The greater the automated income you can build, the freer you will become. Taking the first step is the hardest, but 5 houses later living off automated income since July 6, 2020. You’ve got to start taking steps to achieve your goal.
I would have liked to hear the guest elaborate on by exactly what mechanism higher interest rates were to have lowered shelter prices. Demand for shelter from people already in Canada is essentially inelastic (it is not a luxury consumers can choose to forgo as costs increase), and we are adding people who also want shelter. On the other hand, higher interest rates raise the mortgage payments that landlord have to pay, and discourage new construction.
interest rates should always be around 10 percent, with the absolute minimum being the same % as inflation itself. Having 0% interest rates like we've had over the last three years only promoted irresponsibility in both government and private sectors.
If anyone thinks the BoC has sufficient latitude on interest rate policy, ie: to pursue an independent lower interest rate path that deviates significantly lower/away from US Fed rates..... STOP and think again because any such move would exacerbate cpi inflation making most things Canadians import more expensive especially food/groceries as the loonie drops proportionally in FX. And while some "deviation" from US Fed rates is possible for the BoC.... I would suggest .5% as an absolutely Max range lower given Canada's/BoC's already stressed Sovereign Debt position. In a Nutshell.... While Global FX/Bond yields dictate Fixed Mortgage rates.... any anticipation of variable Mortgage rates(predominently BoC rate sensitive) DROPPING substantially into recession by those currently negatively amortizing.... may NOT be real smart given pressures on the US Fed Funds rate beyond the BoC's control.
Expect the interest rates to continue to rise through 2024, 2025, 2026, and possibly beyond, we are just at the start of an unprecedented, long, costly, and bloody Geopolitical Conflict starting in West Asia (Middle East) and spilling into Europe (Poland, Baltic States) and will continue in East Asia (Taiwan). Expect HIGH Gas Prices a the pump ($3.00/Litre) and HIGH inflation numbers, High Food, Fuel, Rent, Goods, Services, and Taxes, and as the Cost-of-living, Housing, Inflation, and Affordability Crises continue to deepen as Global Geopolitical Crises continue to escalate. There won't be rate cuts any time soon, even if there will be one or two, it will go back up again twice more. There are so many Social, Economic, Political, and Security uncertainties and instability in the world that have never been seen since the 1930s. These baseless forecasts by so-called economists are all misleading, they were so wrong that could not even see what was coming our way in the first place. The sad reality is that the Bank of Canada has LOST CONTROL of the economy and its board of directors is confused and has absolutely NO CLUE. There won't be a soft landing as we were promised, instead expect a HARD CRASH LANDING and decades of hardships!
Rates need to rise until they equal inflation at minimum, or else inflation will stay high... theyre barely halfway... AND if the fed raises again, we are forced to also or else our currency drops and inflation gets even worse...
Until they equal inflation? I hope they raise interest rates too but isn’t inflation 3.8% currently while interest rate in canada is 5%. I think medium term even if they don’t raise the interest rates wednesday, it will hold at these levels for at least a year from here. Next year is when we will really see the effect of this on the economy
![ค้างคืนโรงเก็บกระสวยอวกาศร้างกลางทะเลทราย [Around The World Ep. 3]](http://i.ytimg.com/vi/E5bWZQhABJE/mqdefault.jpg)
The greater the automated income you can build, the freer you will become. Taking the first step is the hardest, but 5 houses later living off automated income since July 6, 2020. You’ve got to start taking steps to achieve your goal.
What kind of investment would you advise? And what is the best way to follow it?
The first step is the hardest because the first step is actually having any amount of income in excess of expenses to invest.
I would have liked to hear the guest elaborate on by exactly what mechanism higher interest rates were to have lowered shelter prices.
Demand for shelter from people already in Canada is essentially inelastic (it is not a luxury consumers can choose to forgo as costs increase), and we are adding people who also want shelter. On the other hand, higher interest rates raise the mortgage payments that landlord have to pay, and discourage new construction.
Interest rates need to stay up LONGER. Doug Ford hasn't even graduated high school.
Doesn't matter. They don't even teach this in high school. They should.
interest rate is the reason why inflation is high. Lower the interest rates and inflation will come down immediately.
Are you sure you understand it well ?
@@itissrinivasan I didn't say this. Statscan reported that interest rates were the biggest contributor to inflation.
1:30 shelter prices? Wtf... you mean home prices?
That is a troubling statement.
“Balance into the economy” is adorable…
Would love to see BOC will hike this week.
interest rates should always be around 10 percent, with the absolute minimum being the same % as inflation itself. Having 0% interest rates like we've had over the last three years only promoted irresponsibility in both government and private sectors.
they wont
If anyone thinks the BoC has sufficient latitude on interest rate policy, ie: to pursue an independent lower interest rate path that deviates significantly lower/away from US Fed rates..... STOP and think again because any such move would exacerbate cpi inflation making most things Canadians import more expensive especially food/groceries as the loonie drops proportionally in FX.
And while some "deviation" from US Fed rates is possible for the BoC.... I would suggest .5% as an absolutely Max range lower given Canada's/BoC's already stressed Sovereign Debt position.
In a Nutshell....
While Global FX/Bond yields dictate Fixed Mortgage rates....
any anticipation of variable Mortgage rates(predominently BoC rate sensitive) DROPPING substantially into recession by those currently negatively amortizing.... may NOT be real smart given pressures on the US Fed Funds rate beyond the BoC's control.
Dough Ford is heavily long in TSX-V with heavy losses. His demand for pivot is valid.
Expect the interest rates to continue to rise through 2024, 2025, 2026, and possibly beyond, we are just at the start of an unprecedented, long, costly, and bloody Geopolitical Conflict starting in West Asia (Middle East) and spilling into Europe (Poland, Baltic States) and will continue in East Asia (Taiwan).
Expect HIGH Gas Prices a the pump ($3.00/Litre) and HIGH inflation numbers, High Food, Fuel, Rent, Goods, Services, and Taxes, and as the Cost-of-living, Housing, Inflation, and Affordability Crises continue to deepen as Global Geopolitical Crises continue to escalate.
There won't be rate cuts any time soon, even if there will be one or two, it will go back up again twice more.
There are so many Social, Economic, Political, and Security uncertainties and instability in the world that have never been seen since the 1930s.
These baseless forecasts by so-called economists are all misleading, they were so wrong that could not even see what was coming our way in the first place.
The sad reality is that the Bank of Canada has LOST CONTROL of the economy and its board of directors is confused and has absolutely NO CLUE.
There won't be a soft landing as we were promised, instead expect a HARD CRASH LANDING and decades of hardships!
3rd quarter wow
We will see if the boc falls to politics.
Rates need to rise until they equal inflation at minimum, or else inflation will stay high... theyre barely halfway... AND if the fed raises again, we are forced to also or else our currency drops and inflation gets even worse...
Until they equal inflation? I hope they raise interest rates too but isn’t inflation 3.8% currently while interest rate in canada is 5%. I think medium term even if they don’t raise the interest rates wednesday, it will hold at these levels for at least a year from here. Next year is when we will really see the effect of this on the economy
Easy, they would be upset if they could do basic arithmetic /s
@@pranavmalhotra9187
Keep the rates high till house prices come down
prices will rise, everyone needs a place to live and more and more coming to live here
Alot of people have multiple properties that y they don't want to rates hike
The interest rate must go up in order the house buble crash.
Anything but an increase to interest rates would be a mistake.
Cut rates to 0, let the r.e market and inflation soar, cry no one wants to start a small business or have kids, and then introduce the great reset