I’m a first time buyer and i’m exploring to purchase a condo in downtown Toronto. A one decent 550sqft condo sells for about 450k (which i find absurd). Would you advise waiting till mid 2018, with the new stress test rules, in hopes that the prices will decrease? I can’t justify paying so much, but at the same time the prices seem to be going up every month.
The transition to a US centered economy puts the country into a vulnerable period of uncertainty and GDP risk. Companies are hoarding products from China right now while the tariff is 10%, but on January 1st 2019, it will be 25% and that should stop imports completely, especially if the US dollar should weaken. Will companies build factories here or instead hold off and hope for a Trump loss in 2020?
It’s also in Christian and Western history. Originally the Jews cornered the market on charging interest on loans and their successful business innovation of making loans for profit is what has led to capitalist growth and the lifting of billions from poverty and starvation globally. Interest isn’t greed, its the time value of money. And modern “targeted” interest rates in the U.S. and elsewhere are government-subsidized giveaways to whomever can qualify for them.
Since the crashes of 1929 and 1987, safeguards have been put in place to prevent crashes due to panicked stockholders selling their assets. Such safeguards include trading curbs, or circuit breakers, which prevent any trade activity whatsoever for a certain period of time following a sharp decline in stock prices, in hopes of stabilizing the market and preventing it from falling further.

It was the most devastating stock market crash in the history of the United States, when taking into consideration the full extent and duration of its after effects.[1] The crash, which followed the London Stock Exchange's crash of September, signalled the beginning of the 12-year Great Depression that affected all Western industrialized countries.[2]
1st, sorry you lost your home. That said, had you read your loan documents you’d have seen the language advising you that loans are bought and sold on the secondary market all the time and the originator did not NEED your permission to do so. The sale of your loan to another bank, investor, Fannie, etc., had no effect on your payment, interest rate, term, etc. So the sale of your loan, regardless of how many times it was repackaged and sold, did not cause you to lose your house. If along the way the new holder of your “note” did not have an auto pay option, that was up to you follow up on and find out exactly HOW/WHERE they wanted you to make your payment. Again, sorry you lost your home, but the sale of mortgage backed securities (your loan) has no effect on the Payor (you) as terms cannot be altered (now THATS something they would need your approval on). The only way an eventual noteholder could foreclose on you is if you failed to make your payments as required…Did you stop making payments for some reason? A lot of good people got hurt in the crisis but there seems to be more to this than a repeated sale of the original note…I’ve been in my present home 26 years, have had several mortgages sold and sold again with no issues…most important thing is to confirm with your present lender that they had, in fact sold your note and the party telling you they now own your note are, in fact, who they say they are. Best of luck.

Following the sharp plunge in the stock market, Looks like a technical sell-off, Madhusudan Kela of Reliance Capital told ET Now. Their short-term liquidity is very very good and this is a speculative unwinding in share markets, Madhusudan Kela said. Long-term investor, if you understand the company and faith in management, excellent opportunity to buy these companies; if you think the management is good and will come out stronger, then it’s a good opportunity to buy the shares, Madhusudan Kela said further.
Some point to the Ontario government’s Places to Grow intensification plan as the major culprit in skyrocketing single detached home prices. Toronto condo prices haven’t risen like house prices have, yet condo demand is usually not spoken much about. It does look like a growing population want house to live in. A growing millennial family would certainly find it tough to live in highrise condos designed for adult living.
Hi Gord. I am curious of your opinion I live in The ❤️Of Hollywood in the studio district redevelopment zone. Houses are being torn down and 4and 5 story units with roof top decks are being built In a situation like this I do have a double lot development just completed across the street and another one is getting ready to go up 2 houses over Do I wait for the improvements and then sell and will it be more money for the 2 houses on a lot or just sell now. Very confused (zillow shows an increase of about $15-20 thousand a month But I really don’t want to get caught holding the ball If something happens to the market quickly. Tear down house in the area are going for one million two hundred thou. Mine is not a tear down But it’s land value here in this area
Thank you Andrea, you’re welcome! Amazing, and a beautfiul area to live. I’d like to drill down into all the LA communities. Incredible that your home appreciated that much over 2 years. Could you get a quote on the rental income upgrade and compare ROI? Are there local restrictions? I think selling is the right move for most, even if you don’t have an idea of where to move to right now. I guess it depends on your financial status and whether you need your jobs and whether you can take a sabbatical. If you hold on for the time it takes to the convert the garage, you could earn another 100k? The demand for rentals is expected to persist. A lot of buyers will like that separate living space even if they don’t rent it out. Are the rentals you could live with reasonably priced in your area of South Bay or will you have to do the long commute?
In March 2017, William Poole, a senior fellow at the Cato Institute, warned of another subprime crisis. He warned that 35 percent of Fannie Mae's loans required mortgage insurance. That's about the level in 2006. In some ways, these loans are worse. Fannie and Freddie lowered their definition of subprime from 660 to 620. The banks are no longer calling borrowers with scores between 620 and 660 subprime. Poole was the head of the Federal Reserve Bank of Kansas who warned of the subprime crisis in 2005.

