble

There is only a Fiat bubble. I find it outrageous how some people sill want to convince you that having your hard earned money is better served by investing in some worthless paper equities rather than tangible assets.

Even Germans who are well knows savers are smartening up. Do not listen to wanna be financial advisers like Garth Turner and armchair speculators. If the crash didn't happen in 2008 there is no way it will happen today. There is a massive escape from fiat currencies. Take a look for yourself.


64 replies
Jr. Member
User avatar
Jan 5, 2009
168 posts
17 upvotes
Ottawa
There is no means of avoiding the final collapse of a boom brought about by credit (debt) expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit (debt) expansion, or later as a final and total catastrophe of the currency system involved.

– Ludwig von Mises
Deal Addict
User avatar
Jun 20, 2010
2219 posts
499 upvotes
Sounds good to me. Let's get the mods to lock up adamtheman's thread and the other bubble thread and call it a day.
Banned
Feb 17, 2007
3190 posts
202 upvotes
It is hard for a bubble to burst when everyone is talking about it. Banks and borrowers will take per-caution before it bursts.

When will it burst? When no one is talking about a potential bubble forming in real estate, and the only thing people would say is that real estate is the best investment out there.

Look at how the US fared with the bubble.
At that time, no one in their right mind would think that real estate price will come down.
They all loved real estate so much.

So, I do not think Toronto real estate is a bubble since everyone is talking about it. Even the Bank of Canada cautioned borrowers and lenders to look out for that bubble.
Deal Addict
User avatar
Jan 2, 2012
3893 posts
1726 upvotes
Toronto
DaleCooper wrote: There is no such thing as real estate bubble
The USA respectfully disagrees with you.
[OP]
Banned
User avatar
Jul 14, 2012
132 posts
8 upvotes
TORONTO
rob444 wrote: The USA respectfully disagrees with you.
Love the USA analogy. Zillion cities with no economy and houses bought by people below poverty line. New York and Washington didn't go down much, did they? Canada is Toronto and maybe Vancouver/Ottawa. There was already a mini Crash in Calgary. So... that leaves Montreal ******************* The only danger may be protesters, but as recent events have proven, anything will be done to preserve the peace and property... and fiat.


So... good luck with that.
Deal Fanatic
User avatar
Feb 19, 2010
6237 posts
2967 upvotes
DaleCooper wrote: There was already a mini Crash in Calgary.
There was? I must have missed that memo. My house is worth more today than ever. If that's a crash, I'll take it.
Banned
User avatar
Feb 15, 2008
26318 posts
3217 upvotes
Calgary
ACC-Major wrote: It is hard for a bubble to burst when everyone is talking about it. Banks and borrowers will take per-caution before it bursts.
Canadian banks are well prepared for the bubble, having insured nearly all of the mortgages that have any risk of default, with the CMHC. Effectively taking a 'short' position against the housing market. Holding "money good" securities when the value of assets is certain to fall.

As for the topic of this thread, :lol: .
TodayHello wrote: ...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
[OP]
Banned
User avatar
Jul 14, 2012
132 posts
8 upvotes
TORONTO
Mark77 wrote: Canadian banks are well prepared for the bubble, having insured nearly all of the mortgages that have any risk of default, with the CMHC. Effectively taking a 'short' position against the housing market. Holding "money good" securities when the value of assets is certain to fall.

As for the topic of this thread, :lol: .
You've been laughing for 2 years now.... and as I remember correctly, your investments with Nortel are nothing to write home about. So, I don't think people should really listen to you when you say sell the house and buy bank stocks. The track record speaks for itself.
Banned
User avatar
Feb 15, 2008
26318 posts
3217 upvotes
Calgary
DaleCooper wrote: You've been laughing for 2 years now.... and as I remember correctly, your investments with Nortel are nothing to write home about. So, I don't think people should really listen to you when you say sell the house and buy bank stocks. The track record speaks for itself.
So housing to the moon, while the stocks of very productive firms in the Canadian economy will continue their current trend towards zero? Is that what you're telling me is in the future?

Or are you here just to troll?
TodayHello wrote: ...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
Deal Expert
User avatar
Jun 14, 2003
23140 posts
191 upvotes
Mark77 wrote: So housing to the moon, while the stocks of very productive firms in the Canadian economy will continue their current trend towards zero? Is that what you're telling me is in the future?

Or are you here just to troll?
He challenged what you said and you countered him with something he did not say?
Too many people spend money they haven't earned to buy things they don't want, to impress people they don't like. -- Will Smith
Growing older is mandatory. Growing up is optional.
Stay hungry, stay foolish.
Deal Addict
User avatar
Jan 2, 2012
3893 posts
1726 upvotes
Toronto
DaleCooper wrote: Love the USA analogy. Zillion cities with no economy and houses bought by people below poverty line.
Sooooo... you're saying there was no RE bubble and resultant collapse in the US?

These US citizens were investing their hard earned money in tangible assets which according to you is better over some worthless paper equities.
Deal Addict
Jan 11, 2004
1277 posts
161 upvotes
I think the less flamebait version would be:
'It is almost impossible to consistently predict a bubble. As by definition it requires the masses at large to believe something irrational and unsustainable'

Personally I think we are in the early stages of a possible bubble. The Canadian government is doing it's best to ensure it doesn't inflate any further. I personally think a bubble occurs where you see people that were previously negative on real estate, start jumping in. Because the market continues to go up and they fear that they are "missing out".

Very much like the last stock market bubbles, the bubble was at it's peak when literally EVERYONE was buying indiscriminately believing that their equities would double in a few months. I don't see the same conditions in the market right now. That is not to say that I don't believe certain markets are over valued, just not bubble territory.
[OP]
Banned
User avatar
Jul 14, 2012
132 posts
8 upvotes
TORONTO
I just find it funny how "something is worth what someone is willing to pay for it" argument goes out of window just because someone is using a completely useless price to rent comparison. Who gives a hoot what the place rents for? This is not 50's, the world has changed. The fact is a lot of immigrants want to buy properties in economically sustainable cities who literally don't know what to do with money. I know Mark hates the idea of Rich immigrants buying up real estate in Canada, but money talks my friend. I don't think people realize what kind of sellout Canada is. My gf just finished buying up her permanent residency from a certain famous immigration lawyer in Canada and it didn't even cost her that much (less than 10k). She is from a third world Asian country and not rich. All of her family that came less than 10 years ago owns. No one is renting. Ask them to sell and they'll laugh in your face.
Conquistador wrote: There was? I must have missed that memo. My house is worth more today than ever. If that's a crash, I'll take it.
I thought there was a mini crash in Calgary... maybe it was Edmonton and the prices are still below 2008 in some areas. Who knows, I could be wrong.
Sr. Member
Jan 2, 2007
932 posts
46 upvotes
FYI, housing prices going from 300k to 150k is a crash. Housing prices going from 450k - 430k is NOT a crash.

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)