Canadian housing starts unexpectedly rise in June 2014 – The obvious reason this is happening
As I reported the banks lowered interest rates? The average Canadian who buys a homes based off emotional needs does NOT anticipate a housing collapse and why should they most Canadians don’t care about the economy or money until they lose their source of income or when they start to realise that they’re getting poorer. Canadians especially Canadas middle class hasn’t felt that pinch yet and they won’t as long as America doesn’t raise interest rates.
The warning signs on the wall about Canada’s housing market is referring to the not too distant future when rental prices become ridiculously expensive and hyper inflation starts to hit Canada because of the amount of debt we’re in. I personally don’t have a problem with foreigners buying up properties and paying more for properties than they’re worth. My problem stems from actual property assessments and Canadian taxpayers being on the hook for foreign investors.
If an Asian person wants to bid up on house that’s fine but RENTERS shouldn’t be subject to this because rental prices are getting ridiculous right now – because when a rich foreigner purchases a property then a Canadian homebuyer purchases a CMHC insured property in the same area for a similar inflated price then they whole neighbourhood or area feels it which makes prices for everything in that area go up.
Furthermore schedule one banks such as those located in Ontario should at the very least be using the Municipal Property Assessment Corporation (MPAC) assessment to value homes before issuing out a mortgage to ANYONE. So if a Canadian wants to pay more for a home than it’s really worth based on “expert analysis” the Canadian taxpayer shouldn’t be subjected to the premium that affects the entire community or even the city. Everybody doesn’t want to own a home and Canadians are becoming poorer at the expense of foreigners.
The dirty oil sands are only around 2% of the Canadian economy because we’re basically giving Canadian oil away to foreigners. Energy prices are ridiculously expensive for a nation with limitless supplies of natural resources. Good paying jobs are leaving Canada and even minimum wage jobs such as McDonalds are OUTSOURCING employees. You factor this in with rising rental prices and a overheated housing market created by the government of Canada and you have a lot of problems facing Canadians in the near future. If interest rates rise even 1% Canada as a whole we could be in serious trouble because of the all the debt. Then you have to factor in inflation and if the Canadian dollar drops hyper-inflation combined that with massive debt per capita, soaring energy prices and Canada could be in trouble.
These are preventable things that should be addressed NOW! Don’t expect the market to fix this problem unless you’re preparing for a very slow economy in years to come. The time for Canada to take a leading role in the world is NOW! Instead the government has sold out Canadians in exchange for debt and this is stupid because this is the time the government should be creating more Canadian Investors which would make our financial sector stronger and make our citizens richer thus bringing more Canadian jobs to our resource rich nation.
It sickens me to watch this all unfold this is the time when I believe Canada should be taking a closer look on how Germany is strengthening their middle class via EDUCATION and apprenticeship programs that prepare students for the work force which in a Global economy would lead to more Canadian entrepreneurs.
In Canada we’re basically trying to perfect the flawed American model of getting people into debt that they can’t get out of. With that said America will always be one the countries with a reserve currency Canada as a country will NEVER have that luxury. Canada has lots of land and an abundance of natural resources however our education model is flawed and it’s a contributing factor to why GOOD PAYING jobs are leaving Canada and why most people are finding themselves in debt.
In a time when Canada could become a global leader on how to use debt to leverage we’re instead doing the opposite and teaching Canadian on how to use debt to consume.
I hope the government of Canada wakes up soon because if our economy crashes it will get ugly because remember one of Canada’s best exports currently are our schedule one CANADIAN BANKS!
To learn more: Canadian housing starts unexpectedly rise in June – MSN