Who Dat, Again? (Whodatworks Book 2)
But in the U. They also has interest-only mortgages. To be clear I take no particular position on home prices in Canada. If interest rates rise a bit the Canadian debt to income line must come down.
But if interest rates remain low the American debt to income line will likely rise. Wow, that was embarrassing to read. Which brokerage do you work for, so I can know never to do business with them? Just buy yourself a Cnd dividend ETF. This one looks more like a hedge fund where manager is guaranteed returns and investors foot the bill. Interest rates have to go up making it impossible for the over extended to pay their bills. And even then, there will be a time lag while credit cards are maxed out and new cards are obtained to pay the minimum monthlys on the old ones.
I have seen it happen. And if they have fixed mortgages, it could be years before the three percenters are reset. Garth, Your post today should be about the federal budget — break it down for the little guy and what it has in store for the wallet of the average Canadian.
Yeah I know that the firm takes profit. However considering the good returns in the last 10 years I thought it might be ok. For my dividend I will stick with my BBO etf. Your essential and incorrect meaning is that teachers are overpaid, i. I bet no one will oppose the political trend, kanatians were not even capable of a revolt years ago.
The Upper Canada Rebellion was an insurrection against the oligarchic government of the British colony of Upper Canada present day Ontario in December I realize this is not a political blog so Garth may not wish to post the following. I do think this should of concern to all Canadians. Finally… about time they found out the math did not add up with that type of program in place. But even at the peak, most homes were either paid off or financed by a prime fixed rate or 30 year loan. Look at prime vs.
Canada had interest only loans: When CMHC was insuring 0 down 40s, the first ten years were allowed to be interest only. This is a great story: Note how small the numbers look, and that he got a decent two storey in suburban Washington. Americans should be rushing to borrow more when they can lock in 30 year rates at near record lows.
And when their house prices in many areas are still cheap. They should, they can, and I suspect they will. Watch for an uptick in American mortgage debt to income. Spoken like a Canadian. Actually the busiest US mortgage activity is with refis, which is intensely rate-sensitive. It is different in Alberta. I hear in other parts of the country it can variously stand for Hot Asiatic Money.
What pig? — Greater Fool – Authored by Garth Turner – The Troubled Future of Real Estate
By the way, H. Clinton is to be a Calgary visiter. Now it is pay to play time on the east side of the Rockies, oh say to 1, ft above sea level. I am so glad the P. Stand by for orders. The other subprime crisis that nobody is talking about:. Canadian banks hit accelerator on U. Plan on buying a new car or truck? There's going to be a flood of inventory as GM et al stuff dealers with loads of inventory, forcing dealers to liquidate lots at discounted prices over the next year or so.
That red line on the chart is definitely losing steam…. You also forget that they pay a hefty sum into their pension plans, and that their sick leave benefits have been under attack. I would tend to agree with you, but then there is the variable of the Wynnut. Actually no variable at all. If she wyins Ontario, every man, woman, child and dog is doomed. Her and her tree hugging followers believe money comes falls from trees, anti business, pro Union far left of the NDP.
She will give what ever teachers and unions demand. Sabotages his own party over and over. Does not know how or refuse to capitalize on the Tree huggers mistakes. No one, even when trying to be that stupid is that stupid.
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Under free trade we can move our business anywhere in North America faster than a rainbow flag can get hoisted at City Hall. The same will happen with real estate. Harpo et al have been successful in destroying most of the middle class, and now F is puffing up to HELP the same people his policies destroyed. Typical smoke and mirrors. In the meantime, hang on to your wallet. So WHY did she take the time to apologize?
Yep, she says she is sorry but does it anyway. I hope a lot of Albertans will remember this act come the next election. I spoke to many politicians about their having a blog. Their immediate response is that a blog will not provide the true message from the people because the blog can be manipulated by the owner, allowing only posts that carry what is favourable to the owner. It is interesting how the masters of manipulation do not trust the power of manipulation.
The point is carrying cost!! Even with a 1. It will not cause people who already own out of their home to sell it. Thus driving up supply. But you are right is should effect resale value, although in the last year the affordability has decrease and prices has stayed static. When you find where all this money to pay for million dollar homes is coming from, you let me know. They provide services for money, on behalf of the public and in the vast majority of cases, puts the public good ahead of any profiteering.
The private sector also provides services for money, on behalf of the public but for the most part puts profiteering ahead of the public good. How do private sector companies make money? By selling and marking up goods and services to the public. The public gets something in return for paying for it. There are also many, many private sector companies that benefit from contracts received through public sector outsourcing. If you want to talk worker efficiency, there are fabulous and underperforming private sector workers, just as there are fabulous and underperforming public sector workers.
