Vancouverites have ten times the personal debt of people in the ‘debt capital of Britain’.

“The BA1 9 postcode area has the highest level of personal loans per person in Britain. Each owes an average of £2,311 [Can$4,279], according to the latest data from the British Bankers’ Association (BBA).”
– from ‘Lansdown, unlikely personal debt capital of Britain’, Kevin Peachey, BBC, 24 April 2014

In the ‘You-call-that-a-knife-THIS-is-a-knife’ Department, compare this with our muscular local figures:

“At the end of 2013, Canadians owed a total of $27,368 on such things as lines of credit, credit cards and car loans. … Vancouver residents experienced the biggest increase in consumer debt, hitting $41,077 at the end of 2013, up seven per cent from $38,357 in 2012. … “.. the real estate market has really had an impact there,” said Thomas Higgins, TransUnion’s vice-president of analytics and decision services.”
– from ‘Vancouver ends 2013 with highest consumer debt in Canada’, The Canadian Press, 26 Feb 2014

39 responses to “Vancouverites have ten times the personal debt of people in the ‘debt capital of Britain’.

  1. vancouverites have 10 times less job opportunity than British

  2. VREAA, nice to know you’re still out there. Makes me all misty for the good old days.

    Things haven’t changed much with me either. Still renting, still paying much of that rent with the proceeds from the sale of our overpriced house, still happy we did it, and still saving. But far more blown away than ever at the insanity.

    I met a builder just last week from Bellingham. Ran into him at the gas station nearest our house, just a kilometer north of the border. He was aghast – aghast I tells ya – at the prices of houses/townhouses/condos in the nearby vicinity. (You know the vicinity – it’s the same vicinity I detailed here in photos.)

    Anywho, he told me he’d just built a house outside of Bellingham that sold for under $300,000 that he figures would go for $800,000 here. And from what I’ve seen, he’s probably not far off the mark. Stunning, isn’t it? And let’s not forget – Mr. Bellingham Home Buyer also pays substantially less for virtually everything else too, from food to booze to gas to cars to clothes.

    Common sense tells me the end *must* be near and the precipitous fall nigh, but I’ve thought that for the last two years. Thing is I don’t really care anymore. I’ve seen the face of the Beast, railed against it as best I could, and am pleased as punch that my personal road has taken me in the polar opposite direction. Nice to know we won’t be part of the body count.

    Hope to see you around here more frequently in the future, but what will be will be. Take care, O Voice of Reason.

  3. For the sake of the archives [and/or in the spirit that not everyone may recall Paul Hogan’s [aka CrocodileDundee]… “That’s not a knife… That’s a knife.”

    [NoteToIllustriousEd: Curses! Those damned iOS WordPressApps… they’re supposed to make a noise… or vibrate… or do something!… whenever there’s a new post. It must be a NefariousPlot! Rather like Paul Hogan deciding that Linda Kozlowski was far more entertaining than his prior living arrangements. Personally, I’ve always referred to that particular gambit as, “TheKozlowskiManouvre” – which same’s principal disadvantage being that you never know when the scorned ‘X’ will show up unexpectedly with a JosephTeti SURV-TAC 7 and a copy of “OrchidectomyForIdiots”. As a precautionary rule of thumb, it’s generally while you’re sleeping.]

  4. I used to get upset about debt levels. I was then reminded of the old WAC Bennett quote about a stinking pulp mill: “It’s the smell of money!” I am assuming the delivery was impeccable.

    I might opine investing in some of the destitute downtrodden dirt-covered wretches that make up middle America (and Canada too) might require accepting some mighty crumpled up bills as payment. Who knows where they’ve been — LaTeX gloves are a must — but boy if you can stand the hazards and risks, the return isn’t all that bad.

  5. A Blast from the Past…

    “Expected weakness continues, sales remain low. Things are playing out as we’d anticipate. Very significant price drops to come (all in all, 50% to 66%, peak to trough). ”

    Some strong words. These posts recorded here because they do reflect the degree of disillusionment that some are experiencing.
    We’d agree that there are many fine places to live, but we also believe that Vancouver is still one of those fine places.
    Vancouver RE is, however, very, very overvalued, and this is crippling the city. We are locked in a speculative mania. Housing would have to drop 50%-66% for it to be even vaguely competitively priced, when compared to viable alternatives. And even after such drops it would still carry a ‘Vancouver premium’.
    Until prices revert, osmotic pressure will force many sensible folks away.
    This pressure is profoundly deleterious for Vancouver and the area.
    Take a look at this post at Mike Shedlock’s very popular US-based ‘Global Economic Analyst’ blog, comparing East Van $900K SFHs with what the same gets you in Ireland. It’s beyond bizarre. As Mish says “It is indeed “different” in Canada.” (We’ll headline his article later).
    – vreaa

  6. from the Vancouver cold rain to the California Sun…….

    where would you rather live….

