FFFA! Retirement, Prices, Dollar, Debt

It’s that time of the week again.

It’s Friday Free-for-all time! This is our regular end of the week news round-up and open topic discussion thread for the weekend. Here are a few recent links to kick off the chat:

Who wants to try for 200%?
Rate fears push down dollar
Cognitive disconnect
We love us some debt
Real Estate School
Whats a mortgage default?
The RE-tirement plan

So what are you seeing out there?

Post your news links, thoughts and anecdotes here and have an excellent weekend!

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CPG
Guest
CPG
Over the last several decades the Canadian people, their elected politicians and Bank of Canada governors have teamed up to create quite the economy, standard of living, and way of life in this country. At the end of Dec, 2014 the total household, government (all levels) and business debt in Canada (bottom line of the credit market summary data table – total debt outstanding) was $5.75 trillion. In the calendar year 2014 the total debt outstanding in Canada increased by $243 billion. In 2013 it increased by $287 billion. In 2012 it increased by $272 billion. (The start date of the data table can be changed by clicking on the “add/remove data” tab at the top of the page.) http://www5.statcan.gc.ca/cansim/pick-choisir?lang=eng&p2=33&id=3780122 To put these numbers into perspective, in the fiscal year 2014-2015 the federal government is expecting to spend $250.2 billion… Read more »
patriotz
Member

@previous: “And a politician always will have an incentive to avoid unpopular decisions such as making it more difficult to buy a home.”

A more honest way of saying this is that a politician always will have an incentive to avoid unpopular decisions such as making house prices go down.

Government can’t really make it “more difficult” to buy by restricting borrowing. Someone always has to or wants to sell, and they have to find a buyer at some price. If the government makes it more difficult to borrow, that simply means that houses will have to sell for less.

Guy Smiley
Member
Guy Smiley

30,000 Detroit Homes to be Auctioned for $500 Each

Tedeastside this is your big chance to move to one of those great cities you keep harping about. I’m gonna miss you a lot.

Tiger
Guest
Tiger

Facebook Hired Temporary Foreign Software Engineers in Vancouver

http://thetyee.ca/News/2015/03/12/Facebook-Hired-Foreign-Workers/

Tiger
Guest
Tiger

Canada Doesn’t Know What 154,000 Foreign Workers Actually Do

http://thetyee.ca/News/2015/03/13/What-Foreign-Workers-Do/

Tiger
Guest
Tiger

Temporary Foreign Workers in Canada:A look at regions and occupational skill

http://www.pbo-dpb.g

southseacompany
Member
southseacompany

“Canada home prices keep rising despite slowdown in Prairies”, Financial Post

http://business.financialpost.com/2015/03/13/canada-home-prices-across-country-rise-despite-slowdown-in-prairies/

“The board said sales increases were led by boards in Greater Vancouver, the Okanagan region, and Greater Toronto. which helped offset declines elsewhere.”

southseacompany
Member
southseacompany

“Home prices are cooling everywhere but red-hot Vancouver, Toronto”, Global News

http://globalnews.ca/news/1880961/home-prices-are-cooling-everywhere-but-red-hot-vancouver-toronto/

“BMO’s Guatieri said: “Is it a bubble? It’s hard to say given that demand reflects more strong fundamentals than rampant speculation. But something’s not right. For most goods, high prices discourage demand. But in these two cities, first-time buyers are fearful of getting shut out of the market. So they keep buying despite worsening affordability, a trend last seen in the late 1980s,” the economist said.”

“And that did not end well.”

vangrl
Member
vangrl

News is almost comical today-

-Oil plunging
-Unemployment rate hits 5 month high
– Stock market getting hit
-Canadian dollar at 6 year low
-Canadians debt level at all time high

– Vancouver real estate sales and prices up!

Many Franks
Member
Active Member
vangrl
Member
vangrl

“Vancouver Mayor Gregor Robertson said council is waiting on a report from the city’s affordable housing agency that will examine foreign investment in real estate, and empty homes. “Until we get that report back, we’re not doing anything,” he said in an interview.”

wait, didn’t someone on this forum say that Gregor was not the person to contact regarding foreign ownership?

