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CANADIAN Politics And Investing ( F. TOITS)
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Re: Housing prices collapse....it will only get worse Unfortunately people are finding themselves in that position. IMO - Its the same old story - fear and greed - people are afraid of losing out and so they pay what ever the market wants and those selling are greedy and so they take as much as they can get. Parents if they are not careful end up paying for their adult kids mistakes and are left holding the bag. One would be surprised at the cost of long term care or just staying in a decent old age home. $40 - $50,000 per year is not uncommon and it can be a lot more expensive. Older people may think they are doing OK because they can cover the cost of food and housing expenses but really without a decent sized nest egg, they are 1 misstep away from being not so ok. One of the big factors in real estate has always been affordability and this is of course tied to Interest rates. People seem to forget that you can't sell whats not affordable - it does not work for very long as they are finding out now with real estate. One symptom that has come out of this seems to be increased rents as people chose to stay put rather than buying while they wait for housing prices to drop some more. This creates a squeeze on new entrants coming into the rental market. But even here there is a limit as to what people can afford. More people living in parents basements or doubling up for what rental accommodation are available seems to be the order of the day. One thing that they need to look at is immigration - nothing against immigrants as my parents were immigrants but when it gets to the point that a country can not properly provide housing and services for their own people let alone the immigrants, then this needs to be looked at. also the type of people they look at for immigrating needs to be addressed. When my parents came over, the criteria was healthy, strong back and the will to work. Now they look for educated people (for which we have no jobs) and at other criteria that does nothing to fill the jobs we do have shortages in like the trades. Just a mess thats getting worse. |
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