Who’s worried about debt?

According to this article over at the CBC, Canadians love a good home equity line of credit – they’re practically addicted to that sweet sweet HELOC money at rock bottom rates.

“We are addicted for sure. Who wouldn’t be addicted to something so easy [to get]?” says 35-year-old Ali about the free-flowing lines of credit that have enabled him to splurge on the finer things in life.

“It’s easy, accessible cash at a very cheap price. The banks make it so easy for you to obtain it,” says the software engineer.

Some people say the national reliance on debt is a risk to our economy and to the lifestyles of the indebted.  But the Canadian Bankers Association isn’t worried and spenders say they are aware of the risks:

While Ali and Haji like to spend, they believe they’re behaving responsibly and say they’re aware of potential pitfalls. That’s why they’re still undecided about another loan.

“If you get a line on this [house] and God forbid something happens to me or [my wife] and we are unable to sustain our lifestyle or stream of income that we have, then we would be in trouble and that may lead to us losing this house,” says Ali.

And that’s why some rooms in the family’s home remain empty. Ali shows CBC News his large, mostly barren master bedroom and talks about his grand plans to furnish it — sometime in the future.

“Without the credit line, it’s slow,” he laments.

But things could always change. The couple says just last week the bank called, inquiring if the family was interested in another loan.

Read the full article here.

 

Sort by:   newest | oldest | most voted
Oracle
Guest
Oracle

Two things I notice this weekend.
1) Asians in north Surrey trying to shield their skin from the sun. Black means lower human being in their mind. Saw a girl holding up cardboard in a car….

Outrageous if we’re importing those values here.

2). Fuck it. No point listing it.

RFM
Guest
RFM
Brampton’s plight reflects the broader troubles roiling the Canadian auto sector. As recently as 1999, Canada was the world’s fifth-largest producer of automobiles, behind the U.S., Japan, Germany and France, with an auto manufacturing belt that stretched across southern Ontario, from the Detroit border crossing to the outskirts of Montreal. But high labor costs, unfavorable exchange rates and government reluctance to offer tax breaks and other financial incentives have prompted carmakers to close five Canadian plants and downsize others. This year General Motors will eliminate 1,000 jobs at one of its two Oshawa, Ontario, plants. Moreover, Canada has been passed over in the rush by German and Asian manufacturers to build new North American factories. Since 1999, two dozen new assembly plants have sprouted up in the southern U.S. and Mexico; Canada has gotten one in that period and has… Read more »
southseacompany
Member
southseacompany

“Average house price rose 8% in May to over $450K”, CBC News

http://www.cbc.ca/news/business/average-house-price-rose-8-in-may-to-over-450k-1.3113533

“May was the strongest month for home sales in more than five years, CREA says”

“Strong activity was widespread, and even markets that have shown recent signs of weakness rebounded. CREA chief economist Gregory Klump says a rebound in sales in Calgary and Edmonton suggests uncertainty stemming from low oil prices could be easing.”

would-be buyer
Guest
would-be buyer
Westside Realtor
Guest
Westside Realtor

It’s a circular, self-reinforcing trend.

Fueled by ultra easy and cheap money.

And overconfidence or panic to get in before things go ever ever higher.

Question remains, when and where (and how) does it end?

I believe one of the catalysts will be declining sales and prices (catalyst? How can this be the catalyst if this is the trend…how can the trend (reversal) be the catalyst AND the trend?), as the market sags under its own weight.

This last spring rush, I think (seems logical and reasonable to me) has been the final surge. Already seeing weakening metrics, which I suspect will quiet things down as the catalyst builds into momentum over the next few quarters.

JMHO

WSR

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!
jonathan
Member
jonathan

@6: Ritzy Richmond neighbourhood where many are ‘poor’

Stats Canada needed to make one small correction: the rich neighbourhood has no REPORTED CANADIAN income…

As a law-abiding and tax-paying citizen, it is getting harder and harder for me to continue conduct myself with honesty and integrity when no one around me seems to do so and continue to get rewarded…

david
Guest
david

I suggest everyone go over to the latest Canadaland podcast titled ‘Hongcouver’…really worth a listen.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!
space889
Guest
space889

@Oracle – so protecting oneself against skin cancer is an unCanadian thing and a sin now? As well as having different standard beauty?

I guess freedom of believes only extends to having the same believe as you? Any other belief is blasphemous?

space889
Guest
space889
@Jimmy – Most people generally don’t count investment income, cash drawdowns/withdraws from existing asset piles, or cash transfers from offshort spouse to be income. So that’s really not a surprise. I mean, if someone asks you how much you make, do you include your estimate annual investment income in that figure? Or are you more likely to simply report your earned income? Likely without the bonus include? As I said before, if you are living in a $1M+ house without mortgage then you shouldn’t be receiving benefits like income assistance. It is not my job to keep you in a $1M+ house simply cuz you have no income, or retired, while I have spouse & kids to feed and support. But apparently, lots of locals and boomers don’t like that idea. So you get your current situation where asset rich… Read more »
space889
Guest
space889

@Bull! Bull! Bull – So there you go. It’s the Honger’s fault, not the mainlanders. Why else is it called Hongcouver? Not PRCouver or mainlandervouver, or whatever cleaver acroymn someone can come up with?

