“I’m American and planning a move to Canada and believe me, I’ll rent. I’ve seen this movie before. Record debt levels, low or zero down payments, long amortizations, prices screaming past any kind of wage growth, and absurd moral hazard conditions with the lending industry (everyone in Canada seemingly thinks that all the loans given out to people who couldn’t afford them in the US were perfectly within the rules, but that wasn’t the case, the banks just turned a blind eye and faked it during a period of “irrational exuberance”), just every factor in Canada seems to be what you’d see right before a crash.
I live in Boston, a very well protected city during the recession due to our medical, scientific, and educational economic core, and in particular, I live in a very posh area where no one defaulted and there weren’t any financial problems during the depth of the crash/recession, nevertheless, my condo at the low point was about $100K off from the high point. (My place dropped by about 1/3 at the low. EVERYONE got slammed.) If I would have sold when I saw the warning signs here (about 2007) I could have rented the exact same unit a floor above me and still be more than $30K in the black if I would have rented this entire time. When a correction hits, it hits everyone across the board and overshoot. People who think that only TO and Van will be effected are wrong. I’m planning to move to Sudbury, ON, a relatively remote place with limited economic opportunity, limited amenities, relatively low income levels, cold weather, and infrastructure problems, nevertheless, the prices there have probably doubled or more over the last five years. Just like in the US, if you give people access to cheap money, they spend it, quickly. And as to foreign investment, we had more then you do and those areas are some of the hardest hit because those foreign investors pull their money at the speed of light when things tend to go south.
I love Canada, I wouldn’t be moving there if I didn’t, but Canada has let itself go down the same path as the US and it kills me. Why so many Canadians look over to this side of the border and constantly tell themselves that they’re better is beyond me given that you keep repeating our history over and over again, be it a housing bubble, or torture, or bills which strip away privacy, or “tough on crime” legislation which has no effect other than to bankrupt the taxpayer, just on and on. How some people keep saying that “it’s different this time” boggles the mind.”
- this comment by ‘farrelli77′ at Globe and Mail 23 Feb 2012. 115-net ‘thumbs up’ at last count.