Canadian personal finances bleak.

According to a recent poll by the Canadian Payroll Association, nearly half of the workers in Canada are struggling month to month to cover their living expenses.

Nearly a quarter say they probably couldn’t come up with an extra $2k if they needed it for an emergency in the next month.

More than one-third of respondents – 36 per cent – said they feel overwhelmed by their level of debt and 12 per cent indicated they doubt they will ever be completely free of debt.

Forty-eight per cent of those surveyed said it would be difficult to meet their financial obligations if their paycheque were delayed just one week, up slightly from the annual poll’s average of 47 per cent over the past three years.

The report, released Wednesday, comes in the wake of economic data indicating Canada experienced two consecutive quarters of contraction – technically speaking, a recession – although home sales in August (except in Alberta) were strong and a report last week showed 12,000 net jobs were created last month.

Clearly the answer to the debt problem is more debt in the form of a home equity loan! Read the full article here.

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Westside Realtor
Guest
Westside Realtor

Oracle, here is my take.

The sky (over China) is falling.

Crash coming. Probably not by February, so no impact on your purchase decision).

WSR

w
Guest
w

“70% of the people in vancouver are paper millionaires.”

On second thought it’s probably closer to 100% since renters shovel the money they save into stocks and they always seem to sell at the top, buy at the bottom and short when stocks are going down.

renters rule
Guest
renters rule

Let’s set a formula of accepting 100 Syrian families for every Chinese millionaire astronaut “family”.

And introduce squatters rights — any property left sitting empty can be occupied by whomever needs to live in it!! Certainly morally a better use, and really also better for the local economy than sitting there empty….

Bring on the migrants, screw the astronauts!!!

bonus
Guest
bonus

I did a 500 dollar job for a mainland chinese woman. .she offered to pay me 1000 if I would accept a wire transfer from China for 10000 and give her nine back. China ching yay for me not bad for 2 hour’s work

BigWoofer
Guest
BigWoofer

We obviously need more foreign laundered blood money to keep the vancouver economy a float.

Canada Corruption at its best.

vangrl
Member
vangrl

“Jennifer Shasky Calvery, the director of the Financial Crimes Enforcement Network, stated that Caesars knew their customers well enough to entice individuals to travel across the world to gamble and then catered to their every need. When it came to watching for illicit activity, the casino brand allowed for the blind spot in their compliance program. While every business wants to impress their customers, it cannot come at the risk of introducing illicit money into the financial system of the United States, according to Calvery.”

Ceasers = Van Realtors/developers

http://news.worldcasinodirectory.com/money-laundering-scandal-involving-caesars-entertainment-results-in-multi-million-dollar-fine-13366

bonus
Guest
bonus

Oh and the China woman says she gonna buy condo with the $…her sister buy 3

Oracle
Guest
Oracle

GT blog saying no crash but a worst case scenario correction of up to 20% coming for house prices. Less for in demand areas.

Got to feel sorry for the Losers that believed in that blog. The worst case would put prices at 2014 levels.

Hahaha.

Hahaha.

Oracle
Guest
Oracle

WSR:

Definitely buying this fall.

Don’t want to be left behind. When i do, i will advocate for a massive increase in immigration. Got to do what the majority does.

patriotz
Member

Affordable housing crisis affects one in five renters in Canada: study

One in five Canadian renters face an affordable housing crisis, spending more than half their income on shelter costs, a problem that appears to be even more acute in suburbs and small cities than in major urban centres.

The real problem here is income inequality among renters. Those with the lowest incomes can’t keep up with prices set by more affluent renters.

History
Guest
History

Flow thru Welfare for Heavily indeted Landlords MUST be rammed thru!
Pull out all the Stops! Deploy all social media assets! Alert! Alert! Hand Out Nation in peril! Bullshit jobs must not be allowed to follow layoffs in Commodity industries!

southseacompany
Member
southseacompany
“Where next for global interest rates?”, BBC News http://www.bbc.com/news/business-34200709 “While the odds of a hike next week (at least judging by market expectations) have diminished, a rate rise is seen as highly likely in the coming six months.” “For all the attention on short-term rates (as set by the Fed) what really matters is longer term borrowing costs and, across the developed world, they are at (or very near) historical lows. And while these rates are affected by short-term central bank policies, they aren’t entirely controlled by them.” “For all the fretting about the timing of a US rate rise, it’s the bigger picture of longer term borrowing costs that will have an impact on the global economy. Throughout my entire life time long-term interest rates have basically been falling. If that trend stops, it would have a much more… Read more »
would-be buyer
Guest
would-be buyer
http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2015/09/liberals-would-relax-hbp-rules.html It’s becoming glaringly obvious that no political party is going to upset this housing juggernaut. Allowing buyers to raid their RSPs further is just financial suicide. They are cow-towing to renters and young people by saying they will look into the reasons behind the increasing prices in VA and TO, but they have not pledged to act on the information. They ultimately won’t upset their core home owning constituent. I will vote for the party that says they will abolish the capital gains tax on INVESTMENTS. It’s a joke that housing escapes this tax while those of us who don’t want to take on million dollar mortgages get taxed for actually SAVING. This country is fucked up. As for Garth Turner, I can’t believe how he has changed his tune over the last couple of years. A “correction” in… Read more »
Shut It Down Already
Guest
Shut It Down Already

Would-be buyer, the housing correction is worse than the stocks correction because the average man has a one asset strategy – their primary residence. A downturn will therefore affect the economic outlook and decisions of an entire population.

