throwaway99951
How on earth do you know what I'm ignoring? I most certainly accounted for the fact that the companies could default.
>The housing market oftentimes works in cycles and changes with time. In my life I've watched the neighborhood I grew up in go from highly desirable to highly undesirable and now it's back to being desirable again. 30 year mortgage is enough time to see wild swings in technology, the economy, industry, and plenty else.
And yet, the long term real rates of return are positive (but small). You have your strategy, I have mine.
Yes, in fact I have. I lived in North Bay for many years. I have family there still. I played NOJHL hockey. I still spend 4 weeks a year on vacation (best fishing in the world!) in the North.
>If you feel that Northern Ontario is doing well then you are not in agreement with the people that live there, younger people
Not "doing well" isn't the same as "first world poverty". Sure, there are isolated First Nations reservations, like Attawapiskat, that have serious issues. It is nowhere near the norm, or in fact much worse than places like, say, the Appalachian coal regions.
But I'll concede the climate argument. Thankfully, our country has a decent safety net.
>younger people - if they have any marketable skills - move to the large cities, mostly Toronto but also in the United States as soon as they are able to.
Do they? Because I was and know many of those young people. Yes, there's movement to the cities like everywhere else on the planet; it's where the white collar work is. But many people want to stay in the North.
For what it's worth, I'm in the tech industry and moved from Northern Ontario to the city. Now I'm in PEI, another beautiful rural area that I hear people are fleeing....
Sometimes higher, sometimes lower, depending on a million variables. Does that surprise you?
Also, water is wet.
I "knew" when I bought corporate bonds paying 15% in 2008 that they would appreciate.
>house prices in a community are not as secure as you might believe
You're grabbing anecdata as evidence. I'm looking at the data. Yes, Detroit is bad. How about we look at Mountainview, too?
>Plus you're ignoring the carrying cost of a property and the transfer costs.
Real returns
Wait, so the middle class doesn't own any of these rising priced assets, thus benefitting from the price increase? I don't think that's true.
I guess that depends on what you define as "middle class". The bottom 50% of people earn 15% of all income in the US. These people are struggling. Not sure I'd consider them "middle class" though.
On the other hand, the segment from median income to $100,000 is 50% of all income earned, and that figure is rising.
As someone born and raised in Northern Ontario, I have no idea what you're talking about.
You want to know what modern poverty looks like, go to San Francisco.
You should go into debt to buy any assets that you know will appreciate at a rate greater than the interest you pay on debt incurred to finance them.
>Surely you aren't trying to label houses as appreciating assets.
Real rate of return on real estate is slightly positive in historical data.
I think you need to read through this thread. People are assigning motivations to the host: "He is sexist". Maybe he is, maybe he isn't. I'm sure he'd say that he is not, but plenty of people here are saying he is. Is it crazy to think the same thing can happen to, say, the OP?