Canada Trip
Jan 15th 2016 | 2:04 am
#33
Slightly Canadian
Joined: Jul 2005
Posts: 10,146
From: St. John's, Newfoundland
Re: Canada Trip
Of course they will.
The current glut of commodities is causing low prices. That is making most juniors unviable. They'll never get the project financing (which is often hundreds of millions).
We're just going through a cycle.
There are several things going on at the moment in Canada. The juniors have got no money. Majors are divesting non-core assets, or trying to, at the same time as sniffing round bargains. The private equity outfits are creaming themselves.
The current glut of commodities is causing low prices. That is making most juniors unviable. They'll never get the project financing (which is often hundreds of millions).
We're just going through a cycle.
There are several things going on at the moment in Canada. The juniors have got no money. Majors are divesting non-core assets, or trying to, at the same time as sniffing round bargains. The private equity outfits are creaming themselves.
Baie Verte gold mine a rare sparkle during economic turmoil - Newfoundland & Labrador - CBC News
Jan 15th 2016 | 2:22 am
#34
Slob
Joined: Sep 2009
Posts: 6,345
From: Ottineau
Re: Canada Trip
Apparently there's still gold in (some of) them thar hills....
Baie Verte gold mine a rare sparkle during economic turmoil - Newfoundland & Labrador - CBC News
Baie Verte gold mine a rare sparkle during economic turmoil - Newfoundland & Labrador - CBC News
I don't cover precious metals, btw.
Jan 17th 2016 | 7:06 pm
#35
Thread Starter
BE Enthusiast
Joined: Mar 2012
Posts: 968
From: Calgary
Re: Canada Trip
OK
I suspect, but don't actually know, that there aren't many places in Bearspaw that are that large. Typically, in all areas surrounding the city, most acreages are in the less than 10 acres range. A quick search of realtor.ca will provide you with an indication of the price range of the acreages in your size requirement.
Another point is financing. Lenders will lend the usual amounts (as they would for a residential property in town city) for a percentage of the value of the acreage. Once you exceed that, they will only finance, say, 50% of the additional cost and you will have to fund the remainder. We found this out the hard way. After pre-qualifying, and they deciding to purchase a property some $100,000 below the amount we had pre-qualified for, we then discovered that we would have to find an additional $40,000 IIRC. Fortunately, we were able to do so. After moving in and speaking to others with similar properties, we discovered that this was normal and that, for some reason, lenders tend not to mention it until after any offer has been made.
I suspect, but don't actually know, that there aren't many places in Bearspaw that are that large. Typically, in all areas surrounding the city, most acreages are in the less than 10 acres range. A quick search of realtor.ca will provide you with an indication of the price range of the acreages in your size requirement.
Another point is financing. Lenders will lend the usual amounts (as they would for a residential property in town city) for a percentage of the value of the acreage. Once you exceed that, they will only finance, say, 50% of the additional cost and you will have to fund the remainder. We found this out the hard way. After pre-qualifying, and they deciding to purchase a property some $100,000 below the amount we had pre-qualified for, we then discovered that we would have to find an additional $40,000 IIRC. Fortunately, we were able to do so. After moving in and speaking to others with similar properties, we discovered that this was normal and that, for some reason, lenders tend not to mention it until after any offer has been made.
That is extremely useful information on the financing of an acreage and a bit unethical that they don't divulge this before you make an offer, but perhaps its one of those things they expect you to just know. $40,000 dollars isn't exactly an insignificant amount of money!