Garth generally advises to diversify. Not sure why he gets bashed so much for that.

bullwhip29
Guest
bullwhip29

lululemon dropped on its butt as weak currency takes bite out of profits

so, one of two things (or combo of both) will happen. prices in cda will be raised and/or product make up/quality will change for the worse. i suspect the latter is already taking place as the co has been gushing over all the so called benefits of their new thinner and lighter fabric called nulu.

would-be buyer
Guest
would-be buyer
Yes, Garth says to diversify, but how do tax payers diversify in VA? You have to decide you are going to own a house or invest what savings you have after renting and household expenses including daycare costs (rents and childcare are not cheap in VA). Most can’t afford to do both. I just admit that buying in VA over the last 5 years has been a better investment for the “average” person than saving and investing – since the “average” person does not have $50K or more a year to save after paying high rents and childcare costs. Most homes have increased (on paper, I admit) $50K a year. I make this argument because I am a high income earner who pays below-market rent and high childcare costs and I can only manage to save at most, $20,000 a… Read more »
bullwhip29
Guest
bullwhip29

@ #23

not a chance your numbers are even remotely close to being correct. link pls.

it is widely known that vancouverites are the most indebted in the country; the default rate is also highest in bc (vs rest of courtry) which also does not support thesis

everyone here knows someone that pretends they’re millionaires because they live in a million dollar home (all while struggling to make payments on a 750k+ mortgage)

the local housing mkt is effectively a gigantic ponzi scheme in many regards given that so many detached homes are really 3 and 4 plexs in disguise.

Jimmy
Guest
Jimmy

@37

Folks need to remember that house prices went up more than ten-fold the last time interest rates went from near zero to 20% in the 30+ year period leading up to 1981. However, that doesn’t necessarily mean they would this time.

w
Guest
w

@30

Don’t worry, it is on its way.

bullwhip29
Guest
bullwhip29

@ #43

using whatever metric you want, prices are so out of whack today. we only see 10-fold increases if all central banks around the world engage in a full blown zimbabwe-like print job. this market is such a massive house of cards and could not even survive a small increase in rates of say 2,3,4 %

bullwhip29
Guest
bullwhip29

its all about RE all the time in this country…

“Real estate deals helped Hudson’s Bay Co. return to profit in the second quarter”

“…net income for second quarter ended Aug. 1 was $67-million, which compared with a loss of $36-million in the second quarter of 2014 and $33-million in the first quarter of 2015.”

“latest quarter included a $107-million gain from HBC’s contributions of properties to real estate joint ventures…”

“On a normalized basis, HBC had a $53-million loss in the quarter”

http://www.theglobeandmail.com/report-on-business/hudsons-bay-swings-to-profit-as-sales-jump-15/article26303314

patriotz
Member

@43: ” house prices went up more than ten-fold the last time interest rates went from near zero to 20% in the 30+ year period leading up to 1981. ”

Fist of all, mortgage rates didn’t start at “near zero”. Rates for a 5 year mortgage were 5-6% in the early 50’s, much higher than today. And qualifications were stricter.

http://www.bankofcanada.ca/wp-content/uploads/2010/09/selected_historical_v122497.pdf

You (and others with a similar claim) are using government bond rates not mortgage rates. Well you’re not the government.

You are also ignoring the rising real wages (i.e. faster than inflation) over the whole period, and the change from single income to double income families. The labour participation rate today is the highest it’s ever been, and it’s going to decline with an aging population.

space889
Guest
space889

@renters rule – Then I hope you never have to go on a long vacation, stuck in hospital, or have to leave for work or taking care of family members elsewhere, cuz squatters don’t give a damn whose house they are squatting as long as the owner is not there.

Not to mention the rampant fraud this kind of law will ensue. Imagine condo building managers letting squatters in for a fee to squat in units of owners they don’t like.

As well, for the rich, it is easy to prevent it via on-site bodyguard company. You think someone who can pay $5M for a house and probably $25K+/yr property tax is going to care about paying another $35K for an on-site or regular patrolly security company?

space889
Guest
space889

@Shut It Down Already – Because he stopped calling for a big housing market crash and bears don’t like that. Even though what he preaches about stock market investments actually fits pretty close with the “stock genius” bears that like to brag on this blog.

space889
Guest
space889
@bullwhip29 – RBC did exactly that and found that on a monthly payment basis, the current monthly payment in absolute amounts is lower than what it was during the last boom or even in the early 90s. The CFA RE lunch event, the presenter also showed that the average monthly payments amount in Vancouver is actually a bit lower than what it was 10 years. Since most people just care about month to month payments, by that metric, housing prices and affordability is not out of whack in general. Specific case may different, but the point is on aggregate, housing is not terribly expensive or unaffordable. Now, if you want to live in an old unrenovated bunglow in the best of town on a $80K average income like your parents did 50 years when Vancouver’s population is probably 1/4 of… Read more »