  7. listen to 35:40

  8. Vancouver is one of the greenest cities. It is understandable that buyers (and speculators) are willing to invest here, overpopulate the area, and do as much harm to once pristine nature as possible. And there is no way back. New condo projects are rising all around, and empty rooms are piling in hundreds or maybe thousands. Vancouver has a village mentality, It is not Toronto or New York. Yet the prices already reached levels of the latter. What seems stable on the surface, may be rotten on the inside…

  9. Ralph Allen's dog did not bark

    Bath, England. Anyone been there? I visit the place years ago, and did the Sham Castle tour. … may want to look it up… interesting metaphor for our economy in this pre AQR era.

    • The Roman baths….??? Something to do with Francesco Aquilini and his 67 over-priced condos….???

    • Yikes! BudWeiserFatFinger. “Дівчата змусили марка танцювати не лише польку і гопак, а ще й на столі” – which appears above… was supposed to go here.

      Never mind. By way of Penance… I offer these:

  10. Sorry folks. The banks were right and most of us bloggers were out for lunch.

  11. what did the Banks get right…. i forget

    • That we would not get a crash in real estate, Ted. We have NOT had a crash as many anticipated. It does not look like we will see prices crash either. Deflate perhaps….crash no.

      • Exact same words spoken in the U.S., circa 2006.

      • They had subprime and broke their own banks in the process, Ninja. We have never had anything quite like it. Yeah , yeah….I know about the 110% mortgages, cash back and easy LOC’s. But that was a mere shadow of what transpired in the US where they were handing out mortgages that rate-reset to people without jobs, incomes or assets. Wake me up when our banks go down that path.

      • Farmer. How about 9 times median income to median home prices in Canada today, vs. 7 at the height of the U.S. bubble?

      • How about 25 times in Hong Kong and Shanghai? We ain’t seen nuthin like it here yet.

      • That’s like saying a cancer patient is healthy because there is someone else out there with more advanced cancer. Some logic…

  12. The banks made sure the Government guaranteed all their profits. Now why didn’t *I* think of that…?

  13. “50% to 66%”

    remember this calculation? i hope this blogger did not use the same formula to calculate her marriage!

  14. who’s the lucky lady married to Fred, does she know he cries on blogs that he hates but cant stay away from……it sounds like his relationships would be pretty rocky owing to the person he is

    • life is a b$tch and you married one!
      how about you ted, keep bashing Vancouver and keep living here enjoying this best place on earth! when are you moving to Detroit?
      these kinda blogs have misinformed the public in years with charts and calculations. i am very unlucky to have any RE – like the rest of you, I missed the boat and now have to live under a bridge. however, unlike the rest of you, i don’t envy with the rich.

  15. Seeking Knowledge...

    I hope we don’t regress to the Jerry Springer of RE blogs.

  16. For files. Boomers lived for free. The rest of us are screwed.

    “His argument is that house price gains enjoyed by those who bought homes in the 1970s and 1980s have been so great as to entirely offset their mortgage interest costs. In that sense, baby-boomers have paid neither interest nor rent and lived for free. ”

  17. tedeastside

    vancouverites are the most in debt people in the world..

    but they can go snowshoeing in the morning and kayaking in the afternoon

    never mind the cold the pouring rain , the tiny economy with dismal job opportunity, the tiny entertainment scene

  18. Remember that guy that was on here last year touting how he was going to short CDN banks and REITs when those big American hedgies publicized their positions?

    Check out Home Capital Group today:

    I unfortunately did not take a position though I thought hard about it.

    Hope he heeded our advice as even VREEA counseled against it.

  19. Noticed what a cesspool VancouverCondo DisInfo has become? I frequented it a bit after this blog went into hibernation but there is zero value there. If that is the other side of my trade I will side with the over-indebted homeowners.

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