tag:blogger.com,1999:blog-17649054.post5904099280965286623..comments2023-10-04T12:55:21.955-04:00Comments on Mississauga Real Estate, Homes, TREB & MLS Blog by Mark Argentino: Is this a WISE decision? Choosing NOT to buy real estate!Mark Argentinohttp://www.blogger.com/profile/10720520986774448200noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-17649054.post-70898432918035147452010-03-21T21:05:09.282-04:002010-03-21T21:05:09.282-04:00Last sentence should read.
Rates cannot go any l...Last sentence should read. <br /><br />Rates cannot go any lower so future increases in interest rates should have a negative effect on real estate, unless the government pulls out of its hat subsidies to buyers.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17649054.post-43703965451512712752010-03-20T21:37:55.051-04:002010-03-20T21:37:55.051-04:00Well there is a reason for this disconnect. Most p...Well there is a reason for this disconnect. Most people today look at the carrying costs as a more important factor than the actual price, so if you have interest rates that have not been seen in generations this will lead to irrational behavior and a process of bidding up real estate. The writing is on the wall. Rates cannot go any lower so future increases in interest rates should have a negative effect on interest rates, unless the government pulls out of its hat subsidies to buyers.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17649054.post-22872787284805902722010-03-20T11:59:37.989-04:002010-03-20T11:59:37.989-04:00Just keep in mind this the consequences of price d...Just keep in mind this the consequences of price decline in real estate are severe as for one real estate is not a productive asset with excessive leverage <br /><br /><br />Exactly there is not logic in today's market. The market is irrational hence this real estate price appreciation will burst. When no one really knows, but looking at markets in general is better to play safe and downsize in current environment if you have that option. That is just my opinion. <br /><br />But the final stages of the price appreciation are crazy to euphoric to mad.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17649054.post-27575211551776413072010-03-20T00:07:18.960-04:002010-03-20T00:07:18.960-04:00Well the current logic is real estate prices go up...Well the current logic is real estate prices go up and there is no way you can lose money, but I think this current demand is taking away from the future and at some point people will get priced out of the market.<br /><br />Obviously when you throw in low interest rates and allow people to borrow beyond what they should all logic is thrown out the window. This is a classic behaviour of madness of crowdsAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-17649054.post-41753022836148035732010-03-19T16:56:55.062-04:002010-03-19T16:56:55.062-04:00Hello, Thank you for your comment. Your thinking ...Hello, Thank you for your comment. Your thinking is logical, but logic has not had as much impact on the past few years of real estate increases as one would think. <br /><br />We are in for a crazy ride this year, nobody knows for sure which way the market will go after rates begin increasing and HST takes effect. Only time will tell.<br /><br />Have a nice weekend!<br />MarkMark Argentinohttps://www.blogger.com/profile/10720520986774448200noreply@blogger.comtag:blogger.com,1999:blog-17649054.post-17924819199555023802010-03-19T16:26:27.437-04:002010-03-19T16:26:27.437-04:00Mark,
When you throw in the towel the real estate...Mark,<br /><br />When you throw in the towel the real estate will change the trend. Seriously, real estate prices will give up when lending practices tighten, liquidity to fund loans decreases (CMHC changes its practices of guaranteeing) or when most people realized that carrying a huge principal on a property in the current global environment is high risk. Lets face it many first time buyers are leveraged in real estate to the max. Until there is a pick up in employment this economy is all about staying liquid as much as you can.Anonymousnoreply@blogger.com