Canadian home and condo prices have boomed because of Canada's booming economy, plentiful supply of cheap mortgage money and foreign investment from other booming economies. But if that global economic boom comes to an end, which appears to be happening with the deep troubles in the Euro Zone, the downside risk in the Canadian economy and in real estate values is considerable.
According to the Canadian government, household debt in the 1st quarter of this year hit a record 152% of disposable income. This is vast over spending and borrowing and it is not sustainable and could lead to a major economic bust in a bad global economy.
If you as a Canadian are considering buying a house or condo, please understand the risks and plan to stay in that residence for a long time, so that its potential falling value is not of concern to you. And as life is brief, please enjoy your home or condo to the fullest extent possible, and be a blessing to your neighbors as well with your thoughtfulness and good deeds.
Dick
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