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Oil - Prices

legoalie

legoalie

LeAdminie
Just curious to see if the low oil prices is effecting anyone in a negative way. You don't take out billions of dollars out of the economy and it not come to your hood.. it has taken a bit but we are starting to see the negative impact here in the Okanagan, sadly, the foreclosures are stacking up and it's from people losing their jobs in Alberta.. It is a sad state of affairs.. if you are looking for recreational property here in the valley, the pickings should be good in about 6-8 months.
 
5% down on a new property is a trap for anyone with the inclination to live beyond their means....where one hiccup can put you under.
Anyway, to your question. No, I am not hurting because of crashing oil prices in this cash is king economy.

Real estate is currently strong in TO but maybe not for much longer if these conditions persist. And the bargains will come for the smart who'll be accused of greed by the greedy that burned themselves to begin with. I wonder how many of them have railed against capitalist greed btw.....
 
I agree Lou, cash is king, even if the banks punish the savers and reward the borrowers.. the Canadian banks have taken a beating in the last few weeks, they were will be no savings passed on to the consumer even if the BOC takes the rate into negative terrority... if the bank stocks continue to take a hit look for the interest rates on unsecured line of credits to rise with many even called in... the real estate market both in Van and Toronto will start to feel the pinch this year... those who bought there in 2015 to now, will have bought high... herd-economics ... fall the crowd
 
real estate is bad here - sold in november but looking to buy in the summer (so it should work out well for me)

about 1/2 of my hockey team has been laid off (or has been told they are being laid off)

but gas is below 60 cents
 
I would wait until at least next summer to buy, the "jingle mail" there is starting to really multiplying
 
I had to look up the term myself....but the 5% down payment crowd are prime candidates for jingle mail

DEFINITION of 'Jingle Mail'

A situation where a homeowner mails his or her house keys to a mortgage lender due to an inability to meet mortgage payment obligations and a lack of equity in the property. If a homeowner is upside-down in a mortgage and feels the entire loan is a lost cause, he or she may choose to walk away from the property altogether and relinquish it to the original lender instead of going though the foreclosure process.
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http://www.investopedia.com/terms/j/jingle-mail.asp
 
the plunge in oil is worrisome. so is the plunge in bank stocks. Canadian banks are getting killed. US too. An Germany's biggest bank (Deutsche) is trading like it's insolvent.

I'm sitting on cash, trying to make some dough on the short side. Perhaps I'll be able to afford to buy a house in Toronto soon.
 
I took a lot of the maple out of my rrsp and switch over to usa. left the blue chip Canadian bank stocks alone, I am going to buy more, timing is everything, ha ha wish me luck... I am in it for the long haul... well 7-10 years for me long ha
 
I've already purchased two short sale houses. Ridiculously lower than market. Bank wanted cash. Cash is indeed king.
 
legoalie said:
Just curious to see if the low oil prices is effecting anyone in a negative way. You don't take out billions of dollars out of the economy and it not come to your hood.. it has taken a bit but we are starting to see the negative impact here in the Okanagan, sadly, the foreclosures are stacking up and it's from people losing their jobs in Alberta.. It is a sad state of affairs.. if you are looking for recreational property here in the valley, the pickings should be good in about 6-8 months.
Click to expand...

With the exchange rate, if the prices drops significantly, I might be interested.
 
one of the concerns with this oil glut and low low prices...

Some observers are saying we're getting set up for a sharp rise in the cost of a gallon a bit down the road. At these prices exploration and resources (fracking for instance) are too costly to conduct or to turn into reserves...so when the glut tightens and eventually turns into shortages....production can't keep up.

either way, I wouldn't bet on oil staying this low for too long.
 
legoalie said:
I took a lot of the maple out of my rrsp and switch over to usa. left the blue chip Canadian bank stocks alone, I am going to buy more, timing is everything, ha ha wish me luck... I am in it for the long haul... well 7-10 years for me long ha
Click to expand...

good move. the number of quality stocks trading on the TSE is sparse. And just the exchange rate alone would have netted you 12-15%

banks should be ok long term, but this talk of negative interest rates around the globe is putting pressure on all banks
 
northernlou said:
one of the concerns with this oil glut and low low prices...

Some observers are saying we're getting set up for a sharp rise in the cost of a gallon a bit down the road. At these prices exploration and resources (fracking for instance) are too costly to conduct or to turn into reserves...so when the glut tightens and eventually turns into shortages....production can't keep up.

either way, I wouldn't bet on oil staying this low for too long.
Click to expand...

for sure, the cycle (boom/bust) keeps repeating. timing it is the issue. I would say the same about grains, fertilizers, etc. The price of things we need (food, energy) will eventual rise as the supply/demand curve works itself out.
 
what many do not realize is that alberta oil is cheaper, if the markets say $27 a barrel, alberta's oil is about 50% that..
 
Habsy said:
Ici.

One is in the adjacent neighborhood. Comps show $650k recently. Got a bank short sale for $375k. Cleaning it up and flipping it.
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there are two penthouse lofts in foreclosure here, 1900sf, half block to the beach. assessed at $585 and now have offers at $295 i was going to take a run at them but I have a conflict of interest. I advise the lawyer working for the bank .
 
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