Canadians play big role in real estate rush

[70Degrees]

[quote=masayako]Thanks to our U.S monetary policy and bail outs, the foreigners are all taking advantages of our Real Estates market. We hardworking money savers are screwed.[/quote]

Maybe I’m misreading something, but I think you are implying that foreigners (e.g., me) buying real estate in the USA is a bad thing and somehow we are screwing you.

It seems to me that for every buyer there is a seller, and I don’t know about you but whenever I’ve been a seller I’ve been very very happy when the house is sold, and really I could care less who it sold to. The foreign buyers are increasing the buyer pool and hence causing houses to sell quicker.

Every foreigner buying means an influx of cash into the local economy both from the sale (full value, not just RE fees!) AND from all the other things that go along with a house purchase. This is in contrast to a local selling one house and buying a new one where the net contribution would be much smaller.

[EconProf]

Amen to that 70degrees.
That our savers getting screwed is due to the deliberate Bernanke/Fed policy of keeping interest rates at a minimum in order to prop up the stock market and housing market. He is hurting those who play by the rules and save for their future, and apparently doesn’t care about how much it hurts the frugal and the elderly who hoped to live off their interest during retirement.
As far as Canadians and other foreigners buying here, let’s bring it on. They did not cause our bubble and bust–we did. If prices are now a bargain to them, and their currency is stronger than ours because they did not mismanage their economy, then they deserve to come here and pick up bargains.
BTW, Canadian fiscal and monetary policy for the last decade is in remarkable contrast to that of the U.S. They did not allow extreme leverage in their banking and mortgage sector, they did not oversupply their housing stock with excessive building fed by cheap loans, their budget is close to being balanced as they did not hype their economy with excessive spending. Markets reward smart policies like this, and the strength of the Canadian dollar is the result. Canadians are big factors in the Phoenix housing market, and I’m not surprised they are also buying in the Palm Springs area.

[EconProf]

Amen to that 70degrees.
That our savers getting screwed is due to the deliberate Bernanke/Fed policy of keeping interest rates at a minimum in order to prop up the stock market and housing market. He is hurting those who play by the rules and save for their future, and apparently doesn’t care about how much it hurts the frugal and the elderly who hoped to live off their interest during retirement.
As far as Canadians and other foreigners buying here, let’s bring it on. They did not cause our bubble and bust–we did. If prices are now a bargain to them, and their currency is stronger than ours because they did not mismanage their economy, then they deserve to come here and pick up bargains.
BTW, Canadian fiscal and monetary policy for the last decade is in remarkable contrast to that of the U.S. They did not allow extreme leverage in their banking and mortgage sector, they did not oversupply their housing stock with excessive building fed by cheap loans, their budget is close to being balanced as they did not hype their economy with excessive spending. Markets reward smart policies like this, and the strength of the Canadian dollar is the result. Canadians are big factors in the Phoenix housing market, and I’m not surprised they are also buying in the Palm Springs area.

[EconProf]

Amen to that 70degrees.
That our savers getting screwed is due to the deliberate Bernanke/Fed policy of keeping interest rates at a minimum in order to prop up the stock market and housing market. He is hurting those who play by the rules and save for their future, and apparently doesn’t care about how much it hurts the frugal and the elderly who hoped to live off their interest during retirement.
As far as Canadians and other foreigners buying here, let’s bring it on. They did not cause our bubble and bust–we did. If prices are now a bargain to them, and their currency is stronger than ours because they did not mismanage their economy, then they deserve to come here and pick up bargains.
BTW, Canadian fiscal and monetary policy for the last decade is in remarkable contrast to that of the U.S. They did not allow extreme leverage in their banking and mortgage sector, they did not oversupply their housing stock with excessive building fed by cheap loans, their budget is close to being balanced as they did not hype their economy with excessive spending. Markets reward smart policies like this, and the strength of the Canadian dollar is the result. Canadians are big factors in the Phoenix housing market, and I’m not surprised they are also buying in the Palm Springs area.

