Recession just around the corner?

[X-Treme]

Whats an internet hero ?

Apparently, you and I are. (winkie face)

 

[eagle eye]

People that can't let things go and get back on topic, like we all did......2 pages ago.

Anyways the Dow hit a all time high today kinda wierd how the markets stretching so far. Good for me as being in stocks is risky at this point in the game but the risk reward can be huge. DVG trended up to .315 today and SEV hit 1.04 early on with huge volumes. Anyone here play stocks?

 

[pfi572]

Yes and should have sold 4 months ago.
Was so close but said nope and paying the price.
Down to original investment as had a mover that doubled but easy come easy go . Lol
Might buy more as a strong little company with good cash but will see. Lol

 

[crazy_wheeler]

Stocks in Qrill may be something to look at. Qrill the next super food or essential fish oil


Sent from my iPad using Tapatalk

 

[LennyR]

A little bit age dependent, But , investment wise, an alternative to stocks, IMO far safer, far less labor intensive and daily intrusive, Buy real estate especially in Alberta with one of two plans. One , long range say 20 years if you're age allows , get the maximum mortgage allowed minimum down and let the rental income cover the accelerated payments and in usually less than 20 years the balance will be 0. This is the easiest least work, be very fussy with tenant choice and keep the property single family for less problems and keep,the rent 10 percent or so above the payment and hopefully a little bit below the competition , keeps a good tenant from leaving cause of cost. Some impact on your time, but minimal if your interview process is sharp. Option to leverage another property by equity takeout will be market dependent, but certainly consider that when appropriate, and again and again if you are inclined.
second, mufti family. Same minimum down, but with a mind to cause a considerable excess of income over payment each month to enjoy that surplus however you choose. Far more labor and time needed, can be very frustrating with the normal tenant issues plus exacerbated by conflict between tenants over pets, parking, personal, etc . But, very possible to create large portions of cash over debt per month. This method is more like playing with stocks, as multi family rental,demand is very volatile and so dependent on the resource and infrastructure construction world.
But long term , if you pay attention the equity you can accrue, even considering normal upkeep and maintenance is considerable.
Lots of different methods or ways to deal with the equity later in life, with the first scenario you can dispose of those properties all at once ,kinda rough tax wise, or wait till retirement or maybe a few years when you want to allow your income to drop and sell one at a time, minimizing tax, or dispose of them individually after retirement when your income is less .
With most multi family I believe most of those type properties won't be conducive because of the normal tendency for tenants to totally wreck $hit, to keep long term. Probably wiser to enjoy the excess monthly income , while keeping a sharp eye on the rental market , and shed those type of properties before the inevitable huge maintenance bills start showing up. If you're a handyman who enjoys that type of work, all the better.
Unless you're gonna go into this type of program huge, I recommend managing these properties yourself, not through an agency, especially the single family, your investment will be far safer long term. The multi family , probably look shorter term investment probably conducive to a management company for tenant prospecting.
Just ideas, not for everybody.

 

[DRD]

Is now the time to buy property in Ab? It's got to have a major correction as it's getting out of reach of many people.

 

[LennyR]

Is now the time to buy property in Ab? It's got to have a major correction as it's getting out of reach of many people.

Depends what your goal is . If you have a long term plan, the normal peaks and valleys in the market won't be a big factor, you will gain substantial equity over time, if your goal,is short term ownership or flipping, I suggest your window in Alberta is 3 to 4 years before another correction or more likely static market exists.
When I was a kid I remember my folks talking about how these prices are crazy and the real estate is gonna go right down the toilet soon cause no way these prices are sustainable. They bought the house they wher talking about for $6500 , today it's worth $ 275 ish. They shoulda bought 5 of them over the years.
Yiud have to be quite the pessimist or rain cloud , and I imagine there are some, to believe that with history we know real estate takes ups and downs, peaks and valleys, even the huge interest rates in the 80's, but reality is they've steadily increased all the while.
So, Depends on your plan.

 

[LennyR]

Holy, My typing fingers are sore ! Lol.

 

[DRD]

I dunno, when I see bare 1/4's selling for 500K there has to be a time of reckoning sooner or later. We pay now more in tax than food and shelter combined which probably wasn't the case 30yrs ago.





Numbers from the south though.

 

[LennyR]

I disagree, Bigger numbers now but the ratio between normal expenses, essentials, taxes, pleasures or treats compared to income ,I suggest is pretty similar. It's human nature to think that our own situation is as bad as anyone's ever had it.
Makes an easy excuse for our weaknesses or failures, Someone else's fault.

