Toronto (aka Canada) is building up at an AMAZING rate!
Well, it's pretty incredible -- but comes with some ridiculous costs.
Toronto prices are being driven by a perfect mix of factors — record-low interest rates, lack of inventory and a stable Canadian economy. The Canadian dollar has appreciated to the point where it is almost exactly equal with the American dollar. - http://goo.gl/M2o9s
It's all based on debt. Canada has been borrowing insane amounts and it's rising. Who is going to buy these pieces of real estate, when everyone is in debt?
http://goo.gl/XAXYN
Somewhere around 75% of Canada's trade is with the United States, who has been in insane amounts of debt. I'm worried. I'm worried it the bubble will burst.
Rising home prices have led to a 53 percent increase in residential mortgage credit in the past five years, or an average rate of 8.9 percent a year. The volume of outstanding mortgages rose to C$1.08 trillion ($1.08 trillion) as of August, according to the Canadian Association of Accredited Mortgage Professionals. Defaults remain low, at 0.42 percent, according to data from Canada Mortgage & Housing Corp., a government-run housing agency.
POP!
