Ok let's compare apples to apples then. If you're living in an unpopular area and pay little in rent because of it then it goes without saying that any properties for sale in that same area will be lower in value no?Bear669 said:
Nope.
I have lost money(and so have many others) because there was NO equity at sale time.
I rent. I pay a pittance for a place I love because it is NOT in a good GTA location. I am not responsible for utilities, fees or taxes, and I have a long term lease with a tiny fixed inflation escalation.
My fund manager has made me almost 30% p.a. (average) over 25 years. I am not taking 1c out for a downpayment. (But for the ladies? you BET!)
If one sells a property and has no equity in it then they outta have their head examined. 1) they must have bought it with no money down (silly) otherwise you'd at least have THAT equity in it 2) They refinanced the property to the total value of the property which means you've (figuratively speaking) used the equity already 3) The place wasn't maintained which means the value dropped substantially 4) you sold at the worst possibly moment.....
Yes, I agree, purchasing property must be treated like an investment and if you don't maintain that investment, you'll lose. Just like any stock bond or investment certificate.
If one loses on property now, they have to be doing something wrong with purchasers getting into bidding wars over a property and sellers getting 10 20 and sometimes 50 grand over their asking price.
As for your historical references I agree, many previous models will tend to repeat themselves but you have to admit, nowhere in the modern world will property values decline and not recover for 100 yrs? Even with the recession of the early 90's it only took 4 yrs for the economy to recover and everyone STILL made/can make money on property bought then.
For eg: in 1988 starter homes were going for $79,000.00 about 1/2 hr drive from Yonge and Bloor. Now those houses are going for $500,000.00 and starter homes are averaging $249,000.00 and they are 1 1/2 to 2 hrs + drive from Yonge and Bloor.....
