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#1 |
Penultimate Amazing
Join Date: Jan 2003
Posts: 22,755
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Canadian housing bubble?
Quote:
The Biggest Housing Bubble in the World Is in ... Canada? I don't know whether there's a bubble or not, but what the chart tells me is that it makes more sense to rent in Canada than to buy. Conversely in Japan it makes more sense to buy than to rent. |
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A fool thinks himself to be wise, but a wise man knows himself to be a fool. William Shakespeare |
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#2 |
Philosopher
Join Date: Jun 2007
Posts: 5,727
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I have been saying it for a while. I live in Halifax. We just bought our house for 207k.... and a little over 2 years later they are saying it is worth ~230k. There's no way. It's still a city full of low paying jobs.... our whole subdivision was told not to list any properties below 200k.... which is a bit of a joke. My brother in law just sold his home he bought for 113k ten years ago for 230k this year... I don't even think the economy is better.
Anyway.... I agree with the report...... I'm sure we are in a bubble.... but it probably varies from province to province. |
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#3 |
Philosopher
Join Date: Oct 2010
Posts: 6,695
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"Honi soit qui mal y pense." |
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#4 |
Skeptical about skeptics
Join Date: Sep 2010
Location: 31°57'S 115°57'E
Posts: 12,465
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#5 |
Penultimate Amazing
Join Date: Jul 2006
Posts: 18,647
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There are a couple of reasons for the anomaly in the Canadian housing market. One is that mortgage rates are currently very low (from under 3% for short term up to around 6% for a ten-year term) and that profits on residences are not subject to any income tax.
Both owners (according to current polling and trends) and the Federal Government (and Bank of Canada) are concerned about what would happen if interest rates were to suddenly jump and are taking steps to mitigate this eventuality. |
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"Reality is what's left when you cease to believe." Philip K. Dick |
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#6 |
Penultimate Amazing
Join Date: Jan 2003
Posts: 22,755
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Well the same is also true in Japan, which is at the opposite end of the scale. My mortgage rate is fixed to 1.9% for 10 years (there were some fees at signing so practically it's somewhat higher than that, but still really low). By profits, I assume you mean capital gains if you resell your house for more than you bought it? Or does that include income from rental properties?
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A fool thinks himself to be wise, but a wise man knows himself to be a fool. William Shakespeare |
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#7 |
Penultimate Amazing
Join Date: Jul 2006
Posts: 18,647
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"Reality is what's left when you cease to believe." Philip K. Dick |
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