CBC – Repeat After Me: “An Investment For Real Estate Doesn’t Make Me Nervous”

What is it to be? One day after appropriately scaring the socks off the populus with warnings regarding precarious debt levels, the CBC marches out a mortgagee and two shills to reassure everybody that it’s perfectly fine to keep fighting the good fight and piling on the ‘Good Debt’ (by buying even more RE).
Watch the end of the clip for the mortgagee interrogation. Convinced? Neither were we. Note the eye roll, the verbal hesitation, the faux ‘strong’ stance. He’d earlier called his debt “daunting”.  Also note the quirky phrasing: “an investment for real estate doesn’t make me nervous”. More like some kind of sacrifice; like dying ‘for’ a cause.

And then, to confuse everybody further, the CBC ends the piece with a warning about the interest rate ‘Wild Card’. Perhaps they’ll retract that tomorrow.
Some nice drive-by shots of very overpriced Vancouver westside homes.
The wise are nervous at this point.

CBC’s ‘The National’, 14 Dec 2010, a follow up to a piece the previous day that had echoed the harsh words of warning from BOC Governor Mark Carney. Reproduced verbatim and in entirety. [hat-tip ‘Re-diculous’ at VCI] –

“Well we hope we didn’t scare some of you last night with that story of how Canadian’s now carry more debt than Americans, and how debt here is more weighted to mortgages than credit cards. Some actually call that “Good debt”, but is it putting Canadians in a bad position?”

“Like lots of small business owners, Kevin  Barrett has to watch his finances carefully, and even though his personal debt is more than $300,000, he’s not too concerned because almost all of that is his mortgage on his condo”

[Barrett]: “The number is a little daunting to think about, sometimes, but I think about it long term, I try not to think about it today. I think about what it’s going to mean to me five, ten years from now.”

“Barrett is an example, say some experts, why rising debt levels in Canada shouldn’t necessarily cause alarm. He’s building equity in his home as it rises in value.”

[Pastrick]: “From time to time we do see declines in housing values, but over longer sweep of time, residential value housing prices have increased, er, over time.”

“Now, you may be thinking about what happened south of the border, houses were built for frenzied speculators, and prices crashed.”

“But even in a city [Vancouver] where average looking homes like these are selling for a million dollars, this market is much different from the States for lots of different reasons, including:…”

[Somerville]: “Looking at Vancouver, we just don’t have the excess supply that you’d need to get the crash that’d make it look like the sort of things that you see in the United States.”

“Add to that, Canadian’s have built up more equity in their houses, than Americans, owning on average 50% of the value of their home. The bottomline: A less volatile, more secure housing market.”

[Hannomansing]: “Three hundred thousand plus is a lot of money, does it ever make you nervous?”

[Barrett]: “No, …er,.. an investment for real estate doesn’t make me nervous”

[Hannomansing]: “Of course the wild card is interest rates. At historically low levels now, the BOC Governor has pointed out there is no guarantee how long they’ll stay there.”

3 responses to “CBC – Repeat After Me: “An Investment For Real Estate Doesn’t Make Me Nervous”

  1. Shizzie von Shizwit

    Tsur- you are on national TV. Could you at least wear a shirt with a collar and comb your hair?

  2. In that last screencap, Barret’s eyes are moving in a lying direction…
    Link: http://www.blifaloo.com/info/lies_eyes.php

  3. Gerry Beauregard

    “Barrett is …building equity in his home as it rises in value.” In a normal world, one would say he’s building equity as he pays down his mortgage. The fact that building equity is assumed to be tied to rising home values demonstrates how abnormal things are at the moment. If his home starts to drop in value, Barrett will be losing equity as long as the price of his property drops faster than he’s paying down the principal on his mortgage.

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