Comments on: ‘Canada is not immune’

By: SAM

SAM — Wed, 07 May 2008 12:09:08 +0000

I believe one day we will wake up with high interest rates like back in the mid 80′s. Those that have been living on lines of credit will lose everything.
Lines of Credits and especially the one’s linked to homes will be the first victim for the find print usually state that the bank may recall the loan at anytime giving a maximum of 30 days notice no matter if payment(minimal or more) are being met.
I know for a fact there is not enough money, gold, diamond, oil etc to cover the debt in this world lest our country so it just a matter of time when this invisible economy will become unstable and collapse.

By: Recession Roadmap - The Wealthy Boomer

Recession Roadmap - The Wealthy Boomer — Wed, 16 Apr 2008 20:04:31 +0000

[...] supply of "Greater Fools" out there, as Garth Turner noted in his recently published book of the same name, also noted in this earlier blog [...]

By: Grant

Grant — Thu, 20 Mar 2008 17:19:35 +0000

Turner suggests buying real estate with a future and that empty-nester boomer couples will be downsizing into bungalows, townhomes and condos of 750 to 1500 square feet. Access to urban services will be important. In other words, â€œbuy real estate with a fighting chance of retaining its resale value.â€

Gary….. what you make of this recent study by RBC and Ipsos Reid??
Thursday Â» March 20 Â» 2008

B.C. boomers won’t head for old-age home

Bruce Constantineau
Vancouver Sun

Wednesday, March 19, 2008

B.C. baby boomers want to live near young people when they retire but they hope those young people aren’t their own kids.

Those are among the findings of an RBC/Ipsos Reid poll of Canadian baby boomers’ retirement housing plans.

The online poll of Canadians born between 1946 and 1965 found that 80 per cent of B.C. residents want to retire where there is a mix of younger and older residents — the highest level in Canada.

But just 31 per cent of B.C. respondents want a home with separate living quarters for their adult children — the lowest level in Canada.

Fifty-six per cent of Quebec residents want homes with living quarters for adult children.

Kevin Lutz, RBC Royal Bank regional mortgage manager for B.C., said rising B.C. real estate values have put many parents in a strong position to help their children purchase their own homes.

“Rising property values in B.C. have given people a lot of equity in their homes so they can refinance and provide a very good downpayment for their kids,” he said in an interview.

Fifteen per cent of Canadian baby boomers surveyed said they have adult children, aged 21 or over, living at home. Of that percentage, 41 per cent have returned home to live while 59 per cent have never left home.

Sixty per cent of Canadian baby boomers — and 58 per cent in B.C. — said they want to stay in their existing communities when they retire.

“Most retiring boomers want to stay in their communities and live near young people rather than be confined to an old-age community,” Lutz said. “That’s obviously food for thought for developers planning retirement homes for people.”

He said a lot of retiring Vancouver baby boomers buy downtown condominiums now because they don’t want to leave the city.

The poll found 50 per cent of B.C. residents like the idea of retiring to a home in a downtown or urban centre — with easy access to the arts, cultural events, restaurants and entertainment venues. That’s the second highest level in Canada, behind the 53 per cent of Quebec respondents attracted to urban centres.

The poll also found that 22 per cent of Canadian baby boomers believe their home will be their primary source of income when they retire.

“We’re seeing people more comfortable with carrying debt throughout their retirement than ever before,” Lutz said. “The previous generation was more about paying off their mortgages and being debt free but this generation is more into using home equity lines of credit into retirement.”

The online survey of 1,238 adult Canadians was conducted between Jan. 17 and Jan. 21 this year and is considered accurate to within 2.8 percentage points, 19 times out of 20.

bconstantineau@png.canwest.com

By: grant

grant — Tue, 11 Mar 2008 01:02:51 +0000

Jonathen;

I’d like your take on Garth’s assumption’s that boomer parents will be down sizing into a smaller homes/condos?

Quite frankly! I’m not seeing it. I’ve done some anecdotal surveying of family and friend’s parents… and guess what! They have no intention of moving out of their existing homes into something smaller. They have grandchildren that they want to come over.. they’re happy in their present homes with all THEIR STUFF… and happy memories!!

From what I can see/hear (and I think Sherry Cooper also mentioned this in her recent book) that we’ll be hauling our parents out feet first from their homes.

I’m not saying Garth is not perfect… (most of these economic specialist aren’t. In the same breath! Sherry talked about not investing in Gold back in 2001… and look what’s happened to her call on that one)

I wonder if any company has done any HARD research into this theory of Garth’s. Because he’s been talking about this in his books for some time!!

thanks

Grant