Pay up

Insane. It’s the word du jour. This aptly describes real estate in cities like Toronto, Vancouver, Victoria and all of the bubbly burbs and hot hick towns in their watersheds. Prices are insane. Buyers are insane. Bidding wars insane. And, of course, mortgage rates are pure insanity.

As central banks have moved to save us from Covid with oodles of monetary stimulus, one result’s been an explosion in property values – fueled also by salaried WFH nesters floating on waves of hormones. Every single action governments have taken in recent years – shortening amortizations, increasing down payments, making mortgage insurance more costly, raising debt ratios, capping CMHC coverage, slapping foreigners – have failed. Prices have never been higher. Speculation never greater. Sales levels setting records.

As a result fewer people can afford a house. Family debt levels have hit historic highs. And meanwhile the virus has created the greatest river of red ink in government history. All levels of are hurtling headlong into debt we never before thought possible.

And is the virus situation any better?

Nah. Not happening yet. We apparently have a vax cock-up unfolding. Despite that, a soul-sucking row house in the GTA burbs is now a million bucks. Congratulations, policy-makers. Home run.

What next?

Some on this pathetic blog have speculated governments will have no viable alternative but to tax residential real estate. After all, allowing people to speculate and flip houses then claim the principal residence capital gains exemption to have a taxless profit is a bit rich. Annualized gains are now 50%, 60% or beyond – while the poor, diligent schmuck with a balanced portfolio making a decent 7% a year is taxed on all gains outside a registered account. How is that fair? Isn’t clinging to this outmoded, archaic house exemption only encouraging greed and bad behavior? How is it good for society when young families making average money will never, ever, ever be able to afford their own digs?

So, an enlightened society would tax houses just like equities. Half the gain you keep. Half you add to your income. The ACB (adjusted cost base) would reflect improvements and renos which added value. There could be a sliding scale reducing the tax for years of ownership. Whatever. Details. But the principle remains. Real estate should not get a free pass.

This seems inevitable, but not soon. It may take a new gen of politicians to make it so.

In the meantime existing governments will continue to nibble away at homeowners. Property taxes vary wildly across the country, but are definitely on the way higher for most. In Vancouver, for example, these levies will jump by 5% this year, which is five times inflation. In Toronto the added amount is just 2.2%. But while Van homebuyers pay $32,000 in transfer tax to buy a $1.7 million ‘average’ crappy house, in Toronto that bill amounts to a staggering $60,950. (By the way if you buy in Calgary the transfer tax.. doesn’t exist. Sweet.)

Buyers pay HST on a lot of closing costs, while sellers must fork the sales tax over on the entire amount of commission paid – almost $13,000 in HST alone on the average Toronto detached deal. Then there are vacancy taxes (in Vancouver and environs) and foreign buyer surcharges in BC, Ontario’s ‘golden horseshoe’ and maybe federally during 2021. The vacancy tax in Vancouver has rocketed to 3% of a property’s assessed value, and a similar shellacking will be in place in Toronto next year, likely starting at 1%.

BC’s socialist government, which never met a tax it did not love, also whacks anyone who is not a permanent resident with a ‘speculation’ tax, even when nothing remotely speculative has occurred. That skimmed about $90 million in 2019 and was designed to increase rental stock (didn’t happen) and depress house prices (definitely did not occur). That tax is blatantly racist, of course, sitting at 2% of a property’s value annually for non-residents of Canada (especially you-know-where), and 0.5% if you just happen to be an evil Albertan or Upper Canadian. You may have also heard Comrade Premier Horgan is trying to seal off BC from visitors anywhere in Canada because of the virus, raising the question of why anyone would want to invest there.

So, it’s not like residential real estate is untaxed. It is. The issue is profits from the sale of a property. These days most Canadians consider their house to be an investment vehicle, wealth creator and retirement strategy, not just a home. As stated above, one giant reason we have unaffordable accommodation is because of the PR exemption. This has encouraged families to roll the dice, load up on debt, buy an asset with 20x leverage, shun financial assets, be wholly undiversified, augment risk and take a moon shot.

The result? Read yesterday’s post. Tell me then why this should not change.

215 comments ↓

#1 TurnerNation on 01.15.21 at 2:05 pm

Today Ontariowe purged an elected rep who had spoken out against the New System. Democracy is grand eh? Grand Illusion.

Last year in ON another dissenter was booted from the Party.
“Cambridge MPP Brenda Karahalios kicked out of Conservative caucus for voting against July 2020 emergency powers bill”

Add to that all those purges of Elected reps last week for those who travelled over the holidays…
what a co-indicidence.
……….

-For those who doubt the New System is a total electronic tracking-slave system, it’s being rolled out everywhere. FYI you no longer have an immune system.. You must be tracked! For your safety.

(Only via total tracking, and submission to the New System and Big Pharma can keep me safe and healthy.
See also news releases from MTRX.TO, DFLY.TO, FD.TO. This is an investment weblog after all.


“Tracesafe Inc. helped players, staff and the media stay 100 per cent focused on the game — not COVID-19 — at the World Junior Hockey Championships in Edmonton.

TraceSafe’s state-of-the-art wearable technology was embedded in the event credentials of all teams, event staff and media attending the World Juniors event. The early detection of infections in eight German and two Swedish team members led to swift and targeted isolation measures and kept the rest of the IIHF tournament bubble intact.
Players, staff and the media wore TraceSafes small embedded devices that communicated with a wireless LTE gateway box. The technology effectively and efficiently kept everyone at the tournament healthy and secure. Contact tracing measures were conducted flawlessly and positive cases were detected early.”

