Comments on: Book Review: Greater Fool http://blog.canadian-dream-free-at-45.com/2008/07/04/book-review-greater-fool/ Wed, 08 Feb 2012 17:31:40 +0000 hourly 1 http://wordpress.org/?v=3.1 By: Early Retirement Middle Way http://blog.canadian-dream-free-at-45.com/2008/07/04/book-review-greater-fool/comment-page-1/#comment-12575 Early Retirement Middle Way Wed, 15 Oct 2008 14:52:28 +0000 http://blog.canadian-dream-free-at-45.com/?p=462#comment-12575 I like the book. As I am not a real estate speculator, I am not in a panic with respect to my housing market prices. I have a buy a hold philosophy here too. I found his suggestion of real estate holdings amounting to 30% of portfolio interesting. After whipping out my calculator, I realized that that is where I am heading without realizing it. I just never thought about it as a percentage before. I like the book. As I am not a real estate speculator, I am not in a panic with respect to my housing market prices. I have a buy a hold philosophy here too.

I found his suggestion of real estate holdings amounting to 30% of portfolio interesting. After whipping out my calculator, I realized that that is where I am heading without realizing it. I just never thought about it as a percentage before.

]]> By: Canadian Dream http://blog.canadian-dream-free-at-45.com/2008/07/04/book-review-greater-fool/comment-page-1/#comment-6188 Canadian Dream Mon, 07 Jul 2008 12:06:19 +0000 http://blog.canadian-dream-free-at-45.com/?p=462#comment-6188 CM, Actually that is an interesting idea, but the result should be the same. In a market where price is partly a function of what people can afford prices can't go up forever. There simply won't be any market left of people that can afford to pay those high prices. I also think the prices increase is from first time buyers expecting too much. Our parents used to get a little starter home in acceptance of what they could afford. Now people are starting off with 3000 sq foot + homes and they think that should be normal. Yikes! All in all it should be an interesting ride down. Tim CM,

Actually that is an interesting idea, but the result should be the same. In a market where price is partly a function of what people can afford prices can’t go up forever. There simply won’t be any market left of people that can afford to pay those high prices.

I also think the prices increase is from first time buyers expecting too much. Our parents used to get a little starter home in acceptance of what they could afford. Now people are starting off with 3000 sq foot + homes and they think that should be normal. Yikes!

All in all it should be an interesting ride down.

Tim

]]> By: Emperor http://blog.canadian-dream-free-at-45.com/2008/07/04/book-review-greater-fool/comment-page-1/#comment-6154 Emperor Sat, 05 Jul 2008 11:30:24 +0000 http://blog.canadian-dream-free-at-45.com/?p=462#comment-6154 Home prices have certainly been going up faster that inflation in the past decades. With clever financial engineering, banks are able to squeeze the lemon even more by granting 40-year mortgages, or even "pay-interests-only" mortgages. I've heard that in the US they even had plans which would let people pay only interests partially and apply the difference to the loan principal! Previous generations were paying far less for their houses. My parents had theirs paid out in 6 months, and my wife's parents in under 10 years (they are in Europe and prices have an edge there). Two examples don't make a statistic but it's just to illustrate my point. Home prices have certainly been going up faster that inflation in the past decades. With clever financial engineering, banks are able to squeeze the lemon even more by granting 40-year mortgages, or even “pay-interests-only” mortgages. I’ve heard that in the US they even had plans which would let people pay only interests partially and apply the difference to the loan principal!

Previous generations were paying far less for their houses. My parents had theirs paid out in 6 months, and my wife’s parents in under 10 years (they are in Europe and prices have an edge there). Two examples don’t make a statistic but it’s just to illustrate my point.

]]> By: Sarlock http://blog.canadian-dream-free-at-45.com/2008/07/04/book-review-greater-fool/comment-page-1/#comment-6149 Sarlock Sat, 05 Jul 2008 01:31:49 +0000 http://blog.canadian-dream-free-at-45.com/?p=462#comment-6149 I read the book a few months ago and was impressed. It's nothing I didn't suspect before and Garth Turner's point of view just added strength to my opinion that we're in for either a long, slow price decline or a sharp market crash followed by a long period of stagnant prices. I am selling my home right now and will be renting for the next year or two while we look for a home in Vancouver. I suspect that waiting will afford me a lot of great buying opportunities from motivated sellers. The Vancouver market, above all others in Canada, is way too overheated. I read the book a few months ago and was impressed. It’s nothing I didn’t suspect before and Garth Turner’s point of view just added strength to my opinion that we’re in for either a long, slow price decline or a sharp market crash followed by a long period of stagnant prices.

I am selling my home right now and will be renting for the next year or two while we look for a home in Vancouver. I suspect that waiting will afford me a lot of great buying opportunities from motivated sellers. The Vancouver market, above all others in Canada, is way too overheated.

]]> By: Canadian Money http://blog.canadian-dream-free-at-45.com/2008/07/04/book-review-greater-fool/comment-page-1/#comment-6143 Canadian Money Fri, 04 Jul 2008 17:20:23 +0000 http://blog.canadian-dream-free-at-45.com/?p=462#comment-6143 Sounds like Garth figures that average working class wages have remained reasonable and that real estate prices went too high. Could it be that working class wages have not kept up to the true value of things? If so....would real estate prices still decline? Just stirring the pot a little! CM Sounds like Garth figures that average working class wages have remained reasonable and that real estate prices went too high.

Could it be that working class wages have not kept up to the true value of things? If so….would real estate prices still decline?

Just stirring the pot a little!

CM

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