An interesting discussion on CBC's podcast Front Burner regarding Canadian residential real estate being "too big to fai". Here is a summary of the topic discussed in this episode:
Could the "wealth-conjuring machine" that is Canadian real estate grind to a halt after the COVID-19 crisis exposed its worst weaknesses? That's the concern of many who watch a sector that makes up a bigger part of the Canadian economy than oil and gas.
Today on Front Burner, Bloomberg News' Vancouver bureau chief Natalie Obiko Pearson returns to explain how real estate became such a significant part of the Canadian economy, how Canadians went deeply into debt, and why now, the housing market in Canada could be "too big to fail."
Here is a direct link to the podcast - Click Here
If you are overly concentrated in your residential property, in terms of net worth, it is maybe worth considering downsizing as I've been suggesting on this blog. If you are looking to buy a home, then it's important to not overextend yourself in terms of taking on a mortgage that is too big. Finding balance in your personal finances is important to a comfortable and secure financial future. That includes owning real estate that reasonably fits in your overall budget and cash-flow profile.
Contact me today if you are looking to lighten up on your real estate ownership or investments, or if you're looking to buy an affordable house, townhouse or condo apartment, within a budget that works for you.