….
Also today: children must learn to be monitored at every step in their lives – Smart Cities they say, this is happening.
What did you think our “Smart phones” – with all their free apps we’ve been trained on, and them learning us via A.I., were for?

“Gatekeeper Systems Inc. will equip a fleet of 39 school buses in California with wirelessly connected digital video recorders and Gatekeeper’s G4 Enterprise incident management software.
School districts are embracing wireless video recorders as an effective solution for quickly locating missing school children, monitoring on-bus student behavior, and close-proximity or social distancing analysis relating to COVID-19.
The Company uses AI, video analytics, thermal cameras, and mobile data collectors to inter-connect public transit assets as part of intelligent transportation systems in a Smart City ecosystem.

………
As I noted back in March ALL Compassion has been removed from the New System. Guilty until proved innocent. This is the brutal New System. A.I. and brainwashed people controlling your every breath, every move.

Is this a troll, or real, does it matter? The purpose is to train us on the New system:

https://www.facebook.com/jarridy/posts/10158907071428684
January 7 at 9:10 AM ·
I was removed from my flight for a single cough and have been placed in a government quarantine facility. Apparently 5 people complained about me and that warrants me being held against my will when I’m not even sick. People cough but now that’s considered such a public health risk that I get hauled into a bus surrounded by people dressed in hasmat suits and treated like I have flesh eating disease. I AM NOT SICK.

#2 No left turn on 01.15.21 at 2:17 pm

Garth, a communist propagandist has infiltrated this site. At first it was informational in exposing the other communist sympathizers here. Now it’s just absurd. Allowing evil and disastrous communist ideals to be promoted here is just as immoral as allowing the anti-vaxers to post here. Just saying.

#3 Cottagers STAY THE HELL AWAY! on 01.15.21 at 2:22 pm

IT’S NOT A REGULAR WEEKEND!

FOLLOW THE PROVINCIAL ORDERS!

STAY AT HOME YOU INBRED SOUTHERN HILLBILLIES!

IT’S AN ORDER!

FROM DOUG!

DON’T BE SELFISH PARASITES!

WE WILL REPORT YOU, ARREST YOU, AND FINE YOU!

STAY AWAY FROM COTTAGE COUNTRY!

OR ELSE!

#4 yvr_lurker on 01.15.21 at 2:23 pm

seems like you cut and paste stuff twice in the early part of the blog. Try again. I won’t do my knee-jerk response to your slagging of Horgan, but let me fill you in on the rationale for:

“You may have also heard Comrade Premier Horgan is trying to seal off BC from visitors anywhere in Canada because of the virus, raising the question of why anyone would want to invest there.”

My scientist contact and friend at the BC-CDC who is doing Covid modeing (who is un-named) has explained to me that the idea of restricting inter-provincial travel (6–8 weeks max) is so that we have a head start in (hopefully) rapid vaccinations of the population before this province is inundated by the more contagious Covid variants that are developing a stronghold in Quebec and Ontario. If we lose this race against time (with unrestricted interprovincial travel), then BC will be in the same boat as the worse off provinces in a short time period. It has nothing to do with wanting to kill investment etc… I’d explain further but am zooming around….

#5 Doug t on 01.15.21 at 2:28 pm

INSANE – this word pretty much sums up the world as a whole

#6 Bob on 01.15.21 at 2:33 pm

I fully support taxing real estate gains. I’d go even further and tax it at 100% (with a deduction if the proceeds are used to buy another property).

Incidentally, “you know who” does not allow Canadians to buy property in their country, so I don’t see why we should extend them the courtesy in ours. Property ownership should be a right of citizenship and should not be allowed for foreigners. It’s not like we’d be alone here. Many countries restrict or outright ban foreign ownership.

#7 hwy_str on 01.15.21 at 2:36 pm

Thanks a lot for the article, Garth!

But what do you PERSONALLY think should be the most effective course of action for the government? Maybe a separate blog post about it?

There seem to be multiple problems around real estate prices going down:
1. Strong lobby against it from real estate people for whom higher prices = higher commissions
2. Lower RE prices = lower GDP = no GDP growth to brag about = other consequences of falling GDP
3. Those who bought crazy expensive houses will suddenly become poor and many under water
4. Lower tax revenue (the mentioned HST, ‘welcome tax’, etc)

I earn good money, above national and local averages, but I cannot even dream about affording to buy anything (not even talking about what I would want to buy). But nesting instinct does not go away. Should I have any hope, Garth?

#8 Faron on 01.15.21 at 2:37 pm

This is a global problem which confirms that government action directly on RE hasn’t been working anywhere save for more socialized locales. Eventually, rising inflation -> rising rates will squash this or at least stagnate it. But, like all bubbles, calling the top is nigh impossible and with RE, the deflation can be abrupt, but can also be sloooow. A gentle rate squeeze and cost of living rise could just steadily drive prices down.

I think real inflation (not just CPI) will come sooner than later. Rates will adjust themselves at first and then central banks will have to step in to keep yield curves from going vertical.

Those rising rates will also can the NASDAQ and any other sector dependent on raising tons of capital to grow.