I’m confused. Is there anything that can be done at his level?

not that I think he’ll do anything…

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!
Brian Ripley
Guest
Brian Ripley
My Canadian housing in USD chart (Feb data) shows the FX effect is now almost as wide (20%) as it was in the Pit of Gloom (March 2009) when it was 21%: http://www.chpc.biz/canadian-housing-in-usd.html And Canadian real estate has only just begun to lose pricing power in the hot metros. Many analysts project the USD will continue to tick higher. One reason is that there is a lot of global debt that was created in USD via New York banks during this credit boom cycle that will have to be repatriated, hence the demand for USD. I feel the exchange rate at the food store checkout and my lack of desire to travel south or buy major imported stuff. It must be expensive now to furnish all those condos coming on stream. It’s probably a good time for old Canadians to… Read more »
space889
Guest
space889

@Brian Ripley – You mean those old furnitures that no one under 35 even know what is called or what it is supposed to be used for??

If people want cheap furnitures, IKEA and independent furniture stores where if you pay cash they don’t charge you tax & credit card fees are the place to go for cheap furniture.

But realistically, if you just paid $500K for a condo, or $2M for a house, is spending another 5% on furniture going to kill you?

Best place on meth
Member
Best place on meth

@11

This quote is hirarious:

“There is certainly truth in saying that there is some cultural tension between new immigrants and local residents. I’m not saying it’s a crash of cultures, but it’s something we have to address in a changing community.

space889
Guest
space889

If people here want cheap house then you should all support pro-developer policy that will cause them to build, build, build, build. The more supply there is, the cheaper things will be. Cutting out all the development charges that really does not aside from fattening up city beaucratic waste and parasites would help you. Vancouver with its “green/eco” policy probably adds $50-$100/sq ft in additional construction cost.

space889
Guest
space889

Anyone thinks writing to the mayor will get any results then I got a bridge to Victoria to sell to you right now for a low price of $1M cash!

Geez…if you want anything done then you have to buy the politicians. That means giving them more money than the developers can ever give them. If you start donating $1M or $2M or $5M to Vision election funds then you will be surprised how quickly Gregor will start having personal one on one meetings to hear your concerns and having 6 months action plans to start implementing what you want to do.

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

take it from me ant patriotz, nothing can be done about foreign ownership. nor should anything be done. it’s a red hearing. it’s all the CMHC and Conservative party’s fault. just vote liberal and it will all be ok.

Corrupt in Canada
Guest
Corrupt in Canada
Joe Mainlander
Guest
Joe Mainlander

Re; #18 The Libs started this back in the early 00’s and the Cons kept it going. There’s no party that wants home prices to go down.

Just look at this Liberal MP asking the Prime Minister to use the CMHC ‘protect’ the Calgary housing market from falling prices.

https://www.youtube.com/watch?v=-vJTA2_gVag

space889
Guest
space889

@Corrupt in Canada – He’s lucky RCMP only called him….

If Cons get their way, he would probably be arrested by CSIS as a potential terrorist and locked away without any trial/legal due process. His family probably can’t even find out if he’s actually locked up somewhere or visit him since that would be classified as national security info.

These anti-terror laws will likely be used and abused by multi-national/big corp interests than actually fighting terrorism.

Joe Mainlander
Guest
Joe Mainlander

@#17. It has more to do with home owners than developers. 70% of Canadians own a home. 65% of Metro Vancouverites own a home. They DO NOT want home prices to fall.

If the 65% think its the CMHC, then they want the CMHC to keep subsidizing home ownership.
If the 65% think it’s low interest rates, then they want interest rates to stay rock bottom.
If the 65% think its foreign ownership, then they want the floodgates to open.

If you want anything done then become a home owner. All the politicians will do whatever they can to keep your asset afloat.

Joe Mainlander
Guest
Joe Mainlander

Case in point. Here’s Tim Louis from COPE (the guy with the Che Guevera t-shirt) and his comments on home prices;

“Would you support policies that would lead to a drop in real estate values?

People who already own homes would be unfairly hurt by a policy that would lead to a drop in real-estate values. If the current homeowner has taken out a mortgage for say 90% of the worth of their home, and values then drop by 10%, the homeowner has lost 100% of her or his equity.”

https://vreaa.wordpress.com/2011/11/11/policies-on-housing-4-tim-louis-cope-city-council-candidate/

No one is on our side.

stjor
Guest
stjor

Its true that its practically impossible to find a politician that would do anything to make home prices fall, every level of government tends to do what it can to prevent that outcome.

And yet house prices have fallen throughout history here and elsewhere, usually when prices got too high and there was an economic shift.

When they do fall they tend to go back up after a while – the 30 years or so it took Vancouver prices to reach their inflation adjusted peak was an unusually long time. All you really have to do is avoid being one of the foreclosures until the next bubble comes along, whether thats in your lifetime or the next generation.

Corrupt in Canada
Guest
Corrupt in Canada
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