Recession in Canada
Mar 5th 2009, 3:01 pm
#61
BE Enthusiast
Joined: Sep 2003
Location: Christina Lake. BC
Posts: 674
Re: Recession in Canada
Now is a good time to buy! I saved $150,000 on a house from it original market price in April 08! I also got loads of extras including all appliances alarm system and keyless entry. Some of you mention waiting 3/4 years to buy think of the rent costs for 3/4 years on a modest $1000 a month rental that's $36-48,000 That means the market values needs to drop another 10-20% for you to recover the dead rent money, depending on the value of the property. If you buy now you can get a 5 year fixed rate mortgage for less than 4% and start reducing the number of the years you need to pay a mortgage. The good think about Canada is the 5 year term on fixed rates gives you a lot more stability than your usual 1-3 year fixed rate terms in the UK!
Mar 5th 2009, 4:09 pm
#62
Dive Bar Drunk
Joined: Nov 2006
Location: Toronto
Posts: 8,649
Re: Recession in Canada
Now is a good time to buy! I saved $150,000 on a house from it original market price in April 08! I also got loads of extras including all appliances alarm system and keyless entry. Some of you mention waiting 3/4 years to buy think of the rent costs for 3/4 years on a modest $1000 a month rental that's $36-48,000 That means the market values needs to drop another 10-20% for you to recover the dead rent money, depending on the value of the property. If you buy now you can get a 5 year fixed rate mortgage for less than 4% and start reducing the number of the years you need to pay a mortgage. The good think about Canada is the 5 year term on fixed rates gives you a lot more stability than your usual 1-3 year fixed rate terms in the UK!
Mar 5th 2009, 5:19 pm
#63
BE Forum Addict
Joined: Apr 2005
Location: Saskatoon, Saskatchewan
Posts: 4,104
Re: Recession in Canada
To a first approximation; but you also need to take account of interest rates, rental costs, inflation, etc. Renting a house for ten years for $1500 a month in the hope that the price of a similar house will drop $50k doesn't make much sense, for example... whereas if it's dropping $50k a year, that may be a good plan.
Mar 5th 2009, 6:09 pm
#64
Beep
Joined: Jan 2009
Location: Here
Posts: 8,311
Re: Recession in Canada
Plus i think your point is a huge generalisation. Just because the bottom is hit doesn't make it the best time to buy. If people can afford the costs associated with buying and running a house comfortably and they love the place and it will be their home etc etc then it's up to them whether it's a good time to buy, not the markets.
Plus if people can get a fixed rate at lets say 3% as an example for 5 years, in 2 years when prices begin to rise again (example) interest rates will not stay anywhere near todays levels so factor in a potential doubling of your interest rate on top of years worth of rent payments etc etc etc..........
If you're in to make money then sit tight and stay away unless you can bag a bargain.
Mar 5th 2009, 6:37 pm
#65
BE Enthusiast
Joined: Nov 2007
Location: Abbotsford, BC
Posts: 450
Re: Recession in Canada
Plus the fact that interest rates are so good I could get a mortgage for 5 years less than my last mortgage which i worked out will save me over $100,000 in non payment of interest that would of occurred with a 25 year mortgage.
As others have said interest rates could be back up to 5-6% in 2 years which would work out thousands in extra costs over a 5 year fixed term.
Everyones situation is different mine was the right time to buy.
Luckily for me i found a house which i thought was good value for money and probably will hold is value for a while as I got it a fair bit cheaper than similiar properties in the area. Due to the sellers situation. There wanted rid quick as they already had another property so i capitalised on that. Just the same as the buyer of my house in England did to us when we moved over last year.
good luck to others getting taking the plunge and the same to the others waiting.
Mar 5th 2009, 9:22 pm
#66
Joined: Aug 2005
Posts: 14,227
Re: Recession in Canada
Where I'm looking places are dropping a LOT faster than my rent. So my 'dead money' is actually saving the difference and I get the utility value without having to worry about maintenance costs / tax etc. When this stops (I'm guessing in about 18mos time) I'll start looking. I'll be a cash buyer and so don't really give a monkeys about mortgage rates.
