Just heard on C.B.C. news that people in Alberta are walking away from their mortgages and handing in the keys as unemployment rates rise and people are out of money. How is this phenomenum going to play out?
As a whole, Canadian's are carrying way too much debt.
Just heard on C.B.C. news that people in Alberta are walking away from their mortgages and handing in the keys as unemployment rates rise and people are out of money. How is this phenomenum going to play out?
Just heard on C.B.C. news that people in Alberta are walking away from their mortgages and handing in the keys as unemployment rates rise and people are out of money. How is this phenomenum going to play out?
The same thing has happened in the past when Alberta's economy hit road bumps. How it played out is that people bought up properties at a cheap price and sold it at a profit when the economy started booming again. That is how it will play out this time too. Things will pick up eventually. It is a matter of those who can afford it hanging on and those who cannot losing and going elsewhere to find work.
I'd like to say this is the '80's all over again, but it is and it isn't. The '80's had two bad things, high interest rates and the NEP. Interest rates were in the 21.5% range, yeah really. And Trudeau #1 nationalized Oil. Guess what, all investment money left the country, double whammy. Folks left their keys on the counters and left, (the really mad ones trashed their homes beforehand). Alberta was the only province at the time where the banks could not come back at you if your mortgage was worth more than your home. I don't know if that is still the case or not, haven't needed to ask. In other provinces, bankruptcy was the other option, a real pain that follows you.
I don't see a price crash like that again, unless of course government precipitates it again like last time, which is highly unlikely, (I hope). Alberta is due for a correction for sure, but I think it will be fairly benign on the grand scheme of things. The markets will go up again. Where the correction needs to happen is in Toronto and Vancouver, but that's only because I believe they deserve it.
I couldn't agree more and some of it is due to usurious interest rates by some money lenders. I'd like to see the pay day loan sharks annihilated. They take advantage of our most vulnerable (of course some of the most vulnerable bring it on themselves) but getting rid of them would be a start. Credit card interest should be next to be greatly reduced. The ability of some folks to differentiate "wants" from "needs" could be greatly improved too.
Banks and insurance companies are legalized thieves.