Affordability is off the charts. Population inflows are down. Wages and salaries have stagnated. More young people are now leaving BC than going there. And Ottawa’s War on the House – upping carrying costs, killing cash-back mortgages and disqualifying $1 million listings from CMHC insurance – will have the single greatest impact in the most delusional market. So, this is no time to be buying a house.
Delusional is an understatement. I did a little checking on some of the homes for sale in my South Surrey hood and my jaw dropped when I found out how in debted some are with their mortgages!
I will not give the addresses to protect the confidentiality of the poor suckers
Here are the results:
1. Purchase Price: $1,865,000
Mortgage Registered May 2011: $1,400,000
2. Purchae Price: $1,457,000
Mortgage Registered: $1,460,000
3. Purchase Price: $1,352,000
Mortgage registered: $1,285,000
2nd Mortgage Registered: $250,000
Total Mortgage Debt: $1,535,000
4. Purchase Price: $1,050,000
Mortgage Registered: $1,500,000
This one is owned by a Realtor . . . LOL
5. This one has 3 mortgages. It a new build and is for sale at asking price of $ 1,558,000
1st Mortgage: $639,000
2nd Mortgage: $237,500
3rd Mortgage: $60,000
Total Mortgages = $937,250
6. Purchase Price: $1,387,500
1st Mortgage Registered: $1,375,000
2nd Mortgage Registered: $103,000
Total Mortgage= $1,478,500
Is Canada’s house of cards even bigger then anyone an imagine? Is this not a ponzi scheme?
FYI: The party ” Patiently Waiting” had gone on – line to find the information.
You here about these stories, but here is the evidence. Given market conditions and trends, these parties are screwed/hooped, given the numbers show their debt exceeds their purchase price, and assuming the properties were bought at near peak prices. A classic sign of being “underwater”.Those that piled on 2nd and 3rd mortgages looking like they tried HELOC’s. Finding this information on line is not cheap….it costs $$$…so I am curious on the succes rate of the commentor…ie do these (6) examples based on say 10 attempts ? Regardless this gives one a sense of this illusion of wealth, based on credit and fiat money system, a house of cards about to implode.
The banks won’t lose…they are insured by the taxpayer ie ME and YOU
This is why we keep suggesting…..Fasten your seatbelts..this is going to get real REALLY ugly.