The empty head tax

Persian Gulf states have their knickers in a knot over Qatar. The Brits, bombed and battered, have a huge vote on Thursday. This week a punted FBI director could seriously wound a sitting President. And why didn’t I know about Ariana Grande until now?

Well, if you keep a balanced and diversified portfolio with global exposure, you actually don’t care about this stuff. But if you have a pied-à-terre in downtown Toronto or Vancouver, it’s time to start worrying. We all should, in fact. Canadian leaders are taking the first steps that logically  lead right to your unused basement or the bedroom little Raunchie just moved out of.

Less than a month now before Vancouver starts to tax the stuffing out of people with secondary residences – often small condos used part of the year or part of the week. The Empty Houses Tax law is historic and draconian. Unless you live in a property for 180 days as a principal residence, or rent it out for six months of the year in 30-day stints (no Airbnb for you), you’re nailed. The tax is 1% of the appraised value – or $500 a month on a typical $600,000 condo.

In Ontario, the same appears looming. In April the province ushered in legislation allowing municipalities to add this levy to existing property taxes for residences it deems are under-utilized. Toronto’s mayor, who used to be a Conservative and a free-enterpriser dude, is almost certain to do this – because it’s a popular move with the deplorables, who are now destined to run the world.

The argument in favour?

We have houses too expensive for average people to buy, which has placed big pressure on the rental market where vacancy rates are low, competition among tenants is stiff, and landlords are rentier bourgeoisie who should probably be gelded.

Says the Van mayor: “In a rental housing crisis, it’s unacceptable for so much housing to be treated as a commodity while people who live and work in Vancouver can’t find an affordable and secure place to live. Housing is for homes first, investments second. The Empty Homes Tax will help ensure the best use of all our housing, and boost long term rental supply by bringing thousands of homes back into the market.”

By this logic, of course, anyone with a house they live in full-time with an idle basement suite, or two empty bedrooms the kids used to occupy, is an equal target. Sadly the meme is out there that the EH tax will punish offshore investors who leave Westisde mansions vacant. How silly is that?

The argument against?

Lots of people have secondary homes they live in part of the time – like downtown condos used for business purposes every single week of the year. That makes them unrentable, of course. Besides, the owners pay 100% of the property tax yet consume fewer services. And by avoiding a long daily commute, they curb the car and reduce pollution. Moreover, as owners they paid land transfer tax, fork out condo or strata fees, look after utility bills and contribute just as much to the local economy as some moister tenant.

Toronto, by the way, is the financial capital of the country with thousands of Americans working there at any one time for cross-border corporations (just as Canucks labour in the south). Many of them find it cheaper and more stable to buy than to rent, so why should they be slapped with an Empty Houses Tax on a property that’s occupied full-time? If we want urban centres which compete internationally, attracting global investment capital, why are we acting like provincial dorks?

So, in reality, this is no tax on Empty Houses. It’s a tax on the affluent who can afford  downtown digs. It’ll probably do diddly to add new stock to the tenancy market, or drop a dollar from rents. It’s an assault on the right to own property which, as you can see, we don’t have. And it’s a sop to those who would like us all to be equal.

Yikes. What a mess that would be.

248 comments ↓

#1 crdt on 06.06.17 at 4:52 pm

Tax is for speculators taking housing off the market for speculating. There are way too many at the moment, in a few years it might change.

As the post makes clear, it is poorly crafted and destined to fail. But, yes, it is a revenue grab. — Garth

#2 Pete on 06.06.17 at 4:53 pm

Garth, I don’t look at it that way. It is sort of like the progressive income tax system. you pay 10% on the first $10k, and 15% on the next $10k, and 35% on anything over $100k.

the rich Americans can pay the empty home tax, they don’t have to rent it out.

Faulty logic. Lots of ‘millionaire’ house owners in Vancouver could never afford a tax on gains the market bestowed upon them. Property ownership and income are not correlated. — Garth

#3 Pete on 06.06.17 at 4:56 pm

I propose we introduce progressive tax rates for the property tax. under $500k, 0.7%, $500k to $800k, 0.9%. $800k to $1.2 million, 1%, over $1.2, 1.5%.

Why? — Garth

#4 First Firster Firstest on 06.06.17 at 4:59 pm

Quiet night? Only 1 comment, but at least the firsters have been banished!

#5 bdwy sktrn on 06.06.17 at 4:59 pm

And why didn’t I know about Ariana Grande until now?
————————–
because you haven’t been watching song and dance sitcoms aimed squarely at 8-12yo girls for the past decade?

#6 Bullseye Montreal on 06.06.17 at 5:00 pm

“As I understand it, non-resident buyers have been a growing factor in Montreal for some time,” said Doug Porter, chief economist with Bank of Montreal.

http://business.financialpost.com/personal-finance/mortgages-real-estate/foreign-buyer-debate-shifts-to-montreal-as-home-sales-hit-record

I commented on the hot money moving to montreal in a blog post yesterday…and today, the news catches up with me. Unless you have a gift of foresight (like me), don’t invest in individual stocks (like me).

#7 Pete on 06.06.17 at 5:01 pm

These days I realized the biggest winner from a housing bubble is:

house owners? No. Unless you sell your house and move to Florida for good, you are stuck with a bigger property tax bill. Moreover, it limits your ability to move and your children’s ability to buy house.

renters? No. For obvious reasons.

The biggest winner is the Government. housing bubble is a low-cost way to boost economy. And who cares what would happen once an election is won?

#8 Dave on 06.06.17 at 5:01 pm

Is BC and Ontario and fuel to the Quebec housing market? Is Montreal the next booom town?

#9 Pete on 06.06.17 at 5:07 pm

Garth, why not?

Progressive income tax rate is based on the notion that the richer you are, the more tax you should pay. Both income and assets are measures of richness. the more assets you have, the higher tax you should pay. I think it is quite fair. I think we should lower HST, which is a very unfair tax because rich and poor people pay the same. HST should be lower to 5-8% nationally; property taxes should be taxed at different rates.

#10 prairiedenial on 06.06.17 at 5:10 pm

Garth, your pictures always make my day….so I am hesitant to play/be devil’s advocate…I live n Winnipeg which you often skewer for being a legend in its own mind…so justified… as a 50 year old Gen Xer at the start of that smaller wave, I think we are really seeing demographics being more than a passing comment. two massive generations Boomers and Millennials squaring off, which is what this is. (no one cares what Gen X thinks). I am not surprised this is happening and I personally think it will help the renters find something in TO and VanC. but I agree that it may create a further backlash as Boomers will simply hang on to their property instead of selling and even if they did, the price grind down will take years probably at least 5 when the largest wave of Canadian Boomers turn 70 in 2020. I rent because I got sick off fixing up ‘over priced’ properties in ‘up and coming’ areas of Winnipeg’….In other countries such as Japan (where I lived in the early 1990s) heirs would fight each other NOT to get grandma or grandpa’s house after they passed on because of the massive inheritance tax in Japan. My guess is that we will see that here in Canada in not too distant future… as crafty Boomers “will” (while still here)'”will” their property/homes to their offspring in return for some payments or liquid cash. just a thought….

#11 Pete on 06.06.17 at 5:11 pm

I mean, if someone owns a $1.5 million property in Vancouver without a mortgage, then they are rich, no matter they admit or not. If they can’t afford 1% tax on their property, they can always sell it.

The reason Vancouver has the most expensive house in Canada is NOT because it has nice weather or Chinese dudes, it is because it has the lowest property tax rate in the country.

#12 Kool Aid on 06.06.17 at 5:12 pm

Tax, tax, tax, liberals are the “new democrats”

#13 Sue on 06.06.17 at 5:13 pm

Fun to make new laws and rules. Its the follow through and enforcement gov sucks at. Pretty sure we already have some laws that tax rent income and cap gains on sale. They should focus on enforcing what we have not complicating things more.

#14 N on 06.06.17 at 5:16 pm

Pure Capitalism in a Socialistic society….
Don’t know if many here would buy these views unless we make the entire system capitalistic.

#15 TurnerNation on 06.06.17 at 5:16 pm

Thinking of causing some mayhem like posting onto other,  normal blogs that Housing is Overvalued. Maybe some cow tipping later on, too.

Naturally I’ll be wearing a GF headband and leaving my GF Blog Dog manual in the car. In my pocket a crumpled printed blog post outlining my bearish leanings will be present.

All left for someone else to find.
(Is anyone believing this stuff?)

#16 Alice on 06.06.17 at 5:16 pm

25 THOUSAND units hit the market last month in Toronto. That’s mind boggling.

#17 Screwed Canadian Millenial on 06.06.17 at 5:17 pm

Tax revenues have to come from somewhere Garth. I’d rather they come from wealthy Chinese gangsters using the Canadian housing market as a money laundering operation. Or from wealthy people who can afford multiple homes while many of us are just trying to make rent.

You’ll have to pardon me, I just called in to my on-call, zero hour, part time, temporary, precarious, minimum wage gig. My boss who owns 5 investment properties told me if I don’t give it 150% effort, some Temporary Foreign Worker will get my job. Gotta love Canada!

#18 -=jwk on 06.06.17 at 5:18 pm

If they are commuting, they are using it 180 days and the tax doesn’t apply.

price drops are temporay (See:2009). this will be seen as a buy in opportunity and I expect all the ‘losses’ to be regained by september.

#19 Paully on 06.06.17 at 5:18 pm

Coming soon, the new simplified Liberal tax program:

“How much do you make?…Send it in.”

“Hom much do you have saved up?…Send it in.”

#20 For those about to flop... on 06.06.17 at 5:22 pm

Pink Pollen falling in Vancouver.

Well the Turner curse has hit these guys as well.

As I stated the other day this street currently has 5 or 6 buyers from last year scrambling to try and get the bulk of their money back.

It is highly unlikely that these guys are Englishmen as with the numbers as they stand are fixing to take a bath.

It is a new build so that is in their favour,what’s not in their favour is that they paid 2.67 in May of 2016.

The assessment that came in later in the year came in short at 2.52 and hopefully for these guy’s sake the dramatic price drop does the trick.

Or is that treat…

M42BC

3621 Turner Street, Vancouver

Apr 26:$2,988,000
Jun 6: $2,380,000

Change: – 608000.00 -20%

https://www.zolo.ca/index.php?sarea=3621%20Turner%20Street,%20Vancouver&filter=1

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAwMlJWWg==

#21 Halifax on 06.06.17 at 5:24 pm

What the situation with RE in Barrie? Really …

Curiously in Halifax, NS.

#22 TEMPLE on 06.06.17 at 5:29 pm

It’s an assault on the right to own property which, as you can see, we don’t have.

I don’t agree with that and I think you are dog whistling. I think my “right” to own property (I have none, despite a monster stock portfolio and a way-above-average income) is negatively impacted by greedy (and often over-leveraged) people who have multiple properties.

This kind of tax is a blunt instrument to be sure, but it’s no less unfair than the way I get hammered in taxes on my capital gains and US dividends while most real estate gains are untaxed. And, before you yammer at me, my TFSA and RRSPs are maxed already.

Anyhoo, I’m happy to see market cooling measures brought in. Interest rates aren’t going up fast enough to bring sanity back, so I don’t know what else you think the regulators can do? I’d like to have my own house one day, but I’m not stupid enough to buy one at anything more than 3-4x income.

#23 HoweStreet.com on 06.06.17 at 5:34 pm

Ross Kay on HoweStreet.com Radio:
Vancouver-Toronto Real Estate Prices Dropping.
Will NDP-Green government be disastrous for BC home values?

http://www.howestreet.com/2017/06/05/vancouver-toronto-real-estate-prices-dropping/

#24 End of the line on 06.06.17 at 5:35 pm

Yeah, I used to think the blog was intelligent but now I’m realizing it’s just intelligent about some things, and mostly ideological about others.

It’s a complete slippery slope fallacy and pretty absurd fear-mongering to think that the government is going to tax empty basement suites or open bedrooms of someone’s house. If a government implemented that I’d be out there with all the Rebel Media dunces holding a pitchfork and a torch.

Further, to suggest that affluent people have every right to hold empty property in major downtown properties when there is a housing crisis, because they pay their condo fees and taxes misses the point of a housing crisis completely. They might find it ‘convenient’ to do this, but that convenience is because they are gaining value for holding, they may not be intentional speculators, but they are still speculators.

Finally, we’re experiencing a housing crisis in two major urban centres in Canada. These are hard working young people who think they’re doing everything right and working hard that can’t afford decent living. Just because someone doesn’t know about finance, or has the time to research finance, doesn’t mean they should be condemned to years of debt. That’s only if they buy a house or a condo in this market that they should be.

Young people are trapped between a rock and a hard place: spend 70% of the equivalent that they would on a mortgage on rent, or spend 30% as an investment in a mortgage. When you have the MSM proclaiming that housing price increases will never end, they’re not reading this blog. Smart governments are trying to fix that. Garth turns around and says they’re hurting the rich, but the rich aren’t hurting; I’m sort of done with this blog. I know housing will decrease but I don’t need a greed mantra every day.

Users of secondary properties are not speculators by definition. Their real estate is often a tool for doing business. Or they simply earned it through labour. It’s a shock, I know, but this is not all about you. — Garth

#25 For those about to flop... on 06.06.17 at 5:36 pm

Pink Pollen falling in Burnaby.

Despite things turning positive in Burnaby year over year that stat ain’t helping these guys.

Shelling out 1.55 last June probably seemed like a good idea but now if it goes at this price it will go for a loss after expenses.

They have the lower price point in their favour,but the assessment comes in short at 1.49 and it was built in 1950, before my parents were even on the planet…

M42BC

7045 Ridge Drive, Burnaby

May 15:$1,645,000
Jun 6: $1,590,000
Change: – 55000.00 -3%

https://www.zolo.ca/index.php?sarea=7045%20Ridge%20Drive,%20Burnaby&filter=1

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAzVk1FRQ==

#26 Simplyput7 on 06.06.17 at 5:37 pm

Have to disagree with you on this one, I think you are underestimating how many condos in the last 5 years have been built in Canada for people who have no intention of living in them or renting them out. Local speculators who bought property hoping to sell at a later date when the price goes up.

When these speculators realize they can’t make money on these units, what are the cities supposed to do with them? These properties are usually small (400 – 500 sq ft) and cannot be expanded by knocking out a wall like other cities such as New York, to make bigger units.

If these speculators were deterred from buying these places then, developers would build units with more space and smaller towers where people are not walking up 30 flights of stairs when the elevator is out of service.

The provinces should tax vacant units, to allow primary homeowners to have access to a place to live.

#27 Jonah on 06.06.17 at 5:42 pm

I had been to three properties in GTA area which are all investment properties listed for 2K or more per month for lease.

They have been vacant for over a month now and the realtor told me that the landlords are investors hiding behind corporate numbers so that they can expense losses for the months that are not leased while searching for killing asking price for the lease or selling it at even higher price.

When would the government step in and start reviewing how much increase is justified. Earlier this year the rent had gone up 32% just like pied-à-terre in downtown or a mansion in King City.

‘Hiding behind corporate numbers’? Do you even know what you’re saying? Sheesh. — Garth

#28 Vancouver Brit on 06.06.17 at 5:56 pm

Will this really mean anybody with an AirBNB will have to pay the tax? That’s enormous if true, the amount of AirBNB properties here in Vancouver is crazy. That fact alone might result in properties flooding into the rental market if the tax is strictly enforced.

#29 Pretentious Hipster Bicycles on 06.06.17 at 6:02 pm

I am shocked by the amount of people on here cheer leading for this and the racist home buyer tax. Sometimes I am ashamed to call Canada my adopted home. Someone once told me an analogy for Canadians as “crabs in a bucket”. The strongest and fittest will try to escape the bucket and be free, while the other little Canadians try and pull him back down to their level.

#30 For those about to flop... on 06.06.17 at 6:03 pm

Pink Pollen falling in Vancouver.

This one is about a 15 minute walk from my digs.

Actually had some family members from my wife’s side that used to live in this street.

The neighborhood is changing,but not fast enough for these guys as they forked out 2.33m in April 2016.The assessment comes in at 2.35 so there’s that in their favour.

