Re:Canada to ban foreigners from buying homes
by nemo44x on Thursday April 07, 2022 @05:38PM
(#30950651)
Why would you pay cash? I made a cash offer on mine but still took out a loan since interest rates are so low.
Homes are priced based on what people who want to live in a place are willing to pay per month. The interest rate, property tax rate, and home price determine that. As rates go down prices go up.
Re:Canada to ban foreigners from buying homes
by macspoofing on Friday April 08, 2022 @08:27AM
(#30956037)
>Why would you pay cash? I made a cash offer on mine but still took out a loan since interest rates are so low.
That was a response to your statement that 'people have the money'. The larger point is that just because people are buying houses doesn't mean that things are healthy, case in point: 2007/2008 housing crash, which was preceded by a housing bubble and led to a lot of misery.
Re:Canada to ban foreigners from buying homes
by nemo44x on Friday April 08, 2022 @11:14AM
(#30958149)
I don't think it was really a bubble if you look back on it. Yes, some people were exposed (flippers and people that borrowed WAY too much) but anyone that was just buying a property to live in was fine, mainly. If you look at prices from then VS now, they have more than doubled for example. So was it a bubble? Anyone who bought a house at the top then and is still in it is doing just fine.
Yes ... Back in 2007, people bought homes as well - so everything was OK - rite?
By the way, people aren't paying cash for houses.