Talking about debts, by 2026, the feds will need to pay $153 billion in debit interest charges (nearly $4000 per Canadian). Instead of that money going towards healthcare and lower taxes, it's going to the pockets of bond fund managers.
Of course I know people who have been lucky and bought in a hot neighbourhood right before it took off. Most people still don't want to move after 3 years because moving and selling and buying a home is a tremendous amount of work. Most are happy staying put and paying down their mortgage given the low rate and their home price rise while they do nothing. In many of the hot markets selling a home is not the problem. Securing a new home id the big deal.
Right. We all know the potential huge issues behind this unreasonable market. But inside this crazy thing I still needs to buy as otherwise rental is not cheap either. Bidding is absolutely no fun. and therefore, when offering a price one needs to set boundaries based on all the risk factors.
Unfortunately as prices go up we have seen many push their budgets to highs that are really not advisable but once you have lost out on 5-10 bidding wars emotions often start taking over and to secure a home sometime you need to go above the budget that you are actual comfortable with. Have read some cases even from 10 years ago where families didn't have the money to furnish their home and if one of the spouses lost their job they wouldn't be able to pay the mortgage the next month but they still purchased a larger home and lived with a bed and a few chairs. There are many people purchasing homes at any cost and one of the reasons there is concern about Canadian's debt levels.
Agree. Unfortunately in many areas people are not in a position to play it safe. Many have only seen real estate prices increase and take for granted that real state prices will only increase so their home will be guaranteed to worth significantly more in 5-10 years so it is worth stretching their financial limits. Others have bought many properties leveraging one to purchase the next. Real estate in most of Canada has provided good returns so people have come to expect guaranteed good returns and many are "all in" on one asset class.
A huge house with little furnishings makes the home looks more spacious (just as a large retail store with little amount of merchandise on display looks more elegant). For a townhouse, one might need to abide by some decisions of a strata council and bylaws but none for detached house. Surely, you should spend money bit by bit on the residence. Typically, for a brand new home, people move in before the landscaping is done. At a later time, they upgrade their front yard, then back yard, get a shed, purchase additional furniture, etc.
Be it 5 to 10 years, moving and selling and buying a home will still be a tremendous amount of work. As in moving and tenancy termination and former tenant buying a home. Also for new immigrants and returnees, moving and selling their home in home country and buying a new home in Canada will also be a tremendous amount of work. It is just life. It's all about choices.
Well we are talking about totally different scenarios. If the little furnishings are out of one's own choice (I mentioned "unique lifestyle") I have no comment. But what the other guy mentioned was when they spent all the money on the house itself so they couldn't afford more furnishings.
If you are not picky, from time to time, there are free used furniture for anyone to grab or buy used things in various garage sale.
Even though the rates are low now the prices are very high especially in GTA. The problem with rates is they can be locked in only for 5 years. So after 5 years your payment could go up and you will end up paying loan for a long period of time and will be under debt. Think carefully and make a rational decision in this market.
Not really..my $500'000 house in New Brunswick is much nicer than a $1'000'000 shack in Toronto
