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Coronavirus
- Thread starter nobbie48
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Well, if the banks don't extend the 6-month deferment on mortgage payments, the housing market will be in for a rude surprise.
sburns
Well-known member
I think they live for life experiences, and doing things less conventionally then their parents, or previous gen. Like not having a 9-5 job etc.
I am sure some of that is exciting and fun, but then what.
sburns
Well-known member
I believe a lot had/has to do from realtor's getting drunk off profits from foreign money, then jacking up the rates because the oversee money would just keep rolling in, while locals get the shaft. Then the gov acting to late to correct it, damage is done.
Another shining example on how to sink your business with terrible social media.
A family doc wrote an email to a coffee shop with a crowded patio. The coffee shop owner was tired of people complaining about their crowded patio so they sent a Hitler meme to the doc. Brutal.
A family doc wrote an email to a coffee shop with a crowded patio. The coffee shop owner was tired of people complaining about their crowded patio so they sent a Hitler meme to the doc. Brutal.
Our place was paid off before we sold out, but for the same money as our old mortgage+prop tax+maintenance , we've been able to stay in some much nicer places ever since, also due to choice and mobility.
May not work for someone who requires a bit of stability, but we were past that stage in our life.
I think the one of the biggest factors in own vs rent is the type of person you are and what you want to be able to do. I would go nuts living somewhere where I couldnt change things (add deck, make built-ins etc) and had to call landlord and wait for crap to be fixed. Other people have no interest in changing things and are happy to have a single phone number that fixes anything.
Being able to freely move is a huge upside to renting that is worth a lot. Unless you're my brother who is paying 1800+ to rent in keswick and is still there after his job moved to barrie because they have a friend there. Frig me. You could cut your commute by two hours a day for $0 and you dont jump at that opportunity?
I can see that.
The other side of the argument is that if you need a deck, just find another rental with a deck and move...
Never been a home reno kinda guy, more of a turn-the-key-and-leave-for-a-month kinda person.
Chacun à son goût.
They'll extend if required. It's safer for them to keep the market high than shock it with quite a few forclosures (or forced sales) on the market. The banks would be stupid to force a sale on anyone with more than 10% equity (as the bank could only lose on drops over 10 and those should be reasonably short term drops). By extending, the interest collected over the life of the mortgage will be much higher. Hell, I could see the bank forcing you to take their disastrously priced mortgage insurance if you want another six month extension further driving profit.
Whats concerning is that so many people have chosen to defer their mortgage and add a few thousand $ in interest onto it.
Are people that maxed out that they are carrying a mortgage and living paycheck to paycheck with absolutely nothing saved for a rainy day?
If interest rates are forced to rise in the next few years we are going to see a glut of people who wont be able to renew.
An increase on a $500K mortgage from 2% to 5% adds almost $10K a year in interest.
Are people that maxed out that they are carrying a mortgage and living paycheck to paycheck with absolutely nothing saved for a rainy day?
If interest rates are forced to rise in the next few years we are going to see a glut of people who wont be able to renew.
An increase on a $500K mortgage from 2% to 5% adds almost $10K a year in interest.
Not sure if that was a rhetorical question, but the answer to that is "yes":
50% of Canadians Less Than $200 Away from Insolvency
As debt loads grow, Canadians are increasingly left with less free cash at the end of each month…as little as $200 in most cases.
rates.ca
Canada has a huge debt problem, exacerbated by cheap credit. Poor government policy has made it too easy for people to over-extend themselves. It's not going to end well.
True...but a lot of people have lost their jobs and even if they can pay their mortgage this month...what happens to the next 5 months if they don't find a new one? Or find something at a significant salary decrease?
If I lost my job right now, first thing I would do is try and get a deferral because 1 month without a paycheck is ok...2 is ok...3 is getting dicey...plus you need to put food on the table, utilities, car payments, etc etc.
I would get the deferral and then top up my payments to reduce the interest rate hit at the end of it.
Read something a long time ago that it takes a month for every 10k earned to find an equivalent paying job. So, 60k annually would take 6 mths to find an equivalent job. 90K, 9 mths etc etc. Not sure it applies for under 30, 40k but possible. Now? double that time?
It's Earth Day today
That is a truly bizarre stat. Would love to see how they arrived at those calculations.
Can you find the source?
I'm not sure it's that simple. I know some fields where you could walk in the door to a dozen GTA companies, ask for 100K and they would ask you to start monday. If that field were altered (for instance if gov't removed the requirement for them to do the majority of their work), there would be a glut of highly trained people that need to almost start again in a different field. They would be unable to get back to 100K for at least a few years.
Not sure if that was a rhetorical question, but the answer to that is "yes":
50% of Canadians Less Than $200 Away from Insolvency
As debt loads grow, Canadians are increasingly left with less free cash at the end of each month…as little as $200 in most cases.
Canada has a huge debt problem, exacerbated by cheap credit. Poor government policy has made it too easy for people to over-extend themselves. It's not going to end well.
There are multiple points to this.
Yes, there is a massive issue of people over extending themselves. I wouldn't put the blame on cheap credit but rather financial literacy. I'm sure we all know someone that walked into a car dealership and said I can afford $400 a month, what does that get me? Without any concept of what and how much they're actually paying.
On the other hand, there is a fairly high cost of living to be in Toronto. Your average starter condo is going for $400k, which needs a ~$80k salary to comfortably afford. This puts even financially literate people into a tight spot.
Sure. Having lived there for more of my life then i care to admit and rubbing elbows with the *cough* elite, i would say i disagree with you.
Good?
Great
I'll take that bet, I rent and my returns are on par with the average net gains from owning property.
A very basic look at both options;
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