It is a newer house as well ,but what they really needed to put it over the top was to be able to state that it was the former residence of Sophia Loren…

M42BC

4405 Sophia Street, Vancouver

Nov 12:$2,588,000
Jun 5: $2,288,000
Change: – 300000.00 -12%

https://www.zolo.ca/index.php?sarea=4405%20Sophia%20Street,%20Vancouver&filter=1

https://evaluebc.bcassessment.ca/Property.aspx?_oa=RDAwMDBTNkFCNw==

#31 Gentle ,Loving Kindness on 06.06.17 at 6:04 pm

Could this apply to cottages also? How many cottages are used for only a couple/ few weeks a year, and are then vacant for eleven months a year? Why would these escape a municipality looking for a “legal ” way to increase taxes?

#32 Dear Curious on 06.06.17 at 6:09 pm

#21 Halifax on 06.06.17 at 5:24 pm

What the situation with RE in Barrie? Really …

Curiously in Halifax, NS.

Real estate in Barrie is a cross between the real estate markets in Truro, Trois-Rivieres, Sudbury, Weyburn, Thompson, Vernon and of course…the big smoke. To get a little more accurate picture, throw in a pinch of Moncton, Antigonish and Red Deer, and you should have a pretty good handle on what to expect when you decide to enter that market. Running the numbers between Corner Brook and Brooks could also bring you an even greater level of accuracy, but you seem like a pretty clever potato…from what I can tell, so you probably don’t need that last little tip. It’s always a pleasure to help a newfie out of bind, whenever I can.

Where is Halifax anyways?

#33 vandriver on 06.06.17 at 6:10 pm

“Users of secondary properties are not speculators by definition. Their real estate is often a tool for doing business. Or they simply earned it through labour. It’s a shock, I know, but this is not all about you. — Garth”

If there is no speculative element to these purchases, why can’t they just rent a condo for such business purposes?

Would same business people purchase in a declining or longterm stagnant market? I doubt it.

#34 Vancouver Troy on 06.06.17 at 6:11 pm

A lot of the condos in Vancouver that people use part-time for work are lower cost co-ops that don’t allow rentals.

Is the government going to tax them for not being rented out?

And for those bad at math, a person with a $1m property paying 1% tax is already paying more than a person with a $500k property paying 1% tax.

#35 Doug t on 06.06.17 at 6:14 pm

Safe space – check
Comfort blanket – check
PTSD animal – check
Gender free bathrooms – check
Sons girlfriend is a “they” not she – check
Expect interest rates to stay low forever – check
Globalism is peachy – check
Inheritance for down payment – check
LGBTQIAPKC – check

RATM – check

#36 TortyPapa on 06.06.17 at 6:16 pm

“False declarations will result in fines of up to $10,000 PER DAY of the continuing offense, in addition to payment of the tax.”

$10,000 PER DAY!!!! I read it twice and copied and pasted it. WOW! http://vancouver.ca/home-property-development/empty-homes-enforcement-penalties.aspx

#37 crdt on 06.06.17 at 6:19 pm

Today is less about the market and more about class struggle. The rich want to stay rich and who can blame them? Business in itself is only a means to an end, by giving it priority over living under the guise of the principle that hard work is intrinsically virtuous or worthy of reward diminishes life. Not everyone wants a convenient urban place to crash just to make deals. I would much rather see a young couple creating a nest then a suit a few times a month. Might is not always right, be it financial might..

#38 Smoking Man on 06.06.17 at 6:22 pm

Happens every time you have commies running every level of government.

I’m so out of here soon.

#39 FOUR FINGERS WATSON on 06.06.17 at 6:25 pm

How about retirees who own a condo but travel more than say 180 days a year? Are they going to tax travelling retirees ? I don’t think so.

#40 For those about to flop... on 06.06.17 at 6:25 pm

CONFIRMED PINK SNOW

I actually stumbled across this case by accident and although minor I will put it up.

Just like a case in Surrey I was studying the other day these guys bailed too early and took a small loss,

They paid 770k in March 2014 and offloaded it for 795k in January 2015.

We don’t know what they pumped into but it is probably fair to say they took at least a2% loss after expenses.

It is now assessed at 1.25 and is back on the market and has just had a $60,000 haircut but they are still asking 1.09

The main reason I am posting this one is trying to show you guys some of the things I learn as I go.

If you had asked me if anyone was losing money in Delta in early 2015 ,I would have answered “No way!”

Now we know…

M42BC

https://www.zolo.ca/delta-real-estate/1304-duncan-drive

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDA1VlBaMQ==

#41 TheSpangler on 06.06.17 at 6:27 pm

Just make housing taxable like everything else, why should a $1 million gain a on a house be tax free? Make it like the life time capital gains exemption, you get a $200k limit or something. Or you know what make a QSBC share disposal tax free, and housing sales taxable, wouldn’t that be better for the economy?

If stocks are taxable, along with personal-use-property (if there is a gain), housing should be the same. Cry about this all you want you old wrinklies.

#42 Frank on 06.06.17 at 6:28 pm

Lots of people have secondary homes they live in part of the time – like downtown condos used for business purposes every single week of the year. That makes them unrentable, of course. Besides, the owners pay 100% of the property tax yet consume fewer services.

The Vancouver empty homes tax accounts for those people but please play a fiddle for people who can own a $700K condo they only need once a year.

Housing at a premium right now and we’d rather have wealthier people bear the brunt of that than poorer people. Income inequality is the worst it has been in 50 years and you want to stand up for the richer ones? That takes balls.

#43 waiting on the westcoast on 06.06.17 at 6:28 pm

Temple said… “This kind of tax is a blunt instrument to be sure, but it’s no less unfair than the way I get hammered in taxes on my capital gains and US dividends while most real estate gains are untaxed. And, before you yammer at me, my TFSA and RRSPs are maxed already.

Anyhoo, I’m happy to see market cooling measures brought in. Interest rates aren’t going up fast enough to bring sanity back, so I don’t know what else you think the regulators can do? I’d like to have my own house one day, but I’m not stupid enough to buy one at anything more than 3-4x income.”

Can’t remember who said it a week or so ago, but, typical of Canadians, people here would rather see others taxed more rather than being taxed less… It’s bizarre.

We should be advocating government to quit trying to “influence” behavior through intervention in financial affairs. It didn’t end well in the US in 2008-10 and won’t end well here either.

#44 Rainclouds on 06.06.17 at 6:29 pm

Presumably the Banks are not going to be as eager to include potential rental income when calculating how large a mortgage they will hand out.

Back in the day when I was hunting for a house in Vandelusional it was almost a given an illegal suite was part of the mix and your monthly payment was increased accordingly.

When will the braintrust in Govt actually start utilizing verifiable, independent, data before going off like a bull in a china shop. And for christs sake. get effing Zillow in here yesterday!

#45 Joe2.0 on 06.06.17 at 6:30 pm

They are going to have to establish a rental price criteria based on property values which sounds a tad socialist.
It’s never going to work.
There are Lawyers out there that have forgotten more about bucking the system then most policy makers will ever be aware of.

#46 waiting on the westcoast on 06.06.17 at 6:32 pm

Pete says… “The biggest winner is the Government. housing bubble is a low-cost way to boost economy. And who cares what would happen once an election is won?”

And the massive increase in tax revenues on property taxes! My pensioner parents while beaming about the perceived increase in value of their house, don’t enjoy having to increase their HELOC to cover ever increasing property taxes…

#47 ole Doberman P. on 06.06.17 at 6:33 pm

And to think all this can be solved by normalizing rates in one fell swoop

But gov wants a peice of the pie first

#48 Frank on 06.06.17 at 6:33 pm

Faulty logic. Lots of ‘millionaire’ house owners in Vancouver could never afford a tax on gains the market bestowed upon them. Property ownership and income are not correlated. — Garth

Then sell, take your hundreds of thousands of gains and move on. The city is suffering in terms of not only squeezing lower income but it’s affecting the life of the city. Restaurants are closing, recreation stores are closing, retail vacancies are growing and local job creating businesses are priced out while speculators sit on property. Why should the city and it’s inhabitants subsidize those who ride the very land as an investment. Cities are not living stock markets. If you want to invest, get a portfolio stop using our town as a piggy bank.

#49 dr. talc on 06.06.17 at 6:35 pm

Millennials, curse your parent’s sheeple assess. They are to blame, you are guilty of bad parenting, then blame your so called government, they off shored your future. Before you blame foreigners, which is millennial code for non whites, go to other parts of the planet, like North Africa, you will see concrete structures everywhere with re bar sticking out of the top: they build what they can afford with what they have, and plan for the next generation, there will be a floor added when they get some money, that’s where their children and grand children will live. Hard work, sacrifice and planning.

#50 Timmy on 06.06.17 at 6:41 pm

Gregor Robertson the Mayor of Vancouver said that it is unacceptable for housing to be treated as a commodity? That hypocrite was elected by developers. He doesn’t care about the people of Vancouver. He could have stimulated the creation of more rental housing , but instead he allowed his developer buddies to put up all those crappy hi rise condos, thereby depleting the rental stock. NOw he says there is a housing crisis. What a moron.

#51 n1tro on 06.06.17 at 6:42 pm

http://www.torontosun.com/2017/06/06/woman-screaming-allahu-akbar-charged-in-toronto-store-attack-sources

Maybe she was upset she didn’t sell her house in January? Trudeau can make it better with some tears and a selfie!

#52 GFC bailouts and stimuli on 06.06.17 at 6:42 pm

If trillions of Dollars, Euros, Yen and Yuan wouldn’t have been printed out of thin air back in ’09 and following years, there wouldn’t have been such a run up in RE prices all over the world.

It is not isolated to Canada although the lax lending practices and high affinity to take borrowing risks have exacerbated the bubble in that part of the world.

Housing costs are hyperinflated and it’s just as hard to balance income and cost of shelter in 2017 as it was in the Middle Ages.

Millenial slaves are working for shelter and food. Little to no chance of building any amount of equity or being free from debt loads.

The dreams of freedom for the 99% were definitely and absolutely irreversibly CRUSHED with all bailouts during the 2008 / 2009 Great Financial Crisis.

We are living in suspended motion but the deep fall into the abyss is what’s coming next.

Irreversible.

#53 Jonathan on 06.06.17 at 6:42 pm

#28 Vancouver Brit
Will this really mean anybody with an AirBNB will have to pay the tax? That’s enormous if true, the amount of AirBNB properties here in Vancouver is crazy.

————

I really wish that would be true as well… however given how little the city has even penalized aspiring AirBnB owners (http://bc.ctvnews.ca/vancouver-did-little-to-enforce-airbnb-rules-docs-suggest-1.3241051) I have my doubts on how the city would enforce the empty home tax. Believe me I really want it to work too but based on what I’ve seen over the past few years I have lost all hopes for what is “right” unfortunately.

#54 Dan.t on 06.06.17 at 6:44 pm

Real estate bubble has been the result of government policies using basic simple economics.

Give massive incentives to people to buy, give tons of people the means by easing credit (free money) and now you have too many people with access to easy money chasing too few goods. And then make it even easier as prices rise with 0 down 40 year, and drop interest rates to virtually zero.

That caused not only people to buy primary homes, but a huge amount of Canadians to buy 2,3,4 and up, condos, and leverage the crap out of free money and it’s still going on.

Tighten credit, raise rates, and watch anyone who bought the last 5 years struggle. Then cry, then ask for a bail out.

If buyers went on strike for 3-4 months, end of story, but millennials need the newest 1.2 semi, and bank of mom will fork over the down payment, and credit is still easily available.

Any thing under 400k (Condo’s only) get snapped up by wanna be “investors” because that is the only thing average Canadians realistically can afford (based on average incomes) but since credit is free, rates are dirt cheap, payments are nothing and still these investment now are cash flow negative…until rates rise or credit tightens Canadians won’t get the message…does 2 trillion personal debt say anything to you?s

And Christy Clark giving out 37k for a down payment? Must be nice. I guess that is the solution to insane high housing, just give out more debt.

Weird correlation, 2 trillion Debt, all chasing Housing= nose bleed bubble level housing prices. Funny how that works….add in Governments selling out to foreign money and

all supply gets eaten up by speculators or foreign money.

You want to turn housing into a commodity than tax it the same and then stop giving incentives to buy one single asset.

What do you think happens if you go to bank and ask for 500k at 2% interest to buy financial assets, or gold or silver or any other commodity. Good luck.

It was government policies that caused it and look at the results, and now, they are going to fix it…should be good.

#55 garth_think on 06.06.17 at 6:46 pm

5% of foreign investors don’t make a difference, 10% of moister buyers influence an entire month of real estate stats and less than 1% of home owners should have the rules made to suit them because they own 2 or more homes and can’t decide which house to live at.

#56 Smoking Man on 06.06.17 at 6:52 pm

Every one is now blaming Wynne. Haha.

She could not wait till budget day. Her blog dog spys told her Smokey is going to get away with murder. He’s listing. Do the 16 step program now.

Her zeal for revenge so strong she sacraficed the entire liberal party in the next election just to one one-upmanship on a Sexist Old White Guy.

Clearly she did not think things through as usaul.

#57 SimVan on 06.06.17 at 6:53 pm

“I mean, if someone owns a $1.5 million property in Vancouver without a mortgage, then they are rich, no matter they admit or not. If they can’t afford 1% tax on their property, they can always sell it.”

Being rich means you having easy access to actual money. Many homeowners in Vancouver bought decades ago. Those houses have appreciated suddenly in the last few years. Many of those houses are decrepit having never undergone even basic renovations as the owners do not have access to extra money.

There is a big difference between rich according to BC Assessment and actually being rich.

These individual bought homes for themselves through hard work, saving and sacrifice. Saying they can just sell if they cannot afford a 1% tax is a clear indication that you have never purchased a property.

#58 MF on 06.06.17 at 6:56 pm

#29 Pretentious Hipster Bicycles on 06.06.17 at 6:02 pm

The crab mentality is no different here than anywhere else on earth.

-Not sure how I feel about these upcoming changes. As a whole the country is a little more left leaning than the US, so it makes sense that we would try to institute measures to keep the market “fair”.

On one hand I value hard work, sacrifice, success, and believe government should stay out of markets. Our RE market is so inflated because of manipulated interest rates, and the CMHC. If those foreign nationals here on business can afford to pay, why not?

But I don’t think it is that simple. What has happened is housing is now being traded as a commodity for profit. I don’t buy the thought that these condos are all owned by wealthy foreign nationals doing business in Toronto, I think they are owned by speculators (both foreign and domestic). The money is doing nothing for the local economy, and the supply of housing is being artificially constrained as a result. These speculators are then increasing rent for renters in our cities, leaving less money left over to buy things.

I guess I’m in slightly for the changes. Our markets are a manipulated joke. Government created bubble, government should deflate it.

MF

#59 Michael Francis on 06.06.17 at 7:00 pm

As usual, the talented are forced to bail out the silly.

#60 espressobob on 06.06.17 at 7:03 pm

A little off topic, but a bubble is what it are.

https://en.wikipedia.org/wiki/Tulip_mania

#61 Smoking Man on 06.06.17 at 7:03 pm

What a bunch of idiots. Porter Airlines told Rebal Media your persona non grata. No soup for you.
Why would an airline take pot shots at deplorables 1/2 their market.

And now this on Twitter #BoycottPorterAirlines

See the left no longer has a monopoly on activism.

Short Porter.

#62 AB Boxster on 06.06.17 at 7:06 pm

it’s a popular move with the deplorables, who are now destined to run the world. – Garth
————————————-
Actually, I don’t think it’s us deplorables calling for these taxes.
I suggest its the moist millennial snowflakes that love the progressive liberals in Ontario and the feds.

Deplorables just want to be left alone by government.
Less taxes,less government, less political correctness nonsense.

Its the Bernie supporters you need to be worried about.
They’re just too darn special to be deplorable.

#63 Calgary Catastrophe on 06.06.17 at 7:07 pm

Garth dude,

First of all could care less about people’s housing problems van and tdot, if anything it’s comical. However I believe you are off base on this post. Spending time in Vancouver downtown I could see a number of the buildings are 70% empty. Something is messed up with this situation. Not sure what the solution is but if I lived there and trying to find a place to rent it would be a voting issue for me.

Enjoying the Calgary condo anecdotes from posters the last few posts whoever was sharing.

Anyone else think oil is heading back to the 30’s by the end of the summer. Optimism is pretty high around here and the welders are getting busier and want raises recently.

#64 the Hammer on 06.06.17 at 7:10 pm

So much envy, so many conspiracies, so little time.

