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eyesthebye
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Re: Interest rates to smash property prices.

Sat Dec 18, 2010 9:11 am

asset values can drop while debt can remain unchanged
Ah, rebuts the bull, but you only lose if you sell. All you have to do is avoid selling and you're rich.
ah, rebuts the bear, but you only win if you sell, All you have to do (to join our pathetic club) is sell and you're rich.
the cure for higher prices is moving to a destination with lower prices
 
Johnny Horton
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Re: Interest rates to smash property prices.

Sat Dec 18, 2010 9:27 am

yes, sell aand rent....live like a "king for a day". :mrgreen:
 
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jesse1
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Re: Interest rates to smash property prices.

Sat Dec 18, 2010 11:29 am

All you have to do (to join our pathetic club) is sell and you're rich.
Actually that's true. Someone who bought a few years ago will make a lot of money if they sell (assuming they're not levered to the gills).

Likewise, as I stated, the owner who doesn't have to sell if prices drop isn't out the shortfall: mark to whatever floats your boat until your hand is forced. Life's too short to do otherwise.
 
eyesthebye
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Re: Interest rates to smash property prices.

Sat Dec 18, 2010 12:24 pm

All you have to do (to join our pathetic club) is sell and you're rich.
Actually that's true. Someone who bought a few years ago will make a lot of money if they sell (assuming they're not levered to the gills).
misguided approach. I know quite a few people who sold at peak just before the 2008 correction. Their plan was to buy back in at lower prices. Guess what? One is still living with her folks, another can now only afford a townhouse, and a couple more are renting, waiting and losing pace to the market every month. If I ever decided to sell it'll be because I have an accepted offer on another house. Check how many "smart" waiters/renters there are on this site. Wait to buy real estate is the dumbest strategy... better to buy real estate and wait.
the cure for higher prices is moving to a destination with lower prices
 
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jesse1
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Re: Interest rates to smash property prices.

Sat Dec 18, 2010 12:32 pm

I'm not going to pass judgment on what's better but I think we can agree there's money currently on the table.
 
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semven
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Re: Interest rates to smash property prices.

Sat Dec 18, 2010 3:27 pm

They need Taipans chart so they dont cry themselves to sleep everynight. Those who sold and waited are still to be commended for at least making a move. Who knows ? They might still be okay.
But you cant win if you talk yourself outta the game forever.
 
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vancouverowner
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Re: Interest rates to smash property prices.

Thu Aug 04, 2011 7:17 pm

Just thought I'd highlight this chestnut from almost a year ago:
Some of the experienced posters on this board remember what it was like with interest rates of 17%. And that is why they are bearish because even a fraction of those sorts of rates with conservative lending criteria will smash real estate markets across the world, especially Vancouver.

And without doubt Canada will be following us. Canada will suffer the same issues as Australia. Eg commodity based, with significant export income. That means constraints and inflation and BOC forced to raise interest rates. Canada is merely following Australia now.
Anybody that followed this advice wasted thousands borrowing money that wasn't really worth that much to being with.
 
eyesthebye
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Re: Interest rates to smash property prices.

Thu Aug 04, 2011 9:26 pm

Just thought I'd highlight this chestnut from almost a year ago:
Some of the experienced posters on this board remember what it was like with interest rates of 17%. And that is why they are bearish because even a fraction of those sorts of rates with conservative lending criteria will smash real estate markets across the world, especially Vancouver.

And without doubt Canada will be following us. Canada will suffer the same issues as Australia. Eg commodity based, with significant export income. That means constraints and inflation and BOC forced to raise interest rates. Canada is merely following Australia now.
Anybody that followed this advice wasted thousands borrowing money that wasn't really worth that much to being with.
I did say that interest rates would be low for a very long time.
the cure for higher prices is moving to a destination with lower prices
 
Taipan
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Re: Interest rates to smash property prices.

Fri Aug 05, 2011 10:52 pm

..
Last edited by Taipan on Sun Aug 11, 2013 5:59 am, edited 1 time in total.
 
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semven
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Re: Interest rates to smash property prices.

