Home foreclosures skyrocket in Kelowna

Re: Home foreclosures skyrocket in Kelowna

Postby Static » Feb 15th, 2012, 6:09 pm

Home prices will not grow by 6% annually, it is mathematically impossible. It is not hard to average 10% annually in the stock markets.
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Re: Home foreclosures skyrocket in Kelowna

Postby Captain Awesome » Feb 15th, 2012, 6:26 pm

36Drew wrote:I'm investing more money right now by not wasting it on a mortgage to service an overpriced house. Thank you.

That works too.
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Re: Home foreclosures skyrocket in Kelowna

Postby 10Sne1 » Feb 15th, 2012, 6:37 pm

Did anyone consider the type/purpose of the properties that are being foreclosed on? Could it be vacation/recreational properties that nobody wants to pay for and can't sell?
When the market/times get tough, the first things that gets cut is the "extras" and the frivolous stuff. (Just like the motorcycles, snow machines, the time shares, the season's pass's, the boat/moorage.........etc).
I don't see any correlation that shows what type of property is being foreclosed on. Please enlighten me, if you can.
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Re: Home foreclosures skyrocket in Kelowna

Postby Jonrox » Feb 15th, 2012, 6:48 pm

From an investment perspective this debate will always rage. However, I take a different perspective on owning vs renting:

Renting = a place to live
Owning = a home
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Re: Home foreclosures skyrocket in Kelowna

Postby d_bengert » Feb 15th, 2012, 6:54 pm

Veovis wrote:Bubble this bubble that blah blah blah sillyness. If you are looking at real estate for the only purpose as an investment that can matter.

If you are looking to buy something as a long term place to live and call home you have only one question to really ask..."Can I realistically afford this"

If the answer is no you move on, if the answer is yes you buy a home and then PAY FOR IT.

As to the whole "renting is cheaper", well with very short term views it can be called that, but over a lifetime it's sillyness. Lets start at today.

A 20 year old is going to rent an apartment today and will live to be 80 years old. 60 years. Well he has an amazing landlord who sets a 60 year lease at $950 a month. His total costs to rent - $684,000.00. (keep in mind I ignored all inflation and the fact he may need a larger place someday...and 950 for 60 years wow, this is a great deal.)

The same person buys a house with no money down at 4% interest for 25 years. (hey thats higher than now and renters got the inflation break) Well with 450,000.00 purchase price, $0.00 down, 4% interest, and bi-weekly payments the effective monthly payment over 25 years will be around $2,090.00, or a total cost of $627,000.00.

If we assume his house is worthless after he turns 80, he still manages to save $57,000.00. However that isn't likely so lets assume his house is worth 25% less due to being in a "bubble" for 60 years. He's 80 years old, has spent $57,000 less in his life on housing, or even reinvested back into his home, but still has something he can sell for $337,500.00.

All in - he can rent and have nothing, or he can plan longer term and have $337,500.00. (though more likely 500-650,000 at that point)

can you point me to a 20 year old...Nah... Point to anybody in kelowna's job market who can really afford $ 2000.00 a month...now at your 4%... Tell me what happens to that $2000.00 you speak of when that 4% turns to even 6% .... Your comment was an interesting read...I needed a laugh
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Re: Home foreclosures skyrocket in Kelowna

Postby Veovis » Feb 15th, 2012, 8:12 pm

The good laugh is the attitude you carry, the idea that since I a person doesn't want to sacrifice anything to have a home it's a bad idea. The I can't afford to give up a $150 bar tab twice a week group, or my season tickets, or the 3 seadoos I bought because houses are a bad investment.

And I can point at myself.

Something else I think people forget is. A mortgage payment is set on a 25 year amort schedule. You don't have to abide by that, you can pay extra, refinance the rates, and be aggresive at minimal costs. One good change in my rate left me very tight for cash for a good 9-10 months, but after the dust cleared with the terms I came out with less in my pocket and YEARS less on the mort with $0.00 to the payment.

Other people take that chance to get a "Home equity loan" and buy *bleep*.

Most people are in the financial problems they have through thier choices instead of the freedom they could have.
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Re: Home foreclosures skyrocket in Kelowna

Postby Cooljoe » Feb 15th, 2012, 8:50 pm

I have been a homeowner now for 14 years, in the same home. Was it easy to buy even back then when average home prices were over half what they are now, no. We had renters in the basement for 7 years helping us make do, owned old vehicles that had no payments, didn't go on vacation at all and were very tight on the budget. It was the best move we ever made, hands down. We are now getting ready to build a new house that has more room and is more of a "dream" house for us, because of the equity we have where we are now. If we had rented during that time I just can't see us being in this position now at all. It really interests me how people are now thinking it is better to rent tather than buy real estate. My parents and Grandparents all grew up knowing that you buy a house and own it. In the 80's I even remember us losing our house and having to rent for a time when interest rates were up in the 20% range. But even after going thru that my parents will tell you that owning a home is better than renting.
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Re: Home foreclosures skyrocket in Kelowna

Postby newandimproved » Feb 15th, 2012, 9:04 pm

Here is the deal.

What you did, your brother, your aunt, or your buddy did 5, 10, 15 years ago for purchasing a house; Unfortunately, that logic does not work anymore. Why? Debt Load VS Income has swayed way off-balance.

