1980s interest was 20%, 1990s, 8 to 9%. During those times, house prices were stable. When interest rates dropped below 5% in the 2000s, house prices quadrupled. You don't save any money with lower interest rates, it will be cancelled out with higher house prices. Let's also not forget that the capital gains tax inclusion rate was 75% in the 90s as well. Dropping it to 50% made it more attractive for investors to buy up houses as income properties, further driving up prices.
Had a great experience when you guys sold our Woodbridge condo .
Things have gotten tough out here …
1980s interest was 20%, 1990s, 8 to 9%. During those times, house prices were stable. When interest rates dropped below 5% in the 2000s, house prices quadrupled.
You don't save any money with lower interest rates, it will be cancelled out with higher house prices.
Let's also not forget that the capital gains tax inclusion rate was 75% in the 90s as well. Dropping it to 50% made it more attractive for investors to buy up houses as income properties, further driving up prices.
5% rates are the historical norm.
Getting tough out there eh. The real estate industry is responsible for that million dollar mortgage in the first place. To greedy too fast.
Still buying homes if they don't sell? 😂😂