Mar 5th 2009, 10:00 pm
#67
RETIRED Realtor
Joined: Aug 2006
Location: Winnipeg, Manitoba
Posts: 2,087
Re: Recession in Canada
Here in MB the average household income is around $60,000, the average house price is $197,000 so on average we are talking 3.28 time income for a house in Manitoba.
Mar 5th 2009, 10:05 pm
#68
Joined: Aug 2005
Posts: 14,227
Re: Recession in Canada
http://www.vancouversun.com/business...tml?id=1226971
You must be more sensible in Manitoba
Mar 5th 2009, 10:21 pm
#69
RETIRED Realtor
Joined: Aug 2006
Location: Winnipeg, Manitoba
Posts: 2,087
Mar 6th 2009, 3:18 am
#70
BE Enthusiast
Joined: Sep 2003
Location: Christina Lake. BC
Posts: 674
Re: Recession in Canada
You can get self declared Margate’s (i.e. liar Morgate) in Canada so sub prime dose exist, ok not in the same quantity as in the USA and UK but there nerveless.
Mar 6th 2009, 3:23 am
#71
Banned
Joined: Mar 2009
Posts: 146
Re: Recession in Canada
This was also posted on that forum!
This post is intended for those who are thinking about
applying for immigration permission to come to Canada, or those who are in the process of applying. I am a Canadian citizen, born in Canada, and I say this......Canada is in the midst of the worst economic free fall that we have seen in the past 70 years. Huge numbers of Canadians are now out of work, and many Canasdian companies are declaring bankruptcy. In the last year, the Province of Ontario has seen 335 ,000 jobs disappper in the manufacturing sector, alone. The Canadian automotive makers are all balancing on the edge of bankruptcy, and they are begging the Canadian federal Government for bail out loans, to stay in business.General Motors of Canada, Ford of Canada, and Chrysler of Canada, have all closed their car and truck making plants for three months, to try to reduce their huge inventory of un-sold vehicles. Car sales in Canada are down by 45 percent, and dealerships are going broke, as no one is buying any thing. In Ontario , one out of every seven jobs is directly tied to car making or the auto parts supply companies that feed materials to the car makers. Ordinary Canadians are worried about their own employment future, and the economic future in 2009 is looking very dark, indeed. The Government of Canada is saying that in 2009 they will be forced to go into a huge deficit budget, to try to stimulate the economy, by starting large public spending on infrastructure projects.The resale value of the avearge Canadian house has dropped by about 15 percent, in one year, and the building of new homes has all most completely stopped, as no one is willing to buy at this time. Many home owners are no faced with the frightening reality that they owe MORE on their home, than it will bring if it is sold now. If any one wants to buy it, that is . Many Canadians are having to "walk awayt " from their homes as they have lost their jobs and cannot pay the mortage. Thet are willin g to take any !job, no matter how low the pay, to keep their kids fed, and with a roof over their heads. Many are living in their parents basements, or with friends. Times are very bad here now.At the prsent time. Canada accepts about 250,000 new immigrants per year, but with so many of our own citizens being unemployed, immigrants are going to find it all most impossible to get a job, any job in Canada in the next 3 to 5 years. It only makes sense, of course, that in such hard times, we are going to hire our own people first, before a immigrant gets any chance at the job.So here is my message to you, in simple words.If you have not yet been approved, to come to Canada, STAY where you are. If you have a application "in the process " you can take it back and get most of the fees refunded to you, by cancelling it. Even those who have been approved and are about to come here may very well find that they are going to have to go back home in six months time. Keep that in mind. Now for the disclaimer.....I am NOT an Immigration consultant or lawyer. I AM a Canadian who reads the news every day, and who lives in Canada, and who is very sure that this is the WORST possible time to come to Canada, as a Immigrant. Don't say that I dind't warn you.Jim Bunting.
Toronto.
