paperchopper
New Member
First Baker calls the Canadian Housing Bubble, then the Olympic Village goes bankrupt. Jarislowsky called the bubble back in February. Jarislowsky, in his 80's, is a billionaire real estate investor.
http://www.vancouversun.com/busines...vership+city+takes+control/3847165/story.html
I'd like to hear it from the RE pumpers (Realtors excluded, )-- What could possibly justify paying $300K for a 600 sq ft shoddily constructed "condo" that more resembles a tomb than a habitable environment?
A friend of mine recently purchased a 780 sq ft condo for $405,000-- on a $55K a year salary. He put nothing down, TD gave him a LOC to cover the downpayment. It's at Yonge and Finch, hardly "downtown". The condo fees alone are $700 a month. He hopes to sell it for $600K+ in 5 years.
Anyways, it's bloody obvious Canada is about to melt as hard or harder than Ireland, but I'm just shocked at the naiveness of the speculators, which is what 99.9% of the vast majority of RE purchasers are currently. This board is a testament to that fact.
I did a stint as an investment banker, and not on Baby Bay St, but Wall St. I do admit, I have psychopathic tendencies, one of the main hiring considerations for investment banking. I worked the mortgage desk at at a bulge bracket, with initials resembling GS or MS, although I'm not too akin to ties. The MD back in '05 raked in over $20M. He'd fly to his French villa on weekends in his private jet just to take a shit in his gold plated toilet. We made insane, no no, unfathomable amounts of money-- easily chopping over $60B a month, quite literally laughing all the way to the bank.
That was back in 2005. Fast forward to today. Short sales fetching $75K with the home owner stuck with a $450K mortgage, his only escape in scoring a deed-in-lieu of trust or sucking on the barrel of a .44 Magnum. Housing-related suicides are the norm and quietly swept under the rug.
Sigh. I don't even know why I bother, but be ready. It's going to be ugly, and most likely, very bloody. But don't come crying when your 600 sq ft $350K condo is worth $150K and you're stuck paying a $200K non-performing debt for the next 35 years, hell, 40 years if you were stupid enough to amortize over 40 years.
http://www.vancouversun.com/busines...vership+city+takes+control/3847165/story.html
I'd like to hear it from the RE pumpers (Realtors excluded, )-- What could possibly justify paying $300K for a 600 sq ft shoddily constructed "condo" that more resembles a tomb than a habitable environment?
A friend of mine recently purchased a 780 sq ft condo for $405,000-- on a $55K a year salary. He put nothing down, TD gave him a LOC to cover the downpayment. It's at Yonge and Finch, hardly "downtown". The condo fees alone are $700 a month. He hopes to sell it for $600K+ in 5 years.
Anyways, it's bloody obvious Canada is about to melt as hard or harder than Ireland, but I'm just shocked at the naiveness of the speculators, which is what 99.9% of the vast majority of RE purchasers are currently. This board is a testament to that fact.
I did a stint as an investment banker, and not on Baby Bay St, but Wall St. I do admit, I have psychopathic tendencies, one of the main hiring considerations for investment banking. I worked the mortgage desk at at a bulge bracket, with initials resembling GS or MS, although I'm not too akin to ties. The MD back in '05 raked in over $20M. He'd fly to his French villa on weekends in his private jet just to take a shit in his gold plated toilet. We made insane, no no, unfathomable amounts of money-- easily chopping over $60B a month, quite literally laughing all the way to the bank.
That was back in 2005. Fast forward to today. Short sales fetching $75K with the home owner stuck with a $450K mortgage, his only escape in scoring a deed-in-lieu of trust or sucking on the barrel of a .44 Magnum. Housing-related suicides are the norm and quietly swept under the rug.
Sigh. I don't even know why I bother, but be ready. It's going to be ugly, and most likely, very bloody. But don't come crying when your 600 sq ft $350K condo is worth $150K and you're stuck paying a $200K non-performing debt for the next 35 years, hell, 40 years if you were stupid enough to amortize over 40 years.