[EconProf]

Amen to that 70degrees.
That our savers getting screwed is due to the deliberate Bernanke/Fed policy of keeping interest rates at a minimum in order to prop up the stock market and housing market. He is hurting those who play by the rules and save for their future, and apparently doesn’t care about how much it hurts the frugal and the elderly who hoped to live off their interest during retirement.
As far as Canadians and other foreigners buying here, let’s bring it on. They did not cause our bubble and bust–we did. If prices are now a bargain to them, and their currency is stronger than ours because they did not mismanage their economy, then they deserve to come here and pick up bargains.
BTW, Canadian fiscal and monetary policy for the last decade is in remarkable contrast to that of the U.S. They did not allow extreme leverage in their banking and mortgage sector, they did not oversupply their housing stock with excessive building fed by cheap loans, their budget is close to being balanced as they did not hype their economy with excessive spending. Markets reward smart policies like this, and the strength of the Canadian dollar is the result. Canadians are big factors in the Phoenix housing market, and I’m not surprised they are also buying in the Palm Springs area.

[EconProf]

Amen to that 70degrees.
That our savers getting screwed is due to the deliberate Bernanke/Fed policy of keeping interest rates at a minimum in order to prop up the stock market and housing market. He is hurting those who play by the rules and save for their future, and apparently doesn’t care about how much it hurts the frugal and the elderly who hoped to live off their interest during retirement.
As far as Canadians and other foreigners buying here, let’s bring it on. They did not cause our bubble and bust–we did. If prices are now a bargain to them, and their currency is stronger than ours because they did not mismanage their economy, then they deserve to come here and pick up bargains.
BTW, Canadian fiscal and monetary policy for the last decade is in remarkable contrast to that of the U.S. They did not allow extreme leverage in their banking and mortgage sector, they did not oversupply their housing stock with excessive building fed by cheap loans, their budget is close to being balanced as they did not hype their economy with excessive spending. Markets reward smart policies like this, and the strength of the Canadian dollar is the result. Canadians are big factors in the Phoenix housing market, and I’m not surprised they are also buying in the Palm Springs area.

[Fearful]

[quote=EconProf]
As far as Canadians and other foreigners buying here, let’s bring it on. They did not cause our bubble and bust–we did. If prices are now a bargain to them, and their currency is stronger than ours because they did not mismanage their economy, then they deserve to come here and pick up bargains. … the strength of the Canadian dollar is the result. Canadians are big factors in the Phoenix housing market, and I’m not surprised they are also buying in the Palm Springs area.[/quote]
Amen, and well put.

I was bemused by the Canadians rationalizing buying U.S. real estate because “if the Loonie falls, the value of this real estate [relative to me] will go up.”

What if the Loonie continues to rise and U.S. real estate continues to fall? What then, Mr. Canadian, sir?

People always, always, always view a change as an aberration and mentally predict a return to the mean.

Now, a continuing fall in the dollar will support asset prices in the U.S., along with helping our trade deficit. The only teensy weensy problem will be a reduction in our standard of living as cost of imports rise.

[Fearful]

[quote=EconProf]
As far as Canadians and other foreigners buying here, let’s bring it on. They did not cause our bubble and bust–we did. If prices are now a bargain to them, and their currency is stronger than ours because they did not mismanage their economy, then they deserve to come here and pick up bargains. … the strength of the Canadian dollar is the result. Canadians are big factors in the Phoenix housing market, and I’m not surprised they are also buying in the Palm Springs area.[/quote]
Amen, and well put.

I was bemused by the Canadians rationalizing buying U.S. real estate because “if the Loonie falls, the value of this real estate [relative to me] will go up.”

What if the Loonie continues to rise and U.S. real estate continues to fall? What then, Mr. Canadian, sir?

People always, always, always view a change as an aberration and mentally predict a return to the mean.

Now, a continuing fall in the dollar will support asset prices in the U.S., along with helping our trade deficit. The only teensy weensy problem will be a reduction in our standard of living as cost of imports rise.

