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Real Estate Professional | 23 Jan 2015, 08:49 AM Agree 0
Lower dollar to bring Chinese investors... Interest rate cut to boost smaller markets... Commercial real estate to face challenges ahead... Income-price gap growing: TD...
  • Dave | 23 Jan 2015, 09:11 AM Agree 0
    Yeah we really need more chinese bidding up houses and condos ..... what a joke this country is
  • ShaveOrBeFired | 23 Jan 2015, 09:39 AM Agree 0
    now, now dave.
  • | 23 Jan 2015, 09:53 AM Agree 0
    I think Dave has a point. While it's good to get foreign investors, we need to not overlook the fact that Canadians need to be able to get in the housing market too. In some cities it has become almost impossible for hardworking middle class Canadians to purchase a home.
  • Steve | 23 Jan 2015, 10:11 AM Agree 0
    Why are you complaining about foreign investors and skyrocketing house prices? Shouldn't you be more angry that incomes are not going up and part time work/contract work is becoming the norm? The only sector where incomes have increased exponentially are CEOs, bank presidents and former politicians who become lobbyists. If you had any brain you would point your anger there.
  • Dean | 23 Jan 2015, 10:56 AM Agree 0
    Dave is right. Our government should have over more oversight about the investors bringing money into Canada. A recent Canadian report indicates that the money coming to Canada in many cases isn't exactly clean. Apparently, the Chinese government is trying to take action from their end. Let's be clear, we are in a nasty bubble and our central bank is scared. There would be no other reason to lower rates. I don't know when this will pop but they always do. All the central banks are coordinating their QE. The US stops and the Japanese start their presses. When they start to have issues the outsource the printing to the EU...etc. People have to spend more time reading financial news (from more than one source) to get a picture of how the financial world really works. I remember getting a pile of CMHC brochures back in 08 for a presentation I was doing to prospective RE buyers and wow were those numbers off!
  • | 23 Jan 2015, 12:01 PM Agree 0
    Perhaps this is an alternative to the bubble popping. To anyone who does not live on $CAD (an American for example) the value of Canadian real estate is 15% cheaper than it was last year. As a Canadian if you sell real estate and buy goods imported from China or the U.S. you can buy 15% less. The real estate has less relative value.

    A lot of forecasters have speculated that Canadian real estate had been overvalued and that a massive U.S. style crash was at hand. If it just lost 15% and nobody even noticed that does not seem to be such a bad thing: Instead of foreclosures and dumping of units the low dollar may entice foreign investors to buy even more.

    And if the fear is that we have too any condos under construction in certain markets then it seems preferable to sell them on the cheap dollar. Similar to manufacturing for export the cheap dollar helps us sell the condos we manufacture abroad. The alternative would be having them unsold, an oversupply, price correction etc.....

    Better the house go up 6% on paper and the paper be worth 15% less, particularly if much of that paper is debt.

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