Have Kelowna home values dropped 41%?
-
- Board Meister
- Posts: 350
- Joined: Aug 25th, 2006, 9:22 pm
Re: Have Kelowna home values dropped 41%?
Yes that is totally true. In 1999 you could have brought a brand new house on the lake for $350,000. Now you can't buy any house for $350,000. In 2001 I built a brand new house with a lake view for $200,000 but my interest rate was 7.5%. So $1500 a month mortgage payment. A $450,000 house with a 2.5% interest is $2000 a month. Of course there is some inflation in 16 years so payments are somewhat similar. A $450,000 house at 7.5% would be $3300 a month.
An extra $15,000 a year wouldn't break everyone but it would definitely break some people. I don't see the Interest rates ever going to 7.5% but you never know. Like the previous poster said that would foreclose too many people and cause the economy to collapse so I don't see them raising them that high.
An extra $15,000 a year wouldn't break everyone but it would definitely break some people. I don't see the Interest rates ever going to 7.5% but you never know. Like the previous poster said that would foreclose too many people and cause the economy to collapse so I don't see them raising them that high.
- Glacier
- The Pilgrim
- Posts: 40406
- Joined: Jul 6th, 2008, 10:41 pm
Re: Have Kelowna home values dropped 41%?
It's interesting that interest rates have gone up a couple times this year, and yet the banks are still offering 2.1% variable rates. It's just prime minus a bigger number.
"No one has the right to apologize for something they did not do, and no one has the right to accept an apology if the wrong was not done to them."
- Douglas Murray
- Douglas Murray