#9 CJohnC on 01.15.21 at 2:38 pm

“Comrade Premier Horgan is trying to seal off BC from visitors anywhere in Canada because of the virus, raising the question of why anyone would want to invest there”

How is that different from the Atlantic provinces doing much the same for months now

As stated: Unrestricted travel, but a 14-day quarantine. Sounds reasonable. – Garth

#10 Steerage Comrades on 01.15.21 at 2:38 pm

Well Atlantic Canada walled itself off…. which is why you have so little cases…. does that make you all Comrades as well

Unrestricted travel, but a 14-day quarantine. Sounds reasonable. – Garth

#11 Jonny on 01.15.21 at 2:38 pm

The property flippers are to pay at least Capital gain tax. So many house being sold after 5 years or more and never reported anywhere!

#12 mark on 01.15.21 at 2:38 pm

Buy REITs, income and no tax, maintenance,or hassle costs.
22% weighting .

#13 Peter McLean on 01.15.21 at 2:42 pm

All that is super insane, but my coworker made $8 off some random stock yesterday. So there’s that.

#14 Jimmy Zhao on 01.15.21 at 2:47 pm

Governments need ever increasing sources of revenue to keep up with paying exorbitant salaries to Hospital CEO’s, boards, and administrators. Not to mention Million dollar severance packages.

#15 IHCTD9 on 01.15.21 at 2:54 pm

#201 KLNR on 01.15.21 at 1:52 pm

wonder what % of the exodus are just folks buying recreational country homes? Seems like everyone I know has bought second homes in PEC over the past year.
— – ———-

Plenty. Also folks getting a retirement place locked up before they retire- probably well before. Also WFH’ers, retirees, young families, immigrants, and a sprinkling of those who just wanted to gtfo of the gta and could.

My little village has mostly Golden Horseshoe retirees moving in. Even one young family from Vancouver if you can believe it. We may have just got 2 WFH households this fall too. Just going on the fact that their cars never leave the driveway ever. One place is a mystery, outside lights are on timers, lawn gets mowed, driveway gets plowed, but nobody home.

#16 mj on 01.15.21 at 2:59 pm

I really hope the vaccine works like everyone plans it to work. If it doesn’t, we might see 0% mortgages like Denmark. Then home prices will really explode. That would be scary.

Not happening. – Garth

#17 Flop... on 01.15.21 at 3:05 pm

“That skimmed about $90 million in 2019 and was designed to increase rental stock (didn’t happen) and depress house prices (definitely did not occur).” -Thor Turner.

///////////////////////////

Maybe I’m just sitting by the river waiting to get a kick in the pants from you again, but I could of swore I saw data that approximately 12,000 rental units had been returned to the marketplace…

M46BC

#18 yet another joke on 01.15.21 at 3:05 pm

poor, diligent schmuck with a balanced portfolio making a decent 7% a year is taxed on all gains outside a registered account. How is that fair?
_________________________________________

oh please, save me the drama. how is it fair that taxpayers save the stock market every time it drops?

what’s good for you is good for the housing market. save the drama for somewhere else.

houses shouldn’t be at these levels and neither should stocks. but print trillions, keep rates at near zero, buy corporate bonds, prop up zombie corporations, give $2000 cheques and CERB to everyone…

you got what you paid for.

Same question: why is one gain taxed and the other not? – Garth

#19 Leftover on 01.15.21 at 3:07 pm

I posted a brief “let’s tax PR gains” yesterday and got the usual response – ain’t gonna happen because 70% of Canadians own real estate so it would be political suicide.

But why? Doesn’t that assume that Canadians are stupid enough not to understand that they still get to keep at least 75% of their profits? It only takes about 40% of the electorate to install a majority government so, assuming that people who don’t own real estate would support the change, it wouldn’t take much to make this happen.

It might even appeal to some conservatives who want to address the deficit. Who knows, maybe one of those rare policies that attracts enough support from both ends of the political spectrum to get across the finish line.

#20 Flop... on 01.15.21 at 3:08 pm

“You may have also heard Comrade Premier Horgan is trying to seal off BC from visitors anywhere in Canada because of the virus, raising the question of why anyone would want to invest there.”- Thor Turner.

//////////////////////////

I invest the bulk of my time here.

That’s costly enough…

M46BC

#21 IHCTD9 on 01.15.21 at 3:09 pm

#6 Bob on 01.15.21 at 2:33 pm
I fully support taxing real estate gains. I’d go even further and tax it at 100% (with a deduction if the proceeds are used to buy another property).

Incidentally, “you know who” does not allow Canadians to buy property in their country, so I don’t see why we should extend them the courtesy in ours.
————-

Based on what was said on yesterday’s blog, “you know who” doesn’t even let its own citizens own property.

I’d get behind a PR tax scheme something like this:

1-3 years ownership- 100% cgt
4-6 years ownership – 50% cgt
7-10 years ownership- 10% cgt
11+ years ownership – 0% cgt

Tweak it till it kills buying homes for profit.

#22 Impeachment 2021 on 01.15.21 at 3:13 pm

Yep, start those taxes. Gotta balance things out for people.

#23 Millennial 1%er on 01.15.21 at 3:14 pm

More government intervention, yeah, that’s the solution. It worked for us so far – right?

Also, even if we get a capital gains tax on RE, does that really matter? The fact of the matter is that you can easily get 20x leverage on it because banks thing HOUS go UP. Can you get 20x leverage to buy a conservative spread of equity?