I’m feeling my inner Cato the Elder…
Say it loud and say it often…

Trump ire neccesse est!

#65 Leverage on 06.06.17 at 7:11 pm

Not long back, around the time Canada was having a RE wake-up call, far away in some little known socialistic communist hell hole, some forgotten now dictator decided there is an optimal square footage of living space per head, around 200. If your family was over you had to host in a stranger, to compensate. We are getting there. Just folks who have not lived it won’t recognize it. Because the authority has not named it so.

#66 Smudgekin on 06.06.17 at 7:13 pm

The Brits.. have a huge vote on Thursday.

Hugely irrelevant as Putin isn’t interested. A BBC correspondent in Moscow asked senior Putin people their view. “We regard the UK as a very junior partner of the US” When asked most Muskovites couldn’t name the UK PM and were unsure if it was a man or woman.

Still the Kremlin was delighted by Brexit which weakens Europe’s sanction stand against Russia. You can tell Putin isn’t interested as UK irritants like Scotish independence, Northen Ireland and Gibraltar are left alone.

Any UK prime minister (and they’ve had 4 in the last 10 years,) is pretty much a puppet for the domestic scene. Its the Civil Service – particularly the Foriegn Office that pull all the strings and run the UK boat show.

May will probably return with a minority. Many would like to see her and Boris Johnson gone before she morphs into Thatcher 2.0.

#67 Livin Large on 06.06.17 at 7:17 pm

Geez Louize this empty house tax is starting to sound like “unreasonable search and seizure”. Maybe a Charter challenge is inorder…lead my an ex Minister of Finance and internationally renowned financial journalist ( whom shall remain nameless).

#68 SWL1976 on 06.06.17 at 7:18 pm

Sadly, this has long been baked into the cake. See Agenda 21, 2030, Future Earth whichever name suits their fancy. Now that the lower middle class has been wrung dry, time to move up and onto the next peoples about to be fleeced.

Keep the masses brains washed is the main agenda

The lunatics have control of the asylum now

Anything is possible

#69 bigtowne on 06.06.17 at 7:19 pm

Our family had to leave Toronto and move two hours out to experience housing we could afford. I do not feel it is the government’s fault we were not willing to spend our last penny on rent. We chose a high quality of life we could afford in a smaller city. It would be dumb to blame my life on any level of government. Japan has a high level of vacancy due to their “no immigration” and in twenty five years their level of empty homes will be 20% vacancy rate. Canada has decided to flood the country with immigrants decades ago and not addressing the issue until now and hyping “how great all the newcomers” are does not fix the housing issue. We can’t fix the housing issue or the government issue without some planning.

#70 Leverage on 06.06.17 at 7:21 pm

Oh, and btw, look into the the ethymology of “real estate”. That will make things more clear. You never own anything, just rent it one way or another. Things seem ne but all is the same old. Feudal.

#71 Anthony on 06.06.17 at 7:21 pm

I’d be curious to see the numbers on how many “empty house” properties that are owned by someone:
-working in the city, and heading back to the burbs
-who’s rich and from out of town sheltering money, maybe visiting once in a while
-renting short term on Airbnb

I would think there are way more condos being rented out on Airbnb than the other two.

#72 Leverage on 06.06.17 at 7:26 pm

Homework for today: look up “allodial title”.

#73 Pete on 06.06.17 at 7:28 pm

Home Capital deposits dropped a whopping $52 million today. Why hasn’t the government seize it? Are they going to wait the deposits drop to zero?

#74 For those about to flop... on 06.06.17 at 7:30 pm

CONFIRMED PINK SNOW

I actually stumbled across this case by accident and although minor I will put it up.

Just like a case in Surrey I was studying the other day these guys bailed too early and took a small loss,

They paid 770k in March 2014 and offloaded it for 795k in January 2015.

We don’t know what they pumped into but it is probably fair to say they took at least a2% loss after expenses.

It is now assessed at 1.25 and is back on the market and has just had a $60,000 haircut but they are still asking 1.09

The main reason I am posting this one is trying to show you guys some of the things I learn as I go.

If you had asked me if anyone was losing money in Delta in early 2015 ,I would have answered “No way!”

Now we know…

M42BC

https://www.zolo.ca/delta-real-estate/1304-duncan-drive

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDA1VlBaMQ==

Sent this one already but I think it disappeared into that tornado…

#75 For those about to flop... on 06.06.17 at 7:45 pm

I can’t be the only Womble on here having trouble posting today…

M42BC

#76 Cheekmonster on 06.06.17 at 7:46 pm

An interesting look back at the News on May 5, 2008 as they discuss the cooling housing market in Canada. https://youtu.be/mNElJD5VJcg

#77 Daughter of Ponzy on 06.06.17 at 7:49 pm

So, you think these high RE prices are ridiculous and write about it every day for almost ten years but don’t like any measure now taken in order to lower them. What do you propose? What’s the solution?

This is no solution to high prices, nor will it increase rental stock. It’s punishing people with more than you. — Garth

#78 Michael King on 06.06.17 at 7:49 pm

Even as a Vancouver resident who is concerned about local RE valuations and the crisis in rental housing, I can only agree with today’s blog entry. This is ridiculous public policy. Imagine if a community in Arizona or Florida where many Canadians have second homes instituted something like this.
The intertwining worlds of finance and politics is an old story in this country and is certainly germane elsewhere. This article takes a look at contemporary Canada.
https://www.counterpunch.org/2017/06/06/a-little-crooked-house-trudeau-morneau-bmo-kpmg-inc/

#79 Vancouver Brit on 06.06.17 at 7:50 pm

#47 Jonathan on 06.06.17 at 6:42 pm

I really wish that would be true as well… however given how little the city has even penalized aspiring AirBnB owners (http://bc.ctvnews.ca/vancouver-did-little-to-enforce-airbnb-rules-docs-suggest-1.3241051) I have my doubts on how the city would enforce the empty home tax. Believe me I really want it to work too but based on what I’ve seen over the past few years I have lost all hopes for what is “right” unfortunately.

_________________________________

Yes, sadly I am aware of the lack of effort from the government in this regard. They seem pretty serious with the whole $10,000 a day fine for anybody not reporting the empty home though, so I’m crossing my fingers as a renter here.

“I’m crossing my fingers as a renter here.” Then the politicos have conned you. — Garth

#80 Ace Goodheart on 06.06.17 at 7:56 pm

Folks asked them to do this. They went around and took pics of all the vacant houses and posted them online. They begged for this.

Government today sadly is fully reactive. There is no planning. Anyone who thinks there is intelligence behind the decisions is missing the point.

If this is turned into the “little old lady tax” where your grandma is forced to offer her three empty bedrooms in the huge house she bought with her deceased husband in 1948 for $10,000 to local homeless crackheads, then we will see a change in the law.

It’s just the “big brother” theory of a fully reactive government trying to stay elected.

#81 Mattl on 06.06.17 at 7:56 pm

Thats some solid work flop. A guy lost 10k on real estate in Delta. I mean who would have guessed that someone could lose money on a short term real estate purchaes.

This study you are doing is going to get some headlines with solid finds like that.

#82 Future Expatriate on 06.06.17 at 7:57 pm

Ariana who?

Oh yeah, that girl so traumatized by children and girls dying at her concerts that she gave up performing and entered a nunnery for the rest of her life to clean her soul.

What? She didn’t? You mean she used a horrific tragedy to expand her new household name with millions of dollars of free publicity and coverage by doing a “capitalize-on-the-tragedy” fundraiser?

Hope she invests ALL her money well in nothing but real estate that “keeps on rising forever.”

#83 lukas on 06.06.17 at 8:00 pm

easier said than done…wonder how are they going to consistently enforce the empty home tax…just political gimmick to show the deplorables that the government is doing something…net effect will be next to nil.

#84 Daughter of Ponzy on 06.06.17 at 8:00 pm

You think that the rich are taxed too much. Okay. You also often claim that “civil servants” deserve high pay, benefits and pension. Who is going to pay for those if working class does not have enough well paid jobs in private sector. Why do jobs the “elite” 1% create pay so poorly? How do you propose this to work? You are a politician, come up with something useful…but don’t delete this post.

Call me a politician again and I will delete you eternally. — Garth

#85 Haemato on 06.06.17 at 8:01 pm

If you believe in wealth distribution through progressive taxation (and I do) then it’s all just a matter of degrees. The Empty Home Tax is essentially a step function in mill rate applied to properties beyond your first that are left vacant. One can argue it’s a step too far but people who can afford multiple properties in Vancouver or Toronto whether it be for convenience of commute or to conduct business can afford a new tax as well.

I think the likely effect of the new tax will be to pull AirBnB units back into the long term rental pool and to reduce speculation in the market. Unlike most other government meddling I can’t see how it will cause prices to increase so there’s that.

#86 ILoveCharts on 06.06.17 at 8:01 pm

Just another reason I can’t bring myself to own a condo. Between the strata telling me what I am allowed to put on my windows and if I am allowed to rent and the city then taxing me if I need to up and leave for an undetermined amount of time to take care of family or business and then the province giving anyone I do rent to insane rights and powers over me… do I really “own” anything beside the debt?

#87 Sir James on 06.06.17 at 8:02 pm

“This week a punted FBI director could seriously wound a sitting President. ”

I dont think so;

https://www.c-span.org/video/?c4670144/fbi-director-comey-denies-trump-admin-obstruction-investigations

#88 Daughter of Ponzy on 06.06.17 at 8:02 pm

This is no solution to high prices, nor will it increase rental stock. It’s punishing people with more than you. — Garth

Yes, but what do you think is the solution, dear sir???????

Move to Hope. — Garth

#89 The Patriot on 06.06.17 at 8:03 pm

Garth, can you write some poetry about your motorcycle again? It turns me on.

#90 silver on 06.06.17 at 8:03 pm

i know a lot of multi property owning vancouver snowflakes who have been screamming about the foreign owners who will get smashed by this….

he he…

they own more than 2 properties because overly low interest rates allowed them to leverage money they hadn’t earned. and rentals provide a retirement income you know.

its important to move up the property ladder…
thats how you invest for your retirement… you know…

the property ladder mime is extensive from the poorest university coddled snowflake, to the most papered civil servant snowflake.

i remember Vancouver city lawyers pushing me across the floor telling me property prices will never go down…

just deserts for Vancouver coming…

this should be so much fun…
they were all screaming about how the offshore interests were pricing them out of the market. one had 7 properties. but the prices were going to high to buy another.

oh welll…
maybe they can have a boarder to share their granite countertops…. and the kids old empty room will have a occupant now.

welcome to the soscialist republic of what used to be a country called canada.

oh wait…
canada is a “corporation” not a country…

#91 Pete on 06.06.17 at 8:05 pm

#65 Smudgekin on 06.06.17 at 7:13 pm

Putin’s Russia is nothing even close to the UK. Russian GDP is only about 50% of UK, or about the same as the state of Texas. If Russia joins the US as a state, it would not even make the top 3 state economically.

It always makes me laugh when Putin is staging his Victory Parade celebrating the “victory” of the Soviet Union in the 2nd world war. The “victorious” Soviet Union got chopped into 15 pieces and collapsed. Even Germany and Japan did not suffer such a terrible ordeal.

I would vote for Trump. But if they find out Trump conspired with Russia, I think he should be impeached right away.

#92 toronto1 on 06.06.17 at 8:19 pm

Complete and udder madness

Vacant home tax– you see taxation never ends, just more creative ways are found to tax the sheeple

Im all for fairness and equality but this absurd measures will never end– Its coming to Toronto soon as well once Tory sees the $

Someone paid for that property with after tax dollars, maintains and pays property tax and heat,hydro etc.. with after tax dollars— now on top of that if you dont want to rent out the property you pay 1% on the value.

The govt is leaning left in a hard and fast way

Great idea but the problem in Canada is already over capacity of housing– no matter what the govt tries or does, the home ownership rates are at or near the absolute top already.

#93 Leverage on 06.06.17 at 8:21 pm

First they came for the Socialists, and I did not speak out—
Because I was not a Socialist.

Then they came for the Trade Unionists, and I did not speak out—
Because I was not a Trade Unionist.

Then they came for the Jews, and I did not speak out—
Because I was not a Jew.

Then they came for me—and there was no one left to speak for me.

#94 millmech on 06.06.17 at 8:22 pm

This is why I practice stealth wealth

#95 TurnerNation on 06.06.17 at 8:29 pm

#60 SM I would no lonwer trust Rebel or Breitbart.
That old saying: how do you control the opposition?
Lead it!
Both, hopelessly infiltrated and under new ownership
Ditto Huff Post. No media is free. Too much is at stake: our minds. Worth every penny.

#96 OffshoreObserver on 06.06.17 at 8:32 pm

Time to restart the revolution against ALL taxes.

Use Bitcoin and ETH.

REVOLT against all things STATE!

Look where we have come from, using the United States’ income tax history as an analog for us poor Canucks who are RAPED for more than 50% of our wealth.

[My Vietnamese GF wants to have our children born in Canada–we’re in Ecuador, presently.

[“Baby, that mirage of Canadian middle class bliss is just that ‘a mirage'”! I explain to her. “The country punishes successful people and creates a class of state-dependent citizens who expect the dole from the government and “Free” everything.]

Look at the slippery slope we North Americans have slid-down!

https://en.wikipedia.org/wiki/Internal_Revenue_Service

#97 Ace Goodheart on 06.06.17 at 8:34 pm

#76 Daughter of Ponzy:

“What’s the solution?”

Easy.

People have to stop believing in Santa Claus. Or God. Or whatever they believe is making their lives warm and fuzzy and watching out for them.

After we all decided we could not handle life on planet earth and invented mythical beings and governments who are capable of magic, we borrowed imaginary money, invented following the end of the gold standard, and then created governments who have to borrow into the eons to pay for societies we cannot afford.

Civilization is hard work. Why take the easy way out? Who is holding the bag?

#98 Smartalox on 06.06.17 at 8:36 pm

Here in the lower mainland, there’s even talk of taxing traffic – the so-called ‘mobility charge’.

Does anyone think that monies earned from charging tolls to drive into downtown Vancouver will spur any refunds in the property or fuel taxes that were previously collected in order to fund roads, maintenance and transit? I didn’t think so.

Does anyone think that the quality of those services funded by the additional tax (frequency and cleanliness of transit, timeliness of snow removal) will improve in Vancouver? I didn’t think so.

Also, for all those 60-something Vancouver homeowners who are allowed to defer their property taxes at low, low interest rates, will they be able to defer these new property taxes as well? Or will the NDP kill off that socialist handout? I didn’t think so.

I’d hate to own a car and live in downtown Vancouver, and have to pay a ‘mobility charge’ every time I left the core, just to fill my gas tank – because there are no gas stations left in the downtown core anymore. Bet drivers would qualify for hefty Green-supported HST and mobility charge rebates on luxury Tesla’s, though.

#99 OffshoreObserver on 06.06.17 at 8:36 pm

https://en.wikipedia.org/wiki/Internal_Revenue_Service

Time to REVOLT!

Ah, dude, that’s American. But go ahead and revolt. — Garth

#100 crowdedelevatorfartz on 06.06.17 at 8:38 pm

@#67 SWL1976
“The lunatics have control of the asylum now….”
********

Sooooo, you wont have to drive to deliver the pizza?

Anyone see my chem trail?
Me either.
Musta been my vivid imagination.

#101 Bruce Allen on 06.06.17 at 8:43 pm

Strange times these.

Got a notice in the mail that the Scotiabank nearby was closing up for good at the end of this month. This particular branch has been at the same location for over 30yrs now. No reason given.

Bunch of “For Sale” signs up all over my neighbourhood, nothing selling, no takers.

Son-in-Law just got laid off from his job as a conductor with CN Rail due to rail traffic tanking all across the nation. According to him, locomotives and entire freight consists are sitting idle all across the country.

People who bought a million-dollar home on the outskirts of town this past February have seemingly abandoned the property, literally vanishing overnight. They were there one day and gone the next. The house is sitting abandoned even as the swimming pool is still full of water and the utilities appear to be still on.

Nephew just had his ’14 Ford Fusion repossessed. Couldn’t afford the $400+/month payment anymore, nor the $300/month for his insurance. He’s currently working at McDonald’s after spending over $30k pursuing a post-secondary education.

All signs continue to point to a big global confrontation looming over the horizon,and now that we are half way through the year, and seeing as the geopolitical situation is rapidly deteriorating by the day, it would appear increasingly likely that such a scenario is indeed plausible. October surprise, anyone?

