Your Home | A HUGE Part of Retirement
I could not let this article go without posting it. It’s funny how many people I meet with no real estate experience but think it’s super easy to flip a home. They think homes just always go up in value and use their house as a HUGE part of their retirement plans. Can’t we learn from the Americans? Ten’s of Trillions of dollars in equity was wiped off people’s retirement plans and balance sheets just because they thought their house would always go up in value.
I spend a great deal of time in Michigan; trust me when I tell you that very few people in that area of the country believe that anymore. Here in Canada, we are heading to a huge correction in the market. Many people I know are literally buying high right now and thinking that they are going to make huge amounts of money on their house’s escalating value. I fear the market is literally starting to adjust now. I believe it will be quite a violent adjustment, maybe even more violent then the US, especially in certain markets like Toronto and Vancouver.
Here in Halifax, our housing market is going bonkers. Homes for sale are in bidding wars and people feel that they have 25 years of prosperity locked in just because the government awarded a huge shipbuilding contract. I was part of the military when Prime Minister Chretien ran on the pledge to cancel the expensive helicopter program. And – with his win he did!! Spending billions to cancel the contract to get nothing for it.
What’s to stop the next person who runs from cancelling the jet or ship purchase? Many will say its a signed contract or give me some other “for sure” reason that the shipbuilding contract will survive 25 years of changing government priorities… as they purchase their bigger newer home as part of their retirement plan!!!!