Canadians dragging around too much debt

[rentah]

http://www.thestar.com/business/article/640260

excerpt:
"...measures of financial well-being have deteriorated just as Canadian households are faced with shocks to their income due to rising unemployment and reduced pay. We could potentially have a long wait before the value of homes and investments rise to former levels."

[pbell]

Rentah. This is the kind of news that speaks volumes as to where Re is heading, despite the "head in the sand" empty counter arguments. And just think....from the MSM we rarely get the news as it really is...in other words, it is probably worse than what we read.

[jthong]

wait, bulls gonna say " What do CGAs know about money. I want to talk to CA's"

you can add my friend, who recently bought a $1.1M townhouse, to this list of canadians dragging around too much debt.

[rentah]

Rentah. This is the kind of news that speaks volumes as to where Re is heading, despite the "head in the sand" empty counter arguments. And just think....from the MSM we rarely get the news as it really is...in other words, it is probably worse than what we read.

Quite possibly. When interest rates rise, even a tiny bit, the RE market will seize up.

[BCAccountant]

In case anyone's interested in the CGA report they are talking about http://www.cga-canada.org/en-ca/Pages/default.aspx is the website. Not sure how to post a link, hope it works, sorry if it doesn't.

The "85% of Canadians reporting that they have outstanding debt on a credit card" shocked me the most.

[rentah]

Thanks for link, BCA.

Further excerpts of interest from the CGA report, in the 'Ignorance is Bliss Department':

- The majority (78%) of surveyed said they would not change their saving patterns in order to build or rebuild the financial cushion. ((reminds me of the old Scotiabank RRSP ads from the late 80's listing failed retirement strategies: "I kinda thought I'd win the lottery"))

- Canadians, though, perceive their financial condition to be better than it is and many are not aware of how the economic downturn has impacted their financial situation.

- As many as 56% of British Columbians told us their debt increased compared to the Canadian average of 42%.

[pianoexcellence]

Keep in mind too,

We're talking about a report from accountants. What do they have to gain/lose by bending the truth. In all my studies so far, the thing I am struck with the most is how absolutely stringent the standards are for CA's & CGA's with regard to ethics. Conservatism is a core value of modern accounting. GAAP is not playin' round.

We are all used to hearing crap from people who have a vested interest in one direction or another. I take a report like this one at face value.

Good find rentah.

[BCAccountant]

Keep in mind too,
We're talking about a report from accountants. What do they have to gain/lose by bending the truth. In all my studies so far, the thing I am struck with the most is how absolutely stringent the standards are for CA's & CGA's with regard to ethics. Conservatism is a core value of modern accounting. GAAP is not playin' round.

Good point Piano, but....
maybe all the CGA's live in their parents basement and they think this report will crash RE so they can finally buy.
Sorry for the useless post, I just couldn't resist.

[pianoexcellence]

Keep in mind too,
We're talking about a report from accountants. What do they have to gain/lose by bending the truth. In all my studies so far, the thing I am struck with the most is how absolutely stringent the standards are for CA's & CGA's with regard to ethics. Conservatism is a core value of modern accounting. GAAP is not playin' round.

Good point Piano, but....
maybe all the CGA's live in their parents basement and they think this report will crash RE so they can finally buy.
Sorry for the useless post, I just couldn't resist.

Oh...wait...gotta go.

Mom's calling me to help carry in the groceries!

[metalhead]

Keep in mind too,
We're talking about a report from accountants. What do they have to gain/lose by bending the truth. In all my studies so far, the thing I am struck with the most is how absolutely stringent the standards are for CA's & CGA's with regard to ethics. Conservatism is a core value of modern accounting. GAAP is not playin' round.

Good point Piano, but....
maybe all the CGA's live in their parents basement and they think this report will crash RE so they can finally buy.
Sorry for the useless post, I just couldn't resist.

LOL.

[pbell]

This is a beauty article as well.

Nine lies that put you in debt.

Scroll your way through these. Much to do with Real Estate as well.

http://finance.sympatico.msn.ca/savings ... -debt.aspx

[canadian]

This is a beauty article as well.

Nine lies that put you in debt.

Scroll your way through these. Much to do with Real Estate as well.

http://finance.sympatico.msn.ca/savings ... -debt.aspx

my fav is no. 6

[Johnny Horton]

Well, my realtor buddies are telling me that Sellers are more than likely, broke.

So the smart Buyer will be in a better position to drive a harder bargain.

[habs100]

weird, 200+ views later, I am still waiting for bulls to comment...

Nice! "Nine lies that put you in debt."

[Neptune]

Well, my realtor buddies are telling me that Sellers are more than likely, broke.

So the smart Buyer will be in a better position to drive a harder bargain.

Not if there are multiple offer situations. I think waiting till the spring fling is over might be the way to go before cherry picking all the "deals" out there right now.