VanRant
Member
VanRant

We have to bring back the statement of citizenship from the new owner in every real estate transaction registered in BC (or Canada). At the very least, we will know who’s buying up houses or land in BC or Canada so we have control over our country and our future.

VanRant
Member
VanRant
From todays market watch… “I strongly believe that the U.S. government should take immediate proactive measures to curb the influx of foreign moneys earmarked for American residential real estate (especially from China). The acceptance of foreign moneys of dubious origin is basically speaking to a money laundering scheme. Furthermore, the conversion of Chinese currency into American dollars on a large scale, may pose an economic threat to the U.S. in the not-so-distant future, aside from making U.S. homes outright unaffordable to American citizens. It may get even worse. By allowing more moneys from wealthy Chinese and other foreigners to purchase American residential real estate, the average middle class American may eventually end up financially subservient to Chinese investors once they move into the country either as investors or immigrants. In the end, I believe that the American government owes its… Read more »
patriotz
Member

@7: “Stats Canada needed to make one small correction: the rich neighbourhood has no REPORTED CANADIAN income…”

This data is from the household survey which is given to only a fraction of households, and where responding is voluntary. Stats Can has no way of verifying whether the information that is given is accurate.

CRA does not release income statistics below the metro level.

southseacompany
Member
southseacompany
“Bond crash is so crazy BlackRock Inc is ripping up its risk models”, Financial Post http://business.financialpost.com/investing/bond-swings-are-now-so-crazy-blackrock-inc-is-ripping-up-its-risk-models “With US$4.8 trillion in assets — or about the size of Japan’s economy — no one manages more money than BlackRock Inc. So, it’s worth paying attention when the firm says it’s time to cast aside its trusted models for assessing risk in bonds” “The gyrations gripping the world’s fixed-income market are so great that it’s almost impossible to make sense of them on a historical basis.” “Across Europe, investors are ripping up their old models to analyze the US$100 trillion global bond market that dictates how much consumers and companies pay to borrow. Volatility is soaring as central-bank policies diverge, whiffs of inflation emerge and new regulations cause big banks to back away from their traditional role facilitating buying and selling.” “The moves… Read more »
VanRant
Member
VanRant

Ian Young is on canadaland overcast, very realistic view about why it is so expensive in Vancouver:

https://overcast.fm/+BNL7gf0_Y

He calls Vancouver’s Real Estate as a “World Class Freakshow”

flaneur
Guest
flaneur

The tycoon choped up by his cousin’s husband in WV reportedly had a net worth of C$1.38 billion. According to his brother’s petition filed at BC Supreme Court, the things-to-do list includes:
“There needs to be court action started so assets worth over $5 million can be protected. The estate needs to contact the banks concerning bank accounts and mortgages.”

His real estate acquisitions in BC and 7,520 acres of farmland in Saskatchewan is estimated in the ballpark of C$50 million. He could easily pay them all in C-A-S-H, but he did not and took out M-O-R-T-G-A-G-E-S. Is there a message from our Bankers that we don’t already knew !?

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

@southseacompany

what are canadian bonds doing?

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

@space889

ian young is a hong kong reporter working out of vancouver. hence the name hongcouver.

coming on here and intentionally misunderstanding simple things isn’t going to help you convince anyone of anything. you must think we are all stupid.

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

but if you want to talk about mainlanders vs HK i prefer to socialize with mainlders. the regular ones who come here for a better life, not the ultra rich shopping for passports or the crooks.

i find mainlanders to be more friendly, outgoing, sociable, and have a variety of interests, enjoy the outdoors. also, they don’t have a bizarre aversion to american cars and love for all things japense like HK people do.

i find HKers to be more insular, shy, geeky, have narrow interests, aren’t interested in anything physical.

Oracle
Guest
Oracle

So 23% of Richmond families are classified as poor in SFD neighbourhoods where there are no suites.

Great. Like I said before, law abiding Canadians can’t compete with this. Quick, everyone turn into criminals just like the politicians and big businesses.

Now cut immigration to Canada by 75% since there is no benefit to provincial or federal taxes. If you can’t get here then you won’t send illegal money here.

Oracle
Guest
Oracle

Guys, remember that it’s not about ethnic people. There are good ones and bad people in every race.

The root of the problem is gov policies that are leading to division.

squeak
Member
squeak
Who is worried about debt? I am, that is why I don’t have any. I think it is more noble to save up till you can afford and man/woman up enough to say: I am ok, I can live without that (stuff) and focus on my real goals. But I guess I am a freak, I like to be responsible, a word soon to be removed from the dictionary. Imagine what a country where being responsible and honest (on all levels of society) would look like. Mind blowing! But, that is not what we have now. We have a mega mess. And hard working taxpaying Canadians are getting angrier and are already questioning authority and getting into a survival mode for themselves. It is brewing.. Is this about divide and conquer? Forces out there to break up/weaken this nation through… Read more »
space889
Guest
space889

@Bull! Bull! Bull! – A lot of HKers seem to have a sense of superiority about their special manifest place in Asia. Maybe it comes with the rapid economic growth since the 50s and being a global financial center.

However, the average working class people I’ve met and worked with are usually nice. The ones that decided to work locally tend to have more varied interests and activities beyond just eating, badminton, anime, and brand names.

The rich and spoil brats are pretty much the same regardless of whether they are from HK or mainland.

wpDiscuz