Close your eyes and load up on debt

This National Post commentary is one of the most direct attacks on Canadian personal debt levels I’ve seen in the mainstream media.

The takeaway is this: YOU are responsible for your own debts, don’t go whining to anyone if it gets you into trouble.

It’s mindboggling to think that an entire population can look at what happened in the US when personal debt levels got this high and shrug it off.

Analysts and economist are filled with forecasts of doom, and that was before the latest figures showed debt had continue to pile up over the past year to a record 163% of household income, which is where the U.S. was before the 2008 collapse, and about 10 points higher than anyone thought. As the housing market cools and home prices slip, a lot of people could find themselves making monthly payments they can barely cover for a house that isn’t worth what they thought it was. If you can’t cover the mortgage, you just have to pray the roof doesn’t start leaking or the furnace fail.

And borrowers won’t really have anyone to blame but themselves. The warnings are out there. The examples are rife: all anyone has to do is examine the experience of U.S. homeowners over the past few years. The dangers aren’t a secret, they’re just being ignored.

But people keep borrowing, because it makes them feel good to spend, because they’re too busy to think about it, because they figure they can cover the payments in the short term and will deal with the future when it comes. And because they can always blame it on someone else when the roof caves in.

Read the full article here.

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Not much of a name...
Member
Not much of a name...

@Makaya: 700 Marine (just down the street from the Kimpton) is also offering discounts on unsold units of up to $75k. I checked their website and it appears that only 11 of 26 residential units have been sold. There is a ton of new supply in NV with many more coming online in the next year or so.

The Remix (beside 700 Marine) is now selling brand new (haven’t even torn down the existing buildings) condos at a price per square foot that is below those of neighbouring existing buildings. This will not end well for a lot of people.

Are you really that dumb?
Guest
Are you really that dumb?

@ YVR

Can you change your handle? Most people in this city aren’t as stupid as you are, so you’re not very representative of your moniker.

FWIW, I think he may have been trying to illustrate how extreme price drops can happen in the lower “entry level” price ranges, and the havoc they can wreak on peoples lives.

Not much of a name...
Member
Not much of a name...

@More Data Please: It’s more like we are guaranteeing a price drop for all the previous buyers.

painted turtle
Guest
painted turtle
Scams: And how many mainland Chinese buying site unseen will be scammed too? The smell of mold in leaky walls does not show on pictures. Debts: the people I know who continue to borrow do it because they believe most people are more in debt than they are, therefore the government will do something to save the population. So they feel sheltered. Some others feel a depression is coming, so better enjoy life when we still can. Not to mention those getting ready for the end of the world (december 2012 is close). Educating the kids: when we go shopping, we hunt for the marketing fairies that hide everywhere and whisper in our ears buy! buy! The kids are good at it by now. One of them made a show the other day that was making fun of commercials: he… Read more »
More Data Please
Guest
More Data Please

@Makaya: “…price drop guarantee!”

Finally, inadvertent truth in advertizing. Freudian slip?

If you buy this condo now, we guarantee that the resale price will drop by at least $100K.

What an opportunity! Where do I sign up? I’ve never lost $100K before.

Simple
Guest
Simple

@Ben Rabidoux:

“No plans for a webcast at this point. Sorry. You not from Vancouver?”

Yes. I am from Vancouver. However, like so many others, I could not afford to live there and relocated my small family to Toronto last fall.

I know that there are other VCI community members in the same boat and it would be great to have a chance to see your talk. If the webcast is a no-go, no problem. I am sure the talk will be discussed nicely here.

Not much of a name...
Member
Not much of a name...

@Makaya: Unfortunately it looks like previous buyers are naked from the waste down…

http://www.realtor.ca/propertyDetails.aspx?propertyId=12421260&PidKey=-1917434989

Makaya
Member
Makaya

Realtors trying to sell condos in the Lower Mainland are getting creative…

“Don’t get caught with your pants down! Protect your home with our price drop guarantee! Call us for details. 604.988.3020!”

Check out the picture here.

Madashell
Guest
Madashell

@mike: Canada needs a similar law but the boys in Ottawa does not have the balls.

Ben Rabidoux
Guest
Ben Rabidoux

@Simple

No plans for a webcast at this point. Sorry. You not from Vancouver?