There is a reason for cheap Interest Rates and Loans. In my humble opinion, people usually only believe what they are told (to a point), and rarely do their own due diligence. This is especially true with the argument of Renting Vs Owning. Personal ideologies usually come up before figures.

Considering the OP's thread topic, I would say we've strayed a bit, but this is a good topic regardless.

There is a hard mentality of generations past, that 'owning' a home (read as; having a mortgage) is a right. I urge you all to take a step back and realize that there is certainly a comfort in owning, but a relief in not having a locked in commitment.
Too preachy? Perhaps. Everyone has their stand on issues.

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Re: Home foreclosures skyrocket in Kelowna

Postby Veovis » Feb 15th, 2012, 9:27 pm

Ther eis an argument for that, and I won't argue.

However, anouther vie won it is a way for people to invest in their future.

Just like if people took the difference and invested it with good results...except, they don't.

Much like all the pension plans that exist out there for teachers, nurses etc. If you could take the same contributions made by employer and employee and invest wisely you would have an amazing balance at retirement and keep that balance for kids when you die, but in a pension you don't. When givin the choice to improve through commitment and sacrifice, people dont on their simple own. So yes the old model stil does work for the mass of society.

1% of renters may save the extra money, but 80%+ of home owners make their payments and have some base of financial stability in the future. On 1000 people thats 8, vs 800 plus.

It isn't trely a "can't" situation, it's a position that givin spend now or save later 99% of people spend now. By spending it on a home at least someday they have something.

Look realistically at the people renting these days. Have they somehow gotten rich? Why not.
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Re: Home foreclosures skyrocket in Kelowna

Postby Thinktank » Feb 15th, 2012, 9:45 pm

1 - Owning is much better than renting.

2 - Buying back in 2003 was better than buying now.

3 - buying in the 1970s was best of all.

4- Renting is better than being foreclosed on (175 foreclosures in Okanagan last year)

5- People who save and don't buy stupid things are smarted than people who livge like kings.

6- Everything is different for different people. Some like signing up for a lifetime
of debt. Otheres don't.

7- It was much better to rent in Florida, Nevada and arizona in 2008 than to buy.

8- No one knows the future. So no one knows what is best NOW.


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Re: Home foreclosures skyrocket in Kelowna

Postby fvkasm2x » Feb 15th, 2012, 9:51 pm

Scadam wrote:You guys must know some seriously clever and disciplined renters. I don't know anyone who rents by choice, and the ones who do rent can't afford to buy, can't buy because their credit is shot, or aren't responsible enough to stick to a budget. Usually some combination of all three.

I rent. We've considered buying for the last 4 years. We can afford to buy, but choose not to because of the market and the economy.

I guess I am responsible and smart! Sweet
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Re: Home foreclosures skyrocket in Kelowna

Postby mott.hoople » Feb 15th, 2012, 9:57 pm

Foreclosures are only going to rise over the next 8-12 months. Anything that was bought in 2007/2008 is now coming up for renewal with the banks and if there was only a 5% down at time of purchase they are in a negative equity position. Just reality..

I've owned - I've rented - I'll stay with the rental program for the rest of my life. Fixed costs - plenty of freedom to travel - can move anywhere as the job markets change. Flexibility is comforting - the 25 year jobs, heck the 5 year jobs are not around anymore nor have been in years.

And at the end of the day...you will never see a U-Haul following a Hearse.
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Re: Home foreclosures skyrocket in Kelowna

Postby dirtrider » Feb 15th, 2012, 10:39 pm

amourus wrote:If I had spent the last six years proclaiming that the "bubble" was about to burst, I'd be way too embarrassed to highlight my ignorance. Bubbles pop, and usually before anyone has noticed that it's a bubble.

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Re: Home foreclosures skyrocket in Kelowna

Postby AJB_78 » Feb 15th, 2012, 11:14 pm

Kelowna_Born wrote:Buying my first home on Friday $295,000
I have $35,000 down payment. (saved from living with my parents, 23 years old)

Mortage is going to be $260,000 @ 2.99% Payments $1264.00 per month
$172.00 per month for Taxes, $55.00 Fire insurance.
Cable, Internet, phone $100
Gas $60
Elec and utilities $150.00

Total without food, vehicle, fuel $1801.00 Per Month wich I will split with my Wife $900.00 each

You can work at MacDonald's and still afford this.
The house is 1200SQ with a huge yard close to springfield/superstore area.

OK Kelowna Born - its pretty clear you're a realtor. Sorry to say, but the BS you guys spin to your HGTV-loving clients aint washing anymore. You can't pickup a paper these days without a news story on the impending house price drops. OMREB and your other cowboy friends can only try and spin the real numbers for so long.

And as for your bargain $1801 per month all-in place to buy. Well, i'm currently renting a 2 bed lakeview apartment in one of the best buildings in Kelowna, including all those utilities, for less than $1801. I pay no property taxes, my landlord covers all the repairs, and when Kelowna's housing market declines by another 50%, I'll be flexible enough to swoop in and bag a bargain. Now explain to me why anyone in their right might would take on that house you're trying to sell?
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Re: Home foreclosures skyrocket in Kelowna

Postby EdCase » Feb 15th, 2012, 11:32 pm

Well this is Wally's legacy from his unbridled development focus during his last tenure as Mayor. Never any effort at serious long term economic development, just "Build, baby, build!" it's poetic justice that he's back in office to oversee his own mess; it will be interesting to see just how he moves Kelowna forward!
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