And last, but not least, virtual currencies such as Bitcoin have been making some unexplained strange movements as of late. The situation with the banks over in Spain is spiraling downward, while store shelves in Qatar are sitting empty and bare. Meanwhile, our very own Steven Poloz running the show over at the BofC is scared to make any moves right now because of too many “unknowns” that they’re blaming on Trump (of course). He’s like a dog with its tail tucked between his legs.

What’s my point here? I think shit’s gonna hit the fan sooner than people realize…

#102 Contrarian Coyote on 06.06.17 at 8:45 pm

#29 Pretentious Hipster Bicycles on 06.06.17 at 6:02 pm
I am shocked by the amount of people on here cheer leading for this and the racist home buyer tax. Sometimes I am ashamed to call Canada my adopted home. Someone once told me an analogy for Canadians as “crabs in a bucket”. The strongest and fittest will try to escape the bucket and be free, while the other little Canadians try and pull him back down to their level.

===

How is the home buyer tax racist? Does the home buyer tax explicitly mention that customers from certain races will be charged more? Do you even know what racist means?

Poor old Ronnie Hawkins’ property up near Stone Lake is still on the market. $4.25mil is pretty hefty. The acreage is nice, but there are better looking properties available for 1/2 that all over Stoney Lake. Me’thinks the Hawk is going to have to drop his price soon. In slightly-related news, Kim Mitchell (!) is playing in Peterpatch for Canada Day. Free concert. Epic!

#103 Pete from St. Cesaire on 06.06.17 at 8:46 pm

It’s a complete slippery slope fallacy and pretty absurd fear-mongering to think that the government is going to tax empty basement suites or open bedrooms of someone’s house. If a government implemented that I’d be out there with all the Rebel Media dunces holding a pitchfork and a torch.
——————————————————
Wrong. It’s been done elsewhere before and I can assure you that Canadians would comply to the letter; not that they’d have much choice, real estate can’t be hidden. You know how it goes: comply or die.

#104 april on 06.06.17 at 8:52 pm

Ross Kay says all the equity gained in last bc assessment will be “wiped out” in next assessment.

#105 BS on 06.06.17 at 8:56 pm

We have progressive taxation for income why not for housing? On your first $100k income earned you pay way less tax than the next $100K. Seems to be a universally acceptable way of taxing income. Why not pay a higher tax rate on the second house or condo? Unless you get rid of progressive taxation on income seems perfectly reasonably to have progressive taxation on housing.

Sigh… Property ownership and income are not correlated, so there’s nothing ‘reasonable’ about this. Besides, why tax people twice who bought property with after-tax dollars? I think we should just tax you more. — Garth

#106 Spectacle on 06.06.17 at 8:59 pm

#49 Timmy

Gregor Robertson

http://news.nationalpost.com/news/canada/mother-of-pop-star-dating-vancouver-mayor-could-face-death-penalty-in-china-for-allegedly-embezzling-69m

——–
For those who have not followed this, Gregor Robertsons mother in law, to be ?? Faces death penalty for robbing $69 million!

Ouch, and well Worth the read, cut & past search….

#107 Newcomer on 06.06.17 at 9:04 pm

Cities dictate property use as they see fit: shops there, a park over here, high density there, hotels in the middle, no more than two stories, no less than six stories, and so on. And they tax people as they see fit. This much for a restaurant, that much for a hotel, etc. I can’t see that it makes much sense to whine about a few cities deciding to tax one type of use at a different rate. It’s true that it will not have as much impact as changing banking and CMHC regulations, but if the federal government doesn’t have the sack to do that we can’t be surprised if cities work with what they’ve got to try and produce the landscape that their citizens want, even if it is slightly inconvenient for some of the 1%.

#108 Smoking Man on 06.06.17 at 9:14 pm

#94 TurnerNation on 06.06.17 at 8:29 pm
#60 SM I would no lonwer trust Rebel or Breitbart.
That old saying: how do you control the opposition?
Lead it!
Both, hopelessly infiltrated and under new ownership
Ditto Huff Post. No media is free. Too much is at stake: our minds. Worth every penny..
…..

True. That’s why a good bourbon comes in handy. It fks up your programing and if your lucky and drink just the right amount you can get a fleeting glimpse into the truth.

Just don’t post it on linked in or you end up free software salesmen begging for donations.

No point looking in the mirror you might hit a tree.

No regrets. I love new adventures.

#109 Deplorable Dude on 06.06.17 at 9:25 pm

Yeah I’ve got the hots for Ariane Grande..my kids used to watch her on TV.

She had no choice but to do something like that concert…otherwise her brand would have been irreparably damaged…forever associated with the deaths of young children.

As for Comey on Thursday….suspect its gonna be another nuthinburger….he can’t change his tune on Trump without perjuring himself given his past testimonies.

Will enjoy all the liberals tears though….they’ll probably say Comey is on the Russian payroll….that seems to be the default excuse nowadays.

#110 TurnerNation on 06.06.17 at 9:25 pm

Remember, take everything our elite leaders exclaim and flip 180 to make sense.
Minimum income? They mean Maximum income.

Just enough to sustain our tax farm production.

7 billion of us…must not be allowed to organize or gain power. Event after event will be scripted and thrown at us until we beg for a solution.
And oh boy do they have one planned.

#111 waiting on the westcoast on 06.06.17 at 9:30 pm

Haemoto says… “One can argue it’s a step too far but people who can afford multiple properties in Vancouver or Toronto whether it be for convenience of commute or to conduct business can afford a new tax as well.”

Wow… Said so cavalierly…

#112 TnT on 06.06.17 at 9:34 pm

#94 TurnerNation on 06.06.17 at 8:29 pm

No media is free. Too much is at stake: our minds. Worth every penny.

Not making this a Trump debate – just more interested in the technology behind how a few shepherds herd the sheeple.

https://amp.pastemagazine.com/articles/2017/06/how-the-trump-russia-data-machine-games-google-to.html

#113 Pete from St. Cesaire on 06.06.17 at 9:35 pm

But if they find out Trump conspired with Russia, I think he should be impeached right away.
——————————————————-
That works both ways. Any president who interfered with the elections in another country should have been impeached too. And what do you know, the Anglo/American empire has interfered in almost every election in South America, Central America, Africa, Middle East, Far East, etc. for the last several hundred years. Look at how much the US Govt. and US corporations (Google, Yahoo, Facebook, Twitter) interfered in the election in France. The French should prosecute them.

#114 Sir James on 06.06.17 at 9:39 pm

#95 OffshoreObserver

Bitcoin is traceable and Eth is The State.

#115 Figure it out on 06.06.17 at 9:42 pm

“If we want urban centres which compete internationally, attracting global investment capital […]”

You seem confused. Capital is productive stuff that generates wealth by increasing the productivity of labour. Land, on the other hand, is the physical space you need to do whatever you do. Doubling your rents or your mortgage costs by allowing foreign “capital” to drive up the cost of your condo or your office isn’t going to make you any more productive.

And hey, you want “draconian”? The UK taxed ‘imputed rent’ — the rent you saved by owning your own house, until 1963. For businesses, it still does. Look it up.

Learn to read. Investment capital is just that – money which creates jobs and opportunities. We will attract more of it with an open society, not one in which we practice exclusion and dabble in capricious taxation. — Garth

#116 Figure it out on 06.06.17 at 9:44 pm

If you think there’s nothing wrong with having a bank account in Panama, you’d better get used to higher taxes on land. Just like back in the old days.

#117 InvestorsFriend on 06.06.17 at 9:52 pm

Son-In-Law Fibs?

#100 Bruce Allen on 06.06.17 at 8:43 pm
Strange times these.

Son-in-Law just got laid off from his job as a conductor with CN Rail due to rail traffic tanking all across the nation. According to him, locomotives and entire freight consists are sitting idle all across the country.

****************************
Absolutely false, rail car loadings are up BIGLY since about November check the graph here:

https://www.aar.org/data-center/rail-traffic-data

(click the radio button to select Canada instead of USA)

Also check the weekly stats on CN Investor site and compare to 2016. Car loadings are up double digit. Latest week up 15%!!! CN had blowout Q1 and probably will Q2 as well.

https://www.cn.ca/en/investors/key-weekly-metrics

CN just settled a Conductor labour agreement like two days ago. Son-In-law may not be telling the truth why he got “laid off”

Canadian Economy is actually doing well. See also recent Q1 GDP report. All is well, the economy is on the move.

#118 Cristian on 06.06.17 at 9:58 pm

“Lots of people have secondary homes they live in part of the time – like downtown condos used for business purposes”

There are office buildings for that purpose.

Young ignorance in full display tonight. — Garth

#119 TnT on 06.06.17 at 10:06 pm

#81 Future Expatriate on 06.06.17 at 7:57 pm

You mean she used a horrific tragedy to expand her new household name with millions of dollars of free publicity and coverage by doing a “capitalize-on-the-tragedy” fundraiser?

Sad comment… Ariana racked up plenty of charity work in her young life long before this tragedy.

http://www.answers.com/Q/Did_Ariana_Grande_help_with_any_charities?#slide=1

Example: As a ten year old, Ariana co-founded the charity Kids Who Care, a youth singing group that performed at fundraising events and raised over $500,000 just in 2007.

#120 Pete on 06.06.17 at 10:07 pm

Garth: Besides, why tax people twice who bought property with after-tax dollars?

Why do they tax me twice when I buy a cup of coffee with my after-tax dollars? And capital gains are taxed in different rates, why not property?

#121 InvestorsFriend on 06.06.17 at 10:15 pm

Mysterious Bank Branch Closures?

#100 Bruce Allen on 06.06.17 at 8:43 pm said:

Strange times these.

Got a notice in the mail that the Scotiabank nearby was closing up for good at the end of this month. This particular branch has been at the same location for over 30yrs now. No reason given.

*************************************
Could the reason be online banking and debit cards whereby we seldom need to visit a bank branch?

Watch for the number of ATMs to decrease at the big Canadians Banks to decrease this year. Paper cash is (very) quickly becoming obsolete as are cheques.

Big banks are achieving huge cost savings which is a good part of the reason for their high profits. Due to the inconvenience of switching to a discount bank, customers tend to keep paying the high fees even as the bank’s costs plummet.

#122 SWL1976 on 06.06.17 at 10:24 pm

#99 crowdedelevatorfartz

@#67 SWL1976

“The lunatics have control of the asylum now….”

********

Anyone see my chem trail?

Me either.

Musta been my vivid imagination.

——————–

That clearly went over your head. I understand

Can we be done now here mister farts???

Your delusion, not mine

You seem very passionate about the subject though

#123 CV5 on 06.06.17 at 10:28 pm

https://imgur.com/a/HlZf3#5WCsSlu

https://vigilantcitizen.com/tag/sinister-sites/

You could be right about that!

#124 Myra Andrews on 06.06.17 at 10:31 pm

Vancouver Stats for June 6

New 384
Price Change 48
Sold 149
TI: 9064

June 5

New 375
Price Change 59
Sold 131
TI: 8858

#125 Bruce Allen on 06.06.17 at 10:33 pm

#116. No it’s not. Plenty of layoffs at the Sarnia, ON rail yard which is EMPTY. There are currently only TWO trains a day coming through the tunnel from Michigan. I’m not going to doubt his sincerity because I too happen to live near a rail line and I’m not hearing (or seeing) half as much rail traffic that I used to, so I call BS on those numbers.

Sorry, not buying those graphs, and I don’t believe for one minute that our economy is “on the move” either, unless you’re one of those cheerleaders who thinks nothing can possibly go wrong in the land of rainbows and unicorns…

Don’t patronize me. I know what I know, and see what I see with my OWN eyes. Not graphs and a bunch of BS numbers on a computer screen…

#126 Scams on 06.06.17 at 10:42 pm

Collateral damage banking industry in China. This could happen here to our banks due to loose lending practices and subprime lenders.

http://www.reuters.com/investigates/special-report/china-collateral-fake/

#127 T-Rev on 06.06.17 at 10:44 pm

“Investment capital is just that – money which creates jobs and opportunities. We will attract more of it with an open society, not one in which we practice exclusion and dabble in capricious taxation”- Garth

Bingo. The kids don’t get it, Gartho, and when you add them to the swollen masses of people in the country who prefer a nanny state, you get people like T2 in charge. This will work just fine for a while, until it doesn’t. Then the pendulum will swing again. Ugly thing about pendulums though- they move awful fast at the bottom…some sort of Ek=Ep=mgh sorta thing, and the higher it swings (presumably to the Left side of the pivot right now), the harder it’s going to come down. And when that pendulum is an entire nation’s socio-economic complex, that pendulum can cause a lot of pain and destruction as it swaths through Ep=O.

I just don’t get how anyone with sense thinks that all this excessive taxation and control in capital wil lead to an improved standard of living for anyone…it won’t. The lefties out there tell themselves nice fairy tales about how it will, but it won’t. It’ll have the exact opposite effect on the average persons standard of living over time.

Glad I’m 25 years to retirement and pretty much got it all set up the way I need it right now- I wouldn’t want to be young and coming up in this environment. Worry about the wee bairns though….gotta push em hard and spend big on their education, cause if they’re not doctors or lawyers they’re not gonna make it…there will be no room for anyone with entrepreneurial grit in 20 years…it’ll be just government workers and the poor. Too much regulation in every business now, and too many barriers to success. I guess they could be realtors, flippers, or mortgage brokers too. Seems to be our biggest industry.

#128 About to leave Victoria on 06.06.17 at 10:50 pm

Mid 30s, I have taken a second job so I can actally save something after rent and groceries and taxes (they really hose the 2nd income). Boohoo if your airbnb is not going to turn a profit anymore. It wouldn’t anyway if you paid hotel taxes like or capital gains on the business asset like an honest person. You’ve had your time in the sun, now sell.

#129 jas on 06.06.17 at 10:51 pm

Folks,
I ain’t got a clue what has happened but you can’t find a basement for rent in Surrey. I heard about 2 years ago that there are approx. 1100 new people coming into Surrey each month; in addition there is undoubtedly a visible influx of international students into Surrey. There are no empty houses/condos to be seen (there are new ones being built). And vacancy rate is almost 0.

What does it tell about Surrey’s future? That RE here will be up up and up….?
Keep in mind that RE is very local phenomenon…I’d say it is a neighborhood phenomenon.

Your thoughts?

#130 lucyj on 06.06.17 at 10:54 pm

Perhaps mayor moonbeam should be looking at taxing rvs and travel trailers parked in peoples yards. I am surprised that such an easy cash grab has been overlooked for so long. An empty condo is not much bigger than an empty rv.

#131 Smoking Man on 06.06.17 at 11:05 pm

DELETED

#132 Smoking Man on 06.06.17 at 11:10 pm

Life under a gazebo. Butts on full volume

https://youtu.be/boanuwUMNNQ

#133 Smoking Man on 06.06.17 at 11:19 pm

When you lose your mind a saying Dave talk to me
.https://youtu.be/tAGnKpE4NCI

#134 InvestorsFriend on 06.06.17 at 11:35 pm

A Thankless Task?

When I provided Bruce Allen with some actual data showing the huge jump in CN’s rail traffic verus last year, he responded, in part, as follows:

#124 Bruce Allen on 06.06.17 at 10:33 pm
#116. No it’s not. Plenty of layoffs at the Sarnia,

Don’t patronize me. I know what I know, and see what I see with my OWN eyes. Not graphs and a bunch of BS numbers on a computer screen…

***********************************

Okay, Well You’re Welcome anyhow.

#135 Linda on 06.06.17 at 11:39 pm

Garth, I don’t think ‘those who want us all to be equal’ actually do want us all to be equal. What they want insofar as I can tell, is to have the same standard of living as those who have properties but without having to sacrifice anything for it. After all, why save, work, invest, forego trips/dining out/that Prada bag etc when you can get the politicians to pass laws that will ensure you can get what others have worked for w/o having to give up anything?

#136 InvestorsFriend on 06.06.17 at 11:39 pm

Further to Bruce Allen

Layoffs at CN. Well the traffic across the network is most assuredly up. CN has been cutting staff per carload since at least 1996. Part of the reason the stock is up so massively. It’s called productivity.

Also “Conductor”? Is there a reason besides a union contract that a freight train needs a Conductor?

