Housing: Good time to buy up?
- Thread starter Hoops
- Start date
it wasn't an 'assertion' it was a question, hence the three question marks.craiglist-lover said:
since i don't know how 'rental' property is 'valued' (some factor of land,
buildings and income???) your 'cap' formula might be a quick 'assessment'
of whether its worth pursuing or not.
people pre-pay for the opportunity to trade futures and options all the time. including futures and options in housing markets.craiglist-lover said:
i have been shorting several US markets for a while now to hedge some real estate investments ... the bigger the correction in the market, the bigger the returns for people who shorted the markets.
All these mathematical formulas sound good on paper - but just go to any condo opening sale and such (with all condo's being sold in the first 30mins and line ups to get in) and you will know, just like stock investing, there is a huge psychological component to it.
That aside - the housing/condo market in Vancouver has already started to slow a bit compared to 1-2 years ago. There are lots of for sales signs on homes still there where as 2 years ago, the houses were being sold within hours! Also on MLS.ca, there are only overpriced, under-sized lots available now. The really good locations are gone now (again - location, location, location). And there was some mention that some condo developers may go bankrupt in the near future as there is an oversaturation of condos now. I was at the opening day of the Woodwards condo sale and it was complete insanity - $500,000 for a 2 bedroom 800 sq foot condo, in a seedy part of town!??!!
And interest rates are slowly increasing, the government can't afford inflation to run rapant,that would only slow down housing sales. So we are getting to near the peak of the market, so for those looking to flip - you missed most of the boat. It is like saying "oh, now is a good time to buy yahoo stock" when it is highly valued. You should have bought it when it was $4/share.
Is it a bubble? Will it burst? Hard to say, but many economist do predict a correction, but prices are not likely to crash back to 2000 prices. Again, some parts of Vancouver are overpriced, so they likely will suffer more. But better locations and long term, real estate is like a blue chip stock. Slow and steady.
For many young people nowdays, it is impossible to even get into the market. Pure craziness.
That aside - the housing/condo market in Vancouver has already started to slow a bit compared to 1-2 years ago. There are lots of for sales signs on homes still there where as 2 years ago, the houses were being sold within hours! Also on MLS.ca, there are only overpriced, under-sized lots available now. The really good locations are gone now (again - location, location, location). And there was some mention that some condo developers may go bankrupt in the near future as there is an oversaturation of condos now. I was at the opening day of the Woodwards condo sale and it was complete insanity - $500,000 for a 2 bedroom 800 sq foot condo, in a seedy part of town!??!!
And interest rates are slowly increasing, the government can't afford inflation to run rapant,that would only slow down housing sales. So we are getting to near the peak of the market, so for those looking to flip - you missed most of the boat. It is like saying "oh, now is a good time to buy yahoo stock" when it is highly valued. You should have bought it when it was $4/share.
Is it a bubble? Will it burst? Hard to say, but many economist do predict a correction, but prices are not likely to crash back to 2000 prices. Again, some parts of Vancouver are overpriced, so they likely will suffer more. But better locations and long term, real estate is like a blue chip stock. Slow and steady.
For many young people nowdays, it is impossible to even get into the market. Pure craziness.
