Quote:
Originally Posted by _Richard_
would be about time, after hearing this for over 15 years
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Yeah, the sky is falling, the sky is falling. I've been listening to the "experts" for the past 10 years predicting a housing market crash in Canada.
Quote:
Originally Posted by Phoenix
So time to sell house and put money somewhere safe until it rebounds? Or just keep paying the mortgage anyway
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Sure. But where would you live? In a van down by the river?
Quote:
Originally Posted by celebsnudehd
A huge difference is that, unlike in the USA, mortgage interest is not tax-deductible. There is no artificial inducement to "max out" the mortgage for the tax write offs.
Comparing the two scenarios is artificial. The housing markets outside of Vancouver and Toronto are not overheated. I can imagine the two major markets experiencing a correction when overseas investors discover regions they deem to be a safer bet. But for now those same investors keep bidding up the prices in Toronto and Vancouver. Not anywhere else, though.
I have to wonder if the writer of the piece spoke to anyone other than those in the Vancouver and Toronto real estate markets? Methinks not based on the blanket country-wide conclusions.
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+1. So true. There is so much mis-information in the original article. For example, household debt in Canada has been actually SLOWING DOWN for the past 4 months.
And, yes, the effect of lower oil prices will drive down some sectors of the economy, but will also help others (manufacturers, exporters - especially because of the depressed Cdn dollar).
There is also a lot of things right with the Canadian economy - a conservative and stable banking sector, a low national debt level, and likely a balanced federal budget later this month.