SEPTEMBER 26, 2012
Below is a video I shot recently with my good friend, Bruce Joseph. We shot a number of segments and the discussion was wide-ranging. The clip below is one segment.
Bruce owns a mortgage brokerage in Barrie, Ontario (north of Toronto) and has been one of my best front-line contacts who has helped me understand what lending really looks like in Canada. There are other very excellent mortgage brokers, lenders, and realtors who I work closely with, not all of whom want to be mentioned out of fear of repercussions from their industry peers, unfortunately.
I strongly encourage consumers who are thinking about taking on a mortgage, restructuring their existing mortgage, or buying/selling property, to give their business to people in the industry who are willing to openly discuss potential risks to the market and engage in this healthy and much-needed dialog. It's my experience that very few are. Any broker or realtor who at will not at least acknowledge the potential risks at this point in the credit and market cycle simply does not deserve your business. Period.
If you are considering buying/selling in some of the larger Canadian markets, particularly Vancouver, Toronto, and Calgary, and want the name of some excellent industry professionals who I would highly recommend, feel free to email me. Ben(at)theeconomicanalyst.com
Full disclosure: I receive absolutely no compensation for these recommendations. Though I may expect them to pick up a round of golf at some point.
In a related vein, some real estate professionals who were formerly quite bullish are now recognizing the obvious. Better late than never as many of their colleagues will shout their tired memes all the way down. Enter Vancouver realtor, Ian Watt. The segment below is most insightful because of the reference to rents generated from Vancouver condos. And as I have argued extensively before, it's these rents that ultimate determine the intrinsic value of a dwelling. If you're not familiar with that concept, please read the post below for a refresher:
Note this is not necessarily an endorsement for Ian Watt. I've never spoken to Ian personally, but I have spoken to some very fine realtors in the Vancouver region who I would recommend in a heartbeat. I just thought this particular video was quite telling.