LifeFuel Housing Crash in Canada Due to Higher Interest Rates

[Intellectual]

Imagine all the young couples of Chads and Stacies trying to have kids, or maybe they have some kids, and then BOOM their house crashes and they owe more in interest payments. LMAOOOOOOOOOOOOOO. Imagine young people losing their homes LOL.

If any incels are caught up in this somehow, I owe you my deepest sympathy, my schadenfreude only extends to normgroids.

How could a Bank of Canada rate hike impact B.C.’s housing market?

Real estate experts say B.C.’s housing market is heating back after cooling off due to rising interest rates but the future is uncertain as several economists expect the Bank of Canada to hike rates again.

bc.ctvnews.ca

 

[wereq]

Housing crash never happens.

 

[Fancy Alcoholic]

We need more crashes and hang more politicians.

 

[LeFrenchCel]

I want the whole housing economy to collapse so richfags lose all of their money and proletarians can buy houses to much smaller prices.

 

[nice_try]

Housing crash never happens.

this.
people will always have to live somewhere.

 

[Intellectual]

Housing crash never happens.

It's inevitable, it always happens

 

[Intellectual]

this.
people will always have to live somewhere.

And? What does living have to do with buying a house? I've lived 23 years without ever owning a house in my entire life.

And by your logic the stock market should never fall. People always need food, so grocery stock prices can never correct.

 

[nice_try]

And? What does living have to do with buying a house? I've lived 23 years without ever owning a house in my entire life.

You lived 23 years IN a house.
So either you want to own that house so you can live in it OR somebody else wants to own that house to charge you rent.
There is no scenario possible in which nobody wants to own that house except a massive depopulation (which will never happen, world population has been growing forever and will continue to grow).

And by your logic the stock market should never fall. People always need food, so grocery stock prices can never correct.

??? Most stocks aren't related to food or groceries ...

 

[Murdoch89]

People are stupid to have children nowadays

 

[Intellectual]

You lived 23 years IN a house.
So either you want to own that house so you can live in it OR somebody else wants to own that house to charge you rent.
There is no scenario possible in which nobody wants to own that house except a massive depopulation (which will never happen, world population has been growing forever and will continue to grow).


??? Most stocks aren't related to food or groceries ...

Talking about this subject without quantification is pointless because economics is inherently numerical. It doesn't matter if there will never be a scenario where nobody wants to own a house, what matters is YIELD. If a house is worth $1,000,000 but the yearly rent is $30k... the yield that the landlord is getting on their property is only 3%. After maintenance and property tax, it's down to 1.5%. Why would anyone in their right minds store their wealth in an asset that only generates a 1.5% return? Especially when the stock market is yielding a 5.5% on current earnings (18 P/E ratio). The only answer is they believe that asset will appreciate in value, but the only reason for the asset to appreciate in value in the long term is if the yield increased, yields are not increasing at the rate house prices are.

I brought up grocery stocks because your same logic applies, everybody will always need food, so by your logic, grocery stores should never go down in value. Oil will always be in demand, so should oil never fall in value?

If an asset is yielding less than opportunity costs, the market will continuously punish holders of that asset until the market corrects.

 

[nice_try]

Why would anyone in their right minds store their wealth in an asset that only generates a 1.5% return?

Many do because they just don't know better.
Nobody said that house pricing can't go up or down.
We said that it will never crash, because there will always be a demand.

 

[Intellectual]

Many do because they just don't know better.
Nobody said that house pricing can't go up or down.
We said that it will never crash, because there will always be a demand.

And that's what creates a bubble. Bubbles eventually burst. The same argument could be made about literally any asset, "there will always be a demand" for oil, oil still crashed in 2019. There will always be a demand for computer chips, tech stocks still crashed in 2000.

And housing did crash in 2008, guess the demand dried up?

 

[nice_try]

And that's what creates a bubble. Bubbles eventually burst. The same argument could be made about literally any asset, "there will always be a demand" for oil, oil still crashed in 2019. There will always be a demand for computer chips, tech stocks still crashed in 2000.

And housing did crash in 2008, guess the demand dried up?

I'm afraid it's not a bubble.

 

[Intellectual]

I'm afraid it's not a bubble.

I just explained to you why it is. Rent yields do not justify current prices.

If a company was worth $1,000,000,000 but generated $1,000 profit, and was projected to generate $5,000 profit in 5 years, would you say that's a bubble? Extreme anology, but it realtes to the housing situation.

 

[nice_try]

I just explained to you why it is. Rent yields do not justify current prices.

If a company was worth $1,000,000,000 but generated $1,000 profit, and was projected to generate $5,000 profit in 5 years, would you say that's a bubble? Extreme anology, but it realtes to the housing situation.

I currently want to buy a house, cabin in the woods style. Do you think I should wait with the purchase? If so, how long do you think it takes until the bubble bursts?

 

[Intellectual]

I currently want to buy a house, cabin in the woods style. Do you think I should wait with the purchase? If so, how long do you think it takes until the bubble bursts?

I personally don't think you should buy a house until the yields adjust. You should invest that money in stocks that are yielding high returns, and use the dividends to rent.

