Tag Archives: risk

advice, humor, hype

The best way to make money in Real Estate

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48 Comments

Looks like somebody has figured out the easiest and best way to make tons of money in Real Estate.

It’s not buying and flipping condos, it’s not renting out rooms and sheds, it’s not even as a developer building towers or a realtor taking a commission on each sale.

No, all those things would take way too much work.

The best way we’ve ever seen to get rich off of real estate is simple: sell your name to developers.

This way you take no risk in the market and make money no matter what happens.

So what are you waiting for? Get selling!

Canada, CMHC, mortgage, opinion

Should banks take on more risk?

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95 Comments

There’s an article over at the CBC on the CMHC and CEO Evan Siddall.

Mr. Siddall is of the opinion that the CMHC should not be privatized as it acted as a ‘shock absorber’ during the last correction, but does think the banks should take on a share of the risk for insured mortgages.

“That ultimately will be a decision for government to make and we’re in the process of looking at different options that will take a few years to evaluate, but the idea is that people should have skin in the game,”

“In the insured mortgage businesses, the banks offload all that risk to the government through CMHC, The government’s interested in taking a reduced role in the housing market … so we’ll look at different ways to share risks with lenders.

What do you think, should the CMHC force banks to take on more responsibility for the insured loans they hand out or would the banks just use that as an excuse to charge more?

Read the full article here.

Canada, CMHC, mortgage, opinion

CMHC considers sharing risk with banks

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31 Comments

The CEO of the CMHC is saying that although some Canadian house prices are certainly too high, they aren’t worried about a market collapse at this point.

One option they are considering as a way to help cool an overheated market is sharing mortgage loan risk with the banks that are handing out loans.

The mortgage insurance that CMHC and its two competitors sell repays banks when consumers default on their mortgages. At the moment it makes the banks whole. The OECD has called for changes to the system to ensure that lenders take on more of the risk. In other countries with mortgage insurance, the product tends to only cover 10 to 30 per cent of the losses. In his speech, Mr. Siddall said that CMHC is evaluating “risk-sharing with lenders to further confront moral hazard” and is advising the government about its thoughts.

Read the full article here.

Hat-tip to southseacompany.

Open Topic

Friday Free-for-all! Here comes Autumn.

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It’s the end of another work week and you know what that means…

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:

–World warns of Canada risk
–Fed renews zero rate, hints at hike
–BC too laid back for China business
–HAM a myth?
–How locals afford homes
–Slackers are Debtors?
–FIPA is coming
–

So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!

Canada, CMHC, debt, opinion

IMF says Canada should end CMHC insurance

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In a surprising recommendation, the International Monetary Fund has suggested that Ottawa should do away with mortgage insurance offered by the CMHC (Canadian Mortgage and Housing Corporation).

The IMF concedes that the current system has its advantages for stability. But it says it also exposes the government, or taxpayers, to financial system risks and might distort the market as a whole in favour of mortgages over more productive uses of capital.

Huh, would any of you taxpayers miss insuring high risk mortgages?  By which we mean would you miss insuring MORE higher-risk mortgages, since there’s no way you can drop responsibility for the ones we already insure.

Read the full article here.