Interest rates

[biker]

This is the only place I come to in order not to hear that tone deaf, nasally "Valley girl" voiced, incompetent so called minister of finance, I just puked in my Tim's listening to her.....again,. FFS LOL.

I'm OK now, I had a Snickers LOL....back t the program.

I was literally thinking the same thing G. I almost barfed up my fruit loops. Her smug, condescending, aloof manner of speaking epitomizes the attitude of the entire current government.
My youngest guy just bought his first house, and it's only because he started work right out of college as a heavy equipment tech with a big company. He lived free with us for 2 years to save up enough for a down payment. Plus, while housing is way up in price where we live too, it's not as bad as the big cities.
I cant imagine how a university grad with 5 years of school debt, 2000 dollar monthly rent payments in a city and no job prospects is ever going to afford a house.

 

[Bandit723]

Plus, while housing is way up in price where we live too, it's not as bad as the big cities.

just have to add that the snake in the grass realtors have a hand in this as well

 

[biker]

just have to add that the snake in the grass realtors have a hand in this as well

You read my mind, I meant to comment on that too. Realtors absolutely perpetuate and drive the high prices. They created the idiotic "bidding" process whereby they show a house for a week, then take sealed bids, telling bidders that the only way to have a shot is to bid way above the already inflated asking price.

 

[G72Zed]

I was literally thinking the same thing G. I almost barfed up my fruit loops. Her smug, condescending, aloof manner of speaking epitomizes the attitude of the entire current government.

Yep.....and that's why she pretty much can't go anywhere in Canada without being yelled at or heckled !!!, it's a joke, same goes with Mr. JT - Trust fund tone deaf clown.

My youngest guy just bought his first house, and it's only because he started work right out of college as a heavy equipment tech with a big company. He lived free with us for 2 years to save up enough for a down payment. Plus, while housing is way up in price where we live too, it's not as bad as the big cities.
I cant imagine how a university grad with 5 years of school debt, 2000 dollar monthly rent payments in a city and no job prospects is ever going to afford a house.

I hear ya on that one, no wonder things are the way they are......both my boys are home as well.........houses and rent (if available) is through the roof!!!!

In my area, not in a city, a small 1,050 sqft bungalow built in the late 70's on a 80x150 lot is 490k, needs work!!!

Factor in 10% down (49K) plus real estate/tax/transfer/fee's. If on "there own" single, they need to make 120k gross per year (68K after tax) in order to be at the 50% range to meet the monthly mortgage payments of 2,800$. Hard to make that work for most young single individuals, I feel bad for them........

 

[Bandit723]

You read my mind, I meant to comment on that too. Realtors absolutely perpetuate and drive the high prices. They created the idiotic "bidding" process whereby they show a house for a week, then take sealed bids, telling bidders that the only way to have a shot is to bid way above the already inflated asking price.

Yeah realtors are dogs. They do not always play well even between making a sale on a property. I did put a offer on a house and the listing realtor would not even engage in talks then sold it to his investor buddy for the same price i offered. Just BS. i did figure out that freddie mac (US) had a first look program. First offer gets entertained which locked out investors and other offers. so jumped on a bid for where i am living now. 1800 square feet of livable space and added my garage. i only pay $450 a month for the mortgage plus taxes and is right off the chain of lakes where i live. i could never fathom paying $2000 a month for a place to live even my lender quoted this as well. For two grand someone is sucking money out of one.
Just my take.

 

[Francesco]

These rates are going to stick around for a while.

 

[Gary S]

Personally I hope the higher interest rates do stick around for a while. I worked hard to pay off all my debt and have not paid any interest since 2009. Since that time I collect interest on my money in the bank. For too many years, the rates were so low they didn't pay me hardly anything. Now, I get a bit of interest every month on my savings. There is a good side to higher interest rates if you handle your budget so you collect some of those higher rates instead of paying them to someone else.

 

[Francesco]

Personally I hope the higher interest rates do stick around for a while. I worked hard to pay off all my debt and have not paid any interest since 2009. Since that time I collect interest on my money in the bank. For too many years, the rates were so low they didn't pay me hardly anything. Now, I get a bit of interest every month on my savings. There is a good side to higher interest rates if you handle your budget so you collect some of those higher rates instead of paying them to someone else.

I totally agree with your point. I sold my camaro last week with the objective of placing even more cash in a higher yield CD.

 

[biker]

Personally I hope the higher interest rates do stick around for a while. I worked hard to pay off all my debt and have not paid any interest since 2009. Since that time I collect interest on my money in the bank. For too many years, the rates were so low they didn't pay me hardly anything. Now, I get a bit of interest every month on my savings. There is a good side to higher interest rates if you handle your budget so you collect some of those higher rates instead of paying them to someone else.

Yes and no..raising rates is traditionally the effective thing to do from a financial point of view, but it punishes the responsible young people who are trying hard to achieve the same goals their parents did.

The irresponsible people who respond by just buying more disposable vehicles and flat screen TVs on credit are slowing the effectiveness of a rate hike.

As older guys now, we did pay high rates at one time, but building or buying a house was not as incredibly out of reach as it is now, based on inflated costs. I was no financial wizard when I was younger and I got through with a house and no debt. Kids who are much smarter than i was cant get a bank to look at them for a mortgage.

 

[G72Zed]

X10 ^^^^ I could not agree more with this post above.