Cult of ownership in trouble?

The Globe and Mail has an article about shifting perceptions on home ownership in Canada.

Based on a very small sample size, they are predicting that young people in Canada are becoming less willing and able to buy property.

“Last year, in a class of 29 students, a clear majority said they would buy,” Prof. Harris wrote me in an e-mail. “I was surprised because I had spent a lot of time speaking about the dangers of price bubbles, and about the opinion of most experts that the markets in many Canadian cities had moved, or were moving, into bubble territory.”

This year, only five of 23 said they’d buy and 18 chose to rent. “Although the assignment was the same and the content of my lectures pretty much the same, the pattern of response was very different,” Prof. Harris wrote.

Its certainly not what you’d call a wide ranging survey, so what do you think?  Are attitudes towards home ownership changing in Canada or do all the kids still want real estate?

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blah-blah-blah
Guest
blah-blah-blah

If you didn’t have all your savings in US dollars and equities then you are not paying attention. If you are not paying attention, they will take their money back from you.

Last I checked, complaining doesn’t help.

butt
Guest
butt

Low Canadian dollar will make Canadian real estate more attractive to foreign investors.

Canada is losing safe haven status because us is improving.

Whistler condos looking good right now.

hey buddy
Guest
hey buddy

http://www.oftwominds.com/blog.html
Dead Mall Syndrome: The Self-Reinforcing Death Spiral of Retail
January 22, 2014

CRE – Commercial Real Estate bear porn

YVR
Guest
YVR

@11: Poloz quote “Deflation would be a killer; wages going down while the size of your mortgage remains unchanged.”

Or how about what happens when mortgage rates go up to normal levels? Wouldn’t that be a killer to have your mortgage payment go up while your wage stays the same Poloz? With deflation wages might go down 3% per year for a few years. Not good for those in debt but not the end of the world. On the other hand when mortgage rates go up peoples payments may go up 50% overnight with their wage staying the same. Which would be the bigger killer for people with a mortgage? Too bad there isn’t a media person bright enough to ask such a question.

YVR
Guest
YVR

@27 “Low Canadian dollar will make Canadian real estate more attractive to foreign investors.”

Actually no, it will do the opposite. Investors like to invest in things going up not down. Buying assets priced in a foreign currency that is trending down is not something most investors favour. Especially when there is so little yield. In fact the bearish forecast on the CAD should trigger a lot of selling this Spring.

Snake
Guest
Snake

A Maple Ridge realtor is in court to dispute a claim to a winning lottery ticket

http://globalnews.ca/news/1100888/former-shooting-victim-heads-to-court-over-3-6m-lottery-ticket/

alexcanuck
Member
alexcanuck
To understand currency movements, you need more than just a single currency pair. By just looking at the USD/CAD exchange, you don’t know if it’s due to a drop in the $CAD, or a rise in the $US. To put the recent drop in the Canadian dollar in perspective, consider http://tinyurl.com/p5bf9nk , which is a chart of multiple world currencies, all referenced to the $US. I can’t link to an individual chart, but go to the link, add some extra currencies such as CAD, JPY, AUS, BRL, HKD, CHF, MXN, any others that have any meaning to you and click “plot” to view. You’ll see three standouts, being Canada, Japan and Australia. Of those it is Canada that has had a dramatic recent decline, almost catching up to the larger but slower AUS decline. Japan is easily explained by Abenomics… Read more »
patriotz
Member

@30:

If the earnings were in a foreign currency, e.g. USD, a declining CAD would make a Canadian investment more attractive by increasing yield. But the earnings of Canadian RE (rent) are in CAD.

And further to what you pointed out, those buying Canadian RE today whether domestic or foreign are not really investors but speculators who are interested in price movement not earnings.

Yunak
Guest
Yunak

Just run by BMO

$100 CAD = $113.09 USD

Exchange Rate: $1.1309 CAD per $1.00 USD

Nice haircut!

Yunak
Guest
Yunak

Sorry, I meant $100 USD = $113.09 CAD

paulb
Member
Active Member

New Listings 228
Price Changes 52
Sold Listings 86
TI:12825

http://www.paulboenisch.com

billy
Guest
billy

So does average jimmy gains or not by this devaluaton of cdn $?

