Why are few on RFD in the middle when it comes to RE?
- owns a house, maybe an investment property in GTA
- sees RE as can't lose ever bet, with zero possibility of correction
- sees little of RE's upward move to do with easy money, it's all demand driven whether easy or tight monetary policy
- looks down on renters as bottom feeders that were stupid not to buy, feels they are investment genius for simply buying a house and should be profiled in business magazines
- uses past performance as an indicator of future performance
Typical RE Bear
- crash is imminent tomorrow, look prices are going down somewhere (even if they aren't)
- because they can't buy want they want,where they want for the price they want the government should step in so they can buy (because they deserve it)
- usually want in GTA or GVR
-usually struggles to understand RE prices are the result of global easy money. But put the blame squarely on Chinese buyers. But domestic buyers are also accessing the same easy money via loose credit and low rates.
Why are the bulls and bears so dogmatic? In a middle ground scenario you might get a homeowner that while not wanting a crash, acknowledges that things are getting out of whack given the low rates, easy credit, domestic and foreign buyers, and demand increase via immigration. Also sees a house as a principle residence not an investment portfolio that you can buy and sell like stocks. If you sell your house high, likely you will have to buy high.