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BoC rate decision comes in

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Justin da Rosa | 15 Jul 2015, 10:32 AM Agree 0
The Bank of Canada has lowered its overnight rate to 1/2 per cent.
  • Grammar Check | 15 Jul 2015, 10:51 AM Agree 0
    I'm sure you meant "rife" with speculation...

    rife (raɪf)
    adj (postpositive)
    1. of widespread occurrence; prevalent or current: rumour was rife in the village.
    2. very plentiful; abundant
  • Les Holdway | 15 Jul 2015, 12:13 PM Agree 0
    As a Broker I would say the Rate move is an unnecessary show piece. This will entice the few remaining buyer persons into the Vancouver and Toronto markets that aren't currently over leveraged. What happens when 1/2 a point goes to 2, 4 or six percent or worse? Probably a third of the market will be critically encumbered.
    Why would the market turn? What if Greece doesn't perform a year from now. Just the government debt alone would cause a loss of 300 Billion to the marketplace. In 2008 it was Countrywide's 500,000 defaulting mortgages that started a predictable snowball of defaults throughout the US and international markets and a giant printing of paper currency to counteract the shortfall of available funds to the marketplace, which although paring down is still going on today
    What happens to cash flow if lets say Iran's oil re entering the market drops international oil markets to $40?
    Or war in Ukraine? etcetera
    Whats missing in Canada is not a quarter point on the rates but rather a strategy for small and medium size business to enter the international trade world. I have been promoting this cause since '97 when it became clear Free Trade has thrust Canadian Business into an expand or die situation. Unfortunately many small and medium sized businesses consumed with the Business of doing Business have succumbed by default to the latter.
    If you have ANY doubt about what I am saying take a look around Southern Ontario where a significant amount of industrial activity surrounds tearing down manufacturing plants for their scrap value.
    If the government truly wants to be helpful why not investigate why a litre of gas in Ontario has crept back up to 1.10 from 70 cents even though a barrel of oil remains at 50 plus dollars.
    Or have an aggressive international competition plan for small and medium sized business
    Rescom Real Estate
  • | 15 Jul 2015, 12:46 PM Agree 0
    It will be years before we see 6% rates again as nation and global economies just aren't strong enough to support them. As for southern Ontario Les, it was the unions and the greedy employees that closed all the plants I speak of Chatham specifically, no need for any money wasting investigations. I know I worked in 3 of them 1 food and 2 auto plants. As far as paying $1.10 per liter for fuel that is a bargain, we are paying $1.39 in BC. And small businesses like all others need to adapt to the market and trends or perish, simple really.
  • NAA | 15 Jul 2015, 01:26 PM Agree 0
    How do you spell BUBBLE.
  • Les H | 17 Jul 2015, 03:52 PM Agree 0
    6% rates will be a reality if there is a capital crunch. The rates will be fueled by lack of money supply not whether anyone can afford them.
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