#137 No Mercy on 06.06.17 at 11:41 pm

My thoughts is that if you have a home that is worth 1.5 M. and no debt.

Sell it.

If you are faced with more taxes for this home and can’t afford it. So sorry ….

Sell it now.

Garth, I understand you are free-market, governments are f’ing things up.

I agree.

But the bottom line, it will happen. Boomer+ folks with those properties will get taxed more.

It will happen. So take action.

They have homes,cottages,boats and travel on the ATM home.

I believe:

1. Why is the interest rate not going up in Canada?
2. Since it is not, other levels of government are trying to cool the beast.

When a family making 200+ can’t afford a home in Vancouver, why should boomer+ can?

That’s why I moved away from that place long ago.

The city we live in is colder in winter but has plenty more green space and higher paying jobs than Vancouver. Lots of rivers and lakes to sail.

So I have NO MERCY on people not selling and walking away with 1.5 M.

#138 crowdedelevatorfartz on 06.06.17 at 11:44 pm

@#121 SWL1976

In the immortal words of the Rolling Stones I sing to you …
” Hey you! Get off of my(chem trail) cloud.”

And I expect your gutteral scottish accented rebuttal.
” Hey McLeod! Get offa my yew!”

#139 Bob dog on 06.07.17 at 12:01 am

Co worker leaving Vancouver this week to work for a Seattle economic titan. Talented iOS developer with waterloo degree.

Thanks to the narrow Minded tools running the bank of Canada she isn’t going to help drag bc out of its 16th century economy.

Why was he at bilderberg?

#140 Bob on 06.07.17 at 12:07 am

the price of their property goes up 40% per year so who cares if they have to pay 1%.

#141 crdt on 06.07.17 at 12:35 am

Garth is really swinging tonight, a bit more passionate then usual, perhaps the man is on to something…

#142 Pete from St. Cesaire on 06.07.17 at 12:39 am

What I’ve heard about CN Rail is that there was a huge upswing in softwood lumber shipments in anticipation of Trump’s protective tariffs.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Next issue:
gotta push em hard and spend big on their education, cause if they’re not doctors or lawyers they’re not gonna make it…there will be no room for anyone with entrepreneurial grit in 20 years…it’ll be just government workers and the poor.
Yep, and remember this if they don’t have the aptitude of being a doctor or scientific researcher you’d be better to spend big money on their earlier education, allowing them to grow up with and befriend the children of the elites. It really all comes down to who you know. There are lots of starving lawyers (mainly due to a lack of connections) but the connections made at elite private schools can serve well in the long run.

#143 David on 06.07.17 at 12:46 am

Garth, measures to correct the market and stabilize cities need to be taken, even if it means financial costs to the “Lots of people (who) have secondary homes they live in part of the time – like downtown condos used for business purposes every single week of the year.” Government policies are always changing, like taxes going up and down, deductibles added and removed, to help marginalized people, pay for services or put more money in the pocket of the rich so they can trickle economic benefits down like drinking champagne and taking a wiz in an alley etc. Times change, my grandma lived in the same house for 65 years on 5 acres originally and the costs of owning went up and up and she had to sell off land over the years, and on that land houses were built. Not much difference really, multi owners just need to adapt no different than how new families are adapting to raising kids in 600 square feet.

#144 Bobby on 06.07.17 at 12:49 am

On the surface this is just another leftist money grab that will accomplish little if anything. The most disconcerting part is that it is an erosion of individual property rights. As Garth alludes to, what will prevent government from taxing empty basement suites or bedrooms next. Retired couples in big homes could easily become targets, rent your downstairs or be taxed. But why stop there. How about those people going to work each day in their cars. Travelling by yourself, that’s not fair to someone left waiting for a bus because they cannot afford a car. Carpool or face a tax. Each empty seat is $5 a day, a sum that will add up.
There are a myriad of other examples. I think the most reasonable solution is a tax on idiots. There seem to be enough of them out there, ironically they seem to belong to government.

#145 T-Rev on 06.07.17 at 12:49 am

That’s why a good bourbon comes in handy. It fks up your programing and if your lucky and drink just the right amount you can get a fleeting glimpse into the truth.- Smiking Man

It’s those fleets my glimpses that keep a person going in life. Too bad there’s such a small tolerance between sober-truth-wastedness.

#146 Dan.t on 06.07.17 at 1:07 am

#26 Simplyput7
“I think you are underestimating how many condos in the last 5 years have been built in Canada for people who have no intention of living in them or renting them out. Local speculators who bought property hoping to sell at a later date when the price goes up.”…….”The provinces should tax vacant units, to allow primary homeowners to have access to a place to live.”

Agreed. Free money pushing prices up, then come in the rampant speculation, snapping up all supply, a dirty and fraudulent industry misinforming the public, shadow flipping…I can go on but I think you get the idea.

Stopping the speculation is a start. Stop treating housing like a commodity.

Under the surface, there is anger and resentment in cities like GTA and YVR. YVR sold out to foreign money and corruption long ago and nothing is done. Empty houses and condos and rampant speculation.

Anyone who didn’t buy 10-15 years ago is pushed out, even well off professionals have very little options. You have a resort city for the rich while locals try to make ends meet…and brainwashed locals who speculate on anything that hits the market because every government policy makes it easy to do and favours one single asset class.

#147 Henry on 06.07.17 at 1:39 am

The reaction on the blog to an empty house tax is probably a tipping point for me. Screw you people you probably deserve the commies you live under and complain about. Just get tour daily soup. And you can buy an occasional NHL ticket and pay in convenient 5 instalments.
Living elsewhere since a while but always kept my property in Canada to come back to and relax. It was GTA , by the standards of where I live is a cottage for us.
Will not keep it as the government has no right to tax me more based on what i do with the house. The property is mine. period. I can lock it up and sit on it. Or not. As long as codes are not violated, get out of here… But the reaction shows the motion has legs; so bye. And kiss bye to my tax dollars btw.
#29, so have sympathy with what you are saying.

#148 Dan.t on 06.07.17 at 1:39 am

#26 Simplyput7
“I think you are underestimating how many condos in the last 5 years have been built in Canada for people who have no intention of living in them or renting them out. Local speculators who bought property hoping to sell at a later date when the price goes up.”…….”The provinces should tax vacant units, to allow primary homeowners to have access to a place to live.”

Agreed. Free money pushing prices up, then come in the rampant speculation, snapping up all supply, a dirty and fraudulent industry misinforming the public, shadow flipping…I can go on but I think you get the idea.

Stopping the speculation is a start. Stop treating housing like a commodity.

Under the surface, there is anger and resentment in cities like GTA and YVR. YVR sold out to foreign money and corruption long ago and nothing is done. Empty houses and condos and rampant speculation.

Anyone who didn’t buy 10-15 years ago is pushed out, even well off professionals have very little options. You have a resort city for the rich while locals try to make ends meet…and brainwashed locals who speculate on anything that hits the market because every government policy makes it easy to do and favours one single asset class.

Funny, no stats as to how many realtors own multiple properties or snap up listings in a hot market further restricting supply or how many average Canadians own multiple properties. Actually, very few actual stats other than real estate board frankennumbers.

You know why no one wants to touch housing, because policy makers are owners and “investors” themselves. Look at Vancouver Mayor probably just started cracking down because he recently just sold all 7 of his “investment” properties and made sure he “buddies” did as well, now he is ready to take action.

#149 Karma on 06.07.17 at 1:43 am

#29 Pretentious Hipster Bicycles on 06.06.17 at 6:02 pm
“I am shocked by the amount of people on here cheer leading for this and the racist home buyer tax. Sometimes I am ashamed to call Canada my adopted home. Someone once told me an analogy for Canadians as “crabs in a bucket”. The strongest and fittest will try to escape the bucket and be free, while the other little Canadians try and pull him back down to their level.”

Perhaps that’s true. The issue is that life has become miserable for hundreds of thousands of people across the GTA and Met Van. The gov’t has to do something, even if it doesn’t work. That’s how democracies work. The beauty of being a dual citizen, like myself, is one can choose which place to live in.

#150 Karma on 06.07.17 at 1:48 am

#39 FOUR FINGERS WATSON on 06.06.17 at 6:25 pm
“How about retirees who own a condo but travel more than say 180 days a year? Are they going to tax travelling retirees ? I don’t think so.”

They should. Otherwise it’s ageism. Why should retirees be treated differently than those younger than them? If they are travelling so much while retired, then they can easily afford a bit extra in taxes.

#151 Karma on 06.07.17 at 2:12 am

#56 SimVan on 06.06.17 at 6:53 pm
““I mean, if someone owns a $1.5 million property in Vancouver without a mortgage, then they are rich, no matter they admit or not. If they can’t afford 1% tax on their property, they can always sell it.”

Being rich means you having easy access to actual money. Many homeowners in Vancouver bought decades ago. Those houses have appreciated suddenly in the last few years. Many of those houses are decrepit having never undergone even basic renovations as the owners do not have access to extra money.

There is a big difference between rich according to BC Assessment and actually being rich.

These individual bought homes for themselves through hard work, saving and sacrifice. Saying they can just sell if they cannot afford a 1% tax is a clear indication that you have never purchased a property.”

Sorry, capital is fungible. That means a dollar in housing equity is the same as a dollar in an equity portfolio, and the same as in a bond portfolio, and the same as in cash in the bank. The difference may be that these ppl you speak of are not adhering to Garth’s Rule of 90. I don’t feel sorry for someone who has a home free and clear, which has appreciated significantly just because of age, whom can’t afford property tax.

Taxes have two reasons for being: raise capital for gov’ts and reduce an undesirable activity. The empty home tax is the latter first and foremost.

#152 Karma on 06.07.17 at 2:23 am

#65 Smudgekin on 06.06.17 at 7:13 pm
“The Brits.. have a huge vote on Thursday.

Hugely irrelevant as Putin isn’t interested. A BBC correspondent in Moscow asked senior Putin people their view. “We regard the UK as a very junior partner of the US” When asked most Muskovites couldn’t name the UK PM and were unsure if it was a man or woman.”

I doubt many people outside of the UK, regardless of continent, could name the PM of the UK. I doubt many people in any country can name the leader of other governments across the world, except for Trump of course. So your point isn’t really a point at all. Lastly, no one really cares about what Putin has to say, except for some Russians.

“Still the Kremlin was delighted by Brexit which weakens Europe’s sanction stand against Russia. You can tell Putin isn’t interested as UK irritants like Scotish independence, Northen Ireland and Gibraltar are left alone.”

How so? The UK is still in lock-step with the EU on sanctions. So another non-point.

“Any UK prime minister (and they’ve had 4 in the last 10 years,) is pretty much a puppet for the domestic scene. Its the Civil Service – particularly the Foriegn Office that pull all the strings and run the UK boat show.”

Rightttt… So Boris is running the show since he’s the foreign secretary?

“May will probably return with a minority. Many would like to see her and Boris Johnson gone before she morphs into Thatcher 2.0.”

Another Thatcher would be a good thing for the UK and the EU. She was pro-EU as she recognized the importance of the single market. The problem is that the EU has evolved into something different than what it was when the UK joined it.

#153 Karma on 06.07.17 at 2:29 am

#77 Michael King on 06.06.17 at 7:49 pm
“Even as a Vancouver resident who is concerned about local RE valuations and the crisis in rental housing, I can only agree with today’s blog entry. This is ridiculous public policy. Imagine if a community in Arizona or Florida where many Canadians have second homes instituted something like this.
The intertwining worlds of finance and politics is an old story in this country and is certainly germane elsewhere. This article takes a look at contemporary Canada.”

I don’t say this often, but I will today: What a stupid comment. How is the situation in Arizona or Florida similar to that in the City of Toronto and City of Vancouver? Vancouver’s had a sub-1% vacancy rate for going on 3 consecutive years. Toronto’s been slightly higher on average over this same time period. Arizona and Florida had the exact OPPOSITE problems: too many homes being built on speculation. As a result, after the easy credit ended, there were thousands upon thousands of single detached houses that sat empty because there were no buyers at any price.

Eventually Blackstone and other smartest-guys-in-the-room types bought up millions of these houses and rented them out, which brought back the housing market in many of these cities.

#154 Karma on 06.07.17 at 2:31 am

#77 Michael King on 06.06.17 at 7:49 pm

Read this:
https://www.forbes.com/sites/antoinegara/2017/01/06/blackstones-big-bet-on-the-u-s-housing-recovery-files-to-go-public/#51efb4893dba

#155 Karma on 06.07.17 at 2:50 am

#124 Bruce Allen on 06.06.17 at 10:33 pm
“#116. No it’s not. Plenty of layoffs at the Sarnia, ON rail yard which is EMPTY. There are currently only TWO trains a day coming through the tunnel from Michigan. I’m not going to doubt his sincerity because I too happen to live near a rail line and I’m not hearing (or seeing) half as much rail traffic that I used to, so I call BS on those numbers.

Sorry, not buying those graphs, and I don’t believe for one minute that our economy is “on the move” either, unless you’re one of those cheerleaders who thinks nothing can possibly go wrong in the land of rainbows and unicorns…

Don’t patronize me. I know what I know, and see what I see with my OWN eyes. Not graphs and a bunch of BS numbers on a computer screen…”

LOL! Sarnia is a nothing-burg. If you’re EYEs are seeing only what’s happening in Sarnia and extrapolating that to the rest of Canada, you have some analytical shortcomings.

#156 Ross Kay: Don't Believe the Real Estate Board on 06.07.17 at 4:33 am

At the 5:40 minute mark (link below) Ross Kay says about “the real estate board”, in reference to the YVR market:

-As of May 2017, he says you continually see 25, 30, 35 and even a 40% decline in home price drops (with regularity), year over year.

-Says the 3.1% increase in YVR average selling price is ARTIFICIAL, when you have fewer and fewer 1st time buyers, their share of the market decreases, that artificially causes the average selling price to increase. The real estate board then pretend to tell you that it’s rising home prices and which consumers go out and react to and make those FOOLISH decisions.

-He says that if you do not believe him, go to e-Value BC, click on Properties, then recent sold and you will be hard pressed to find 1 single home that sold for more money than what it was appraised at [July 2016 assessed value]…the vast majority of homes, meaning over 80 to 85% of the houses that have sold since November 2016 are all now below their July 2016 appraised value. [I was unable to verify this]. “Don’t believe the Real Estate Board…no matter what they tell you, it is not the truth”.

Later on he discusses NDP/Green policy…(starts at 25:45 minute mark). He likes the Green’s but believes “that path is not beneficial to the growth of home equity.”

_________________________

Man oh man, YVR RE Cult talking about a bounce back…obviously not true.

Thank God for people like Ross Kay and of course, our BELOVED BLOG AUTHOR.

_________________________

http://www.howestreet.com/2017/06/05/vancouver-toronto-real-estate-prices-dropping/

#157 NoName on 06.07.17 at 6:22 am

Interesting read

https://www.theatlantic.com/business/archive/2017/06/can-americas-farms-survive-the-threat-of-deportations/529008/?single_page=true

#158 data on 06.07.17 at 6:37 am

Garth’s point are very valid. A person using a home to have access is not an empty home. This has turned into an elitist argument.

1. Home ownership is not a right. It’s a free market, if you can or cannot afford is about your income. You have an income problem. I would love to live in Rosedale or Bridle Path, is that the governments role to entitle me that? We need to move pass the entitlement culture.

2. Taking on Debt is not illegal. If today’s world requires taking on debt to afford a home, then so be it. You still have an asset on the other side. Home, Car, mistress, etc. Everyone is allowed to have debt.

#159 pBrasseur on 06.07.17 at 6:55 am

On the danger of over taxing, a great comment by the non-less great Stephen Jarislowsky

http://business.financialpost.com/fp-comment/stephen-jarislowsky-our-tax-system-is-now-so-unfair-it-will-push-productive-people-to-leave-canada

The man once said in one of his books that Canada is a second rate country governed by third rate politicians, pretty tough to argue with that these days…

He makes a valid point saying the capital gains tax has already been raise with the top marginal rates (29 to 33%). Gives you an idea of the disaster it would be to raise the inclusion rate, one of Garth favorite topics!

#160 Wrk.dover on 06.07.17 at 7:01 am

Every problem in Canada goes back to one source.

The very seed of all of this, was dropping interest rates to match Ponzied USA instead of remaining a strong nation with a strong currency.

