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Canada's Real Estate Crisis: The China Syndrome
Topic: Canadian housing VS Income (Read 895 times)
I am currently betting on the fact the housing Prices in Canada (specifically Hamilton) are widly over priced. Alas thinking about it.. I believe they could keep that way for years.. I do not see the banks EVER.. EVER raising the interest rates on house loans. .ever. It is possible they keep lowering them from 3% to 0% over the coarse of a decent period of time...
Basically does anyone have any solid argument to why they would not just keep dropping the interest rate.. even make it negative? If the rates set by the BOC goes below zero they could techinally loan it out at -1% and loan it to us at 0.1% and still make a bang? BOC can print money at any pace soo... any reason this would not happen? Furthermore continue on that path to like -10%?
Else it is just 100% impossible to keep the housing prices increasing year over year as the average wage does not move.
Basically does anyone have any solid argument to why they would not just keep dropping the interest rate.. even make it negative? If the rates set by the BOC goes below zero they could techinally loan it out at -1% and loan it to us at 0.1% and still make a bang? BOC can print money at any pace soo... any reason this would not happen? Furthermore continue on that path to like -10%?
Else it is just 100% impossible to keep the housing prices increasing year over year as the average wage does not move.
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