Housing price Crash

[Richard5]

And so it begins...


https://www.thestar.com/business/2018/04/04/they-bought-their-prebuilt-homes-at-the-markets-peak-now-they-face-financial-ruin.html https://www.thestar.com/business/2018/04/04/they-bought-their-prebuilt-homes-at-the-markets-peak-now-they-face-financial-ruin.html

I have a hard time believing, understanding this article. Why are some of these people selling their previous home in the first place???

Its probably an ego, a lexus, BMW or Denali in the driveway. Living way beyond their means in the first place - Partly because they can because financing companies never say no and partly because of the scam of the century - Leasing!

If people could just learn to understand finances and managing money....am VERY worried about the 20-30 year olds of today and what will be left in 10 years when I want to be out of the working world

[Oliver88]

I think the article is sour g****s for families who happened to upgrade homes near the peak price.
We likely won’t read articles of families that sold second properties at the peak and cashed in.

Nobody forced them to make the purchase but it’s common in cities for families to upgrade homes once or twice I’ve noticed.

[farmaholic]

What have been the personal consequences of people living beyond their means? Bankruptcy, a clean slate and some restrictions....no shame?

If they never intend on paying the debt off what's stopping them?

[samhill]

The institutions/people administering this environment are making tons. Governments are taxing/operating on mountains of money and administrators with expense accounts and vehicle allowances etc enjoy careers.
Who would want to change this? the grunts are paying for it.
Can't see things changing except tougher on the bottom and better on the top.
Lots of complaining but no action.

[hobbyfrmr]

I think the article is sour g****s for families who happened to upgrade homes near the peak price.
We likely won’t read articles of families that sold second properties at the peak and cashed in.

Nobody forced them to make the purchase but it’s common in cities for families to upgrade homes once or twice I’ve noticed.

Excellent point. My sister in law and brother in law bought a modest starter house in Saskatoon 20 years ago. They fixed it a little the the market went up. They sold for very good profit, took that profit bought a distressed sale in very good neighbourhood. A decade later they found an acreage they desired, sold the big city house for modest profit and now have a strong equity position on their acreage. I have a lot of respect for people who have discipline and succeed. Obviously that is an extremely boring news story.

[SASKFARMER3]

Sad part this time it's going to hit a new group of young starting out workers who wanted the brand new big home with everything.

How you ask.

Lots of newlyweds got their parents to second mortgage their own homes because they were paid off so junior and sis could buy their first homes. Ah, isn't that nice go right for the million dollar home not work like everyone else and save and upgrade till you finally have a nice paid off home.

A 30-year mortgage for junior or higher and mom and dad pay from retirement to help out.

Borrowed money.

Biggest problem cheap money, overpriced homes (really a shit hole home in Regina average 400000 that buys one heck of a home in Phoenix or Florida) and the want it all right now attitude. Jet skis boats cars antique cars hot tubs cottages etc.

ME ME NOW GENERATION>

[GDR]

Sad part this time it's going to hit a new group of young starting out workers who wanted the brand new big home with everything.

How you ask.

Lots of newlyweds got their parents to second mortgage their own homes because they were paid off so junior and sis could buy their first homes. Ah, isn't that nice go right for the million dollar home not work like everyone else and save and upgrade till you finally have a nice paid off home.

A 30-year mortgage for junior or higher and mom and dad pay from retirement to help out.

Borrowed money.

Biggest problem cheap money, overpriced homes (really a shit hole home in Regina average 400000 that buys one heck of a home in Phoenix or Florida) and the want it all right now attitude. Jet skis boats cars antique cars hot tubs cottages etc.

ME ME NOW GENERATION>

Probably right about parents mortgaging or co-signing on overpriced homes. Every generation of parents wants a better life for their children than they had. Problem is sometimes life lessons are more valuable than property or possessions, it's just hard to see that sometimes. This is also the generation where junior never leaves home or does and then comes back to keep the basement warm. Lots of our kids friends are being raised by their grandparents, parents still involved some live on their own some dont but most of the heavy lifting parenting done by older generation. I think there are a lot of people who are having a digferent retirement than they thought they would.

[SASKFARMER3]

Yea I agree lots raised their kids to want and get everything, all get participation badges and none really understand finance etc.

hell, they eat tide pods and put condoms up their nose for fun.

We just smoked and drank beer and didn't wear seat belts and had fun.


But we all had a goal to move out get a job or go to school and get a carrier and move on. Visit our parents and enjoy.

No new home new leased car boat jet ski hot tub etc all with borrowed debt. I'm not kidding when I say most would be done with a 3% interest rate. Parents would have kids moving home and whole families living in the original home. Some parents would lose their home also.

It's a game where home prices got out of hand.

[GDR]

Real life Monopoly!

[hobbyfrmr]

Probably right about parents mortgaging or co-signing on overpriced homes. Every generation of parents wants a better life for their children than they had. Problem is sometimes life lessons are more valuable than property or possessions, it's just hard to see that sometimes. This is also the generation where junior never leaves home or does and then comes back to keep the basement warm. Lots of our kids friends are being raised by their grandparents, parents still involved some live on their own some dont but most of the heavy lifting parenting done by older generation. I think there are a lot of people who are having a digferent retirement than they thought they would.

Its getting so weird. When did everybody lose the desire to work so they could advance themselves over time?
My farm helper farmed 5 quarters, raised hogs and fed 60 cows most of his life. His wife had the 1 acre garden. About a decade ago they sold the farm and retired. He works for me and she sells garden produce for walking around money. They used to take 1 or 2 winter trips on steep discounts.
Now they have a grandson living there because the parents just could not deal with him. The story went that they would help him get his grade 12. They get him work with local companies but he always quits because someone is too mean to him or he doesnt like the hours/shifts/conditions. Now they have a 20 year old housecat. They got him a little car, he gets his 3 squares, tv, cellphone, a floor over his head and he is house trained. No costs no bills no accountability.
My helper starts conversations about methods to motivate the kid, he is totally capable, no obvious handicaps, hes just one of those “really smart but easily offended” types. I dont know what to tell him other than he is not a kid, he is a grown man, old enough to drink and old enough to vote. He s not doing anybody any good hiding in the grandparents basement.

The “me, now” generation may very well have to experience some economic discomfort. Its a mean world, life is hard with a lot of uninteresting times because of committments.
An old neighbor would tie together a couple of sayings that I liked.
“Work hard, sleep good.” “I would rather be tired than broke.”

Just the other day I met a 82 year old guy helping his son farm. His theory was “work never killed a person, did you ever notice cigarettes and booze are what kills people? Thats what people do when they’re not working.”
I decided not to argue with an old guy. He may be right, or else he will just shoot me.