re: property scams 4 cnrs program Property is one of the biggest...

re: property scams 4 cnrs program Property is one of the biggest leveraged games that a layperson could get into with limited margin calls.

Unwillingly, it is this leveraged that is of benefit to the investor.

Its margin call would only occur when one cannot meet the monthly repayments which are spread over 25 years.

Ask the person that bought property in 1988-1989 and ask another that bought property in 1992-1993.

Without doubt property, especially units would drop 20-40%, and house 15-25%.

If interest rates go up and unemployment increases than we are down for.

Our economy is fragile becuase of all the government interventions thus creating a Japanese style bubble which would burst.

Many count on the exchange rate to take the brunt of our escalating CAD and BOP but at some stage interest rates would take the stage as well.

We have seen the low cycle in long term interest rates in the last few months and they have since then increased by about 0.50%.

They are still 'neutral' and they could increase by about 1-1.5% further.

If any property investor is unable to meet repaymets with hardship on an 8% interest rate and preferably a 10% interest rate then they should consider the risk they are taking in buying real estate property.

Arhidas