Crisis of Credit Visualized

Discussion in 'Reality Check' started by Twopoops, Mar 5, 2009.

  1. Twopoops

    Twopoops
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    Hidey Ho

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    Watch this video. It does a great job of breaking down the cause of the credit crisis in simple terms that everyone can understand.

    http://crisisofcredit.com/
     
  2. Miss Shawty

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    So, I just watched that video. :eek7:
    Renting an apartment is looking mighty fine right now!
     
  3. briangtiguy

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    you're still throwing your money away tho and will have nothing at all to show for it in the end
     
  4. Smokey

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    Watch "House of Cards" on CNBC, excellent program and goes in depth on the mortgage crisis.
     
  5. thunder

    my av is me

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    Cool. I feel like I kinda get it now :eek7:
     
  6. dpwu32

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    SLick video. Nice find.
     
  7. Julie

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    it was a case of the greedy getting greedier.
     
  8. Omerta

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    explained nicely
     
  9. Gooch

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    please remember we live in Canada and it is not the same situation here.

    Renting is still wasting money. It only takes a min to check MLS and see that houses are not worthless like they might be in Michigan.

    This is all caused by stupid poor americans trying to live like rock stars and beyond their means.

    O'Canada
     
  10. Arod

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    Troof, housing market is still fairly strong in Atlantic Canada.

    The part of the market that will suffer the most in 2009 will be new starts. Overall sales will soften slightly and rebound in 2010. That being said prices (and assessments of course) will continue to rise in moderation this year and next.

    If you can get the money and can afford to maintain house it is still a foolish idea to rent.

    Hell, we have two mortgages right now and if we were renting our new house we couldn't rent it for what we are paying for both of our homes.
     
  11. watcha

    Born Killer

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    just blindly saying "renting is a waste of money" is like saying "pour all your money into the stock market"....
     
  12. dpwu32

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    I've been renting for the last six months here in Calgary. Not because we couldn't get approved or afford to buy, but because the market has been the shits, and we're moving in another year. If I had been confident that the market would take any sort of upward swing at all, we would have bought, but prices have kept falling, and I'm happy as a pig in shit that we're renting, and banking the extra cash that would have been getting pumped into the mortgage we would have gotten...

    "Canada" is a pretty broad area. Not all areas in Canada are/have been responding the same to the current recession...
     
  13. Arod

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    Based on data and forecasts from the CMHC, MLS along with out own data/forecasts complied from new construction and sales reviews/meetings with departments from other provicnes...yes....if you can afford to own a home it is a much better decision than to rent in Atlantic Canada.
     
    Last edited: Mar 11, 2009
  14. Arod

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    Atlantic Canada has been in recession since confederation...we should be just fine for a while lol.

    I agree with renting out west though...not a time to buy for sure.
     
    Last edited: Mar 11, 2009
  15. dpwu32

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    Pretty much agreed. :lol:

    Was more or less just pointing out the error in Gooch's statement...
     
  16. Arod

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    My uncle just moved from out west after being there for 15 years and is glad he got out when he did. Sold his house in Calgary for 500k (think he paid 175 for it) in the spring.

    His neighbour listed his house a few months after my uncles sold for the same price. He has since had to drop it to the mid 300's because it won't sell.
     
  17. watcha

    Born Killer

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    Well if your smart and plan your money well(not so much now that the economy is in the crapper) you can benefit from saving/investing your money and renting just as much as buying a big hole in teh ground to through hundred dolla' bills into.
     
  18. Arod

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    Q4 2007 to Q4 2008 housing saw an average 10% increase across Atlantic Canada. As low as 4 in some regions to in the 30's in others. It will slow slightly this year but will pick up again in 2010.

    Be smart about buying a house...build equity...still have the ability to invest and be smart about that as well....profit even more.
     
  19. watcha

    Born Killer

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    precisely.
    don't buy a $300,000 home when you can only afford a $300,000 home.
     
  20. Gooch

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    I agree
    I would be renting if I were out west too.
     
  21. Arod

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    Agreed.

    Just because you can get approved for up to $300k...does not mean you should go out and get a home worth that.

    When we bought the new house we were shocked at what the bank approved us for. Good thing we are not emotional home buyers and went for the value and not the flash and pizazz.
     
  22. Canuck

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    Taking a look at some condos in the South end, there are actually some decent deals. Except for the 200k Condo with 700/mo Condo fees...wtf.
     
  23. Arod

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    Sweet jesus $700? Is concierge ass wiping service included in the fee?
     
  24. watcha

    Born Killer

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    thats one reson I think condos are a waste of money/time....
    buy an apartment then pay rent on the apartment you just bought....
    great from a property developer stand point, sell the units then collect rent each month too....lol
     
  25. Canuck

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    I just checked again and it's actually $750
     
  26. Canuck

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    I used to think that too, but the ones I'm looking at are around 200 a month. But that includes heat and hot water and underground parking. Usually I just work out what my mortgage payment would be and then add that in as if it were all just my mortgage.
     
  27. Arod

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    What is the square footage? Is it a new building or an old one?

    Christ that is a ton for a Condo fee...unless it is massive
     
  28. Canuck

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    I believe it's 1300sqft/3 Bedroom $200,000
    45 year building

    Pretty decent price, they just make up for it in the condo fees
     
  29. Arod

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    Most often fees are calculated by estimated maintenance costs (heat and whatnot can be included) for the year divided by the square footage of all units. Then they can figure out the fee for each individual unit based on that...still a freakin lot though...but the building might be incredibly expensive to maintain.
     

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