Sat Aug 06, 2011 10:59 am

Wasnt one of your Bullshit Stories about owning long term leases?
(Regis participates in this sector too )

Canada property results improve on deals, leasing

Lyle Stafford/National Post
.Comments Email Twitter inShare.0.Reuters Aug 5, 2011 – 11:33 AM ET

By Ka Yan Ng and Amruta Sabnis

TORONTO/BANGALORE — Canada’s biggest office and retail landlords reported strong quarterly results on Friday, boosted by acquisitions and long-term leasing renewals.

Brookfield Office Properties and RioCan Real Estate Investment Trust REI said funds from operations, the most closely watched performance measure for REITs, rose in the three months to the end of June.

Even so, activity for the Canadian companies could slow if a flagging global economy makes it more difficult to raise capital and complete deals. “We’ve had a ton of acquisition activity and capital raising going on over the last two years,” said Karine Macindoe, an analyst at BMO Capital Markets.

“This market environment is probably going to slow some of that down because … share prices are far more volatile and declining.”

Canada’s resilient economy, rising rents and easy borrowing are fueling a buying spree among real estate investment trusts, highlighted last month by the largest office property deal ever by a Canadian REIT.

STEADY EXPANSION

The second quarter revealed few signs of weakness. Brookfield, a major office landlord in Manhattan and other North American cities, reported a 23 percent jump in leasing activity. It leased 1.6 million square feet of space, compared with 1.3 million square feet leased a year earlier.

FFO rose to $166 million, or 30 Canadian cents a unit, from $156 million, or 30 Canadian cents, a year earlier. FFO strips out the effects of depreciation and other factors from the earnings of property companies, giving a more telling quarterly reading. RioCan REIT, Canada’s largest landlord of retail space, also turned in a strong performance.

FFO rose 12 percent to $93-million, or 36 Canadian cents a unit, from $83-million, or 34 Canadian cents, a year earlier. RioCan has steadily expanded its portfolio in Canada, while looking for opportunities for growth in the United States for more than a year. “RioCan’s acquisition platform remains on track to meet our objectives for the year,” Chief Executive Edward Sonshine said in a statement.
 
Taipan
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Re: Interest rates to smash property prices.

Sat Aug 06, 2011 6:16 pm

..
Last edited by Taipan on Sun Aug 11, 2013 5:59 am, edited 1 time in total.
 
vanreal
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Re: Interest rates to smash property prices.

Sat Aug 06, 2011 10:07 pm

And your point is.........................?

Pray tell me if income is aligned with valuation in commercial industrial, because it is completely out of whack in the residential sector.

Here is another suprise. Developers are across all population centres, but fundamentally the rules are the same.
Did you mean surprise?
 
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vancouverowner
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Re: Interest rates to smash property prices.

Fri Mar 30, 2012 8:51 am

A few of you will understand the warning of this post. Most of the bulls will dismiss it and ridicule it as unimportant.
Two years later interest rates are lower, Vancouver RE prices are higher and Taipan has finally caved in and paid too much for that chalet he has been coveting.
 
unicas
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Re: Interest rates to smash property prices.

Sun Jun 03, 2012 7:43 pm

by Taipan » Mon Sep 20, 2010 3:01 am

In fact falling house prices can cushion inflation in other areas of the economy. In 12 months Australia's interest rates will most likely have risen 2%, from their lows.

There will be howls and there will be screams in this country but i know from experience, they will fall on deaf ears as far as the RBA is concerned.

And without doubt Canada will be following us. Canada will suffer the same issues as Australia. Eg commodity based, with significant export income. That means constraints and inflation and BOC forced to raise interest rates. Canada is merely following Australia now.
Australia is seen to lower interests rate by as much as 100 base point in the coming weeks. Will Canada follow? Or you will have the grace to admit you were just flat wrong. The opposit is happening.
 
Taipan
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Re: Interest rates to smash property prices.

Sun Jun 03, 2012 9:46 pm

..
Last edited by Taipan on Sun Aug 11, 2013 6:00 am, edited 3 times in total.
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