It makes sense to have a public health care system. I am at peace knowing my tax dollars go to support that family with a premie that needed intensive medical care. I also pointed out before on claims: Real estate buyer likes this phrase, this will take of the fear of rate increase, sounds like purchasers are eternally rate increase proof. I also found banks are still very generous on extending amor. Homeline, Line of Credit Demand loan type also make it possible to select any amortization at renewal. These are strange times. Most of the women that I know are stay at home moms.
The career ones have slowly been pressured to give up the career and also stay home or do small self employed work. The men have either had to step up their game or their incomes have stayed stagnant. Very few people that I know invest in the markets. The majority invest in real estate. There are a number of people who will be putting their new builds on the market this spring, hoping to make a profit.
Everyone and their uncle is a real estate developer…. They see themselves as the creme of the crop, living in the best neighbourhoods. I recently looked at my own situation. Investments are in the positive… not super positive due to the downturn when we originally invested and unfortunately were not diversified enough and jumped in during bad timing… but the money is positive. I earn less… family responsibilities. Spouse earns more… puts more time into work then I do. Definitely in the top percent of income earners… but lots of it stays in the corporation.
Living far below our means. Our situation is positive and in theory will get better provided good health continues. The point is there are many many who are not in a good situation. Using cash advance services, home equity lines of credits…. I hear everyday from people that they are tight for cash. Tight for cash on a daily basis not including planning for retirement. We are definitely in a situation of haves and have nots. The divide is greater then ever… but it may not be.. So far has put us in a very favourable situation at a young age.
There is no inflation? You need to look at the big picture. We tend to notice when prices go up or package sizes shrink — I sure do. Even though food prices are going up, Canadians spend less of our budget on food than we used to. Everybody without a fat, indexed pension needs to be concerned with inflation, to the extent that they choose investments that will hold their value or grow in real terms. Complaining that the orange juice cans shrank or that switching to pink salmon from sockeye is an affront?
It just seems petty. Garth, upon reading posts like this, how about one day posting about how you expect rates to rise and why, and some of the influencing factors. Not so much with wages. Funny how Ontario only has the balls to increase the minimum wage after the USA significantly ups theirs. In the private sector a poor performer, regardless of position in the organization, is moved out the door as soon as possible, whereas in the public sector a poor performer can look forward to be protected by the organization.
It is easier to promote this poor performer to another department than making any attempt to move that poor performer out the door. The public sector system will provide a lot of additional training to improve the performance but ends up being a waste of taxpayer money. These poor performers end up spending their entire career sucking the system.
OTOH, an excellent performer in the public sector is punished by assigning more challenging tasks and kept in their current position because someone has to do the job now. They have to prove it to me double or triple. All our rulers have sore arms form saluting false flags. Canadian Tire money is more legit that what we have. Americans not only can lock in an interest rate for 30 years.
But if market interest rates happen to fall they are allowed to break out of the mortgage and refinance at a small fee. What a generational opportunity the U. American mortgage debt to income should be higher than Canadian. I expect them to catch up to us. Not the other way round. I grew up in a small town from nowhere, but as a small lad knew the value of money at age 9. My parents would give me 50 cents three times a month to hit my bike to the barbershop for a haircut.
I went to this tiny barber school instead and paid 20 cents to pocket the difference so by the end of the month had 90 cents hidden away. This was my date money to ask a young girl to meet me for a movie with our bikes on a Saturday afternoon, as was a man of the world. It's worse then that. No resales, no condos, no b-lender loans.. So if premiums rose in the subprime market, it wouldn't even show up in CPI.
This is because major farmers, wholesalers and other primary manufactures hedge commodities and fuel prices in the futures and forward markets before the goods are made. As their inventory hedged depletes, it will be re-stocked at a new market value. In other words, prices today on many everyday items are generally based on market prices from one or three years ago. For other items with shipping costs, fuel prices are immediate.
Take for example Amazon, who is feeling the pinch of shipping costs and now terminating free delivery for online items. How about driver license fees? On top of that if you're fortunate enough to live in Ontario, now you have to get an emissions test, and with the new program that connects directly to a government system, and if they don't meet their quota, they'll just push a button and the next thing you know your dishing a few hundred bucks to replace some sensor somewhere out of reach.
How about the days when air was free at the pump? It's a dollar today. Inflation is the king of confiscation because it does it in a small way that nobody notices or cares about. The pillaging goes on and on, and will continue until people hate the government and disengage from the system.
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That's how it's always been and always ends. It's not the numbers you'll see changing rapidly, rather the deterioration and quality of society, services and infrastructure around you. Ha the copy paste from word doc on phone to here still messed up a few things, like adding and. Going to Arizona next week, locking myself in a room to finish this book. No booze, No distractions. It refused federal dollars to expand Medicaid coverage under Obamacare. And, after the U. Supreme Courtstruck down Section Four of the Voting Rights Act of , it passed a new voting bill supposedly to prevent almost non-existent voter fraud.
