The people who survive $20 or lower oil are the ones who manage themselves accordingly during $120 oil. There are some people whose greatest risk is themselves.This quote is hidden because you are ignoring this member. Show Quote
The people who survive $20 or lower oil are the ones who manage themselves accordingly during $120 oil. There are some people whose greatest risk is themselves.This quote is hidden because you are ignoring this member. Show Quote
I knew that solid gold floor was a bad idea.
I think people MASSIVELY overestimate the windfall 120 dollar oil would bring them.
Originally posted by Thales of Miletus
If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
Originally posted by Toma
fact.This quote is hidden because you are ignoring this member. Show Quote
They always have.This quote is hidden because you are ignoring this member. Show Quote
I'm a bit confused by this thread. OP sells land to hold cash and rent...isn't that NOT something one would want to do when inflation is going up, unless you plan on investing that cash to hopefully offset the inflation?
I actually went the other way, we just bought 4 acres of land, I think the price was fair and wasn't inflated like home prices are, and I think it's safer to hold onto that asset then to have a ton of cash sitting around during an inflation push, no?
Seems like not everyone agrees on what's going to happen in the future.
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when people say they are worried about inflation, often what they mean is that they are worried about CB responses to inflation (ie higher rates)This quote is hidden because you are ignoring this member. Show Quote
Ah makes sense then. I was fortunate enough to borrow money for my first home from family so never had a mortgage, and my new place I will be building on my acreage will require me to dip my town into HELOC and eventually a mortgage, so guess I will join normal folks and care about higher rates as well, unless I win the lotteryThis quote is hidden because you are ignoring this member. Show Quote
Seems like something we should be arguing about!This quote is hidden because you are ignoring this member. Show Quote
Ultracrepidarian
No it should not, you peenor licker.This quote is hidden because you are ignoring this member. Show Quote
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I've been told that gov'ts can't raise rates because of all the debt they took on.This quote is hidden because you are ignoring this member. Show Quote
If you hear something in regards to government or monetary policy that seems to make sense, then you misunderstood.
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It's not that they cannot raise rates, it's if they do, we have a lot bigger problems than the values of our homes.
Wouldn't that still mean its better to buy back into the market now when rates are lower? If inflation spikes up and CB raises rates so mortgages are at 3% then you'd lose if you are sitting on the side with cash, no?This quote is hidden because you are ignoring this member. Show Quote
There is this misconception that gov'ts have a choice in the matter.This quote is hidden because you are ignoring this member. Show Quote
Four words: "Arm's length central banks"
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Check your mortgage agreement.This quote is hidden because you are ignoring this member. Show Quote
Note how one-sided it is. Like, you have to pay on time and shit like that. How annoying.
Meanwhile, note how there are no conditions like
"Bank cannot call in the loan"
"Bank cannot refinance the loan"
"Bank cannot renegotiate the terms of the loan"
I guess I sound like a nutter right? Except I know someone whose property loan got called last year. So, um, enjoy those rates.
.
Last edited by KRyn; 03-11-2022 at 10:46 AM.
Oh, I agree, they are independent. It's still not an easy decision to raise rates to control inflation when you know the impacts it could have on both government and general population.This quote is hidden because you are ignoring this member. Show Quote
At the same time we cannot say that politicians do not have influence over them. I mean they appoint the governors of the banks.
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Haha, I love Garth. Just haven't kept up on his blog in recent years. I really need to go back to that.This quote is hidden because you are ignoring this member. Show Quote
The alternative to not raising rates is currency depreciation, which is even worse because it results in a breakdown of trade.This quote is hidden because you are ignoring this member. Show Quote
There seems to be this overriding notion by very ill-informed people that there are no consequences to not raising rates.
Last edited by suntan; 05-03-2021 at 11:03 AM.
OP's strategy has its risks. Calgary real estate is actually very reasonable relative to incomes. Assume conservatively that a couple makes $100K gross between them. Average house is only 5X that. There's probably a bigger risk of prices steadily increasing vs housing crash. Very different from Van/TO situations. Personally I think we live in a location where renting vs buying is fairly balanced and you should do whatever makes sense for your personal situation rather than strictly looking at the financials which are fairly balanced.