Real-estate market 'almost at a crisis situation'

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Originally Posted by fishfood

Wonder what the crunch is now? Many are still struggling with high debt. 2 years after this post in 2019 Canadians were already in some serious troubled times. We kicked the can down the rd while increasing the cost of living. The bank of Canada just announced that mortgages will be 20 to 40 percent more by 2026. They said the old low interest over the past decade is a thing of the past and these new higher rates will be the new normal. It's part of the new transition they said. Our government also used the pandemic as an opportunity to put more of a burden on Canadians.

Add in the price on carbon to force us to go green they already said if they make it unaffordable we will make the switch to green energy. Just like smoking make it unaffordable to make you quit.

When our government is making it more expensive to live I see where they get we will own nothing and be happy. Soon Canadians will be making some difficult decisions. Anyone who purchased a home in the last 3 years can expect not to be able to afford their home. Words of wisdom from the bank of Canada that will be ignored by many.

Sucks but our finance minister sits on a board that predicts just that. Hahaha.
Her friends think we will own nothing lol.

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I'm sure you remember rates of 18-19% in the early 80's. At the current rate money is still essentially free for those who have the desire to work harder and fore go instant gratification for future reward. I truly believe Canadians don't have an affordability issue but have a spending problem. An insatiable appetite for living beyond their means and a desire to do less for more compensation is the problem.

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Originally Posted by finsfurfeathers

I'm sure you remember rates of 18-19% in the early 80's. At the current rate money is still essentially free for those who have the desire to work harder and fore go instant gratification for future reward. I truly believe Canadians don't have an affordability issue but have a spending problem. An insatiable appetite for living beyond their means and a desire to do less for more compensation is the problem.

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Put in today's inflation price and it's about the same at 17 in reality.

What was the average price of a home in the early 80? 75 thousand dollars vs 6% at average 780 thousand a mill plus near the city. I'd rather pay the interest in the 80s on a much lower loan lol. Don't let the media fool you in thinking other wise . Just like our fake job reports of huge numbers of jobs paid by the taxpayers but hey its a job.

Our mortgage debt is at 107% of the gdp the usa fell and collapsed at 100% in 08 they now stand at 75%

When we build a society of our house is our wealth what happens in a collapse? There goes everything when it collapses.

This is what they want as our own government makes living even more not affordable for Canadians in their best interests for Canadians.

They still haven't mentioned the cost of the transition but we are about to witnesses it in the decade.





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Originally Posted by finsfurfeathers

I'm sure you remember rates of 18-19% in the early 80's. At the current rate money is still essentially free for those who have the desire to work harder and fore go instant gratification for future reward. I truly believe Canadians don't have an affordability issue but have a spending problem. An insatiable appetite for living beyond their means and a desire to do less for more compensation is the problem.

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Amen, I want this, I want that, just put it on the CC. a lot of people running around with thousand dollar phones and all the other non essential stuff they claim they can't live without. Kids with phones, no need for that. Expensive communications packages, no need for that either. But, those that splurge beyond their means will learn to eat hot dogs and cornflakes for a long time. Do I care for them, nope.

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Originally Posted by fishfood

Put in today's inflation price and it's about the same at 17 in reality.

What was the average price of a home in the early 80? 75 thousand dollars vs 6% at average 780 thousand a mill plus near the city. I'd rather pay the interest in the 80s on a much lower loan lol. Don't let the media fool you in thinking other wise . Just like our fake job reports of huge numbers of jobs paid by the taxpayers but hey its a job.

Our mortgage debt is at 107% of the gdp the usa fell and collapsed at 100% in 08 they now stand at 75%

When we build a society of our house is our wealth what happens in a collapse? There goes everything when it collapses.

This is what they want as our own government makes living even more not affordable for Canadians in their best interests for Canadians.

They still haven't mentioned the cost of the transition but we are about to witnesses it in the decade.





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No, I say your housing inflation is created by fools thinking they can afford something far beyond their means, never taking into account possible interest increases. You pay the price and make everyone else think they can do it too. Oh I need 5 bedrooms and 4 bathrooms in a 3K square foot house. No you don't, self entitled stupidity is what I call it. I grew up in a moderate sized house, and raised my kids in one too, no one suffered, no one died. They learned well and are far ahead of the crowd that's so far in debt you can't reach them wit a lazer light.

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Originally Posted by finsfurfeathers

I'm sure you remember rates of 18-19% in the early 80's. At the current rate money is still essentially free for those who have the desire to work harder and fore go instant gratification for future reward. I truly believe Canadians don't have an affordability issue but have a spending problem. An insatiable appetite for living beyond their means and a desire to do less for more compensation is the problem.

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Agreed, it's all like monopoly money until things get tough. Now these days the parents bail them out so the spending continues. I never had that safety net so learned to live within my means.

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Originally Posted by Fisherman

Amen.

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Ah the church of FFF. Gladly accepting tithe just send me your info

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Originally Posted by dean.f

Agreed, it's all like monopoly money until things get tough. Now these days the parents bail them out so the spending continues. I never had that safety net so learned to live within my means.

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That may be true,but,it'll be very short-lived at this point. Parents are getting to the thin edge of the wedge,too.

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Originally Posted by Fisherman

No, I say your housing inflation is created by fools thinking they can afford something far beyond their means, never taking into account possible interest increases. You pay the price and make everyone else think they can do it too. Oh I need 5 bedrooms and 4 bathrooms in a 3K square foot house. No you don't, self entitled stupidity is what I call it. I grew up in a moderate sized house, and raised my kids in one too, no one suffered, no one died. They learned well and are far ahead of the crowd that's so far in debt you can't reach them wit a lazer light.

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I think many should take the warning and downsize while they still have time. If thier struggling now , Later is going to be even worse.

The worst part is our government is actively funding housing investments with our pension plan, helping drive up the price while they complain about supply and demand lol. But then again they are again just another partner more money investments into a you know who group partner lol. Weird. Haha.
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Originally Posted by finsfurfeathers

I'm sure you remember rates of 18-19% in the early 80's.

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As another reference a new study shows most Canadians think they are getting a better deal when the price is in pounds lol. Too funny don't price it in kilos or it's over priced and to expensive. Hahaha

This is basically the same thing. Our wages hasn't increased 20 x since then.



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I remember the rates from the 1980's and I was 16 in 1985. I use to get like 10% on my savings account. My Dad's mortgage was about 4 points lower as he was an employee and a manger. It was still tough back then. My Dad's part time job was playing Poker at the Kinsman Club, he was pretty good. Good enough that it paid for my siblings and I to have swimming lessons, Scouting, girl guides and a few others.

Dad still plays poker to this day age 76.