RE:RE:RE:RE:RE:Truth comes outThis is exactly some of what's happening in the building side. I'm OK with the short term reductions for relief, for some of those families who qualify for interest relief in the right Interest rate offers (5%). Needy families need help.
Usually builders get private funding. The builders problems are way more complex. Development time is a huge issue there.
GO BOMBER GO
bicente wrote: BBDB859 wrote: Acuras & to anyone who thinks
low interest rates are a benefit.
5% Interest rates are not too high for Residential RE. They are a fair rate to qualify people on a mortgage.There is a fine line between low interest rates & giving money away.
The other end of the spectrum is simple. When rates are low? They
are a recipe for desaster in Inflation everywhere else. Cars, food, energy, labour, & many other consumer goods like appliance prices go up. There is a trickle down from low interest rates to everything and people start to live beyond their means. Then all other facets of our lives become expensive. This is a natural evolution of human greed. I agree that RE mortgages should be affordable, but at what cost. That small reduction in RE savings is paid in all other facets of living. So a fine line is 5% to keep Inflation down.
The other problem is, is that when interest rates are down?
PRICES of homes GO UP. When
Interest rates are fair? House
prices INFLATE at a slower pace. This
slow inflation keeps houses affordable for younger people and other families, who really need a home. Slow growth is more of a benefit for everyone.
End of my rant too. Now we should focus on the Bomber share price.
MyNameIsNobody wrote: Acuras1 - I' all in for people being able to keep, or not lose..lol, their homes but most of the financial problems in life is people not buying what they can afford but buying what they want or, even worse, feel like they deserve. (I'm not saying your kids did that. Just saying the RE prices and debt are issues that people have more control over than they think)
I'm not saying that I know how to fix thing but it looks like fixing the problems with real estate prices etc.. is always being pushed back. The worse is when some people suggest that mom and dad help the kids buy their first home by giving them an early inheritance.
Rant about debt and RE done.
A nice day to everyone in this Bombardier sp rollercoaster
Acuras1 wrote: There's no question that lower interest rates are positive for the real estate market. We don't often read comments with a negative tone about lower interest rates. My kids have mortgages and I see lower rates as a positive and even a relief.
Lower rates make housing market more attractive for both buyers and sellers. By the way nearly 1/2 of Canadian mortgages are due for renewal in 2025, with many currently issued at rates less than 1/2 the current interest rate. and I suspect that lower mortgage rates will help some highly leveraged home owners keep their homes.
GLTA
My useless two cents on this subject is that we need lower rates ,temporarily , to allow investment into housing . .. there are many other causes for the higher prices of homes now ( salaries , materials , land pricing , city permits , expensive working security measures etc.) ... it's very simple , we have a huge shortage of homes and they need to build more .Most builders borrow money to create these projects and they need to make a profit .. we cannot stop housing prices from going up if we keep adding population and limiting projects ... I've already come across a couple of projects that were put in hold here in Montreal last year because the contractor was forecasting a drop in condo prices starting next year , I'm sure that will change with this announcement... just to give you an approximation ; I received an estimate for a housing project and it was hefty .. $280 per square foot whereas this same project costed me $110 per square foot 13 years ago .. this does not include financing .. what this means is that the property will stay as is because there is very little room for profit , or decent pricing , to rent out the spaces .. maybe we should remove the GST on homes instead of junk food ??? ... GLTA