The immigration argument is seductive until you realize that immigrant demand is already priced into the house market and always has been.
Similarly when you look at declining population projections from StatsCan, you take comfort from the thought we can be bailed out by immigration until you realize they already include projected immigration. Now more properties are for sale drives down sale prices but with few sales, many are seeking renters to cover maybe a portion of their mortgage payments, driving rental prices up. Watch CP24 commercials… seems all the jewelers are offering loans to anyone. No income verification, bad credit etc. When that happens it causes a torrent of likeminded greater fools to skew the supply demand dynamics.
The market overshoots itself and then eventually pulls back. The MSM, on the other hand, likes drama and amplifies it. Ralph Cramdown If a market rises long enough, it covers up all these sins, but if the music stops or unemployment blips up, the corpses in the loan portfolios start floating to the top.
Mark Hanson says the same thing — as long as prices are going up, defaults are rare, just about all the payments are made. I mean be home free? She has literally dedicated her life to staying on top of her career.
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If she wins , every man, woman and child in Ontario is doomed. Plus, in Ontario, rules that let you supply teach while retired. Lots of jobs have unpaid overtime and skimpy sick leave provisions. The Federal Budget — bread and circuses for the masses. Meanwhile we all get our money stolen, and beg for the crumbs. Reality is that I could go on and on with the perks and unrivaled job security once they reach tenure and also point out that it is far worse in the private sector.
Then again, maybe temps will climb to 30 C next week. So did you retire as a civil servant? If so, I can assume you have declined your pension due to the fact that you consider it amoral? There's more at Garth's corporate site. It is provided as a general source of information only and should not be considered to be personal investment advice or a solicitation to buy or sell securities. Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor's circumstances and risk tolerance before making any investment decision.
The information contained in this blog was obtained from sources believed to be reliable, however, we cannot represent that it is accurate or complete. Your debt is in red. Their debt is in blue. Garth, greetings from Leftern Ontario! I hope all is well. God bless the boomers, when they trample upon your face smile and thank them. And remember, vote 6 ben on This is all a myth and you are eating too many forest mushrooms.
I could go on and on but instead if anyone is interested in why this is what I think…this is where the info is sourced: Thank you to our host for the space. Then, lots of debt slaves selling their wives damn autocorrect, lives by hour, maybe, to feed the kids 25 Skybluepink on Bubble Boy on The federal government, which stopped accepting new applications from would-be foreign investors in , has concluded the program is not generating sufficient economic return for Canada, sources say… Sources say the government believes the immigrant investor class of newcomers pays significantly less taxes over the decades than other economic immigrants, have less proficiency in English or French and are less likely to actually reside in Canada than other arrivals….
Canada overvalued on Nothing but the facts. Destiny has changed his mission… http: Supply and demand is controlling the market. Interest rates will not determine the market. Oh, and thanks for the interesting info on your blog everyday. Your doing a public service! Owning your own condo is easier than you think. But now for another interpretation. I see people declining at the grocery store all the time. So many people are broke. It is an aberration because the recent trend in Leaside is thousand over list, this took A quarter million over list: Was it under priced?
Soon Gotham will see the Bat signal in the sky. As I pointed out many times, it was already suspended. And in an ETF all your capital stays invested earning for you rather than being paid out. As uncle Milty said — there is no free lunch. Mind you I have seen 3 nasty Canadian RE corrections over the past 35 years — so maybe I am gun-shy 87 mousy on This does not bode well for Vancouver http: These are really interesting times we live in!
SHTF is a coming Fed-up on The missing information rom your post is: Son of Ponzi, thanks for the support on the Y axis matter. There are just too many variables. Thanks I do not expect much. Now, anyone can look up what teachers make, working hours, pension, relative job security. The Upper Canada Rebellion was an insurrection against the oligarchic government of the British colony of Upper Canada present day Ontario in December http: Wake up Canada, your youth is falling into pessimism… Daisy Mae on I suppose you think nurses, police and fire-fighters are overpaid too?
A pure race to the bottom, thanks for supporting it. This market is strictly supply and demand But you are right is should effect resale value, although in the last year the affordability has decrease and prices has stayed static. A horrible practise that really should and needs to be standardized. What world do you live in? God help them if they want to save for a vacation, a downpayment or have a family. Oh, and mortgage interest is tax deductible! They are crazy not to mortgage and buy cheap houses at this time.
Not too many people knew that. Posts during day none weekends should be legible. Lol Going to Arizona next week, locking myself in a room to finish this book. More your cup of tea? Popularity Popularity Featured Price: Low to High Price: High to Low Avg. Whodatworks Book 2 Jul 14, Available for download now. Provide feedback about this page. There's a problem loading this menu right now. Get fast, free shipping with Amazon Prime. Get to Know Us. English Choose a language for shopping. Amazon Music Stream millions of songs.
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