VMD
Member

some more stats on regional sales data in September.
note Avg Sold price / Listing price.
lowest was Richmond, Van West, West Van, and Whistler SFH, as espected.
also note Avg days on market.
http://www.westca.com/Forums/viewtopic/p=4478693/lang=schinese.html#4478693

Old Vancouver
Member
Old Vancouver
Patiently Waiting
Member
Patiently Waiting

@Berniebee: Douchey casual riders spending thousands of dollars on bikes is one of the reasons bike theft is out of control. This effects us “cheap bike” owners because whole racks of bikes are stolen at once.

YVR
Guest
YVR

Suguar “My taxi driver Juan, bought a triplex in downtown Los Angeles in 2003 for $325K ”

so what is your point? that cab driver income could not support 325k triplex in the first place? Duhh

Makaya
Member
Makaya

In the “asking price steep decline” category, here is a very serious candidate of “the most millions I have to give up to sell my property”…

4898 Fannin Ave, Vancouver, BC V6T 1B2: $4 million in asking price reduction since March (and still priced over assessed value!).

Greed will soon be replaced by fear in this case…

Suguar
Guest
Suguar
I spend a lot of time in the USA these days and here are two stories from Chicago…. The hotel manager told me that he bought a one level 2,100 sq ft condo for $375K in 2001, and by all accounts it is beautifully appointed with all the latest finishings etc., and in a desirable area. He tried listing it this year and the 3 x realtors he interviewed all came in at a starting price of $125K…ouch! He is staying put. My taxi driver Juan, bought a triplex in downtown Los Angeles in 2003 for $325K and life was going great until the recession hit. Because the work situation in California is so bad he moved to Chicago and set up business. He tried to sell his triplex this year and the realtor suggested listing it at $125K. He… Read more »
Lance Armstrong
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Lance Armstrong

@Berniebee: I have a $20,000 carbon fiber bicycle and I will rip your legs off and beat you with them while I defecate on your $60 bike.

Anonymous
Guest
Anonymous

@MM:
Those Cheena Men or Women are still full of cash stolen from the peasantry,are glad to snatch any property abroad before the end game of The Middle Kingdom.So don’t worry.

MM
Guest
MM

@Anonymous #14:

Maybe the proportion of trips taken by yellow helicopter is down!

Bally
Guest
Bally

@coc:

Don’t be a cock. It’s “Canadians on Credit”.

casual
Guest
casual
@VMD “Tired of being on the “status-quo, middle-class treadmill” of mindless consumption and mounting debt, the Glad-Timmonses undertook a project that most people would consider drastic: paring their worldly possessions down to 100 items…Included in the items Glad-Timmons and her husband either sold or gave away were cross-country skis, a handmade wooden chest that once belonged to her paternal grandfather and their bed frame. She and her husband now sleep on a mattress on the floor.” I am all for ending “mindless consumption and mounting debt” and getting rid of cheap Made-in-China plastic crap from Wal-Mart, but I think this really is overkill. She got rid of a hand-made wooden chest that belonged to her grandfather! That sounds like a family heirloom, something with sentimental value, something one-of-a-kind with character as it was hand-made. Getting rid of something like that… Read more »
Aleksey
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Aleksey
bubbly
Member
bubbly

@Deliverator: Data shows that the bubble started forming in 2002 – 4 years before Cons came to power. (That does not mean that Cons are innocent – a lot of fuel has been added to the fire during their reign)

Anonymous
Guest
Anonymous

Not sure if this forum has seen this interesting article that quantifies capital flight out of China:

“Astronomical sums of money are fleeing China at a much higher velocity than has previously been estimated, according to recent reports.

One report by Washington-based Global Financial Integrity estimates China suffered a net outflow of $472 billion last year, the equivalent of 8.3 per cent of gross domestic product.

Another report by the Hong Kong-based head of research for the Standard Chartered bank, Stephen Green, suggests at least $80 billion fled China in just the third quarter of this year.”

http://www.vancouversun.com/Business/asia-pacific/Waves+illegal+money+leaving+China/7461039/story.html

VMD
Member

@Berniebee:
Debt-ridden family rises to the ‘100 Thing Challenge’
Family heirlooms, bed frame purged in anti-consumerism effort
– For some over-extended families in the not too distant future, the “100 thing challenge” might become a need, not a choice..