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The New York Times then noted, "Automatic computerized traders on the stock market shut down as they detected the sharp rise in buying and selling".[25] As computerized high-frequency traders exited the stock market, the resulting lack of liquidity "caused shares of some prominent companies like Procter & Gamble and Accenture to trade down as low as a penny or as high as $100,000".[25] These extreme prices also resulted from "market internalizers",[44][45][46] firms that usually trade with customer orders from their own inventory instead of sending those orders to exchanges, "routing 'most, if not all,' retail orders to the public markets—a flood of unusual selling pressure that sucked up more dwindling liquidity".[26]
"Dollar dominated the last 24 hours as the rupee collapsed to a fresh all-time low on spot. Policymakers tried everything, monetary intervention, and verbal steroids and even tried to circulate rumours about an "oil window". Nothing worked," said a Kotak Securities report. "The RBI added fuel to fire by denying any attempts to introduce special dollar window for the oil marketing companies." Moreover, rising Italian credit spreads whacked the euro, further pressuring the rupee.
i would completely disagree with you on the lending to people who should not have gotten loans part. I was a person who got a loan during that time. I made all my payments, but it was a stated income loan with almost no verification of income. I basically said I want to buy a house for this much and they said okay. Things are so much different now.
For a few years now, the reason for fast rising home prices have been blamed on tight inventory. After seeing what has happened in Toronto, I’m starting to question these claims of tight inventory in almost all major housing markets (US and globally). In Toronto, within two weeks, they went from having very low inventory to having a 50% increase. Where did all of their extra inventory come from? Could the same happen to other major cities as well? It’s possible that there are low inventory in so many places due to aggressive investor speculation, which is then causing locals to panic buy. Very similar to the irrational exuberance happening before the housing crash 10 years ago. Something can trigger these property investors to sell all at the same time, and cause buyers to pull back, similar to what’s happening in Toronto. Another housing crash is possible, and it doesn’t have to be caused by bad loans like last time.
Hi Sadaf, Thanks and as you saw, the economy is fairly strong so towns well outside the GTA might be the best bet for a 2 year time frame. Check out Orillia. This is a town that never took off which is a shame because it’s right on the highway and Lake Couchiching, close to cottage country, and prices are low. They’ve remodeled the town park waterfront and it still has a nice small town feel. Here’s an example:https://www.royallepage.ca/en/property/ontario/orillia/120-dunlop-street/7142115/mls30615008/ of a house near the town. $300k is about as low as you’ll get. The Orillia housing market could take off as “stress tested out” homebuyers get desperate for an affordable home to buy further out from the GTA.
Various studies have supported that position. Index Fund Advisors, for instance, noted that in the 20 years from 1994 through 2013, the S&P 500 averaged an annual return of 9.2 percent, enough to turn a $10,000 initial investment into $58,352. But any investor who missed the 10 days with the biggest gains would see their average return fall to 5.5 percent and their final total fall to $29,121. Those who engage in market timing may be out of the market after downturns, missing some of the best days while waiting for a recovery to be clearly under way.
Bush came into office just as the terrorists mounted their attack. Clinton was the President previously. I think Bush was stunned at the attack just as he was sitting down in the Oval Office. Are you suggesting they attacked because of what they thought Bush might do in future? Half of the debt came with Obama so why is he innocent of all this? Why couldn’t the trillions dished out be tracked? Wouldn’t it have been better spent on badly needed infrastructure spending? Joe, I’m not sure you have a good argument here, but thanks for contributing.
The portfolio I am testing in this study purchases 2-month 0.5 delta puts on the S&P 500 Composite Index (approximately 30 percent out of the money, in the case of a 40 percent implied volatility) at the start of each strategy period at an assumed 40 percent volatility level…. After every month, the 2-month put options position is rolled (the existing options are sold and new 2-month puts are purchased, which resets the position every month)… Each month the portfolio spends one half of one percent on puts, and the remaining 99.5 percent stays invested in the S&P index.
Without question, Warren Buffett and the rest of Berkshire Hathaway's (NYSE:BRK-A) (NYSE:BRK-B) investment team incorporate many different metrics when evaluating prospective companies to acquire and stocks to buy. However, Buffett himself has mentioned one specific metric as the best indicator of stock valuations, and it has appropriately been nicknamed the "Buffett Indicator" in the investing community. Here's what the Buffett Indicator is, and why it may be signaling that the stock market is a bit overheated.

In a sense, it's understandable why panic occurs. In fact, one key ingredient for crashes is often panicked investors. First off, there is typically something big and scary associated with a crash. Yet, it's often temporary. It's important to remember that the markets have endured world wars, nuclear weapons, disease epidemics, inflation spikes, mass unemployment and presidential assassinations and in each case global markets have generally come back to make new highs.
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