[Fearful]

[quote=EconProf]
As far as Canadians and other foreigners buying here, let’s bring it on. They did not cause our bubble and bust–we did. If prices are now a bargain to them, and their currency is stronger than ours because they did not mismanage their economy, then they deserve to come here and pick up bargains. … the strength of the Canadian dollar is the result. Canadians are big factors in the Phoenix housing market, and I’m not surprised they are also buying in the Palm Springs area.[/quote]
Amen, and well put.

I was bemused by the Canadians rationalizing buying U.S. real estate because “if the Loonie falls, the value of this real estate [relative to me] will go up.”

What if the Loonie continues to rise and U.S. real estate continues to fall? What then, Mr. Canadian, sir?

People always, always, always view a change as an aberration and mentally predict a return to the mean.

Now, a continuing fall in the dollar will support asset prices in the U.S., along with helping our trade deficit. The only teensy weensy problem will be a reduction in our standard of living as cost of imports rise.

[Fearful]

[quote=EconProf]
As far as Canadians and other foreigners buying here, let’s bring it on. They did not cause our bubble and bust–we did. If prices are now a bargain to them, and their currency is stronger than ours because they did not mismanage their economy, then they deserve to come here and pick up bargains. … the strength of the Canadian dollar is the result. Canadians are big factors in the Phoenix housing market, and I’m not surprised they are also buying in the Palm Springs area.[/quote]
Amen, and well put.

I was bemused by the Canadians rationalizing buying U.S. real estate because “if the Loonie falls, the value of this real estate [relative to me] will go up.”

What if the Loonie continues to rise and U.S. real estate continues to fall? What then, Mr. Canadian, sir?

People always, always, always view a change as an aberration and mentally predict a return to the mean.

Now, a continuing fall in the dollar will support asset prices in the U.S., along with helping our trade deficit. The only teensy weensy problem will be a reduction in our standard of living as cost of imports rise.

[Fearful]

[quote=EconProf]
As far as Canadians and other foreigners buying here, let’s bring it on. They did not cause our bubble and bust–we did. If prices are now a bargain to them, and their currency is stronger than ours because they did not mismanage their economy, then they deserve to come here and pick up bargains. … the strength of the Canadian dollar is the result. Canadians are big factors in the Phoenix housing market, and I’m not surprised they are also buying in the Palm Springs area.[/quote]
Amen, and well put.

I was bemused by the Canadians rationalizing buying U.S. real estate because “if the Loonie falls, the value of this real estate [relative to me] will go up.”

What if the Loonie continues to rise and U.S. real estate continues to fall? What then, Mr. Canadian, sir?

People always, always, always view a change as an aberration and mentally predict a return to the mean.

Now, a continuing fall in the dollar will support asset prices in the U.S., along with helping our trade deficit. The only teensy weensy problem will be a reduction in our standard of living as cost of imports rise.

[masayako]

No foreign buyers = less demand

Less demand = lower the Housing price

So, I am saying the exchange rate and currency is killing us local buyers because it kills our purchasing power.

The foreigners are here to make profits for themselves, not here to save our economy. When the price go back up, they will sell their houses back to us at a higher price to make money for themselves. Got it?

[masayako]

No foreign buyers = less demand

Less demand = lower the Housing price

So, I am saying the exchange rate and currency is killing us local buyers because it kills our purchasing power.

The foreigners are here to make profits for themselves, not here to save our economy. When the price go back up, they will sell their houses back to us at a higher price to make money for themselves. Got it?

[masayako]

No foreign buyers = less demand

Less demand = lower the Housing price

So, I am saying the exchange rate and currency is killing us local buyers because it kills our purchasing power.

The foreigners are here to make profits for themselves, not here to save our economy. When the price go back up, they will sell their houses back to us at a higher price to make money for themselves. Got it?

[masayako]

No foreign buyers = less demand

Less demand = lower the Housing price

So, I am saying the exchange rate and currency is killing us local buyers because it kills our purchasing power.

The foreigners are here to make profits for themselves, not here to save our economy. When the price go back up, they will sell their houses back to us at a higher price to make money for themselves. Got it?

[Author]

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