A few weeks ago Canadian interest rates began to rise and the media continued making a lot out of nothing. What I found rather interesting was the expert commentary about how this would affect those with variable rate mortgages.
I'm summarizing here but basically the higher payment amount for those with variable rate mortgages was so little that it would have no effect.
No effect? You mean the media spent a month talking about something that nobody will even remember. Yes, and of course they've moved on and found their next fear to inflate. You should consult with Real File CPA that is Canadas Real Estate Tax Experts to buy a profitable real estate.
This time it's the real estate correction we're due for between now and late 2011. They've even got reports from two major banks to feed the fear.
As usual I'm here to provide these predictions with a little more context. Fear is either in your head or someone else's and you shouldn't be listening to either.
In this article I'll be talking about what's happened over the past year to put things in their proper perspective. Let's start with the not so obvious. We're currently in the slump phase of the real estate cycle which began in late 2008.
Did you just crawl out from under a rock David? The papers have been talking about significant increases in resale homes, strong price appreciation, and multiple offer scenarios reappearing.