The real issue is the abundance of cheap money, not the government taking citizen’s wealth

#24 David Pylyp on 01.15.21 at 3:17 pm

“These days most Canadians consider their house to be an investment vehicle, wealth creator and retirement strategy, not just a home.”

I need to live somewhere. After 10 years in a condo my mortgage plus tax and maintenance fees is finally less than rent.

Now we are investing more.

If we became single income ( if I die ) she can handle the expense on her own.

Don’t think that is folly….

David Pylyp
Toronto

#25 CJohnC on 01.15.21 at 3:18 pm

Self quarantine doesn’t work. People are selfish and these days seem to be only focused on “me, me,me….want want want”. The only quarantine that works is in military run quarantine centers…mandatory. Even Australia found that out.

#26 DownToFinance on 01.15.21 at 3:19 pm

Find me one politician willing to take the poison pill by proposing to get remove the Principal Residence Tax Exemption.

#27 leebow on 01.15.21 at 3:25 pm

Totally nuts. May be it’s time to reconsider the US of A: better pay, better climate and affordable housing.

#28 Ponzius Pilatus on 01.15.21 at 3:26 pm

#184 walltiger on 01.15.21 at 10:06 am
#179 CEF
your statement is not correct.
under the Canadian extradition law, the Minister of Justice can, at any time, stop the extradition.
—————————
Interesting.
Asian Stoic confronts Western impulsive reactionary.
All I can say is, learn Chinese.

#29 Ponzius Pilatus on 01.15.21 at 3:28 pm

#14 Jimmy Zhao on 01.15.21 at 2:47 pm
Governments need ever increasing sources of revenue to keep up with paying exorbitant salaries to Hospital CEO’s, boards, and administrators. Not to mention Million dollar severance packages.
————————
You want the vaccine or not.

#30 Rook on 01.15.21 at 3:30 pm

I’m demoralized. Really.

It really, REALLY bothers me that I look around and see where real estate is at.

It bothers me that interest rates are unlikely to rise any time soon (because then the debt becomes unmanageable).

It bothers me that houses are a million dollars and since I didn’t buy then, I’ll never buy now. I’ve been priced out of the market since I was born. And if homeowners get into trouble, the government will likely bail them out.

It bothers me that I have to choose between renting forever (and never having equity but what I invest) or leverage myself to the eyeballs to maybe own a piece of dirt in 25 years.

It bothers me that the 30-year career and gold pension and home ownership my parents enjoy is something I don’t get to.

It bothers me that there are seemingly infinite people with seemingly infinite money supply willing to place 70 bids on a million-dollar house and not blink when over-paying.

It bothers me that living within your means and saving is frowned upon.

What’s the point of staying on this treadmill and being a good little citizen, when you’re not going to get anything out of it at the other end?

#31 Doug in London on 01.15.21 at 3:32 pm

Yes, there should be a tax on residential real estate capital gains. Better yet, make it retroactive to the beginning of 2020. Since that’s not likely to happen, what’s needed is an increase in the required down payment for a house.

#32 Adam on 01.15.21 at 3:32 pm

DELETED

#33 Howard on 01.15.21 at 3:33 pm

That skimmed about $90 million in 2019 and was designed to increase rental stock (didn’t happen) and depress house prices (definitely did not occur). That tax is blatantly racist, of course, sitting at 2% of a property’s value annually for non-residents of Canada (especially you-know-where)

——————————–

By this logic, it is also racist that the government of Canada doesn’t offer free healthcare to non-citizens/PR.

You need a logic lesson. – Garth

#34 Lee on 01.15.21 at 3:37 pm

#12 Mark,

They are going to have to start cutting dividends soon. Otherwise they would be great.

#35 JSS on 01.15.21 at 3:41 pm

Remember those days when people used to work to make money

#36 Howard on 01.15.21 at 3:41 pm

#7 hwy_str on 01.15.21 at 2:36 pm
Thanks a lot for the article, Garth!

But what do you PERSONALLY think should be the most effective course of action for the government? Maybe a separate blog post about it?

There seem to be multiple problems around real estate prices going down:
1. Strong lobby against it from real estate people for whom higher prices = higher commissions
2. Lower RE prices = lower GDP = no GDP growth to brag about = other consequences of falling GDP
3. Those who bought crazy expensive houses will suddenly become poor and many under water
4. Lower tax revenue (the mentioned HST, ‘welcome tax’, etc)

I earn good money, above national and local averages, but I cannot even dream about affording to buy anything (not even talking about what I would want to buy). But nesting instinct does not go away. Should I have any hope, Garth?

——————————-

Depending on your age, emigration should be your top strategy. See if you are eligible for citizenship in any other countries through your parents or grandparents. If not, start reviewing standard immigrant entry processes in countries that will grant you a better balance between wages, cost of living, and quality of life.

#37 Brian Ripley on 01.15.21 at 3:44 pm

“Family debt levels have hit historic highs.” Garth

My updated chart of Canadian Household Debt, GDP, Foreign Direct Investment and Balance of Trade is up with the latest data
http://www.chpc.biz/household-debt.html

Here is the 10 Year Change of Canadian​:

Household Mortgage Debt: UP 66%
Total Household Debt: UP 56%
Negative Net Trade: UP 476%
Negative FDI: UP 633%
Positive GDP: UP 15%

Clearly the post 2008 credit crash period and our monetary policy coming out of it has led not only to a furious bid in real estate assets with all its consequences of draining disposable income, but the gap between mortgage debt and other household debt remains high and wide relative to pre-crash times.​​

With respect to the NOV 2020 NET TRADE data; in the last 12 years, 83% of the monthly data have been negative.