“They” say we couldn’t export with a high currency. B.b.b.but, we import from places with high currencies, don’t we? So THEY do export with high currencies, right?

Ever since Muldoom, Canada has been on sale, even when we went above par on the US$ for a short spell.

Now the housing stock of cities has become a commodity for the international speculator class.

So, Wynne decides to raise minimum wage closer to the poverty threshold and we get ….resistance?

The race to the bottom started with low interest rates.

It used to be that collected interest was an income that supported the economy. Where did it go? The economy followed that interest rate to zero.

It is a nice day off the grid out the metropolis.
I can’t imagine why you all stay there.

#161 Figure it out on 06.07.17 at 7:04 am

“Investment capital is just that – money which creates jobs and opportunities. We will attract more of it with an open society, not one in which we practice exclusion and dabble in capricious taxation.”

Canada ran the Immigrant Investor program for years, and by the end it had lower capital requirements than almost anywhere else. At the end of it, we had higher house prices, and a bunch of new millionaire PR or citizenship holders who paid less taxes than a typical Canadian middle class household.

And I don’t know about your neighbourhood, but mine isn’t full of gritty Canadian entrepreneurs who’d do great things if only they had more capital. This country is swimming in capital; it’s just mostly being misallocated into the property boom — just like that beloved foreign capital you seem to think we so desperately need.

#162 maxx on 06.07.17 at 7:36 am

#17 Screwed Canadian Millenial on 06.06.17 at 5:17 pm

…..”You’ll have to pardon me, I just called in to my on-call, zero hour, part time, temporary, precarious, minimum wage gig. My boss who owns 5 investment properties told me if I don’t give it 150% effort, some Temporary Foreign Worker will get my job. Gotta love Canada!”

As a boomer who’s had many advantages, I find this post heartbreaking. I feel no sympathy for idiots who take on excess debt only to boost the cost of housing. Many young people today haven’t only had the advantages that boomers enjoyed taken from them – they’ve had most of their hope ripped out of them and literally been turned into slaves.

How is this, in any way good for Canada’s social health?

#163 pBrasseur on 06.07.17 at 7:38 am

It’s so typical, politicians screw things up by intervening in the market (CMHC) and when things inevitably go sideways they pose themselves as saviors and mingle some more with the markets.

Hard to think of any industrialized country more poorly managed than Canada at this time!

#164 Pepito on 06.07.17 at 7:52 am

The Empty Houses Tax law is historic and draconian. -Garth.
____________________

Would you like some cheese with your whine, Garth?

I would venture to say that, if enforced, an unoccupied residence tax can contribute considerably to the reasonable cost and availability of rental accommodations. It certainly has in Spain where such a law has been on the books for quite some time. Do you have supporting data to claim otherwise?

Yes, unoccupied residences just got more expensive. Consequently, perhaps business folks who require a pied-à-terre should follow the advice regarding the purchase and ownership of realestate you so often dish out to the deplorables, namely, if you can’t afford it, rent.

As you so smugly regularly state here, “ownership is not a right”. Right?

Spain has the largest number of empty houses in the world. So much for the effectiveness of this knucklehead tax. — Garth

#165 crowdedelevatorfartz on 06.07.17 at 7:57 am

Its cloudy this morning in Vancouver.
The secret govt , mind control Chem spray agenda is usually excellerated on cloudy days.
Hmmmmm.
Vancouver has lots of cloudy days and crazy house prices.
Toronto has lots of smog and crazy house prices….

Coincidence?

Maybe its explained by this movie…….

https://www.google.ca/url?url=https://www.youtube.com/watch%3Fv%3DdRsVmMIAmds&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwiW2ZrD1qvUAhUD0mMKHSO1Dw4QyCkIGTAA&usg=AFQjCNH3kN1l7BwUPO3NgxCdZ5sknNzhnQ

Hoyywood script writers and rumours on the internet are never wrong
Only SWL1976 knows for sure.

#166 David Hawke on 06.07.17 at 8:03 am

Wow! sure glad I made the move to El Salvador, where even foreigners have property rights, a few yrs ago.

Bought a property a block from the beach, with a rental suite in the main house, a backpackers dorm, a rental cottage and the requisite pool.

Year round summer.

Taxes $42 per year!

Life is good!!!

PS also own a KIA. :)

#167 pBrasseur on 06.07.17 at 8:10 am

The reaction on the blog to an empty house tax is probably a tipping point for me. Screw you people you probably deserve the commies you live under and complain about. #146 Henry

I feel the same way, it seems many have no clue about the importance of property rights for an economy to be successful, fortunately I don’t own any empty Canadian RE (and very little Canadian financial assets for that matter, but still could be affected by a capital gains tax hike…).

But you are right, a big storm will come and Canadians deserve every moment of it.

#168 Sherry Moody on 06.07.17 at 8:33 am

I hope the entire house of cards collapses. Things have become insane everywhere. All people have on their brains today is MONEY, MONEY, MONEY.

#169 doomer millennial on 06.07.17 at 8:35 am

apropos of nothing, why do so many people feel the NEED to OWN housing?

Commentators every day on this blog cry that we’re in a “housing crisis” and that “something needs to be done to help affordability”. Why though? Why is everyone so obsessed with OWNING a house? It’s not about taxing existing homeowners or pushing them out of the marketplace so you can get in, it’s about balance. That’s what Garth continues to preach. The fact that so many of you are desperately chomping at the bit to throw your assets into home “ownership” seems ludicrous at a time like this.

It’s called the “Housing Market” for a reason – it’s a marketplace; not an essential service.

But what do I know…I’m just a 29 yo millennial who sold their house to rent because we saw what a ridiculous concept it was given the current market fundamentals. Just because home ownership may have made your parents wealthy, doesn’t mean it will make you wealthy. Or maybe it will. Then won’t you hate all of these “tax the wealthy” schemes you adore currently.

#170 Chris vucic on 06.07.17 at 8:38 am

young ignorance in full display tonight. — Garth

Rich, old man greed on display from You on this one Garth. You’ve lost a fan after this pompous blog post. But that means nothing to your bottom line so I don’t expect you to give a shxt.

You know sweet f-all about what it’s like to be a renter in Vancouver right now and you never will. I’m just glad people like you aren’t in charge of this province. This whole city would have been sold to the highest bidder, even more so than crusty Clark has done

Believe it or not (and you won’t, obviously), but there are loftier principles and goals than your rent. Whimsical taxation and the continual erosion of personal rights are serious threats to a free society. You’ll learn. Till then, so long. — Garth

#171 Figure it out on 06.07.17 at 8:39 am

“[…] a declaration by the ECB that Banco Popular was set to be wound down, marks the first use of an EU regime to deal with failing banks adopted after the financial crisis. It breaks the mould of using taxpayers’ money, instead imposing steep losses on shareholders and some creditors of the bank, a step two debt investors described as unexpected.”

Apparently nobody expected the Spanish bail-inquisition!

#172 MF on 06.07.17 at 8:45 am

#157 data

-free market? Ah no. If we finally get rid of the CMHC and stop manipulating interest rates to “emergency levels” 10 years after the emergency than maybe. ZIRP has disproportionately helped the wealthy.

And lol at your bridlepath comment. Condos in the GTA cost 550k and you think we are talking about the bridlepath?

Your second point about debt being free and necessary is also wrong. Higher and higher debt levels are a ticking time bomb. At one point they reach a level that is unsustainable and the whole thing comes down, like in 2008.

If we had a real market, debt levels would be lower as people wouldn’t have to borrow as much for shelter and speculation would be less.

Sorry nothing about our RE market is free. Zero.

MF

#173 Q2 Class Duplex Drive on 06.07.17 at 8:50 am

‘…because it’s a popular move with the deplorables, who are now destined to run the world.’

I don’t get it, Garth. If by ‘deplorables’ you mean lefty politicians like the current BC government, Kathleen Wynne and turncoat John Tory (how ironic is that?), then yeah, by all means, ‘deplorables’. But I get the impression you mean Trump-like politicos and the ‘bots’ who follow him. Far from ruling the world, they may be rebuked in tomorrow’s UK election, and were hit hard in recent French and Dutch elections. And Canada is ruled by a bunch of lefties so where do you get off with this ‘deplorables’ thing?

Deplorables = those who insist everyone think as they do. Left or right is irrelevant. — Garth

#174 Xbox Economist on 06.07.17 at 8:52 am

“By this logic, of course, anyone with a house they live in full-time with an idle basement suite, or two empty bedrooms the kids used to occupy, is an equal target.”

I agree that the empty homes tax is wrong but the above it not logic, it’s nonsense.

Hardly. It’s at the basis of the Empty House Tax mindset – under-utilized private property should be taxed additionally for the social good. — Garth

#175 Farquad on 06.07.17 at 8:54 am

Toronto, by the way, is the financial capital of the country…

unless you live there, then it is the center of the universe. or so we’ve been told through the election process.

#176 Halifax #2 on 06.07.17 at 9:03 am

#32 Dear Curious on 06.06.17 at 6:09 pm

well it’s not in Newfoundland for starters…
can someone help me settle the blind guy back in his chair?

#177 SWL1976 on 06.07.17 at 9:11 am

Believe it or not (and you won’t, obviously), but there are loftier principles and goals than your rent. Whimsical taxation and the continual erosion of personal rights are serious threats to a free society. You’ll learn. Till then, so long. — Garth

And this is why I wish Garth was running this Country. Garth has good morals and knows how to conduct business, or govern for that matter, in a fair and ethical way. While he has proven that it this no key to sucsess in our current political climate, he has earned respect here.

There are some hard lessons yet to be learned for many

#178 FreeBird on 06.07.17 at 9:26 am

So the Canadian Tall Poppy syndrome is alive a well.

Yes, why celebrate success (yours or others) or learn from /be inspired by it?

Wonder how fast those who want to punish the so called greedy would willingly hand over more tax money if they suddenly came into a large windfalls like Lotto winnings?

#179 FreeBird on 06.07.17 at 9:35 am

BTW if you believe ownership is equal to wealth or income need to learn more about LEVERAGE and debt. There’s a lot people whose life is smoke and mirrors for the sake of image and built on a house of cards…one crisis away from financial disaster. Many have needs and wants very confused and not willing to reduce expenses and or increase income to better their situation. Sometimes you do what you have to and it sucks.

BTW…Quitting a job (because you don’t like it anymore) is not the same as LOSING your job. Just saying.

#180 Ole Doberman P. on 06.07.17 at 9:38 am

#62 Calgary Catastrophe on 06.06.17 at 7:07 pm

Garth dude,

First of all could care less about people’s housing problems van and tdot, if anything it’s comical. However I believe you are off base on this post. Spending time in Vancouver downtown I could see a number of the buildings are 70% empty. Something is messed up with this situation. Not sure what the solution is but if I lived there and trying to find a place to rent it would be a voting issue for me.

Enjoying the Calgary condo anecdotes from posters the last few posts whoever was sharing.

Anyone else think oil is heading back to the 30’s by the end of the summer. Optimism is pretty high around here and the welders are getting busier and want raises recently.
——————————————————-
Both charts and fundamentals are lining up to indicate this.
Trump leaving Paris, US selling oil reserves, and Tesla share price continues to soar despite not being profitable yet.

#181 FreeBird on 06.07.17 at 9:43 am

#165 David Hawks

Partner and I just started seriously looking at getting out at least 1/2 the year as well. For many reasons being covered by this blog. Need temperate climate, really good health care and safety. Hopefully close to water. Friends have suggested Spain, Portugal, Costa Rica. Hubby wants South Pacific (no socks and sandals.)

Just need good WIFI to both work in semi retirement. See what happens.

#182 Ole Doberman P. on 06.07.17 at 9:50 am

#169 Chris vucic on 06.07.17 at 8:38 am

young ignorance in full display tonight. — Garth

Rich, old man greed on display from You on this one Garth. You’ve lost a fan after this pompous blog post. But that means nothing to your bottom line so I don’t expect you to give a shxt.

You know sweet f-all about what it’s like to be a renter in Vancouver right now and you never will. I’m just glad people like you aren’t in charge of this province. This whole city would have been sold to the highest bidder, even more so than crusty Clark has done

Believe it or not (and you won’t, obviously), but there are loftier principles and goals than your rent. Whimsical taxation and the continual erosion of personal rights are serious threats to a free society. You’ll learn. Till then, so long. — Garth
——————————————————
I feel for you chris, I’ve said before on this board I could not even imagine living in Vancity under these circumstance, would be boiling over with anger….

and often thought crooked politics is part of the equation.

#183 AB Boxster on 06.07.17 at 9:59 am

The method of tax collection through property assessment and taxation at one time had some validity.

In the past, when real estate was not a cult, and people bought real estate to live in and raise families, it was a reasonable argument that the value of a home had some relationship to wealth.

Back in the 70’s when my dad built his $28k house, you could not find any mcmansions. Sure, some houses were a little bigger than others, but the huge multi-million dollar homes did not exist.

Today, even a ‘piece of junk’ 50 year old home in Calgary is assessed at almost a million dollars.

And the poor suckers that live in them, many for the past 50 years, now retired, and living on fixed incomes, can no longer afford to pay the taxes associated.

So the assessment and tax model has been totally messed up by the obscene real estate scene in Canada.

Garth is correct that the ‘market value’ of property in Canada now has no relationship to a person’s income or their ability to pay.

More regressive taxes, by regressive governments, hellbent on sucking as much money from the taxpayer as possible.

The millennials are in for a tragic 50 years of economic mess. It took my generation that long to address the fiscal mismanagement of the first idiot Trudeau PM.
But at least during that time Canada had opportunity to grow and prosper through developing its resources.

Canada of today will somehow prosper by ‘diversity’ and ‘resourcefulness’ and by Canadian’s selling each other overpriced junk real estate, which always goes up of course.

Even the Liberal governments of the 70’s and 90’s were not that stupid.

#184 HaHaHa on 06.07.17 at 10:09 am

Lets get this straight. The title of the blog is “Greater Fool” Also if it was not for propped up debt Ponzi scheme by CMHC most people residing in houses would not be in them. When did owning a home become a right? As most holier than thou Canadians come on here to bash foreign ownership no one questions those that buy places in Florida and Arizona and rent them out to snowbirds. If the U.S. pulled this same treatment on Canadian snowbirds my God the howling would be unbearable. And let’s not forget every time a Chinese dude buys a house in Vancouver some old wrinkle probably sold it at a hefty profit. Does the old wrinkle say hey, I will take less and sell it to a nice snowflake? Get real. And don’t go blaming the millenials. If you are over 50 drive a Harley, have a speedboat, lake lot,ATV, motorhome, mortgage still on your house consider yourself the financial failure. GEEZ looks like I defended Garth on this one.

#185 maxx on 06.07.17 at 10:25 am

#36 TortyPapa on 06.06.17 at 6:16 pm

““False declarations will result in fines of up to $10,000 PER DAY of the continuing offense, in addition to payment of the tax.”

$10,000 PER DAY!!!! I read it twice and copied and pasted it. WOW! http://vancouver.ca/home-property-development/empty-homes-enforcement-penalties.aspx“”

Unleashing the hounds on re flippers and speckers is like pressing the pause button on markets when trading doesn’t happen to suit the MOTU. If it can be implemented in one circumstance, why not another if the goal is to slow out of control price movements?

Even members of the 1% club believe that this re mess is completely out of balance.

The macro economy is a dynamic and most forces, whether applied or intrinsic, force participants to either adapt or make way for a healthier, more competitive alternative.

#186 Eks dee Sipal on 06.07.17 at 11:07 am

What causes the 4th largest bank in Spain to fail? (Rhetorical… in other words, mundane, useless answer not required from InvestorsFriend. Hint: answer involves fabricating capital reserves, sound familiar?)
http://cbonds.com/emissions/issue/46772

#187 Dan.t on 06.07.17 at 11:19 am

#157 data
Worse out of 180+ comments. just annoying.

There really is no affordable housing anymore in YVR, how about you go buy something decent now in Vancouver, no, then find something to rent that is decent and might be considered affordable. Normal people have been pushed right out of that city due to speculation and Christy Clark selling out the city to foreign money. Your argument is so what, then people should make more money. I agree not everyone deserves to live in Point Grey greed, speculation and government policies have ruined things there big time for average working Canadians. Super wealthy foreigners love it.

and people are now being forced into either shelling out crazy amounts for rent or taking on massive debt just to be able to have a decent lifestyle…about 1 hour commute from the city of course.

