Very good point about the debt ratio being much higher in BC. If you ever run across the number I would be very interested to see it. You how difficult it is to real time information in this province.

Current score: 1 (to vote for this comment, please visit the site)

There may be lots of dumb financial planners since financial planning is not regulated and anyone can call himself a financial planner. But I would think in most cases it is the customer who is dumb. If you anyone goes to a lawyer, an accountant or even a plumber, he is expection to pay a hour rate. Nearly 100% people expecting to receive financial advice for free. Everyone has to make a living, right?

Current score: -2 (to vote for this comment, please visit the site)

The developer indicates that they will build again. Maybe, but probably at a much later date. If the Evergreen Line is stalled another decade, I have my doubts though.

News reference:

"The condo complex was called Evergreen, a venture that was scheduled to be completed in September, one of the developers told CBC News on Thursday.

None of the units had been presold, and the developers said they were insured and would mostly likely rebuild the complex."

http://www.cbc.ca/canada/british-columbia/story/2…

Current score: 1 (to vote for this comment, please visit the site)

“…The real debt of Canadians is at an all time high at 130% of disposable income…”

realpaul, do you know if that figure includes mortgage debt?

Yes. Remember there are a lot of people who have no non-mortgage debt at all. There is no way the rest could borrow enough to average out at 130% of income.

What matters for mortgage debt, like any other capital debt (as opposed to consumer debt), is whether the capital asset yields enough income to cover the interest payments. If so, the asset/debt portfolio is actually making money for the borrower. Like the preferred shares that I bought in my margin account a few months ago.

However if not – like for RE in BC, where the rental value is far less than interest cost for any house bought during the bubble – the portfolio loses money for the borrower, big time, long term.

One more thing – that 130% is the Canada-wide average – the average for BC is way higher.

Current score: 2 (to vote for this comment, please visit the site)

Current score: -14 (to vote for this comment, please visit the site)

Bob, I am a lender and a financial planner. I assume you need two income to serve your $500K mortgage. I don't know how many kids you have and what kind of life style you have. I have many clients with $500K mortgage with a rate around 4%. One couple with combined income of $130K now in trouble to handle their mortgage payments. Their PLC and visa is up to the limit. For myself, I have a combined income just over $160K, I would never borrow $500K. Lots of things could happen, one of you could lose his/her job. It could happen to anybody. My several co-workers just got laid off. Probably they never thought it could happen to them since a couple of them had been working for our institution for over 20 years.

I agree with you, if you can handle the payment (don't forget property tax, insurance, utility, reparement), you may end up at a similar position with some one waited and bought cheaper but with a higher interest rate.

Current score: 9 (to vote for this comment, please visit the site)

Current score: 1 (to vote for this comment, please visit the site)

Current score: 2 (to vote for this comment, please visit the site)

#51 OAS, it's actually 138% but who's quibbling. The calculation is is the article

"The conventional wisdom seems to be that the financial situation of Canadian households is generally sound and certainly much better than that of our profligate and heavily indebted American neighbours. The Bank of Canada argued in its end of 2008 Financial System Review that “(O)verall, despite a modest deterioration, the financial position of the Canadian household sector remains relatively positive.” ( p.21) The 2009 Budget displayed a re-assuring Chart showing US household wealth falling far more precipitously than in Canada. (Chart 2.5). And it is true that household debt as a percentage of after tax (disposable) income in 2008 was, at 138%"

http://www.progressive-economics.ca/2009/06/03/in…

"Yeehah, we're all gonna die" as Country Joe and the Fish sang. It's only money right and looky how shiny those counter tops are, and they're giving me a free car to sign up today. OMG Droooooooooooollllllllllll.

Current score: 3 (to vote for this comment, please visit the site)

Satv

John

Browntown

Supraboy

Vancouverboom2”

Thanks for leaving us the rosetta stone of troll/jackasses.

Current score: 6 (to vote for this comment, please visit the site)