With respect to Foreign Direct Investment:
The difference between Capital Investment leaving Canada to Capital Investment entering Canada has widened dramatically since 2014 by 29%.

​For every dollar coming into Canada
in 2014, $1.14 left
in 2015, $1.33 left
in 2016, $1.27 left
in 2017, $1.36 left
in 2018, $1.47 left
in 2019, $1.43 left (2020 not available yet)

The 20 year widening super trend has been accelerating. The growing capital flight out of Canada is at the expense of labour employment. Cheap capital is in search of cheap productive Labour in an effort to realize a better return on investment from exploiting the price mismatch. Clearly this is working as our deeply negative 12 years of Balance of Trade data suggest; we buy more than we sell, hence we supply net income to entities outside our “borders” financed and subsidized by our own cheap credit and our willingness to hock the future.​

#38 Mehling on 01.15.21 at 3:45 pm

https://financialpost.com/executive/careers/howard-levitt-employers-facing-heavy-liability-will-soon-insist-their-staff-get-vaccinated-but-who-does-the-law-side-with

“Howard Levitt: Employers, facing heavy liability, will soon insist their staff get vaccinated. But who does the law side with?”

“Many legal commentators have stated that employees cannot be forced to be vaccinated. They are wrong.”

#39 Colstoun on 01.15.21 at 3:45 pm

“… while the poor, diligent schmuck with a balanced portfolio making a decent 7% a year is taxed on all gains outside a registered account.”

And even the gains in registered accounts (except TFSAs) are eventually taxed.

#40 Dan Kingsbury on 01.15.21 at 3:50 pm

I sent yesterday’s post to my brother, he responded with one work: GROSS! (I second that!)

#41 Drinking on 01.15.21 at 3:52 pm

#4 yvr_lurker

Did your scientist friend mention that the real issue is not so much people travelling from one province to another; most are responsible about it; it is the international flights as well as all those that snub their noses and take those sunny vacations. CBC reported (I know, CBC) 1500 flights out of Canada to sunny locations. Many to Mexico; Mexico is in a complete crisis with this virus. They added almost 16500 cases today alone; there are almost 138,000 that have perished in that country and yet so many fly there; makes no sense.

There are plenty of B.C. and Sask plates in Alberta; we do not have an issue with it for the fact that most are responsible.

To back up my Mexican numbers here is a link!

https://www.worldometers.info/coronavirus/#countries

#42 Faron on 01.15.21 at 3:52 pm

#202 Sail Away on 01.15.21 at 2:26 pm
#198 Faron on 01.15.21 at 1:29 pm

you just couldn’t help giving advice…I point this trait out as it may be one of the things holding you back in life.

So, to be clear, you are advising me that advising holds one back. Got it. It’s also funny that you appear to have trolled me on a day where your stonks are riding the struggle bus. I hope expressing your overall gains has made you feel better.

#43 N on 01.15.21 at 3:53 pm

Many people now understand that a house is an investment and a home is not where the house is.
In Canada, we have houses, not homes.
Feel bad for the folks that work hard and take risks to get a measly 7% return. Folks would have been way better off either gambling or taking a mortgage. After all, they’re backstopped by the establishment. Since many are heavily indebted, this problem is now too-big-to-fail. That’s why politicians will never muster the courage to increase property taxes.

#44 Ryan on 01.15.21 at 3:56 pm

My wife and I plus our new daughter have been waiting for an opportunity to enter the market. Every year for the last decade I hear housing will fall. We were ready to buy, 20% in hand, CMHC and everyone said there would be a reset. It would make sense given the economy. However, we are renting, padding our savings, I guess that is good. However, my landlord just got back to us in Ontario, wants to raise our rent 25% to over $3,500 / mth for a townhouse with no yard. The pressure to buy, stay in a school district is tough, but I know the prices are way to high as well. Knowing my luck, we’ll take $200k and lose it right away as economy tickles back to life if we buy, but since we won’t housing will just keep climbing. We saved, invested, but honestly, if I bought a house in 2010 when everyone said no, “it will correct!”, I’d have a home without threat of rent increases, constant moving. I think a lot of people need to realize, as I am late to the game, the Canadian Government will never let housing fail. Policy’s of late demonstrate this and they won’t tax it either, they should, but they won’t, because its political suicide for Cons or Libs. Full disclosure my wife and I with no debt, savings, pension can’t afford without taking a huge risk. The basement dwellers, ones a family dr another a surgeon in training. The family dr wishes she just got a job driving a bus. She’d be further ahead too. Think about it, cause I sure as hell can’t understand it anymore.

#45 Bezengy on 01.15.21 at 3:58 pm

Time for Torontonian’s to pay up.

Here’s another Toronto house worth 2,388 million. Toronto’s own tax calculator says they should be paying $14,300 per year yet they pay only 33 % of that being $4700 per annum. Meanwhile John Tory says other taxpayers should anti another 900 million. Unbelievable.

https://www.realtor.ca/real-estate/22724726/13-durie-st-toronto-high-park-swansea

btw….taxes on that house in Timmins would be $44k per annum.