I bet you bought your place 25 years ago, so screw the young generation. Who cares.

I don’t even live there and I see it under the surface when I visit or speak to friends and family. Many people are really pissed the way things have turned out in YVR and lower mainland and it always reverts back to insane and unaffordable shelter. It’s like you are force to mortgage your soul to the banks just to live since there really is no secure rental stock, most units get flipped you get the boot. Good times.

#188 Fish on 06.07.17 at 11:25 am

Well, I see offer pending on a listing it’s been there for last couple of weeks on a property, now the SAME listing has OPEN TO offers, well I believe that says it All.

#189 Damifino on 06.07.17 at 11:32 am

I once owned a recreational property in the Gulf Islands. I spent maybe 8 weeks there each year. The island it was on had only 900 full-time residents most of whom owned their own properties. Those who lived off island and wished to rent their places had real trouble finding tenants.

I wonder… was my place underutilized? If I still had it today would I be subject to an empty homes tax? Is legislation drafted to take such cases into consideration? I’m glad I sold and no longer have to worry about such irritating things.

#190 Pepito on 06.07.17 at 11:33 am

Spain has the largest number of empty houses in the world. So much for the effectiveness of this knucklehead tax. — Garth
_____________________

Largest in the world? Hardly. You must mean in the EU. Precisely why an EH tax is such a valuable policy tool here. Provincial governments are absolutely right to implement it. Your argument against it is weak and self-serving.

Your argument is punishment of those with more than you. If you can’t make it in a big city like Van, well, there are options. — Garth

#191 Fish on 06.07.17 at 11:38 am

Forgot to add that other listing’s have shavenn 20 -40+off their property price, but what do I know I’m No realitor

#192 IHCTD9 on 06.07.17 at 11:40 am

#13 Sue on 06.06.17 at 5:13 pm
Fun to make new laws and rules. Its the follow through and enforcement gov sucks at.
_____________________________

Yep, this is what makes living in Ontario “manageable”. Tons of regulations get ignored all the time. I’ve tested this to a pretty high level and the worst I’ve ever got was a slap on the wrist and had to go buy the permit I was supposed to get in the first place. I’ve avoided flushing thousands of dollars and the creation of 100 headaches by not “playing by the rules” over the years.

It appears that “enough” folks are playing (and paying) by the rules voluntarily to keep the dogs at bay thus far…

#193 Damifino on 06.07.17 at 11:43 am

#186 Dan.t

Study the history of Vancouver. It’s been all about rabid land speculation since it’s incorporation in 1886. My fine little town has always abounded with shysters, quick buck artists, con men and crooked politicians. I’m not saying I like it. Just that there’s nothing much new going on here.

#194 Figure it out on 06.07.17 at 11:48 am

#146 Henry — “Will not keep [my GTA property] as the government has no right to tax me more based on what i do with the house. The property is mine. period. I can lock it up and sit on it. Or not. As long as codes are not violated, get out of here…”

I guess I shouldn’t be by now, but I am continually amazed at how little understanding joe propertyowner has about what he actually owns and what the government can do. There has NEVER been a time going back to the founding of New France that the King of France or his viceroy couldn’t change or raise your taxes, or even escheat your property entirely. After the battle of the Plains of Abraham, it was “meet the new boss, same as the old boss.” It is my understanding from oral aboriginal history that they had no work for “allodial title” nor any concept of it either.

Aside from perhaps a few decades on the American frontier after the Louisiana purchase (and even that is questionable), the only place your concept of land rights EVER existed in the last 1,000 years is in a few books of Utopian political philosophy by men who have been dead for a few centuries now.

#195 steve on 06.07.17 at 11:48 am

fix the property tax system. In Ontario, MPAC guesses what your property is worth on a specific day. The guess value has nothing to do with what you paid for the property, it has a lot to do with what your idiot neighbour paid. Lets have property tax based on the actual sale price and inflation. If your neighbour is an idiot, let them pay until they find another fool.

#196 Ace Goodheart on 06.07.17 at 11:54 am

The empty house taxes probably violate international law. I am wondering what will happen when the first American has her Vancouver condo seized because she only lives there during the week when she’s working? Cuba tried this in 1950 and they are still being sued by the former American property owners who had their houses seized “for the revolution”. Someone is going to take this to court. And they may well win.

#197 Brendan on 06.07.17 at 12:02 pm

people are stupid.

make gains taxable on all real estate in the same way it is for stocks and bonds. Losses carry forward. Make it possible to transfer a portion of your house into your rrsp or tfsa.

As well as being able to write off half of the interest charges on your mortgage just like in a margin account.

Keep things equal between real estate and paper assets.

Do away with the cmhc and have private mortgage insurance or don’t buy insurance and see what rate the average d!p qualifies for then.

Do away with the 5% down for first time home buyers program. Everything is on the banks shoulders.

maintenance and renovations go against your adjusted cost basis of the house encouraging people to spend money on the place but also increasing the value.

keep/improve programs encouraging renewable energy/high efficiency buildings and renos.

Increase mill rates to make up for the initial property devaluations.

slap on a 50% foreign buyers tax. Let them buy bitcoin to hide their money not CAD real estate.

#198 Figure it out on 06.07.17 at 12:05 pm

#183 HaHaHa — “As most holier than thou Canadians come on here to bash foreign ownership no one questions those that buy places in Florida and Arizona and rent them out to snowbirds. If the U.S. pulled this same treatment on Canadian snowbirds my God the howling would be unbearable.”

“The Florida Homestead Exemption reduces the taxable value of real property by up to $25,000, $50,000 for a married couple. It is an ad valorem tax exemption provided by Florida law for qualified residents who own and reside on the property as their primary residence.”

This is TOTALLY NOT a tax on vacation home owners from elsewhere! Do not think that for a second! It’s just a discount for local homeowners. But it has been around since 1934, so you may have a lot of accrued howling to catch up on.

#199 Ole Doberman P. on 06.07.17 at 12:09 pm

I feel for you chris, I’ve said before on this board I could not even imagine living in Vancity under these circumstance, would be boiling over with anger….

and often thought crooked politics is part of the equation.
——————————————————-
Since my post oil is now down $2 bucks.

the Doberman does it again…..

#200 Howard on 06.07.17 at 12:27 pm

DELETED

#201 Herb on 06.07.17 at 12:30 pm

“Deplorables = those who insist everyone think as they do.” – Garth, at #172

Sorry, but I don’t think Hillary had your definition in mind when she applied that term.

Everyone thinks that everyone thinks as they do, or at least hopes they do. There’d be no society otherwise.

#202 IHCTD9 on 06.07.17 at 12:31 pm

“An unconscious person can’t consent to sex, Liberals confirm… ”

http://www.cbc.ca/news/politics/criminal-code-update-charter-1.4148220

Whew! I’m glad the Libs are working hard for us Canadians. I’ve lost years of sleep waiting for this to finally be clarified. I’ll be reporting my wife, and all my ex-girlfriends in the morning…

” J.A. choked his longtime partner K.D., with her consent, until she was unconscious. They had sex when she regained consciousness, but two months later, she filed a complaint to police that while she had consented to the choking, she did not give consent to sexual acts performed while she was unconscious.

Her partner was convicted, even though K.D. recanted her allegation and said she had made the complaint because J.A. was seeking sole custody of their young son. ”

Awesome, it’s about time belated and fraudulent sexual assault accusations for the purposes of spousal revenge are made to carry weight – even if the accuser later admits she was just trying to prevent her ex-hubby from seeing his son.

Excellent job, thanks Libs.

#203 IHCTD9 on 06.07.17 at 12:39 pm

#192 steve on 06.07.17 at 11:48 am
fix the property tax system. In Ontario, MPAC guesses what your property is worth on a specific day. The guess value has nothing to do with what you paid for the property, it has a lot to do with what your idiot neighbour paid. Lets have property tax based on the actual sale price and inflation. If your neighbour is an idiot, let them pay until they find another fool.

____

Risky, just about every comparison between MPAC assessments and market values I’ve ever seen had the MPAC number lower. It actually makes good sense to keep the guess low when you think about what would happen if every one was being assessed (and taxed) over real market value.

#204 pBrasseur on 06.07.17 at 12:42 pm

T2 wants to tax you more to «invest» in innovation, that’s right innovation (as we have a lower investment rate than Greece…) and I suppose it does not occur to him that new grads in engineering who are offered 80K CAD here are offered 100K USD plus expenses to more to Seattle or California (etc..). We’re losing them by the thousands, and that’s just the beginning.

This country is so screwed you have no idea…

#205 Greatest Fool on 06.07.17 at 12:50 pm

@ #153 Karma

Read this:
https://www.forbes.com/sites/antoinegara/2017/01/06/blackstones-big-bet-on-the-u-s-housing-recovery-files-to-go-public/

_________________________

So they bought all these homes at the bottom and are now basically locking in their appreciation profit/dumping exposure by selling these homes at a high point via stock vehicle in a mass liquidation event.

They certainly didn’t offer Joe Avg this IPO in 2011 – 2014 when prices were still recovering because they wanted to pocket all of that for themselves. You get small cashflow and all the downside risk in a market correction. Pretty Brilliant.

#206 Andre on 06.07.17 at 1:04 pm

I do not agree with all the points raised. In my opinion, high housing cost impacts the Toronto economy and measures to lower it are welcomed. Lower housing costs would make it easier for companies to recruit and retain a specialised labour, facilitate mobility.

#207 Raj on 06.07.17 at 1:04 pm

1200+ new listings came out just today in GTA !!
wow !!

#208 ronh on 06.07.17 at 1:06 pm

this works:

http://www.howestreet.com/2017/06/06/last-acts-of-desperation-for-over-indebted-canadians-car-title-loans/

#209 RG on 06.07.17 at 1:20 pm

“The interest of the landlords is always opposed to the interest of every other class in the community” –Ricardo

Ricardo? Is that you? — Garth

#210 BS on 06.07.17 at 1:37 pm

4 BS on 06.06.17 at 8:56 pm
We have progressive taxation for income why not for housing? On your first $100k income earned you pay way less tax than the next $100K. Seems to be a universally acceptable way of taxing income. Why not pay a higher tax rate on the second house or condo? Unless you get rid of progressive taxation on income seems perfectly reasonably to have progressive taxation on housing.

Sigh… Property ownership and income are not correlated, so there’s nothing ‘reasonable’ about this. Besides, why tax people twice who bought property with after-tax dollars? I think we should just tax you more. — Garth

Thanks for the good wishes on taxation but I think they already plan on taxing me more. With T2 and the new BC government that is a given.

Property taxes are based on asset value not income. They already tax the income part. I think it is fair to say anyone with a second property in Toronto or Vancouver has enough net worth to afford the increased tax. If not the simple solution is to sell. Nobody need a second property. It is a luxury. The tax will be a gift for those that do decide to sell because of this. The tax will do what it is supposed to do and create more supply for both rentals and listings. I have already personally seen both rentals come on the market and places listed here in YVR due to this tax. These places were previously vacant and not doing anyone any good.

#211 NEVER GIVE UP on 06.07.17 at 1:39 pm

#169 Chris vucic on 06.07.17 at 8:38 am
young ignorance in full display tonight. — Garth

Rich, old man greed on display from You on this one Garth. You’ve lost a fan after this pompous blog post. But that means nothing to your bottom line so I don’t expect you to give a shxt.

You know sweet f-all about what it’s like to be a renter in Vancouver right now and you never will. I’m just glad people like you aren’t in charge of this province. This whole city would have been sold to the highest bidder, even more so than crusty Clark has done

Believe it or not (and you won’t, obviously), but there are loftier principles and goals than your rent. Whimsical taxation and the continual erosion of personal rights are serious threats to a free society. You’ll learn. Till then, so long. — Garth
===================================

Garth- Who cares about freedom when your financial future is destroyed by Greedy Governments and the RE Machine.
When your money is destroyed in favor of those who can borrow better than you, then you have few options. Landlords have control over your life.
Try living here in Vancouver like a renter and you will understand.

“Theft of Wealth is Theft of Life. “

#212 Nemesis on 06.07.17 at 1:40 pm

“If we want urban centres which compete internationally, attracting global investment capital, why are we acting like provincial dorks?” – HonHenryHobsonGT

#BeCarefulWhatYouWishFor…

http://tinyurl.com/ydhym6lf

#BonusProvincialDorksHobson’sChoice…

https://youtu.be/OYz8-UYyot0

#213 Implosion on 06.07.17 at 1:43 pm

#206 ronh

http://www.howestreet.com/2017/06/06/last-acts-of-desperation-for-over-indebted-canadians-car-title-loans/

That is truly terrifying.
The final bit of air left to pump into Canadian credit bubble is ‘car-equity.’

I hope it is a fake advertisement, meant as satire. If not…
Implosion does not seem too far off now.

#214 Haemato on 06.07.17 at 1:49 pm

Property ownership and income are not correlated, so there’s nothing ‘reasonable’ about this. Besides, why tax people twice who bought property with after-tax dollars? I think we should just tax you more. — Garth

I think owning multiple properties in Vancouver or Toronto is likely highly correlated with income. In the rare case where it’s not and that person chooses not to rent out their extra properties it’s likely that they’re relying on capital appreciation of the property for their investment to make sense. This would be exactly the type of speculation that most would agree is bad for the market. It relies on cheap debt to fuel an ever growing property bubble. The Empty Home Tax would target property owners carrying out this type of activity.

Are you opposed to the EH Tax simply because it’s a new tax or because you think it’s poorly thought out? What mechanism should they employ? The natural rise of interest rates, changing mortgage rules or CMHC changes will effect every market not just the 2 bubble markets remaining.

#215 Prudent Financial on 06.07.17 at 1:52 pm

#206 ronh

So yeah, that Prudent Financial service actually exists.

Interest rate is 24.75% per year.

It is from 2015 though.
I sincerely hope they have no customers and will shutter that service soon. Pretty disgusting abuse of the poor.

#216 Tazi Bnu on 06.07.17 at 1:55 pm

#24 End of the line on 06.06.17 at 5:35 pm
Further, to suggest that affluent people have every right to hold empty property in major downtown properties when there is a housing crisis, because they pay their condo fees and taxes misses the point of a housing crisis completely. They might find it ‘convenient’ to do this, but that convenience is because they are gaining value for holding, they may not be intentional speculators, but they are still speculators.

Finally, we’re experiencing a housing crisis in two major urban centres in Canada. These are hard working young people who think they’re doing everything right and working hard that can’t afford decent living.
___________________________________________
Property use should remain as a municipal issue not provincial or federal.

There is no housing crisis in Canada, the provinces, or
the territories. There is a Toronto and Vancouver housing crisis. Why should the rest of Canada change our laws to cater to these communities because these communities had extremely poor foresight, planning, or wherewithal to deal with their own problems. Why are more people ok with general tax dollars(borrowed) going to programs that do nothing but impoverish other Canadian communities?

If you can’t afford to live in a certain place, then don’t live there, simple. The employers will then have an extremely tough time hiring and will pay more or move jobs to a cheaper community. Millennials also have a tough time asking for raises.

There are many things people can do outside Toronto and Vancouver for a living. A $15/hour job goes a long way in most places outside these two cities but nowhere in them. Even a doctor in Toronto is lower-middle class.

#217 pBrasseur on 06.07.17 at 2:03 pm

@ Raj #205

Don’t sweat it, as the great (well ok so so great) Donny Rumsfeld used to say “it’s going to be a long hard slog”

;)

https://www.brainyquote.com/quotes/authors/d/donald_rumsfeld.html

#218 Newcomer on 06.07.17 at 2:23 pm

This is no solution to high prices, nor will it increase rental stock. It’s punishing people with more than you. — Garth
———————————-

If it has no impact then it is not a substantial punishment, just a chance to increase revenues for housing in the form of luxury tax on those who can afford it. If it causes hardship, then it will have an impact on things like prices and rental supply.

It may cause people to sell property to new buyers. Unlikely it will force any into the rental pool. — Garth

#219 Stan Broock on 06.07.17 at 2:39 pm

Your argument is punishment of those with more than you. If you can’t make it in a big city like Van, well, there are options. — Garth
———————-

We both know that there is much more to ‘making it’ in Vancouver which frankly is pretty shitty place.

2 doctors with no kids can not ‘make it’ in Vancouver in terms of housing. While a couple of retirees who bought their shack for 30 k in the 79–es ‘made it’. Excuse me.

