Who does higher interest rates hurt the most? The obvious answer is people who have variable rate mortgages. But there’s a group of people that are even more at risk, and are hurting more from the impact of higher interest rates. They are renters. Why renters? Because as the cost to borrow becomes more expensive, would-be buyers who… Read More »
What I’m watching right now Have a look at this chart. It’s the latest data from CREA showing that homes across Canada have increased in price by 28% year over year. 😮 Sweet baby cheez-its! That’s very surprising for home owners, and scary for renters. Even if a renter doesn’t plan to buy a home any time soon,… Read More »
High income and cheap credit Why are real estate prices so high? Isn’t the economy still recovering? Yes. Millions have lost their jobs and many are still looking for work. But recessions don’t affect everyone equally. The number of high income individuals is often underestimated. So in today’s post I’ll explain how people can afford to buy multi-million dollar… Read More »
Owning a piece of the suburb The recent stock market mayhem is a crucial reminder of how important it is to maintain a well diversified portfolio. After selling my farm last year I was too overweight in stocks so I decided to rebalance. 😉 At the beginning of this year I welcomed a new investment property into my… Read More »
According to a Financial Post report the average price of detached homes in Toronto passed the $1 million mark for the first time last month. 🙂 The GTA has experienced a housing bull market for almost 2 decades and there is no sign of it stopping. I want to congratulate Torontonians for reaching the $1 million milestone. Welcome to the club.… Read More »
To understand why the Canadian housing market is performing so well we have to look at where the demand is coming from. According to the Canada Mortgage and Housing Corporation, one person households are “expected to show the fastest pace of growth, making it the single biggest type of household by the 2020s.” As the population ages more senior… Read More »