#46 crowdedelevatorfartz on 01.15.21 at 3:58 pm

@#179 El Tigre

“your statement is not correct.
under the Canadian extradition law, the Minister of Justice can, at any time, stop the extradition.”

++++

Unless , of course we have an Extridition Treaty with the USA ( we do) and the USA wants the person extradited.( they do).
Our Justice Minister will not quash a deportation to the USA unless the USA asks.

But Xi could free our “two Michaels” any time because…..he’s a dictator.

#47 Faron on 01.15.21 at 4:00 pm

#21 IHCTD9 on 01.15.21 at 3:09 pm

I’d get behind a PR tax scheme something like this:

1-3 years ownership- 100% cgt
4-6 years ownership – 50% cgt
7-10 years ownership- 10% cgt
11+ years ownership – 0% cgt

Tweak it till it kills buying homes for profit.

Yep, I agree. Any kind of flipping should be taxed hard.

One thing. There will be a subset of the short term owners who had to move for work, family or whatever. They should be protected from said tax somehow.

#48 BC Renovator on 01.15.21 at 4:00 pm

BC’s socialist government, which never met a tax it did not love, also whacks anyone who is not a permanent resident with a ‘speculation’ tax, even when nothing remotely speculative has occurred. That skimmed about $90 million in 2019 and was designed to increase rental stock (didn’t happen) and depress house prices (definitely did not occur). That tax is blatantly racist, of course, sitting at 2% of a property’s value annually for non-residents of Canada (especially you-know-where), and 0.5% if you just happen to be an evil Albertan or Upper Canadian. You may have also heard Comrade Premier Horgan is trying to seal off BC from visitors anywhere in Canada because of the virus, raising the question of why anyone would want to invest there.

_______

If its Racist what does that make NZ and Aus who outright banned foreign ownership?
Its there to prevent foreign speculation which was occurring. My GF is a Realtor and in pre-covid Non resident asians were lining up for pre-sales and buying 2-5 Apartments in one Building (this is one example). This is speculating. Keep the Foreign Buyer Tax.
But I also agree, tax PR’s

‘Asians’ from Asia, or Richmond? – Garth

#49 604_housing on 01.15.21 at 4:02 pm

I have said it before –

Make profit on housing 100% tax free gains after twenty years and 0% tax free gains at 0 years. Give a 5% of tax free allowance per yer owned. Ain’t perfect, but neither is current system.

#50 crowdedelevatorfartz on 01.15.21 at 4:06 pm

@#197 Paper Tiger
“following your logic:
bad government from before= bad government now.
bad policy from before=bad policy now.
how far do you want to go back then?”

++++
How far back….
This week in Hong Kong?

https://www.scmp.com/news/hong-kong/politics/article/3117649/national-security-police-arrest-lawyer-and-10-others

Or the author who wrote salacious gossip about fearless leader Xi and was mysteriously grabbed by Mainland Chinese security and appeared in Mainland China weeks later facing serious state charges….?

https://www.nytimes.com/2020/02/25/world/asia/gui-minhai-china-hong-kong-swedish-bookseller.html

I just want to know one thing…….

Will you wear a Winnie the Pooh sweater for one week the next time you visit Beijing?

#51 IHCTD9 on 01.15.21 at 4:06 pm

#23 Ponzius Pilatus on 01.15.21 at 3:26 pm
#184 walltiger on 01.15.21 at 10:06 am
#179 CEF
your statement is not correct.
under the Canadian extradition law, the Minister of Justice can, at any time, stop the extradition.
—————————
Interesting.
Asian Stoic confronts Western impulsive reactionary.
All I can say is, learn Chinese.
——

China has 2 aircraft carriers. One is a patched up Soviet era cast-off, and the second is based off of it. They run on diesel for crying out loud.

Meanwhile, the USA has more aircraft carriers than the rest of the world COMBINED. Not only that, but they are infinitely more advanced. A Chinese crapbox carrier going up against a twin nuke Ford class US carrier armed with lasers and rail guns would be like a cave man armed with a shin bone going up against an M1 Abrams.

If you want to learn Chinese, by all means go ahead, it might be fun. But it sure won’t be a requirement for you, or your great, great grandkids either for that matter.

This is why walking the walk and innovating is so important. The minute you can’t steal your technology from some country that learned through innovation, you find yourself stuck 5 decades behind everyone else.

China can’t project power outside starting a global nuclear Holocaust. Frankly, I’d expect half their ICBM’s to fall into the Pacific due to engine failure if they did. The best China can do is be a local bully, and if they’ve got any brains at all, they will steer well clear of any Nation backed by the USA.

#52 Sail Away on 01.15.21 at 4:10 pm

#43 Faron on 01.15.21 at 3:52 pm

So, to be clear, you are advising me that advising holds one back. Got it. It’s also funny that you appear to have trolled me on a day where your stonks are riding the struggle bus. I hope expressing your overall gains has made you feel better.

————-

Follow my lead, young man, and you may someday reach financial independence, self-fulfillment, and perhaps even a measure of fame.

Advice: Never advise someone who has just clearly and definitively beaten you. It smacks of insecurity, and many times, you can actually learn from their winning actions. Avoid hubris and intolerance. Embrace inclusivity.

You’re welcome.