 

[eagle eye]

Do you mind saying what your in? Pfi572

 

[eagle eye]

I'll only throw my opinion out on housing not advice but imo anyone buying right now when the hige housing bubble exists at a pretty much all time high prices is going to get wrecked if this market stops backpedaling. What do you think is going to happen in a recession type situation with all the 50 yr mortgages and PPl buying 500k houses when they can't afford to pay them anymore? Guys like me are going to scoop in and buy them for pennies on the dollar. Imo as a primary residence buy what you want and can afford your going to be there a long time but as a investment i think it's the worst time to buy a house personally. Think 08 and prior prices they may never go that low but it's not unreal to think they will drop again.

 

[Bogger]

I blame Lenny.....

I disagree, Bigger numbers now but the ratio between normal expenses, essentials, taxes, pleasures or treats compared to income ,I suggest is pretty similar. It's human nature to think that our own situation is as bad as anyone's ever had it.
Makes an easy excuse for our weaknesses or failures, Someone else's fault.

 

[LennyR]

I'll only throw my opinion out on housing not advice but imo anyone buying right now when the hige housing bubble exists at a pretty much all time high prices is going to get wrecked if this market stops backpedaling. What do you think is going to happen in a recession type situation with all the 50 yr mortgages and PPl buying 500k houses when they can't afford to pay them anymore? Guys like me are going to scoop in and buy them for pennies on the dollar. Imo as a primary residence buy what you want and can afford your going to be there a long time but as a investment i think it's the worst time to buy a house personally. Think 08 and prior prices they may never go that low but it's not unreal to think they will drop again.

How many houses do you presently own ? You know, that you've swooped in and bought for pennies on the dollar.
Additionally, Are you aware of any situations in the last 100 yrs or so that the stock market prices or values did the unthinkable and dropped thru the floor leaving even some of the most seasoned and knowledgable investors holding a lot of worthless paper ?

 

[sc800]

I'll only throw my opinion out on housing not advice but imo anyone buying right now when the hige housing bubble exists at a pretty much all time high prices is going to get wrecked if this market stops backpedaling. What do you think is going to happen in a recession type situation with all the 50 yr mortgages and PPl buying 500k houses when they can't afford to pay them anymore? Guys like me are going to scoop in and buy them for pennies on the dollar. Imo as a primary residence buy what you want and can afford your going to be there a long time but as a investment i think it's the worst time to buy a house personally. Think 08 and prior prices they may never go that low but it's not unreal to think they will drop again.

50 year mortgages?? No such thing in Canada. Used be 40 max then 35, 30 and now gov't insured mortgages are all back to max 25 years. Convention deals you can still get 30 years. I own lots of stocks and still a few homes and have had rentals and flips so I am diversified. It is still a good time to buy in Alberta in certain areas of the province as it is still much a buyer's market out there.

 

[fidorama]

One of my buddies recently lost his job. Government cutbacks on infrastructure. they were budgeting on the high price of oil to get the work done. now some of this work is getting put on hold.

 

[blastoff]

i was dealing with guy in Battleford on Thursday and he said it has slowed down in the housing market, but may be just the time of year?? I can see a little cringing going on but how bad not to sure.

 

[deaner]

I agree on housing. I think it is a really bad investment for the most part right now. In the past there has been some good money to be made but right now we are sitting on a bubble. Analysts around the world are saying this right now. Sure you might be able to get a good rate right now and put a renter in a place. Probably going to see some great positive cash flow even with high housing prices. What happens when the economy slows down and your renter cant afford 1800 a month in rent? What happens when you go to renew your mortgage and interest rates have gone back up to normal levels? I think we are in for a major correction. Not sure what to look at right now. Kind of scary times. The US has been the backbone of the world economy and they have created a house of cards that is destined to tumble at some point. But there is no safe alternative. China isnt in much better of shape from what I hear. Europe is weak. It says something when guys like Buffet and Soros are sitting billions in cash on the sidelines.

 

[gates559]

I feel its a great time to buy. Housing will go much higher. We are in a small pull back right now since builders are scared of the price of oil dropping. As soon as the scare passes we will be back higher than ever. Alberta housing has a long way up to go before we hit BC housing prices. Besides that the money printing cant stop so inflating asset prices is one way they will help the masses. Stock market to go much higher.

I dont think AB will stop the flow of oil when the rest of the world is in a fight to keep selling. They just fracked the crap out of Ab, should be lots of petro products to sell at a lower price with out problem.

 

[DRD]

How can it go much higher? It's outpacing the income of most Albertans. If you drop the lower mainland out of BC average house price it's a different story.