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fishguy15
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Re: Well you have to be Bullish on something....

Wed Aug 03, 2011 4:22 pm

Eyes...calculate the gain for the zero down crowd....
 
eyesthebye
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Re: Well you have to be Bullish on something....

Wed Aug 03, 2011 4:30 pm

boy, did I ever piss off the hard core bears with my #'s :lol:
the cure for higher prices is moving to a destination with lower prices
 
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semven
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Re: Well you have to be Bullish on something....

Wed Aug 03, 2011 4:37 pm

Eyes...calculate the gain for the zero down crowd....
:D
 
VanLord
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Re: Well you have to be Bullish on something....

Wed Aug 03, 2011 4:50 pm

we are talking about the sheer investment potential of each
i.e. if I would have taken my 63K and bought gold in 2009 instead of a home. My 63K would have bought approximately 63 ounces of gold in February of 2009. Those 63 ounces are worth 104K today - a 139% increase.
My 63K investment in my home purchase has gained 700%.

Not many people pay full cash for their homes - so you can't compare each investment vehicle until you know what amount the buyer has invested in their property. You're just comparing apples to Cadillacs if you just look at HPI.
I've been open enough to share my specific situation with the group for the purpose of a fuller assessment...the apples to apples comparison.

Not sure why this is so complicated.

So eyes you have paid nothing in mortgage, taxes, insurance, maintenance since 2009???

How can you say this is an apples to apples comparison? You have invested a lot more than 63k into your house, I bet you have sunk an additional 100k or more into the house. I guess maybe some rental income to factor in as well, but you still can't claim a 700 % gain in pure profit.

What would the numbers look like if you bought gold every month with the monthly costs of your house over those 2.5 yrs?
 
eyesthebye
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Re: Well you have to be Bullish on something....

Wed Aug 03, 2011 5:56 pm

I think y'all get the point.
I made much more in buying my home than sinking my 63K into gold.
enough said on the matter
the cure for higher prices is moving to a destination with lower prices
 
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semven
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Re: Well you have to be Bullish on something....

Wed Aug 03, 2011 7:13 pm

I think y'all get the point.
I made much more in buying my home than sinking my 63K into gold.
enough said on the matter
ETB should change moniker to ADD
 
westcoastfella
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Re: Well you have to be Bullish on something....

Wed Aug 03, 2011 8:14 pm

Not sure why this is so complicated.
Its not. You just don't understand the difference between leveraging a purchase and an outright purchase. Or at least you're implying that you don't - which I'm having trouble believing.
I think y'all get the point.
I made much more in buying my home than sinking my 63K into gold.
enough said on the matter
You put 63K into a 630K asset (and borrowed the rest), and your 630K asset became a 900K asset, thus increasing your overall gain, and you now have 450K-ish in equity. Your equity increased by 700%, but your asset didn't increase 700%. It is called "leveraging your money", which will amplify both gains and losses. Check it out: http://en.wikipedia.org/wiki/Leverage_%28finance%29, I don't just make this stuff up.
Not many people pay full cash for their homes - so you can't compare each investment vehicle until you know what amount the buyer has invested in their property
We all get the point, but I don't think you do...
Not everyone buys other assets with full cash either - you can "leverage" the purchases of other assets too, including stocks, bonds, gold, etc. See http://en.wikipedia.org/wiki/Margin_%28finance%29, its all true, you can really do this!

Leverage and outright purchase are both legitimate paths to investing for both homes and other assets - so in a game such as the one semven is proposing, why would you allow leverage for one and no leverage for another?
I've been doing this since I came to this site.
Perhaps you can pull up comparable investments over this period.

E Vancouver
trough = $579,761 (Dec/08)
current = $839,867
total $ lost = $260,106
% gain = 31%

Burnaby:
trough = $641,439 (Dec/08)
current = $928,093
total $ lost = $286,654
% gain = 31%
I hold several investments that have outperformed Vancouver housing since Feb 2009. The TSX as a whole is up about 60% over that period.
ETB should change moniker to ADD
that would be doing math a dis-service.
 
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registered
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Re: Well you have to be Bullish on something....

Thu Aug 04, 2011 2:48 am

Or at least you're implying that you don't -
She doesn't, Occam's Razor takes this point.
ETB should change moniker to ADD
For once I find myself in agreement with dimmouse, LTB could be ADD.
Last edited by registered on Thu Aug 04, 2011 3:50 am, edited 4 times in total.
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Taipan
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Re: Well you have to be Bullish on something....

Thu Aug 04, 2011 2:58 am

..
Last edited by Taipan on Sat Aug 10, 2013 6:09 pm, edited 1 time in total.
 
eyesthebye
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Re: Well you have to be Bullish on something....

Thu Aug 04, 2011 6:39 am

"semven"
What I propose we do is pick a property in Van (SFH) and figure out a way to keep score of this game for ..lets say 4 months.


you'd be hardpressed to find a SFH that's on the market for more than a month let alone 4 months. And usually if it doesn't sell at list price it's taken off the market.
I can show you a dozen properties that have been on the market in BC for over 900 days and havent sold! No they arent in Vancouver.

This is the BC forum, not the Vancouver forum.
with all due respect...this is a Vancouver forum. These thousands of posts aren't here because people care about property outside greater Vancouver.
the cure for higher prices is moving to a destination with lower prices
 
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Re: Well you have to be Bullish on something....

Thu Aug 04, 2011 7:13 am

with all due respect...this is a Vancouver forum. These thousands of posts aren't here because people care about property outside greater Vancouver.
When did that start?
the dogs bark but the caravan moves on

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