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Coronavirus
- Thread starter nobbie48
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That opens it own pile of problems. When the govt closed the border, there were lots of snowbirds that were upset because their canadian home was in a park that didnt open until april. If it doesnt open this year, you have a lot of canadians with no canadian home to go to.
I'm familiar with that problem.
Just signed a year lease. First time in eight years. Good time to do so, lots of desperate AirBnB owners looking to either rent their place out long term at a good discount, or dump them on the market.
I think AirBnB investors are going to be taken for a wild ride. This isn't going to end well for a lot of speculators or landlords. Especially if people actually hold back their rent as that 'Keep Your Rent Apr 1' movement kept up.
It's a tragic reality that people can't afford to pay for the roof over their heads because they've lost their jobs.
However, I'm not sure a lot of the people joining the Don't-Pay-Rent-Apr-1st movement realize it's not amnesty from payments, it's a deferral.
They're going to eventually have to pay back the missing months down the line. The No Eviction clause the government is instituting doesn't exempt them from a ruined credit rating or having to file for insolvency/bankruptcy if they never make up the difference. Also, the interest keeps accruing, so the amount is more than if they had made their payments on time.
From what I am reading on social media, a lot of people are under the misconception that they will never have to back-pay April's rent or car payment. Ever.
@Lightcycle That's the problem. People don't actually understand the issue, but 'Keep Your Rent' sounds better than 'Keep Your Rent and pay it later' because there's a big bad landlord and he can afford to live without my payments. Which makes my blood boil. But that's a different issue.
I'm all for deferring payments, but IMO if you can afford to pay rent...pay it. The easiest solution for me would be to utilize my tenants' last month's rent for April so they can get their bearings and then re-build that last month's payment.
I'm all for deferring payments, but IMO if you can afford to pay rent...pay it. The easiest solution for me would be to utilize my tenants' last month's rent for April so they can get their bearings and then re-build that last month's payment.
Also don't think the banks are doing you a favour by letting you defer mortgages and car payments.
What your mortgage interest rate? 3%? BoC's overnight rate has now been slashed to 0.25%. By deferring your payments and continuing to pay the 2-3% differential for even longer, the banks are laughing all the way to the... well, to the bank...
Mad Mike
Well-known member
Wow. Put the MAGA hat away my friend. First off it's not an old boy disease - sure they suffer more but there are plenty your age that are dying too.
Now think of this... maybe the old boys conspiring. What if they think there's too many of yous guys living low, draining the public purse while you kick back eating PB&J while waiting for your next handout? What if their plan is to get you all depressed and suicidal?
J_F
Guest
daily stats by themselves are meaningless
but the US is having a very bad day today
680 hospital beds freed up in just NYS
my community has a total of 2 confirmed infections
of course the number is probably much higher
but most appear to be doing quite well with rule following
lets keep this up you hosers
maybe we'll get a summer going on if we behave
but the US is having a very bad day today
680 hospital beds freed up in just NYS
my community has a total of 2 confirmed infections
of course the number is probably much higher
but most appear to be doing quite well with rule following
lets keep this up you hosers
maybe we'll get a summer going on if we behave
Mad Mike
Well-known member
I'm in a boat bind too. My skiff is on the hard east of Rochester NY, plan was to bring her home this week -- there is no timeline to get her back now.
What's killing me the most is missing the chance to cruising on gas that costs $1.25/us gal.
AllistonGT
Well-known member
I thought small businesses with a payroll of less then $2000000 were exempt from having to pay severance? So what if a small company at the end of this found that business wasn't the same and didn't need the same amount of staff. It could wipe them out to have to pay out to longer term employees.
Hypocrisy reigns. My wife is annoyed that a neighbour came back from Florida and hasn't done the isolation bit but doesn't say anything about her sister that went to Mexico when everyone else was pulling the plug on travel.
I'm reading petitions from students for an automatic pass for the year for their courses. Encouraging that a few of their peers are calling them out for not wanting to put the work in.
Mad Mike
Well-known member
The banks are doing you a favour. The big banks are providing 6 month deferrals on mortgage payments for those who need it. On a case by case basis they are also helping small businesses and consumers who cannot meet their credit commitments. They have done some Herculean work to re-train and re-deploy tens of thousands of their staff into customer facing roles, spent countless millions to expand digital services to meet customer's needs -- and they've done this all inside a few weeks. They are also reorganizing consumer's credit by converting high interest credit card debt to lower interest loans, providing free credit counselling so people don't set their credit on fire, and supporting small business who really need help.
Do you think a 2.75 spread on interest rates is a huge margin? What other business do you know of that can operate on that thin a margin?
Now here's the real test. Ask 1/2 million Canadian households (so far) if the banks are helping them? Ask the small landlords who can't collect rents if the banks are helping them? Ask the countless small business that have been able to defer lease and loan payments if the banks are helping them. Ask the 1 million Canadians who have credit restructuring in the works if the banks are helping them? The ask everyone else what thy would do if the banks didn't keep card services operating, ATMs stocked, and financial markets running.
Got any better ideas for them?
I thought the banks you telling you to pound salt for non-principal residences? Just third-hand information here, no real knowledge.
It will be interesting to see what happens with Air Bnb. If they don't get into the mortgage business (or at least fronting against future income), they will have a hell of a lot less properties when things finally settle out.
OMG, whut?!?
Do you have any idea what is going on with the banks and mortgages these days?
Banks were doing just fine making profits at their previous margins before BoC lowered the rates twice, however mortgage rates have not gone down in response. They have gone UP:
/https://www.thestar.com/content/dam/thestar/business/2020/03/28/as-the-central-bank-rate-plunges-some-consumers-are-paying-higher-interest-on-their-mortgages/cpt50350050.jpg)
Something odd is going on with mortgage rates: they’re going up, even as the key rate goes down
“Even though logic suggests they should drop, the history of the last three weeks suggests that might not happen. It’s possible they stay the same or ...
Reasons are due to increased risks of default. But the bottom line is the banks are not looking out for YOUR interests. They are looking out for THEIRS and their shareholders.
How much retraining is required for a service rep to pick up the phone and say, "What? You can't make payments? Okay, let's extend your current loan at 3% another six months, so you keep paying the same interest rate while our costs to lend are 1.5 points less than they were last week."
Banks love it when you don't pay the principal but keep accruing interest.
They F-ing *LOVE* it.
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Problem is...a lot of people living paycheque to paycheque in ****** apartments don't care. They'll just take this "free ride" for 3 or 4 months, wait for the N1 to arrive the day after this all ends, drag that out for another few months (or longer as the tribunals will probably be slammed) and continue to just blow their money on stupid **** in the meantime.
6 or 8 months later when they finally get evicted, they'll just move somewhere else....likely to another apartment that was just vacated by someone else playing the exact same game.
Ruined credit scores and any other threats don't matter to many of these people as bankruptcy may actually be just another play in their deck.
I haven't seen a tenant yet that comprehended that rent deferral does not equal rent avoidance. They universally think deferral equals payment never needs to be made. wtf.
The best theoretical solution I have seen is a JT program like student loans. Gov't of canada pays your rent, you pay it back over five years (or longer). Lets be honest, anyone that needs to defer for a few months now has a snowballs chance in hell of paying off the outstanding balance in the near future and landlords have no leverage over a tenant that can just bail on the huge bill.
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