Contributors Corner Ep. 11: Rate Holds, Rent Wars, and ROI Red Flags
This week on Contributors Corner, we're pulling no punches. The Bank of Canada made its latest move, but was it guts or fear that led the charge? And with the recent inflation rate increasing to 1.9%, will the threat of another hold, become a reality?
We're talking mortgage pressure, market paralysis, and why investors are now staring down a landscape full of traps, tension, and tiny margins for error.
Michael Succurro of Spark Financial returns to unpack what this second rate hold means for the average Canadian. Is it caution or calculated restraint?
According to Michael, it's all about preventing a dangerous surge in buyer activity that could reignite bidding wars. But underneath it all—mortgage defaults are ticking up, investors are frozen, and sellers are either panicked or stubborn.
The market's locked in a standoff. Sellers are either under pressure or holding firm, convinced they can wait it out. Buyers are circling for bargains, and investors? They're sitting on dry powder, waiting for the real pain to hit.
While headlines claim rental prices are dropping, the truth is grimmer, those declines are showing up in overbuilt condo zones, not in the areas people actually want to live. And in a housing market still wildly out of reach for most Canadians, a $100 dip in rent doesn't move the needle.
ROI on single-unit condos? Dead in the water. The math just doesn't work. If you're chasing returns, the smart money is heading to multi-unit plays in markets like Alberta, where the cost-to-income ratio still breathes.
Meanwhile, fixed and variable rates are neck and neck, bond yields are bouncing, and the best move right now is staying sharp. In this market, hesitation isn't weakness—it's your edge.
So what's the move for investors now?
'Don't run—walk,' Michael says. This market doesn't reward panic buys. It punishes them.
Heard something you want unpacked even more? Hit us in the comments or DM.
🎧 Listen now to this episode of Contributors Corner—next episode drops soon where we are breaking open why large cap mining companies are now bullish on investing in small caps with CEO, Paul Sun of Eminent Gold.
DISCLAIMER: These conversations are packed full of useful knowledge for your portfolio decisions, and remember these are the opinions of our own, with vested interests in particular assets and companies. Always be sure you speak with your Financial Advisor and know your own risk tolerance. For full disclaimer information, please click here
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