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Discussion Starter · #1 ·
The fed will be raising interest rates another 6-7 times in the next 12 months.

inflation at 7.9%

mortgage rates in one year will be around 6-8%

loan rates will be brutal

what’s your opinion of what happens when the hot potato game ends(skyrocketing lambo prices) and the easy money is gone?

will the flippers get nailed? Forced into liquidation? Are they hooked on a second mortgage to finance their Lambos?

should be fascinating to observe
 

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In the short run luxury asset prices and home prices cease to increase or increase at a much lower rate.. In the long run, unemployment goes up (because it's more expensive for companies to do business, issue debt, etc) and luxury asset prices can tank. If there is a large negative effect on crypto (sell crypto buy credit with much higher returns than today) this could all be accelerated.
 

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I'm not sure if in Canada it's going to be so drastic. Inflation is at 5.1%. Mortgage rate expected to go up.25% which is one less pizza a month.

Gas however is crazy, got my car out first time this year and I went to fill it up, 107$! I used to take rides all the time and filling up 2-3 times a week, I think I'm going to drive it a little less this year.
 

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The guys who bought SVJ's for a million dollars+ are going to realize the meaning of a bag holder.

There's a lot of people who got drunk of cheap and blindly bought assets at the peak. The days of cheap money are basically over and reality is going to be brutal for a lot of people.
You think that buying a million dollar car that he cares that much? Isn't it FU money for him?
 

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I'm not sure if in Canada it's going to be so drastic. Inflation is at 5.1%. Mortgage rate expected to go up.25% which is one less pizza a month.

Gas however is crazy, got my car out first time this year and I went to fill it up, 107$! I used to take rides all the time and filling up 2-3 times a week, I think I'm going to drive it a little less this year.
Lol, please don't be like the average Canadian sheep. The BoC is hiking the rate 6-7 times this year, do the math. RE has gone up by almost 50% since the pandemic started, there's actually places that have gone up almost a 100%. This is not normal for any market especially for the RE market which goes hand in hand with interest rates.
 

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Using your HLOC because your house has gained 100% since the pandemic to buy cars is not FU money. There's a reason why Canada now has one of highest household debt loads of any G7 country.
Pure stupidity.....some people will get destroyed.
Expensive cars should only be bought if you really can afford....in other words you have the cash at hand.
These are not a to b cars that cost 30 k .
 

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Discussion Starter · #12 · (Edited)
In my locale, real estate taxes have gone up 20-30%
That equates to thousands in the pocket book that will NEVER be given back.

Heck, just the principal alone makes me want to get rid of my health club membership, cable TV, extra phone, etc. all to make a point.

I think Elon had the right idea… liquidate everything and own nothing
 

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Using your HLOC because your house has gained 100% since the pandemic to buy cars is not FU money. There's a reason why Canada now has one of highest household debt loads of any G7 country.
We don't know if he borrowed money or he has it in his bank account. Not everyone is overspending, some have a whole lot just sitting in the bank. I know one thing I see a whole lot of millionaires where I am, people don't realize they are because they don't show it but just looking at the business sign I know.


Lol, please don't be like the average Canadian sheep. The BoC is hiking the rate 6-7 times this year, do the math. RE has gone up by almost 50% since the pandemic started, there's actually places that have gone up almost a 100%. This is not normal for any market especially for the RE market which goes hand in hand with interest rates.
I can't do the math I know nothing about RE. It makes sense to you because you must be involved in RE, you know and see things I don't. I'm the small guy on the ground floor. I bought my house 12 years ago and now it's supposed to be worth almost 3 times as much but it doesn't change anything in my life, I still have the same mortgage payment and my interest rate just dropped for the year.

If you see people borrowing against their house and overspending and over extending sure I see your point but I've never had any debt since I was 18 except the house. Maybe that's why I don't see people having money problems, I only buy things if I have it in my bank account.
 

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Discussion Starter · #16 ·
Angel they don’t care they raise taxes ...insurance so on...we are the suckers that we continue to pay the bills.
I wonder if Lamborghini makes an RV? I’ve seen some real nice Mercedes sprinter vans.

F paying real estate taxes. Upkeep. Utilities. Plowing the driveway. Mowing the lawn. School district taxes.
 

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I can't do the math I know nothing about RE. It makes sense to you because you must be involved in RE, you know and see things I don't. I'm the small guy on the ground floor. I bought my house 12 years ago and now it's supposed to be worth almost 3 times as much but it doesn't change anything in my life, I still have the same mortgage payment and my interest rate just dropped for the year.
Seems I’m much like you are, the only changes I’m making and will continue make will be my investment approach. I’m debt free and have always pay cash. Nothing owns but the government, lol.
 

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History is doomed to repeat itself. Funny people have short-term memories don't remember 2008.

January 2008

Sold a bunch of stocks to buy my first home got a firesale deal from my friend who was relocating his family to Vancouver. Saved 6% straight up as a FSBO transaction.

Bought my first Porsche 997 C2S that was 5 months old with 2000 miles for 20% off MSRP original owner lost his pants in the stock market.

Remember Scuderia's at my dealer going for firesale prices. Dealer had to park cars outdoors on the roof due to overstocked inventory

Friends over reached on their dream homes with ARM's then lost their pants when interest rates ballooned and banks wanted their coin.

2022-23 looks a lot like 2008 and may end up being worse.
 

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History is doomed to repeat itself. Funny people have short-term memories don't remember 2008.

January 2008

Sold a bunch of stocks to buy my first home got a firesale deal from my friend who was relocating his family to Vancouver. Saved 6% straight up as a FSBO transaction.

Bought my first Porsche 997 C2S that was 5 months old with 2000 miles for 20% off MSRP original owner lost his pants in the stock market.

Remember Scuderia's at my dealer going for firesale prices. Dealer had to park cars outdoors on the roof due to overstocked inventory

Friends over reached on their dream homes with ARM's then lost their pants when interest rates ballooned and banks wanted their coin.

2022-23 looks a lot like 2008 and may end up being worse.
So knowing what you know now, what sort of stuff are you doing to prepare for this? any recommendations? I'd love to see some recommendations and advice in this thread.
 
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