#53 twofatcats on 01.15.21 at 4:10 pm

Even places like this are selling within days for over asking:

https://www.zolo.ca/welland-real-estate/175-burgar-street

#54 Drinking on 01.15.21 at 4:15 pm

#44 N

Property taxes will go uppa,uppa,uppa, as well as all other services, never mind insurance. Municipalities are desperate for that last buck they can squeeze out of you.

Federally, I can see what Garth mentioned; probably sooner rather then later!

#55 MF on 01.15.21 at 4:16 pm

Get rid of principle residence exemption. Tax it.

House price gains have been 100% artificial (manipulated interest rates is all that matters to that market).

None of the gains are deserved. The housing market is an out of control freight train.

MF

#56 Doug in London on 01.15.21 at 4:17 pm

@Lee, post #34:
The share price will drop, and then it will be time to buy more. Remember eons ago when real estate was considered a long term investment.

@JSS, post #35:
Yes, it seems so long ago now. Say, was Cleopatra still Queen of Egypt in those long gone days?

#57 Stone on 01.15.21 at 4:22 pm

#33 Howard on 01.15.21 at 3:33 pm
That skimmed about $90 million in 2019 and was designed to increase rental stock (didn’t happen) and depress house prices (definitely did not occur). That tax is blatantly racist, of course, sitting at 2% of a property’s value annually for non-residents of Canada (especially you-know-where)

——————————–

By this logic, it is also racist that the government of Canada doesn’t offer free healthcare to non-citizens/PR.

You need a logic lesson. – Garth

———

Actually, it isn’t racist. We’re one race. Duh!

2021 and there are still those who believe we are multiple races. Answer me this: if we were multiple races, how can we interbreed? We may have different pigmentation on the outside but we’re all the same inside.

Anyways, there’s nothing wrong with a standard for residents and another for non-residents or even just citizens.

Only citizens get to vote. Are you telling me that’s racist/unjust?

#58 Popeye the Sailorman on 01.15.21 at 4:23 pm

The Government has to be carful implementing capital gains at the peek of the market otherwise taxpayers may end up covering a capital loss when prices dip when rates go back up or inventory balloons later.

I know what I would do once capital gains are implemented I would look for the best (highest) assessment I could get on or before it comes in effect.

This will Minimize any gains and increase any loss provisions later when I sell my family home.

#59 Faron on 01.15.21 at 4:24 pm

Ustabe

I think these are the sturdy conservatives you seek:

https://nationalpost.com/news/world/viking-guy-granted-all-organic-diet-in-custody-after-judge-learns-hes-not-eating

Poor fella. Maybe not the conservatives we need, but they are the conservatives we deserve.

#60 Brian Ripley on 01.15.21 at 4:32 pm

With respect to unrestricted travel, this is how community spread happens in a global pandemic. We have repeatedly allowed travel to continue in one form or another throughout 2020 and now we have more dangerous variants of Covid 19 seeping into our communities. We live in a world that is in most locations not well prepared for the eventual peaks in ICU demand. If we do not restrain ourselves from close contact with others in and outside our immediate communities, this global pandemic will be with us for much longer than any rosy forecast we are hearing today.

Professor Devi Sridhar, chair of global public health at the University of Edinburgh, said Friday (today) that the world had become “the virus’s playground to mutate and evolve, (especially) in countries which have allowed higher prevalence.” Quote Source: https://www.cnbc.com/2021/01/15/brazil-a-new-covid-variant-has-been-discovered-heres-what-we-know-so-far.html

On my post above: #37 Brian Ripley on 01.15.21 at 3:44 pm
…if you look on my HouseHold Debt chart page at the bottom, there is a Google search chart showing the difference between searches for FX in CAD and MXN

Notice that FX searches in April 2020 spiked and searches for MXN remained much higher than those for CAD. I suspect that a lot of people were setting up their Mexican vacations for 4Q 2020 or 1Q 2021.

MXN searches are still today 52% higher than CAD searches. Here is the search link: http://www.chpc.biz/household-debt.html#Google

#61 Different times on 01.15.21 at 4:47 pm

#30 rook
I hear more and more young people talking the same way. They will have something the boomers didn’t have though. Freedom
Remember, what you think you own – owns you.

#62 Regjeg on 01.15.21 at 4:51 pm

Re # 3 Cottagers STHA

READING YOU LOUD AND CLEAR!

DON’T WORRY!

I HAVE NO DESIRE TO GO ANYWHERE NEAR YOU!

#63 mike from mtl on 01.15.21 at 4:51 pm

#42 Drinking on 01.15.21 at 3:52 pm

Did your scientist friend mention that the real issue is not so much people travelling from one province to another; most are responsible about it; it is the international flights as well as all those that snub their noses and take those sunny vacations.
///////////////////////////////////////////////////////////

Agreed. I highly doubt potbellied Quebecois boomers are flocking to Banff.

There’s 2 large international YYZ YVR airports which today have hundreds of flights per day. Of course much less than 2019 but not exactly zero. The staffing there are not robots, they have to live in the community. Yes a degree of preventive measures are in place but nothing is 100%. The quarantine totally is on good faith of an individual, yeah airtight.

Our land border to the USA is not as closed as your being told.

Basically the majority of East Asia is off limits to any travel, much more restrictive or outright ban than anything in NA or EU. Even still back in May they already had a negative test as an entry requirement, huge deterrent.

Of all the EU, England has the least restrictive entry requirements so stands to reason they’re in a bind.

