Housing Crisis

[VisionQuest]

Mills Act FTW!

Mills Act Property Tax Abatement Program

[Densetsu]

As far as the Canadian market goes, from what I've seen in the Albertan market, we're setting ourselves up for a repeat of what's happening in the US.

When I finished my degree in late 2003, I could have had a middle-class, three-bedroom house in a quiet Edmonton neighborhood for $185,000. Just over four years later, you'll have trouble finding something like that for under $400,000. People say that this is just Edmonton "catching up to the housing markets of Vancouver and Toronto", but if they're not calling this a bubble, they're delusional.

This big boom was caused by the explosion of available work in the Alberta oilsands. Trouble is, everyone is basing their financial plans for the next 30 years on the current state of the economy. Myself, I think that's idiotic.

I know several people in their early 20's, working manual labour, who've bought $500,000+ houses. My best friend drives a forklift for a living and has a $400,000 mortgage. And you know how all these people are paying for their mortgages? Overtime. My friend only makes $22/hr, so he struggles financially if he doesn't work at least 60 hours a week.

So, one little rock of the boat... an anti-pollution bill passed here or a change in the price of oil there... and these paycheque-to-paycheque, OT-eating people are going to be SOL when it comes to mortgage payments. Yes, we have a good economy now, but in two years will it be the same? Five? Ten?

I'm just saying screw all this and I'm saving as much as I can for a downpayment when this gigantic bubble bursts. I don't want to get into a housing market whose prices just more than doubled.

[Bryan]

Originally Posted by Steve L

What does Supertramp have to do with this?

I was wondering when someone would get the reference!

[Flagg3139]

Originally Posted by PSULion22

That sucks! It's kind of like down here in West Palm Beach. Two years ago, during hurricane season, Lake Okeechobee, which is the main water source for South Florida, overflowed. So, last year, the County drained part of the lake to accomodate the increased rain. Well, we didn't get any major hurricanes, and therefore no surplus rain. The lake level has been low since, and we have been on water restrictions. Last month, West Palm Beach increased its water rates to compensate for the lost revenue from the water restrictions! WTF?!?!?! If you use too much water, you get fined, but if you don't you pay more since you didn't use enough water!

It seems to me that the city and county governments here in west palm can write a "how to" manual on corruption and stupidity.

[hammbone]

Originally Posted by PSULion22

That sucks! It's kind of like down here in West Palm Beach. Two years ago, during hurricane season, Lake Okeechobee, which is the main water source for South Florida, overflowed. So, last year, the County drained part of the lake to accomodate the increased rain. Well, we didn't get any major hurricanes, and therefore no surplus rain. The lake level has been low since, and we have been on water restrictions. Last month, West Palm Beach increased its water rates to compensate for the lost revenue from the water restrictions! WTF?!?!?! If you use too much water, you get fined, but if you don't you pay more since you didn't use enough water!

That's happening here too and probably all over the place but just in different ways.

The gubment preaches go green and all that and promotes conservation of water and energy. But when this actually happens, they see a huge drop in money coming in and so they up the usage fees.

It's similar to anti-smoking campaigns. The gubment promotes non-smoking and tells you it's really bad, but if everyone actually quit smoking, where would all that tax revenue come from? Probably people like me.

Stupid gubment.

[leaferguy]

The crisis is so bad that I don't even have a house and I can't afford my mortgage

[PSULion22]

Originally Posted by hammbone

That's happening here too and probably all over the place but just in different ways.

The gubment preaches go green and all that and promotes conservation of water and energy. But when this actually happens, they see a huge drop in money coming in and so they up the usage fees.

It's similar to anti-smoking campaigns. The gubment promotes non-smoking and tells you it's really bad, but if everyone actually quit smoking, where would all that tax revenue come from? Probably people like me.

Stupid gubment.

I'm sure it is going on everywhere. But, in most cases, the gubment doesn't force you to go green or stop smoking and then charge you more for doing so. Promoting water and energy conservation isn't the same thing as mandatory water restrictions.

