RE:RE:RE:RE:RE:RE:RE:90,000 jobs created in December won't stop a rate cut.
the other thing i did not mention in my post was that at the height of the market people were buying houses and cottages for rediculous money. The market was basicaly outpricing itself, but with the help of real-estate agents and who knows who people were outbidding eachother.
everyone was real estate drunk prices increasing 20% and more year over year some areas of Canada saw prices more than double in just a few short years (vancouver,toronto and cottage country here in ontario)
everyone thought this would go on forever even income property was bought and people were reaching into their pockets to the tune of $3-4-5000 on top of what was being made in rental income to cover the cost of running a place.
I just shook my head but the explanation was that :"well but the value of the propery is increasing by 20% or more every year, so its a great investment"! LOL
my family owned many duo,tri and small apartment buildings but never was a property bought that wasnt kicking off some income.
its called income property for a reason! not throw extra money in a month to keep things afloat.
cottages were purchased at huge premiums because people thought they would not be able travel for a long time and buyers were told you can rent out the cottage for 2-3 thousand a week to offset cost....and yes during the covid years people were paying these rediculous rents for a week out of the city
well fast forward 2 years and now we have a cottage rental market that is swamped with people trying to keep up with mortage payments and that was at low interest rates !!
why would i rent a cottage for $2500 a week drag all my cr ap up do my own cooking etc when i can go to an all inclusive in Mexico for less than that and not lift a finger
and finally and most importantly is the fact that the homes people have overpayd for 4-5 years ago are not selling for the same money a they were.
so not only do people that have to re-negotiate their mortgage have to deal with interest rates that are possibly double if not more but becouse prices have come down by 10% or in some cases 15-20% they may not qualify ?!
yes Hello Canada there are times where house prices dont go up year over year and sometimes they even come down.
well i know the government has probably already had that talk with the banks telling them to change the rules on needing less equity to offer a mortgage making the stress test to get one a little easier and here is a biggie why not offer amortization's like 50-60-70 years then the mortgage rate really dosent matter at all.
Banks would have absolutely no issues with that because they will make an extra $500k on a 60year amortization.
People will be able to spend spend spend but never own their home and maybe they dont care anymore, they just wanna have anyway??
sad but this is what i see happening and it seems to be the new normal
and for the next act .....eliminating cash...and going all electronic all deposits withdrawal's just use your plastic cards son !!