RE:RE:RE:RE:RE:RON
Ron, the very smart Richard Russell used to say, if you can't earn a 10% real risk return on real estate (not capital gain) then it wasn't worth buying, with the exception that maybe you shouldn't speculate on your home, it has other value to live your life where you want to, the relative value of beachfront in San Diego vs. Dogpatch Smalltown (pick your hellhole - Arkansas, Texas, man everywhere has some nasty towns most people would not want to live in excepot if they can make a great income there) those relative values the market will sort out ... location, location, location.
So I agree, I live in Vancouver as well - would I buy in at today's prices supported by the greater fool purchasers being an unlimited pool, when even nosebleed rental prices don't provide landlords with much return after financing and taxes? Likely not. When mortgage rates turn up there just isn't the earning capacity for the bedrock middle class to support local real estate values. Not everybody can be an ex-pat Communist coupon clipper? People will move away.
I was in Paris last week. On the local news they were mentioning that there are over 18,000 vacant apartments in Paris - not since WW2 have they seen that. NYC - exodus. California, L.A. and San Francisco ... at least anecdotal stories of exodus to greener pastures by significant number sick of crazy expenses, crime, crowding ...
Productive real estate, real estate in markets growing with plentiful good paying jobs, different story. Select inflated markets, look out below?
You like that crazy City planning gambit about parking fees on all streets? One vote on City council by a spooked Mayor who saw any chance of reelection going down the toilet. I can't be the only one who thought, "if this is the future here, what are my options to get the hell out of here no matter how much I like it." I don't ike being used as an experiment in overpriced urban planning!
Back to regular programing about drilling, the price of gold, Ken Konkin's horoscope, the shape of the 300 Horizon grades and tonnages, screwing over Seabridge to our advantage, etc.,.
cg