[Holy the Goalie]

Originally Posted by leaferguy

The crisis is so bad that I don't even have a house and I can't afford my mortgage

Yeah, me too.

I'm looking to get back into my field, which means I'll be making $8,000 less at a job that requires a 4 year degree than I'm currently making at a job that requires a HS diploma.

It'll be a long, LONG time before I can even THINK about buying a home.

[TomYoung2424]

Originally Posted by Holy the Goalie

Yeah, me too.

I'm looking to get back into my field, which means I'll be making $8,000 less at a job that requires a 4 year degree than I'm currently making at a job that requires a HS diploma.

It'll be a long, LONG time before I can even THINK about buying a home.

Holy, buy mine!!!

The wife and I are looking to move but selling in our neighborhood now would be stupid since there are 2 foreclosures going for ~ 120 to 130 and we would need to get ~160 to break even.

[Holy the Goalie]

Originally Posted by TomYoung2424

Holy, buy mine!!!

The wife and I are looking to move but selling in our neighborhood now would be stupid since there are 2 foreclosures going for ~ 120 to 130 and we would need to get ~160 to break even.

Hmm, a fellow CSU alum, judging by your avatar? At least I know I can trust you. Believe me, I'd love to; talk to me in 5 years when I can get some cash saved up for a down payment, and a better job.

Just out of curiousity, whereabouts do you live? Generally speaking, of course. I'm down on Boardwalk and Troutman.

[gunleather]

any one dumb enuff to buy a house with an ARM or Interest Only loan gets what the get.

Any bank dumb enuff to lend to someone that doesn't qualify (sub prime) deserves what they get.

[NHLAlum Target]

Originally Posted by gunleather

any one dumb enuff to buy a house with an ARM or Interest Only loan gets what the get.

An interest only loan is not actually a bad idea in certain instances. Unfortunately, it would appear that most home buyers are not smart enough to know whether or not their situation falls into the "not a bad idea" scenario.

Originally Posted by gunleather

Any bank dumb enuff to lend to someone that doesn't qualify (sub prime) deserves what they get.

So, so true.

[TomYoung2424]

Originally Posted by Holy the Goalie

Hmm, a fellow CSU alum, judging by your avatar? At least I know I can trust you. Believe me, I'd love to; talk to me in 5 years when I can get some cash saved up for a down payment, and a better job.

Just out of curiousity, whereabouts do you live? Generally speaking, of course. I'm down on Boardwalk and Troutman.

Horsetooth west of Taft Hill. In the neighborhood between the trailpark and the bling bling houses.

What did you graduate in? BS and MS in Mechanical Engineering for me

[MrMikeEMike]

I just closed Friday on the house I've been dealing on since January. It wasn't a foreclosure, rather a pre-foreclosure aka Short Sale. It was a fight and a half, but we got the house $60k less than what a house up the street with 1/2 the property sold for. Really didn't have to do anything other than paint and change the locks upon moving in, but got new appliances. Fixed at 6% with lender-paid PMI.

Do I think the government should step in and solve the problems people are having? Not really, but I also don't want to see the market get so bad because all the banks are going belly-up that when the time comes to sell the house there's no way it'll happen. Like it has been said here in this thread - If the buyer made bad decisions and financed beyond their means, regardless of what anyone told them, then too bad. Sounds harsh, but seriously, take the time and learn what you are signing. Figure out what you can afford. Our payment is less than what I was saving every month toward the down payment and what she paid in rent every month. So basically our lives shouldn't change much financially. If this monkey can figure that part out, then anyone should be able to.

[Matt The Hammer]

Mike congrats.

It's blue light special time for houses. I feel for some of these people selling their homes for such a loss... until I offer $70k less than what they are asking... ha ha

Jesus and these chumps who can't affort their $150k home with like $1000 in taxes... come on. Dude us NJ clowns have to pay close to $10k in taxes for a decent sized house.

NJ PWNS

Yet our state parks are closed because their isn't enough money in the state budget...