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Originally Posted by chemgear
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Anyone who doesn't have any consumer debt who feels they are being left behind as people drive fancy new cars, live in big McMansions, and seem to have all the latest gadgets should clip this article and save it. The reason why things are more expensive than you figure they should is because people are using OPM (Other People's Money) to buy them and bid the price up.
I also recall an article from the Globe from about 6-8 months ago that investigated with the Land titles office to see how large a mortgage people who live in million dollar plus homes in a few Canadian markets have. Typically it seemed that quite a few homes even in those high price ranges have hefty mortgages on them leaving under 10% in home equity. Meaning that even in 'high income' situations people are still living beyond their means.
Everyone wants to live like a rock star, very few want/or even really have the ability to pay for it.