Canadian Housing & Bitcoin

[jubalix]

From investor perspective, rental yield going down alone is not the primary factor of concern.

Let's say you buy a rental property, and get 6% yield a year. After 5 years, you already getting back 30% of the capital.

A 30% price correction will only set you back to square one and you are still getting return back every year in the form of rental. 10 more years and you will most likely be ahead of the game in term of profitability.

It's might be a good investment until it isn't. So it wipes out all of your rental earnings of the past 5 years.

When you see the prices being that high I don't think it's wise to invest any more. In fact, I'd be divesting instead. Because when it pops I might not be able to sell fast.

but i still have somewhere I can live, versus say bad share investment.

[MOB]

From investor perspective, rental yield going down alone is not the primary factor of concern.

Let's say you buy a rental property, and get 6% yield a year. After 5 years, you already getting back 30% of the capital.

A 30% price correction will only set you back to square one and you are still getting return back every year in the form of rental. 10 more years and you will most likely be ahead of the game in term of profitability.

It's might be a good investment until it isn't. So it wipes out all of your rental earnings of the past 5 years.

When you see the prices being that high I don't think it's wise to invest any more. In fact, I'd be divesting instead. Because when it pops I might not be able to sell fast.

Are you talking about houses or Hashlet Primes from your sig? Better sell that account before the bubble pops!

[TaunSew]

How much life are you expecting?  By the time you have enough funds for multiple investment rental properties, you are minimum mid-30s or older.


Unless you are buying mobile homes and renting them out to hicks, but as the other guy said you only need one tenant to turn that house into a meth lab or to rip everything out and leave it a condemned structure.  You might say it would NEVER happen to YOU but it happens to people.

[RoadTrain]

From investor perspective, rental yield going down alone is not the primary factor of concern.

Let's say you buy a rental property, and get 6% yield a year. After 5 years, you already getting back 30% of the capital.

A 30% price correction will only set you back to square one and you are still getting return back every year in the form of rental. 10 more years and you will most likely be ahead of the game in term of profitability.

It's might be a good investment until it isn't. So it wipes out all of your rental earnings of the past 5 years.

When you see the prices being that high I don't think it's wise to invest any more. In fact, I'd be divesting instead. Because when it pops I might not be able to sell fast.

but i still have somewhere I can live, versus say bad share investment.

Yep, but if we talk about proper money management it's a weak excuse. Sadly, no good asset is able to provide a good yield right now because of low interest rates environment.

Are you talking about houses or Hashlet Primes from your sig? Better sell that account before the bubble pops!

Yeah, lol. But my account is not an investment anyway, so nvm

[jubalix]

From investor perspective, rental yield going down alone is not the primary factor of concern.

Let's say you buy a rental property, and get 6% yield a year. After 5 years, you already getting back 30% of the capital.

A 30% price correction will only set you back to square one and you are still getting return back every year in the form of rental. 10 more years and you will most likely be ahead of the game in term of profitability.

It's might be a good investment until it isn't. So it wipes out all of your rental earnings of the past 5 years.

When you see the prices being that high I don't think it's wise to invest any more. In fact, I'd be divesting instead. Because when it pops I might not be able to sell fast.

but i still have somewhere I can live, versus say bad share investment.

Yep, but if we talk about proper money management it's a weak excuse. Sadly, no good asset is able to provide a good yield right now because of low interest rates environment.

Are you talking about houses or Hashlet Primes from your sig? Better sell that account before the bubble pops!

Yeah, lol. But my account is not an investment anyway, so nvm

Sydney houses have returned 60% over the last 3 years, tax free if you live in it. That's pretty good return.

Quite a few suburbs have done 30~50% in the last year alone

[pattu1]

Sydney houses have returned 60% over the last 3 years, tax free if you live in it. That's pretty good return.

Quite a few suburbs have done 30~50% in the last year alone

Soon people will move their money out of all other forms of investments.... That will be the precursor to a big crash.

[adaseb]

Yes the canadian housing is severely overpriced and its a huge bubble.

What will cause the bubble to burst? and burst badly?

When the interest rates start to rise again which is due to happen sometime in 2015 when the Fed starts to increase interest rates.

Canadians have a huge debt to income ratio and even a small increase in interest rates will hurt most home owners who are underwater on their mortgage.

[spazzdla]

Yes the canadian housing is severely overpriced and its a huge bubble.

What will cause the bubble to burst? and burst badly?

When the interest rates start to rise again which is due to happen sometime in 2015 when the Fed starts to increase interest rates.

Canadians have a huge debt to income ratio and even a small increase in interest rates will hurt most home owners who are underwater on their mortgage.

I have a feeling they will never raise the rate again until the CAD is dead.. they cannot with out sinking the ecom..  A very slow 10-50 year death of the fractional banking system...?

[pattu1]

Yes the canadian housing is severely overpriced and its a huge bubble.

What will cause the bubble to burst? and burst badly?

When the interest rates start to rise again which is due to happen sometime in 2015 when the Fed starts to increase interest rates.

Canadians have a huge debt to income ratio and even a small increase in interest rates will hurt most home owners who are underwater on their mortgage.

