Crappy Condos Aren’t Selling in Canada Like They Used To – A Vancouver condo developer will cover home buyers’ living costs for a year – June 26, 2019,
In America, what triggered the 2007-08 housing crash were teaser loans, people will claim it was the interest-only loans, but no, it was the teaser payments. Let’s say when you move into a home, the first year your monthly mortgage bill is $400, but the remaining 20 years of your mortgage your bill is $900 per month, imagine you were an unsophisticated investor who assumed that by magic you’d be able to manage higher-priced mortgage bill that you’d never been able to pay before at any time in your life? What would you do once you started to fall behind on your mortgage bill? You’d most likely walk away, and because the value of your home was artificially inflated because these teaser rate mortgages existed, and the scam was exposed by more sophisticated investors, the value of your home would plummet and soon entire areas found out that their mortgage was worth more than their home would ever sell for. This, of course, led to people who could pay their mortgage to walk away also.
A house is not an asset unless it’s cash flowing. It was a known fact in the past that a house was a money pit. Now, in Canada, we have a better lending model then the United States, but at the same time, this regulations also prevent our housing market from bottoming out, which is not as good as it sounds, because we’re reaching a point where nobody wants to buy, because the prices are too high. Condos will obviously suffer the most because let’s be honest, not too many people want to live in Condo, people accept living in a Condo because they can’t afford a house, but living in Condo is something for old people or rich people.
I don’t know any middle-class person that aspires to live in a Condo and raise a family in Canada? Canada has more land than the United States, have you ever driven long distances before, empty land everywhere, people settle for Condo’s and well it appears that Condos are starting to feel the pinch.
This Canadian Developer Will Cover Your Living Costs For A Year If You Buy Their Condo – narcity.com
The cost of living in Vancouver is one of the highest in the world, and the people of Vancouver love leftism and love paying higher taxes, so I’m not sure if there will ever be a breaking point for the people of Vancouver, but for me, I’m not even interested in visiting the place. Most Leftist hell holes attract drug addicts because, in Leftist run districts, the Leftist will typically provide aid to support the habits of drug addicts using taxpayer dollars. They’ll, of course, do this under the guise of helping the poor and needy, but the reality is, it’s done to grow the public sector and provide more job security for Public servants, on the backs of the private sector.
Until you stay in a Leftist area for a prolonged period of time, you’re not going to understand how they think. There’s an assumption of progression with Leftists as their quality of life diminishes. Now, it will obviously take some more time and probably an economic collapse before people realize how foolish they’ve been, but in the meantime, these condo developers are hopeful they’ll be able to sucker more first time home buyers into the inflated mortgage market.
Interesting times ahead