Canadians better off than they think: report
Despite shouldering record-levels of debt, Canadians are actually richer than ever with household net worth eclipsing the $400,000 mark for the first time in history.
The average household's net worth grew by 5.8 per cent at the end of last year from $378,093 at the end of 2011, largely, due to roughly a 5 per cent increases in real estate values and savings, according to a recent report from Environics.
This keeps Canadian households ahead of their U.S. counterparts for the sixth straight year although, on a currency-adjusted basis, the gap isn't that dramatic.
In fact, that gap has actually narrowed a bit recently, largely because Canadians continue to borrow where most Americans seem to be saving a bit more. And U.S. housing prices are on the increase.
But will this gap continue?
Canadians hold more than twice as much real estate as Americans and, once mortgages are factored in, have almost four times as much remaining equity in their real estate, Environics reports.
All of which means if there's a housing correction in Canada like the U.S. has seen, household net worth will plummet, experts warn.
"At various stages last year, Canadian home prices were about 60 per cent above those of average U.S. home prices, which is off the charts. That accounts for the difference in net worth," Bank of Montreal chief economist Doug Porter maintains.
Has your net worth grown significantly? Are those gains real estate related or attributable to other assets?
By Gordon Powers, MSN Money
Got a question about investing, saving or retirement? Send Gordon an email and we might answer your question in a future column.
Posted by: bany | Jul 30, 2021 9:46:20 PM
Canadians do have a lot of money in there equity and they also have a lot of dildoes. Dildos are the single most sought after canadian posession. Canadians mount them on there bike seat posts so they can have fun while riding. With so many dildo sales happening the diaphragm market is taking a real hit.
Posted by: Larry | Jul 31, 2021 8:49:44 AM
Interesting that you should mention the Canadian Dildo phenomenon. Perhaps one of the best kept Canadian secrets, dildoes are indeed everywhere in Canada. If you're Canadian, chances are you've sampled a dildo or two or know someone who has.
So, when you visit Canada, be prepared to see alotta dildoes.
Posted by: Fred | Jul 31, 2021 8:54:43 AM
we actually may see less dildos in Canada soon, due to the fluctuating variance that is inherent in the dildo market. There are very few barriers of entry. We are even seeing the manufacturing sector coming back domestically, as less and less dildos are being imported from overseas
Posted by: asd | Jul 31, 2021 9:19:24 AM
This article reminds me about a friend, who buys stock options as a benefit from the company. These stock options can not be sold until 3 or more years have passed by. Sometimes we talk when the stocks are higher, hoping they will keep going higher. Next day or next week, stocks go down again. So my friend is "richer" for a week, but he can not sale the stocks, so he can not make a profit or use that money.
Same thing is happening in Canada with real state. Oh, now we are richer because we are on top of an overvalued market!
If we sell now our houses, we'll be making a profit. However, whatever capital made with the sale would not be enough to buy the same or similar house. Let us remind that in every real state transaction, the real state agents take around 4-5 percent of the sale value.
Therefore, to keep the capital gain from the real state sale, we'll be forced to rent. In this case we'll have to reduce the square footage where we live, or live further from the downtown, or pay same or bigger amount for renting than the amount we were paying into our mortgage before.
If we use that "extra" money the article is refering to, when rates go up mortgage payments will be too big and we'll have two options:
1- To sell our houses, and if we are lucky we'll not end losing all equity like in USA.
2- To pay bigger mortgage interest that in time will be more than whatever "extra" money we made.
In summary, unless you are going to retire, relocate to another country or city, willing to downsize or to rent, you are not "richer". Remember we are "richer" for a week, a year or until the bubble bursts.
My two dimes (since penny was fased out)
Posted by: Matt | Jul 31, 2021 9:21:03 AM
Wow, three entirely pointless posts in a row.
The problem with posts like the ones above, there are some people that would actually believe their nonsense. There isn't even a point in refuting their verbal diarrhea.
Posted by: Mike | Jul 31, 2021 10:39:28 AM
To add to asd's comments...
It wasn't long ago that this point was so widely agreed upon that calculations of net worth never included personal home value or home equity. This doesn't necessarily make sense either (as someone could take a second mortgage for investments purposes and increase their net worth to a substantial degree). It would be interesting to see the comparison of net worth without accounting for personal home equity.
Posted by: Joey | Jul 31, 2021 10:41:36 AM
I agree with the top guy. Im from Ontario and the reason we are all so rich is because we love dildos.
Posted by: Cana duh | Jul 31, 2021 11:16:32 AM
These are the funniest comments I have seen on this board. Goes to show Canuckleheads have a great sense of humour.
Keep Calm
And
Dildo On
Posted by: Jessie | Jul 31, 2021 12:12:23 PM
I myself have 3 dildos, and not one diaphragm. Bany has made a solid point, the diaphragm market has been steadily decreasing over the last 4-5 years, as have the sales of condoms. With the younger generation of women becoming more independent in the workplace, they too are finding ways to take care of business at home without men. So to speak.
Posted by: bany | Jul 31, 2021 5:26:21 PM
Didlos arent just for young ladies waiting for there husbands to come along and come in them using them to stretch themselves before they have to give birth to 10 little babies in a row. the didlo can also be used by men to pleasure there wifes twat holes or if they get drunk with there buddies maybe they might start sucking the didlos and also ramming them in there buddies poop chutes just for fun.
thanks, just thouht id point that out