Tired Of Overbuild Condo Talk

[dogcom]

I am getting sick and tired of hearing the Bank Of Canada and many others talk about the danger of overbuilding condos in Vancouver and Toronto. They talk about the speculation and the overbuilding constantly but don't stop it from continuing. They should stop the mayor in Richmond where I live or probably the mayor in Toronto from lining their pockets or whatever they get out of it and slow down approvals to the point where people have to have a good down payment or can assure everyone that they can pay for their condos. Also maybe when buying you should have to take on the property after it is built before you can sell it.

[Sherlock]

I don't see why the government should step in and stop anything? Who does the overbuilding really hurt? Just those foolish enough to get in over their heads by buying condos with 5% down on a 45k income, or investing in condos with negative cash flow and banking on appreciation. It will be an expensive lesson for them but that's what they get for being greedy.

[dogcom]

It can hurt all of us when we overbuild and people borrow to much and then bring the entire real estate market down on everyone not just the idiot speculators. As an extreme example look what happened in the US and what it has done to the whole world.

A lot of people just want a place to live and yes the market should decide what they pay but there is a need for rules as to how far the market can go, without rules chaos ensues and that is why we have laws and why we have governments.

[Chris L]

Overbuilding helps keep the cost of housing down which is good for people.

[dogcom]

Chris L I agree but it shouldn't happen because people put nothing down or can't afford to pay the day they sign up. Dianne Francis also doesn't seem to like the condo situation .http://www.huffingtonpost.ca/diane-f...b_1438892.html

[Chris L]

Chris L I agree but it shouldn't happen because people put nothing down or can't afford to pay the day they sign up. Dianne Francis also doesn't seem to like the condo situation .http://www.huffingtonpost.ca/diane-f...b_1438892.html

The foreign buyer is the margin, not the majority. We're all playing a role in inflating the RE bubble....every person who owns a home, talks about a home as a good investment, and on and on.

I don't think the government needs to step in to fix this problem. It's just a problem that we can each protect ourselves from. I did by selling my rental after 10 years of ownership. Someone else might choose to sell and rent. Another might just keep their house to live in for the next 10 years. Yeah we'll all go through some pain but we've all had a role in this too. It's not just Chinese buyers.

[dogcom]

I don't agree because of the conditions I had to meet to buy my house in 1991. Back then you couldn't go over 25 years you couldn't exceed 35 percent of your gross income and you had to have 25 percent down. These conditions should have never changed in the first place, but since they have you have to step it back over time to bring it back in line.

[financialnoob]

In all fairness, the government did modify and tighten mortgage rules twice within a 12-month period over the last few years. And when the Big 5 started offering rates below 3% for 5-year fixed mortgages, there were some "discussions" which had the banks suddenly moving the rates back up within a few weeks. I don't think they've done enough, but I think it's unfair to suggest all they've done is just talk.

Increasing the amount required for downpayment would help, as would changes to CMHC to not insure ridiculous mortgages that are 6 times a person's income. If a bank had to take that risk on itself, they would surely change their own internal conditions.

[Fain]

I am getting sick and tired of hearing the Bank Of Canada and many others talk about the danger of overbuilding condos in Vancouver and Toronto. They talk about the speculation and the overbuilding constantly but don't stop it from continuing. They should stop the mayor in Richmond where I live or probably the mayor in Toronto from lining their pockets or whatever they get out of it and slow down approvals to the point where people have to have a good down payment or can assure everyone that they can pay for their condos. Also maybe when buying you should have to take on the property after it is built before you can sell it.

I prefer a free-market. I won't want no communist controls and what i can and can't buy. Keep your hands off!

[Fain]

[QUOTE=financialnoob;134491
Increasing the amount required for downpayment would help, as would changes to CMHC to not insure ridiculous mortgages that are 6 times a person's income. If a bank had to take that risk on itself, they would surely change their own internal conditions.[/QUOTE]

$100,000 annual income can't afford a $600,000 house? why we would we do that? just let people do their own thing and concern yuorself with your own mortage/