I have a feeling they will never raise the rate again until the CAD is dead.. they cannot with out sinking the ecom..  A very slow 10-50 year death of the fractional banking system...?

Reminds me of the lost decade of Japan.

[jubalix]

Sydney houses have returned 60% over the last 3 years, tax free if you live in it. That's pretty good return.

Quite a few suburbs have done 30~50% in the last year alone

Soon people will move their money out of all other forms of investments.... That will be the precursor to a big crash.

No the OZ GOV forces banks to not call in loans, as they did in the 80's. Thus is can never crash. Pretty simple really how does it help the gov to have 30%~50% of people kicked out of their homes.

Pro tip it doesn't.

[spazzdla]

So negative interest rates and stupid retarded policies to keep the housing market going?

[Swordsoffreedom]

Almost all of my friends are 100% or 99% invested in real estate.....

Almost every chart I look at implies Canadian housing is in a MASSIVE MASSIVE bubble.. our ecom is real estate..

When it fails I am wondering if others think BTC and PMs will lift off.

Well everyone has been saying that for a while about the Canadian Housing Market
Remembers when Carney before he took his trip to Britain to be a Central Banker was like STOP Spending damn it we will raise the interest rate
Then the government was like ah were doomed its a bubble.
Others argue that people want to rent to own so its not a bubble but well we will see.

[Elwar]

So...Canada, Australia and China are having huge housing bubbles...

what will happen when they pop? Will it be a domino affect?

[spazzdla]

So...Canada, Australia and China are having huge housing bubbles...

what will happen when they pop? Will it be a domino affect?

Will they pop or will everything inflate to justify their cost?

Or will they think up some new scheme to keep it going?  (I am banking on this, most people are full blown retarded and will believe anything they are told.)

[Swordsoffreedom]

So...Canada, Australia and China are having huge housing bubbles...

what will happen when they pop? Will it be a domino affect?

Will they pop or will everything inflate to justify their cost?

Or will they think up some new scheme to keep it going?  (I am banking on this, most people are full blown retarded and will believe anything they are told.)

Well Contagion in all likelihood
Honestly not sure economists love this 2% inflation so I'm banking on them trying to put a TON of Money in again called QE to keep the economy floating until the next collapse.
(While I hold tangible goods or Bitcoin since whatever ones survives the **** fest will still convert to money at a more favorable exchange rate ^^)

[byronbb]

They have been calling for a Canadian housing collapse for a long long time. I drive around Vancouver all day and I can assure you there is no slow down on construction. As long as rich Chinese are concerned about the safety of their wealth within China they are going to look to Canada, AUS, California housing as a safe haven. They are even buying up farm land in Saskatchewan because it gives a decent return and keeps their $$$ away from possible confiscation.

[TaunSew]

So...Canada, Australia and China are having huge housing bubbles...

what will happen when they pop? Will it be a domino affect?

Will they pop or will everything inflate to justify their cost?

Or will they think up some new scheme to keep it going?  (I am banking on this, most people are full blown retarded and will believe anything they are told.)

Construction only employs like 7% of the workforce and these jobs aren't even particularly well paid to begin with.  Apprentices are making under $20 and ticketed tradesmen under $35 a hour.  Then the work is very seasonal so there is no such thing as 365 days of pay.  Benefits and pensions?  What are these strange alien things you speak of?

I find most ticketed tradesmen I know don't even work in construction or even utilize their skillsets.  You might have a carpentry or an electrician ticket but if you work at the warehouse or docks and forklift shit all day at some union job then you're technically an over-educated warehouse / dock worker.

[Bogleg]

Almost all of my friends are 100% or 99% invested in real estate.....

Almost every chart I look at implies Canadian housing is in a MASSIVE MASSIVE bubble.. our ecom is real estate..

When it fails I am wondering if others think BTC and PMs will lift off.

If they are getting high rental yield, it really doesn't matter if the housing market correct up to 50%.

Problem is these apartments and condo can't even get 5% yield before maintenance cost and other wear down cost.

[spazzdla]

Hummz seems I should of bought and sold LOL.

Current opinions?

[Sourgummies]

Almost all of my friends are 100% or 99% invested in real estate.....

Almost every chart I look at implies Canadian housing is in a MASSIVE MASSIVE bubble.. our ecom is real estate..

When it fails I am wondering if others think BTC and PMs will lift off.

You must live on the west coast,this real estate market is going to blow and people are going to be committing suicide left and right.
I know guys that have never worked a day in their lives that just flip houses and have made decent coin but they also overextend themselves and reinvest due to the Asian influence on our prices.
When the bubble does burst it will effect me more in a work related sense as the new construction permits will flow to a trickle.
Jobs will be put on hold as companies that also speculated go under. Its going to be nasty if the day comes because a lot of people have taken out loans against their current value of the house or they are paying max just to get into the market. If the value goes up or down to fast people can catch heat.

I do not see people flooding to bitcoin when that happens though. More likely it will be to late for a bunch of people.
You watch t.v and the news will parade real estate agents through telling you now is the time to buy,have they ever not said that!