 

[nice_try]

I personally don't think you should buy a house until the yields adjust. You should invest that money in stocks that are yielding high returns, and use the dividends to rent.

but how long will that take?
I'm currently renting in sexhaver town and every time I go out I see these super hot bitches with 6'4 chads that I have no chance against, it drives me nuts, that's why I have to buy something in the woods as soon as possible ....

 

[Intellectual]

but how long will that take?
I'm currently renting in sexhaver town and every time I go out I see these super hot bitches with 6'4 chads that I have no chance against, it drives me nuts, that's why I have to buy something in the woods as soon as possible ....

You can rent, if there's a market for it you can rent

 

[nice_try]

You can rent, if there's a market for it you can rent

I don't want to rent, I want to settle.
How long for the bubble to burst?

 

[Intellectual]

I don't want to rent, I want to settle.
How long for the bubble to burst?

You can rent permanently.

I don't know when the bubble will burst.

 

[nice_try]

You can rent permanently.

I don't know when the bubble will burst.

You can't rent permanently, landlords can always kick you out. It might take them time and a lawsuit, but they can.

 

[Intellectual]

You can't rent permanently, landlords can always kick you out. It might take them time and a lawsuit, but they can.

Fair enough, maybe for that purpose it is smart to buy, but you'd need the money.

 

[oldcel75]

I personally don't think you should buy a house until the yields adjust. You should invest that money in stocks that are yielding high returns, and use the dividends to rent.

How much do you think a cabin in the woods can cost? It's not a 6 br house in a coastal city in California. Dividends from 20-30k will afford a rent.

 

[Intellectual]

How much do you think a cabin in the woods can cost? It's not a 6 br house in a coastal city in California. Dividends from 20-30k will afford a rent.

Cheaper than a house so I'm going to guess 500k or 600k?

 

[LeFrenchCel]

This. But the problem is when houses get cheaper, the giant corporations buy even more to rentslave people.

That's the problem.
All richfags are a problem.

 

[Intellectual]

That's the problem.
All richfags are a problem.

It's not true though.

Why would a corporation buy a house when they can repurchase their own stock?

 

[LeFrenchCel]

It's not true though.

Why would a corporation buy a house when they can repurchase their own stock?

Idk I just want richfags to be dead (in real life)

 

[Intellectual]

Idk I just want richfags to be dead (in real life)

The idea of Blackrock buying up single family homes is largely a myth.

 

[Copexodius Maximus]

Imagine all the young couples of Chads and Stacies trying to have kids, or maybe they have some kids, and then BOOM their house crashes and they owe more in interest payments. LMAOOOOOOOOOOOOOO. Imagine young people losing their homes LOL.

If any incels are caught up in this somehow, I owe you my deepest sympathy, my schadenfreude only extends to normgroids.

How could a Bank of Canada rate hike impact B.C.’s housing market?

Real estate experts say B.C.’s housing market is heating back after cooling off due to rising interest rates but the future is uncertain as several economists expect the Bank of Canada to hike rates again.

bc.ctvnews.ca

Stay with your parents. Buying your own home as an incel is a smooth brain move.

 

[Intellectual]

Stay with your parents. Buying your own home as an incel is a smooth brain move.

I rent my own condo, living with your parents is low IQ

 

[Copexodius Maximus]

I rent my own condo, living with your parents is low IQ

Renting is low iq. You’re paying someone else to live in their shitty rooms, while your parents would let you live for free. You can use that money you saved on rent and put it into the stock market, as you wanted to.

 

[Intellectual]

Renting is low iq. You’re paying someone else to live in their shitty rooms, while your parents would let you live for free. You can use that money you saved on rent and put it into the stock market, as you wanted to.

Living with parents is hell.

When you rent, you can live in the most luxurious place in the world while ripping off the landlord who overpaid for the place and now you're in charge thanks to teneant laws.

When you live alone, you live a better life than Bezos.

 

[Copexodius Maximus]

Living with parents is hell.

When you rent, you can live in the most luxurious place in the world while ripping off the landlord who overpaid for the place and now you're in charge thanks to teneant laws.

When you live alone, you live a better life than Bezos.

I live alone now in my parents house. I’m so alone.

 

[RollD20]

Waaaay too late.
Honestly I wouldn't be surprised if the government tries to slow this again.

 

[Intellectual]

I live alone now in my parents house. I’m so alone.

When you live in a skyrise in a big city, everyday feels like heaven on earth.

 

[Copexodius Maximus]

When you live in a skyrise in a big city, everyday feels like heaven on earth.

I lived in one when I was in college. Literally contemplated jumping out the window on most days due to loneliness.

 

[PigeonMogger]

Man I hope this actually happens. Its way too unaffordable in this country. The liberal government is making the canada impossible to live in.

 

[Intellectual]

I lived in one when I was in college. Literally contemplated jumping out the window on most days due to loneliness.

Loneliness is due to inceldom which is real, that will hurt you anywhere.

 

[Copexodius Maximus]

Loneliness is due to inceldom which is real, that will hurt you anywhere.

It was bearable when I went back to live with my parents. But nothing lasts forever. Every cope comes to an end.