Renter
Guest
Renter

13k party in January! This week!

m
Guest
m

@billy
average jimmy losses with the devaluing of the Canadian dollar. Businesses that export gain. Everything becomes more expensive to purchase for the average jimmy.

Johnny-boy
Guest
Johnny-boy

Harper’s Economic plan:

1) Make jobs to build roads to nowhere
2) then pump up the CMHC, have 40 years mortgages, push RE to the limit
3) Suck in hot money from around the world
4) Appoint Poloz to the bank of Canada to trash the looney
5) retire just before it hits the fan and take up residence in his favourite country starting with the letter ‘I”

OMG GUYS
Guest
OMG GUYS

Am I the only one who feels that the wheels are going to fall off this thing????

2.79% 5 yr. NEVER AGAIN
Guest
2.79% 5 yr. NEVER AGAIN
VMD
Member
TD mortgage clause change (featured in Garth’s blog today) “One broker said he is getting nowhere in trying to find out why TD has altered the fine print in its VRM contracts for conventional mortgages – specifically around when a spike in LTV triggers demand for a lump-sum payment or a new appraisal.” “Under the terms of the new clause, if, at any time and for any reason, the loan-to-value on a conventional mortgage exceeds 80 per cent, the bank has the right to direct the borrower to bring it under that 80 per cent threshold or to obtain an appraisal proving the fair market value is indeed higher. The new wording replaces a similar clause that sets that trigger at 75 per cent but limits the scenario to instances where interest rate fluctuations have driven LTV over that 75… Read more »
George
Guest
George

Air pollution from China is reaching the West Coast of North America. From the Vancouver Sun:

“Los Angeles sees at least one extra day a year of smog that exceeds federal limits because of nitrogen oxides and carbon monoxide emitted by Chinese factories producing for export, the analysis found…

Winds called the “westerlies” can drive airborne chemicals across the ocean and lead to dangerous spikes in contaminants, according to the university’s statement. Dust, ozone and carbon may collect in valleys in California and other Western states, it said, while noting that China still isn’t responsible for the lion’s share of pollution in the U.S.”

http://www.vancouversun.com/technology/Pollution+from+China+harming+quality+west+coast+study/9418790/story.html

Newcomer
Member
Newcomer

@37

“So does average jimmy gains or not by this devaluaton of cdn $?”

In the short term, the average jimmy loses because he cannot buy goods and services outside Canada at a discount the way he could for the past few years (the prices of goods inside Canada don’t necessarily change that much).

In the long term, the average jimmy wins because the company he is working for, or a company that his company sells to, becomes more competitive on the global stage. This is part of the lost practice of making something of value to other people at a lower price than the next guy. I know, the whole “lower price” being a good thing sounds weird, right? But that used to be a popular thing, and it may be coming back.

patriotz
Member

@45:

You forgot to add, average jimmy also wins because he is a CAD debtor.

ILoveCharts
Guest
ILoveCharts

2% down and it doesn’t even need to be cash!

http://www.theprovince.com/news/Your+become+down+payment+Vancouver+condo/9418936/story.html

Also, you get to live in a neighbourhood where you would never let your wife or kids go out alone and where you need to be careful where you step.

ILoveCharts
Guest
ILoveCharts

Anyone who thinks that Main and Hastings will be gentrified is out of their mind.

Gentrification pressures in surrounding areas will just result in the DTES becoming more dense around the base at Main and Hastings.

Three things are true:
1) Poverty, mental health issues, and drug use will always exist in Canada.
2) These down-and-out folks need a community and support services.
3) That community and those support services already exist in the DTES and there is no way they are moving anywhere (who else would be willing to take them?)

Johnny-boy
Guest
Johnny-boy

Singapore public tired of wealthy outsiders, and guess what they are not just coming from China

http://ca.finance.yahoo.com/news/porsche-owning-uk-expat-infuriates-singapore-39-poor-113300562–sector.html

Porsche-owning UK expat infuriates Singapore with ‘poor people’ gaffes.

Those posts went viral in the city-state, where an influx of wealthy foreigners in recent years has fuelled growing public discontent among a population beset by rising costs in one of the world’s most expensive cities.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

>2% down and it doesn’t even need to be cash!

lending standards are loosening. this should, at least, support prices.