ANY place in the world is better to live in than Vancouver.

I will not live in even if paid.

#220 Stan Broock on 06.07.17 at 2:43 pm

Housing is utility, not an investment.

Investment gains are taxed as such.

Making housing investment is wrong. Tomorrow they will do the same with the water we drink and air we breath.

Then GT will tell us how drinking water and breathing air is not a right but a privilege.

You have a right to shelter. You have none to own it. — Garth

#221 Ole Doberman P. on 06.07.17 at 2:46 pm

#205 Raj on 06.07.17 at 1:04 pm

1200+ new listings came out just today in GTA !!
wow !!
———————————————————-
lol – and only a couple months ago they were making it sound like a house is scarcer than platinum.

just look at all the terminates (speculators) flee from the wood work!

#222 Stan Broock on 06.07.17 at 2:57 pm

#193 Figure it out on 06.07.17 at 11:48 am

Aside from perhaps a few decades on the American frontier after the Louisiana purchase (and even that is questionable), the only place your concept of land rights EVER existed in the last 1,000 years is in a few books of Utopian political philosophy by men who have been dead for a few centuries now.

—————————-
Land rights where privilege of the feudals in the middle ages.

Before that of the Roman legionnaires/for good service.
No one was ever able to cheat them out from their land rights.

#223 Joe Bloggs on 06.07.17 at 3:01 pm

“And this is why I wish Garth was running this Country. Garth has good morals and knows how to conduct business, or govern for that matter, in a fair and ethical way.”
– LOL!!! Before that happens he has to learn some basic things, like – the interest rates are not supposed to be set by Central Bank and the importance of the First Amendment…

We don’t have a 1st amendment. — Garth

#224 Millmech on 06.07.17 at 3:18 pm

What happens if you rent out your house to a renter and they are away for more than 6 months on work?Do you now pay the fine because you renter is in violation?What is stop a homeowner from letting me pay $1.00/mth in rent for his unoccupied house,I can rent it but doesn’t mean I have to live there.This would be a great app to develops so that homeowners could “rent” out there homes to whomever and now be in compliance.Lawyers must be loving this new law!

#225 Smoking Man on 06.07.17 at 3:19 pm

#200 IHCTD9 on 06.07.17 at 12:31 pm
“An unconscious person can’t consent to sex, Liberals confirm… ”

http://www.cbc.ca/news/politics/criminal-code-update-charter-1.4148220

Whew! I’m glad the Libs are working hard for us Canadians. I’ve lost years of sleep waiting for this to finally be clarified. I’ll be reporting my wife, and all my ex-girlfriends in the morning…

” J.A. choked his longtime partner K.D., with her consent, until she was unconscious. They had sex when she regained consciousness, but two months later, she filed a complaint to police that while she had consented to the choking, she did not give consent to sexual acts performed while she was unconscious.

Her partner was convicted, even though K.D. recanted her allegation and said she had made the complaint because J.A. was seeking sole custody of their young son. ”

Awesome, it’s about time belated and fraudulent sexual assault accusations for the purposes of spousal revenge are made to carry weight – even if the accuser later admits she was just trying to prevent her ex-hubby from seeing his son.

Excellent job, thanks Libs.
…..

Won’t be to long until they will make it a crime for being a straight white male. This is way I’m sticking with the Alien Shtick

And if someone doesn’t use the correct pronunes when addressing me I can charge them.

The insanity of it all

#226 Hollywood Jack on 06.07.17 at 3:38 pm

talk about deja vu – homeowners using line of credit as ATM’s. This is indeed going to get ugly:

http://www.bnn.ca/canadians-use-their-homes-as-atms-consumer-agency-1.772835

The number of households that have taken a home equity line of credit on top of their mortgage has soared nearly 40 percent since 2011, the Financial Consumer Agency of Canada said in a report.

#227 Long-Time Lurker on 06.07.17 at 3:39 pm

I couldn’t weigh-in on the discussion. I was getting confused just thinking about it.

My attempt: Normalize the interest rate and let the free-market correct itself.

Hey n1tro,

Here’s the founder of the Weather Channel with his take on global warming. Two sides to every story.

2m38s

http://investmentwatchblog.com/the-founder-of-the-weather-channel-explains-why-climate-change-is-a-lie-live-on-cnn/

#228 IHCTD9 on 06.07.17 at 3:49 pm

#182 AB Boxster on 06.07.17 at 9:59 am

The millennials are in for a tragic 50 years of economic mess. It took my generation that long to address the fiscal mismanagement of the first idiot Trudeau PM.
But at least during that time Canada had opportunity to grow and prosper through developing its resources.
_____________________________________

IMHO, the Millennials will die in a still ultra-broken Canada. Trudeau Sr. was a huge mistake as seen by the fiscally minded masses – AFTER the fact, and it took years and years. T2 put things in reverse and napalmed our economy in less than 1 year right at the cusp of a balanced budget. I probably won’t live to ever see it that close again.

Today, most women and youth in general appear to love the left wing SJW nice haircut type leader. They’re so cool. Virtually none in this huge slice of voters give a rip about public finances, jobs, debt,
or the economy. They just get mad
(and blame Harper/Harris/Mulroney/Diefenbaker etc…) when they can’t find a decent job, and then gripe about it on social media. No clue at all, just the solid expectation of money spontaneously appearing to fund their latest Justice for Transvestite bird eating spiders campaign.

T2 and Co are living in LaLa land where brains and balls are not required. Our leadership is already resorting to soothing, placating words as well as other political gobbledygook to avoid answering the tough questions. Working like a charm so far, it’s all about the feelz ‘bra.

Ottawa is now stocked with goofball halfwit cabinet ministers fresh out of high school. We’re lead by a self made Mangina puppy with no self esteem whatsoever, and a hyper-needy ego.

Justin won’t be breaking out of Sophie’s purse any time soon, but we’ll vote him in again anyway 100%. That is what female, young, and new Canadians seem to want. T2 is the new Canadian Man for the masses. An entirely *****whipped douchebag, SJW dingbat.

He got a majority.

I see no reason to believe a turnaround will happen anytime in my life. I see more of the same actually, and maybe even worse if you can believe it.

The economy is being killed off, government revenues are falling like rain, tax base getting smaller, poorer, and dumber every year. Prosperity will be falling alongside every Mine, Well and Mill that gets shut down, and every manufacturing plant that moves back down south. The government even seems to acknowledge this with recent policies and program trials.

Too much change will need to happen before things can improve, and we’ve got it floored going the other way.

#229 Stan Broock on 06.07.17 at 3:56 pm

You have a right to shelter. You have none to own it. — Garth

————————-
In Europe you do. In Canuckistan I am not so sure.

http://fra.europa.eu/en/charterpedia/article/17-right-property

Article 17 – Right to property

1. Everyone has the right to own, use, dispose of and bequeath his or her lawfully acquired possessions. No one may be deprived of his or her possessions, except in the public interest and in the cases and under the conditions provided for by law, subject to fair compensation being paid in good time for their loss. The use of property may be regulated by law in so far as is necessary for the general interest.

2. Intellectual property shall be protected.

————
You have a right to own property. You are not entitled to it.

But there are reasonable expectations in terms of affordability to own property to live in (similar to the CRA reasonable and fair expectations for taxes).

It is absolutely unacceptable in a country with so much land resources and so little population for a working person /good forbid a doctor or highly paid professional/ with 3,4,5 times average income can not afford a crappy shack in relatively decent location (e.g. 1.5 one way commute from work) only because corrupted or incompetent government and greedy financial institution would like to skin him/her/zer,…. all 32 genders alive for that ‘privilege’.

#230 Stan Broock on 06.07.17 at 4:01 pm

The only way to remove corruption, greed and speculators is to eliminate the stupid.

The time to eliminate the stupid and for the slaughtering of the herd is now.

Mother Earth can not sustain all that stupidity.

#231 n1tro on 06.07.17 at 4:20 pm

#213

“I sincerely hope they have no customers and will shutter that service soon. Pretty disgusting abuse of the poor.”

It’s not abuse of the “poor” but rather abuse of the “stupid” or “pretentious” which I am perfectly comfortable with. Wonder if I can get a nice repossessed Tesla or Lambo!

#232 n1tro on 06.07.17 at 4:22 pm

@Tazi

“Why are more people ok with general tax dollars(borrowed) going to programs that do nothing but impoverish other Canadian communities?”

Because that is the liberal agenda. Next to selfies and good hair, getting something for nothing is what the Trudeau idiot voters wanted.

#233 Johnny Boy on 06.07.17 at 4:30 pm

#222 Smoking Man on 06.07.17 at 3:19 pm

#200 IHCTD9 on 06.07.17 at 12:31 pm
“An unconscious person can’t consent to sex, Liberals confirm… ”

http://www.cbc.ca/news/politics/criminal-code-update-charter-1.4148220

Whew! I’m glad the Libs are working hard for us Canadians. I’ve lost years of sleep waiting for this to finally be clarified. I’ll be reporting my wife, and all my ex-girlfriends in the morning…

” J.A. choked his longtime partner K.D., with her consent, until she was unconscious. They had sex when she regained consciousness, but two months later, she filed a complaint to police that while she had consented to the choking, she did not give consent to sexual acts performed while she was unconscious.

Her partner was convicted, even though K.D. recanted her allegation and said she had made the complaint because J.A. was seeking sole custody of their young son. ”

Awesome, it’s about time belated and fraudulent sexual assault accusations for the purposes of spousal revenge are made to carry weight – even if the accuser later admits she was just trying to prevent her ex-hubby from seeing his son.

Excellent job, thanks Libs.
…..

Won’t be to long until they will make it a crime for being a straight white male. This is way I’m sticking with the Alien Shtick

And if someone doesn’t use the correct pronunes when addressing me I can charge them.

The insanity of it all
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Your a freak man. An unconscious person cannot consent to sexual activity, the Liberal government has confirmed in new legislation that aims to update Canada’s Criminal Code. That is it! If someone ever did that to my daughter well lets just say Johnny still has connections. Jesus Smoking Man what is wrong with you it doesn’t matter what legal sighting they used to reference the law. Let me put this to you in another way so you can understand.
Wakey A, wakey B = pokie A, pokie B IF both A & B = YES
Wakey A, sleepy B = No pokie A, No pokie B both A & B = FALSE

#234 n1tro on 06.07.17 at 4:33 pm

@Long-Time Lurker

Thanks for that link. That CNN shill got owned. As for climate change debate, let real scientist peer review each other and come to solutions to help the planet. No input from non-scientists required.

As to every story having 2 sides, I respectfully disagree. Every story has exactly 3 sides. Your side, my side, and somewhere hopefully in the middle is the TRUTH.

#235 n1tro on 06.07.17 at 4:42 pm

@IHCTD9 #225

Deplorables (I mean conservatives) can take things back. Just vote in a independent into one of the 3 parties who has the gonads to say the truth and watch how fast grass roots support they will get. Millenials voted that 19 year kid MP and before he even got in started talking out both sides of his mouth regarding gay marriages. The salvation is not in the young. It is in a old crusty, tell it like it is, but not a career politican.

I’d do it but I dont think Canada is ready for a non-white PM.

#236 jas on 06.07.17 at 4:55 pm

Garth, I’m amazed at some of the views expressed in comments section for this post….as if everyone has a birth right to be able to own a house.

Folks, this is supposed to be a free market economy. Although the govt. doesn’t have the weight between legs to either let it be so or to make it a totally ‘planned’ economy, as it was in the past Soviet Union. And we know very well what happened there.

So, I’d say…those in power, have the ‘effing guts to be on one side of the fence. Don’t just sit on it.

#237 Dr. Talc on 06.07.17 at 4:59 pm

Can we ban the use of the word ‘crisis’ in the context of housing? In the 80s key money was everywhere in TO.
Leave the hysteria lingo to the MSM and so called ‘government’

#238 waiting on the westcoast on 06.07.17 at 5:01 pm

#213 Prudent Financial on 06.07.17 at 1:52 pm
” #206 ronh
So yeah, that Prudent Financial service actually exists.
Interest rate is 24.75% per year.
It is from 2015 though.
I sincerely hope they have no customers and will shutter that service soon. Pretty disgusting abuse of the poor.”

I think it’s a great idea… I should do it in Vancouver. But there is probably too few people who have a car that is less than 6 years old and fully paid off in this city. And if they are, not likely to need a 25% loan…

As for abusing the poor… if anything, they are giving them a last ditch method (well, except for maybe a loan shark) to keep solvent while figuring out a way to get economically back on track. The reality is that if they are already in this much trouble, they will not likely get out. It does give them a chance which is better than no chance.

#239 Ralph on 06.07.17 at 5:05 pm

Thank to these lines I am a fan of SmokingMan now:
“Won’t be to long until they will make it a crime for being a straight white male.”

#240 im not buyin' what dey sellin' on 06.07.17 at 5:16 pm

the aptly named BS typed:

I think it is fair to say anyone with a second property in Toronto or Vancouver has enough net worth to afford the increased tax.
—-

No. That would be presumptuous.

#241 Livin Large on 06.07.17 at 5:34 pm

“You have a right to shelter. You have none to own it. — Garth”.

Welllllllllll, not exactly. You have a “Right” to own it but no obligation to own it.

There is no right to own property in Canada. In fact, there are not even property rights for those who do. — Garth

#242 Mattl on 06.07.17 at 5:36 pm

Interesting to hear all the commentary from YVR renters on how bad their situation is. A lot different then what we usually get around here with renters expressing how free they are, how much they save renting, the trips they take with their families, and how they pity the hurt their landlord will be in.

My opinion? Renting in Van and the lower mainland IS a nightmare – there are buildngs in cole harbour that are mostly empty and these are not commuters. I’m talking nothing on the patio and the lights never go on empty. And trying to find a house to rent in the valley with a few dogs is impossible. We want to rent once we sell this place but our options are trailer park, move provinces or buy back in. There IS a housing problem and homes sitting empty is not good for the area.

This tax will do nothing because the commuters will not be impacted and the foreign money that is holding these properties will not give a damn about 1%.

#243 NEVER GIVE UP on 06.07.17 at 5:42 pm

Property should be taxed in such a way that speculation is non profitable.

Property is being treated like food hoarding in a famine.

This is an abuse of the citizenry by the elite.

#244 Loan Shark on 06.07.17 at 5:43 pm

#235
they are giving them a last ditch method (well, except for maybe a loan shark)

At 24.75% interest rate they are the loan shark.

Just a bit more respectable, because they are a listed company on Wall Street.

#245 Smoking Man on 06.07.17 at 6:00 pm

Comey write statment out. Go to milo page to see.

No dirt bomb…

Left is going to go crazy tomorrow. It’s was thier last chance getting rid of Trump legally.

#246 A Reply to #108 Deplorable Dude on 06.07.17 at 6:03 pm

“As for Comey on Thursday….suspect its gonna be another nuthinburger….he can’t change his tune on Trump without perjuring himself given his past testimonies.”

Have you read Comey’s seven-page prepared statement for tomorrow’s testimony? To me (and to many legal experts), it looks like obstruction of justice.

In the meantime Dan Coats was tight-lipped today during the Senate Intelligence Committee hearings, refusing to answer questions. Why did Coats not answer the questions if there’s “no there there”?

#247 Ben on 06.08.17 at 12:01 am

Seems a bit hypocritical to me. On one hand advocate that 30-somethings like myself who can’t afford real estate rent instead of own and put our savings in a diversified portfolio while criticising an attempt by government to make rentals more available. Have you been in the rental market in metro van lately garth? It’s cutthroat. Cutthroat in a way that can make the bidding wars of the not so distant past seem tame.

I hate to say it, but for the first time I agree with Gregor Robertson…. homes should be housing. I think deep down you agree with this as well given your long history of ranting about amateur real estate investors. I don’t think it’s entitled for me to want a roof over my head. I don’t need a fancy place, I don’t even care if I own or rent, I just hate the state of the rental market right now. Something has to give.

This post doest strike me as ideologically consistent with some of your other opinions.

#248 Bytor the Snow Dog on 06.08.17 at 11:38 am

@17 Screwed Millennial- I’m a Boomer, and I give 110 percent at my job every week. Fifty percent on Monday, 30% on Tuesday, 15% on Wednesday, 10% on Thursday, and 5% on Friday.

@Garth- Your anger is palpable. Would it be because in this case your ox got gored?