This post is intended for those who are thinking about
applying for immigration permission to come to Canada, or those who are in the process of applying. I am a Canadian citizen, born in Canada, and I say this......Canada is in the midst of the worst economic free fall that we have seen in the past 70 years. Huge numbers of Canadians are now out of work, and many Canasdian companies are declaring bankruptcy. In the last year, the Province of Ontario has seen 335 ,000 jobs disappper in the manufacturing sector, alone. The Canadian automotive makers are all balancing on the edge of bankruptcy, and they are begging the Canadian federal Government for bail out loans, to stay in business.General Motors of Canada, Ford of Canada, and Chrysler of Canada, have all closed their car and truck making plants for three months, to try to reduce their huge inventory of un-sold vehicles. Car sales in Canada are down by 45 percent, and dealerships are going broke, as no one is buying any thing. In Ontario , one out of every seven jobs is directly tied to car making or the auto parts supply companies that feed materials to the car makers. Ordinary Canadians are worried about their own employment future, and the economic future in 2009 is looking very dark, indeed. The Government of Canada is saying that in 2009 they will be forced to go into a huge deficit budget, to try to stimulate the economy, by starting large public spending on infrastructure projects.The resale value of the avearge Canadian house has dropped by about 15 percent, in one year, and the building of new homes has all most completely stopped, as no one is willing to buy at this time. Many home owners are no faced with the frightening reality that they owe MORE on their home, than it will bring if it is sold now. If any one wants to buy it, that is . Many Canadians are having to "walk awayt " from their homes as they have lost their jobs and cannot pay the mortage. Thet are willin g to take any !job, no matter how low the pay, to keep their kids fed, and with a roof over their heads. Many are living in their parents basements, or with friends. Times are very bad here now.At the prsent time. Canada accepts about 250,000 new immigrants per year, but with so many of our own citizens being unemployed, immigrants are going to find it all most impossible to get a job, any job in Canada in the next 3 to 5 years. It only makes sense, of course, that in such hard times, we are going to hire our own people first, before a immigrant gets any chance at the job.So here is my message to you, in simple words.If you have not yet been approved, to come to Canada, STAY where you are. If you have a application "in the process " you can take it back and get most of the fees refunded to you, by cancelling it. Even those who have been approved and are about to come here may very well find that they are going to have to go back home in six months time. Keep that in mind. Now for the disclaimer.....I am NOT an Immigration consultant or lawyer. I AM a Canadian who reads the news every day, and who lives in Canada, and who is very sure that this is the WORST possible time to come to Canada, as a Immigrant. Don't say that I dind't warn you.Jim Bunting.
Toronto.
Chinese, South Asians, Japanese, Koreans, etc. are immigrants, but not us, the British, unless they are Indo-British or Chinese Briton who is other than having anglosaxon heritage.
Mar 6th 2009, 3:25 am
#72
SUPER MODERATOR
Joined: Dec 2005
Posts: 88,044
Re: Recession in Canada
I just want to let you know that British people, particularly English people are NOT immigrants arriving to Canada, as Canada was built by the British.
Chinese, South Asians, Japanese, Koreans, etc. are immigrants, but not us, the British, unless they are Indo-British or Chinese Briton who is other than having anglosaxon heritage.
Chinese, South Asians, Japanese, Koreans, etc. are immigrants, but not us, the British, unless they are Indo-British or Chinese Briton who is other than having anglosaxon heritage.
Mar 6th 2009, 4:31 pm
#74
Joined: Aug 2005
Posts: 14,227
Re: Recession in Canada
I just want to let you know that British people, particularly English people are NOT immigrants arriving to Canada, as Canada was built by the British.
Chinese, South Asians, Japanese, Koreans, etc. are immigrants, but not us, the British, unless they are Indo-British or Chinese Briton who is other than having anglosaxon heritage.
Chinese, South Asians, Japanese, Koreans, etc. are immigrants, but not us, the British, unless they are Indo-British or Chinese Briton who is other than having anglosaxon heritage.