Housing Crash? Large Canadian RealEstate Funds Locks Investors Amid Cash Crunch

[Economy 52,861]

https://www.bnnbloomberg.ca/mortgage-fund-in-canada-halts-payouts-amid-liquidity-crunch-1.1844092

 

A large Canadian realestate fund has frozen Redemptions from investors trying to pull out money Amid a cash crunch after a number of borrowers stopped making payments

 

Canada has faced steep price declines and sales since the February peak especially in suburbs around the 1st and 3rd largest cities (Toronto and Vancouver) which are also the Countries priciest markets

 

Meanwhile interest rates continue to rise further putting pressure on the housing market

 

Canada's housing regulator has so far also refused to heed to pressure to reduce the burdensome 2% stress test. As mortgage rates near 6%... Ppl have to qualify for 8% mortgage rates, impossible for most under current prices

 

The Central Bank has also suggested it does not care if housing has a major downturn as propping up housing is not its mandate or main concern and will keep raising interest rates to fight Inflation 

 

[dit 46,738]

So high interest rates means I will never be able to own my own home  What is going on! We need more housing developments in every major city! Like desperately. I know there is push back in Toronto because of forests being cut down but hopefully they can make the most of each plot of land and build more apartments and more condos etc to save space. Single unit homes with huge front and back yards need to be a thing of the past at this point and horizontal housing development needs to end. We need to adopt a bit of the Asian model and build vertically / upwards more to save space and forest land and make the most of every inch of land in the big cities. I know Canada isn't as densely populated but the like top 5 big cities are starting to fill up RAPIDELY and we need vertical housing development to fit more people and to give ppl the chance to own their own apartments and condo homes etc. UGH

[Economy 52,861]

10 minutes ago, dit said:

So high interest rates means I will never be able to own my own home  What is going on! We need more housing developments in every major city! Like desperately. I know there is push back in Toronto because of forests being cut down but hopefully they can make the most of each plot of land and build more apartments and more condos etc to save space. Single unit homes with huge front and back yards need to be a thing of the past at this point and horizontal housing development needs to end. We need to adopt a bit of the Asian model and build vertically / upwards more to save space and forest land and make the most of every inch of land in the big cities. I know Canada isn't as densely populated but the like top 5 big cities are starting to fill up RAPIDELY and we need vertical housing development to fit more people and to give ppl the chance to own their own apartments and condo homes etc. UGH

I know. Unfortunately Canadian culture just like the US is filled with NIMBYs

 

"dOnT SpRaWL iNtO ThE gReEn BeLt n cUt tHe foRreSt!!!!!"

 

Ok let's build more condos for higher density then...

 

"iM pRoTeSTiNg tHe cItY iS cOnGeSteD EnOuGh aLreAdY aNd I dOnT nEeD tHaT iN mY BaCkYaRd RuINing mY viEw!"

 

[dit 46,738]

Just now, Economy said:

I know. Unfortunately Canadian culture just like the US is filled with NIMBYs

 

"dOnT SpRaWL iNtO ThE gReEn BeLt n cUt tHe foRreSt!!!!!"

 

Ok let's build more condos for higher density then...

 

"iM pRoTeSTiNg tHe cItY iS cOnGeSteD EnOuGh aLreAdY aNd I dOnT nEeD tHaT iN mY BaCkYaRd RuINing mY viEw!"

 

EXACTLY. It's like a circle jerk of privileged people blocking everything that can help the masses. It's too much. Canada has PLENTY of forest. We will be good! Plus if they do vertical building or more condos then less forest needs to be chopped down. It's literally such an easy fix AND it can also provide way more jobs for people who are labor skills based like carpenters, builders, welders, construction ppl, plumbers etc...It will generate lots of high paying jobs for college grads or technical school grades who do not have a university degree. Lots of opportunities for the millions of new immigrants Canada is accepting as well (me included! I am an immigrant from Spain and moved to Canada because of the mass immigration Canada has lately). In order to get all these immigrants to have the population goal Canada has set for itself which is about 60 million people then it needs to create easy access jobs that only take people going to vocational college or to work under someone in the filed to get in. Building more housing units is the PERFECT job sector for these people. It kills two birds with one stone. 

So frustrating. I HATE renting and feeling like I am paying a mortgage price on something I am not even owning at all! It feels like money is flying and like I am goalless. Owning a home gives you motivation to go to work everyday knowing you are working to secure your future....endless rent just KILLS any motivation. After graduating Uni I literally feel like I have NO goals because I can never own a damn home...it's so frustrating  

[Economy 52,861]

28 minutes ago, dit said:

EXACTLY. It's like a circle jerk of privileged people blocking everything that can help the masses. It's too much. Canada has PLENTY of forest. We will be good! Plus if they do vertical building or more condos then less forest needs to be chopped down. It's literally such an easy fix AND it can also provide way more jobs for people who are labor skills based like carpenters, builders, welders, construction ppl, plumbers etc...It will generate lots of high paying jobs for college grads or technical school grades who do not have a university degree. Lots of opportunities for the millions of new immigrants Canada is accepting as well (me included! I am an immigrant from Spain and moved to Canada because of the mass immigration Canada has lately). In order to get all these immigrants to have the population goal Canada has set for itself which is about 60 million people then it needs to create easy access jobs that only take people going to vocational college or to work under someone in the filed to get in. Building more housing units is the PERFECT job sector for these people. It kills two birds with one stone. 

So frustrating. I HATE renting and feeling like I am paying a mortgage price on something I am not even owning at all! It feels like money is flying and like I am goalless. Owning a home gives you motivation to go to work everyday knowing you are working to secure your future....endless rent just KILLS any motivation. After graduating Uni I literally feel like I have NO goals because I can never own a damn home...it's so frustrating  

Housing is the darkest side of the Canadian standard of living

 

Canada is a high income country with an overall standard of living but in the last 15 years housing has gotten so expensive it sucks up all ur income. 

 

It's the biggest distortion in our economy. Ppl who bought homes 20 years ago or longer became millionaires simply by gaining equity while younger people face renting forever or getting a home if they inherit one