Today I watched a presentation put on by some fabulous people at a local lending institution. A guest speaker from CMHC spoke about a number of topics. One that caught my attention was the debt that is carried by the average Canadian. We were informed that the average Canadian is carrying a ratio of debt at 1.68 or simply put we owe $1.68 for every dollar of disposable income we earn. I was alarmed at first to hear this. However later in the presentation, another startling fact came out. Apparently, 72% of Canadians own a home! Now let us consider that for a moment. Economists and politicians have been warning us for years that we carry too much debt and if you look at the statistics in a vacuum it would certainly appear that we are a spendy spendy nation living it up on credit cards and credit lines. However, note the second statement regarding home ownership being at 72%. If we compare ourselves to a nation considered fiscally responsible like Germany who has a debt to income ratio of just $.90 or 90 cents for every dollar earned then we appear to be irresponsible. Not true I say....I feel a huge point that seems to be overlooked is that pesky home ownership stat. You see only about 40% of Germans own a home. The vast majority rent which most economists would agree doesn't help build equity. So Canadians don't have a debt problem, they have chosen to invest in a home for themselves and their families which is not only a lifestyle choice but an equity builder. If you take away the home that most Canadians own and is "secured" debt and factor in Germans don't own homes in anywhere near the same ratio, you come to realize, most German debt is in fact "unsecured" consumer debt, while most Canadian debt is secured against an asset class that over time "always" increases in value. We don't carry much debt actually, we invest in an asset for lifestyle and security reasons. We are actually quite responsible people after all :)
I have listed a new property at 8 Maude Lane in Guelph.
The one you have likely been waiting for. This home shows very well, I know they all say that but seriously come and see for yourself! Loads of beautiful hardwood and ceramic. With space for all, including 4 good sized bedrooms and a rec room the whole family can enjoy. Speaking of the family, take a good look at the backyard with large deck, space to play and finished off with NO NEIGHBOURS behind! That's right this lovely home backs onto a huge park! Come and see for yourself, you won't be disappointed.
Hi everyone. Tired of all the real estate talk....ME TOO :) So lets talk about one of my other interests which is food. One of the great things about a place like Guelph is the diversity in the community. From that we experience many interesting things, one of which is great food. A place that is popping up on the radar is "Earth To Table Bread Bar". It is a cool place located at 105 Gordon Street in Guelph. Taken from their website they describe themselves as "A living extension of the food philosophy that began when writing the Earth To Table cookbook. Earth To Table celebrates what is best about food and is trying to shorten the gap between producers and consumers". Other ways of describing it could be "Outstanding food" or "Brunch to die for" or how about "Good from first bite to last". All recent comments made on Trip Advisor from customers who clearly loved their experience. So when you are sitting around with friends or co-workers wondering what to try next...Give Earth To Table a try http://guelph.breadbar.ca
The butterfly effect in laypersons terms is essentially that small causes can have large effects. For a better description go here https://en.wikipedia.org/wiki/Butterfly_effect Lol. Now on to the point of this post. In Terms of this topic the butterfly effect on real estate might be viewed as what the Ontario government did to try and cool the housing market back in April with it's 16 point plan. Now at first glance one could argue that a 16 point plan is hardly the equivalent of a "small cause" but hear me out. The small cause was actually before the announcement....It was something not noticed like a 10% increase in immigration or the denial of a large swath of land slated for developement 15 years ago. It could even have been something as simple as person fibbing on their income statement to obtain a mortgage in 2014. You see the large effect could be the 16 point plan and the resulting fallout both good and bad. Therefore the "butterfly", we all may never know. Sooo lets chat about the large effects then shall we lol. First we have sales falling off in larger urban centres as buyers wait to see what effects (see what I did there :) these changes have on the broader market. This in turn will likely have a ripple effect ( I know lol, too much) on the surrounding communities. However is this a slowing of the market and a changing of the landscape? Well, maybe or maybe not. You see one large effect the April 20th announcement had was to spur sellers sitting on the sidelines to jump in and sell while the market was still good. As an example, the city of Guelph had 97 active listings on or around that date and within 30 days the listing inventory had jumped to well over 230. At no time in the previous 4 months had that city had over 118 active listings and now currently it has 280 on any given day or a 300% increase in homes for sale in less then 90 days. That...is an effect! So in theory the dynamics have changed and the world (real estate wise) is all good for everyone just as the government intended....or is it? Well pricing while it seems to have stabilized hasn't come down which was the hope of the government. You see most people who have put their homes on the market seem to be holding out for their price and if they don't get it then say la vie. In other words they simply are not selling for less, they just take it off the market. Not exactly the plan when hoping for more affordable homes to buy. Also sales are still quite good albeit not record breaking but still at levels higher then everything but record breaking. So that isn't helping with the affordability part the government was hoping for either. There is more choice now which is great for buyers...and Realtors for that matter lol but things are not really any less expensive. In the end we will have to wait longer to see if the final effect is larger then it currently is as this is always a long game. However in the short term prices are stable...and still much higher then 12 months ago and sales are good. Lets revisit this in another 60 days and see if the butterfly has caused a tidal wave. In the meantime enjoy the day like it may be your last and treat others as you wish to be treated....assuming you like being treated nicely that is :)
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