Do I think that’s all the problem, no. But it does not help and another vector undermining the local populations’ efforts.

#64 baloney Sandwitch on 01.15.21 at 4:51 pm

I don’t think I have paid much, capital gains as you can write off losses and there are always losses. Also if you borrow money to invest you can deduct the interest.
Disallowing cap gains on principal residences would be suicidal for the government as so much of the economy depends on housing. A better option may be a wealth tax – i.e., 0.1% of your total wealth taxed every year. Anything undeclared is subject to confiscation. Anything under-declared subject to forced sale to the state at 25% premium.

#65 Linda on 01.15.21 at 4:53 pm

Why should housing not be taxed? Well first, it already is as outlined in today’s post. The ‘capital gains’ on the principal residence taxation meme would need to have some kind of quid pro quo. Like in the USA, where gains are taxed but mortgage interest can be written off. I’ll note that the USA house affordability ratio is much greater than here. Yes, they have 9 times our population but that alone does not suffice to explain the insane pricing here vs. there.

Also, how would allowing government to tax housing increase housing affordability? Is the idea to tax home owners to the point where everyone bails on ownership, flooding the market which should bring down prices? Except according to demographics, there are more Millennials, Gen X,Y,Z etc. than Boomers. So even if every Boomer sold tomorrow, the number of potential buyers would still exceed the inventory. Since apparently no one wants to rent but everyone wants to own.

More on the capital gains taxation front. If the government only collects upon the sale of a property, the Boomers have even less reason to sell so inventory doesn’t exceed demand. Prices still stay high in desired locations. Then there is the little wrinkle that not a few Boomer owners have but one asset they can tap for retirement & that is the equity in their home if they own one in the first place. So what could they do to avoid the tax? Reverse mortgage! Yes, let’s punish all homeowners with either having to fork over ever increasing chunks of tax or drive them into the arms of the moneylenders. What an excellent idea!

#66 Penny Henny on 01.15.21 at 4:55 pm

#46 Bezengy on 01.15.21 at 3:58 pm
Time for Torontonian’s to pay up.

Here’s another Toronto house worth 2,388 million. Toronto’s own tax calculator says they should be paying $14,300 per year yet they pay only 33 % of that being $4700 per annum. Meanwhile John Tory says other taxpayers should anti another 900 million. Unbelievable.

https://www.realtor.ca/real-estate/22724726/13-durie-st-toronto-high-park-swansea

btw….taxes on that house in Timmins would be $44k per annum.
///////////

Just an FYI.
That house in the link is a new build and that $4700/yr tax is based on what was torn down to build this new house. Once it is assessed taxes will be around $10k/yr

#67 Lorne on 01.15.21 at 4:56 pm

“That tax is blatantly racist, of course, sitting at 2% of a property’s value annually for non-residents of Canada (especially you-know-where), ”
……
How does this make it racist if an American, German, Iranian or even Chinese citizen decides they would like to buy property in Canada? They are all charged the 2%…seems pretty fair.

#68 DON on 01.15.21 at 4:57 pm

#42 Drinking on 01.15.21 at 3:52 pm
#4 yvr_lurker

Did your scientist friend mention that the real issue is not so much people travelling from one province to another; most are responsible about it; it is the international flights as well as all those that snub their noses and take those sunny vacations. CBC reported (I know, CBC) 1500 flights out of Canada to sunny locations. Many to Mexico; Mexico is in a complete crisis with this virus. They added almost 16500 cases today alone; there are almost 138,000 that have perished in that country and yet so many fly there; makes no sense.

There are plenty of B.C. and Sask plates in Alberta; we do not have an issue with it for the fact that most are responsible.

To back up my Mexican numbers here is a link!

https://www.worldometers.info/coronavirus/#countries
************************

Below, combined with public pressure is forcing Premier Horgan to get a legal opinion on the matter.

Also the former corrupt governing party is trying to play silly bugger politics…much like Trump.

https://www.cbc.ca/news/canada/british-columbia/bc-whistler-travel-covid-19-1.5870771

As for the spec tax also bought in by former gov due to public pressure and it has been tweaked.

#69 WTF on 01.15.21 at 4:57 pm

Feel soooo much better now that PM Fiscal Incompetence has spoken

https://www.bnnbloomberg.ca/trudeau-tells-freeland-to-avoid-any-new-permanent-spending-1.1549350

Note to PM Zoolander, the horse already left the barn……you opened the door, remember?

#70 Penny Henny on 01.15.21 at 5:04 pm

#51 crowdedelevatorfartz on 01.15.21 at 4:06 pm
@#197 Paper Tiger
“following your logic:
bad government from before= bad government now.
bad policy from before=bad policy now.
how far do you want to go back then?”

++++
How far back….
This week in Hong Kong?

https://www.scmp.com/news/hong-kong/politics/article/3117649/national-security-police-arrest-lawyer-and-10-others

Or the author who wrote salacious gossip about fearless leader Xi and was mysteriously grabbed by Mainland Chinese security and appeared in Mainland China weeks later facing serious state charges….?

https://www.nytimes.com/2020/02/25/world/asia/gui-minhai-china-hong-kong-swedish-bookseller.html

I just want to know one thing…….

Will you wear a Winnie the Pooh sweater for one week the next time you visit Beijing?
///////////////

Hey Fartzy,
papertiger is just trying to build up points on China’s social credit system so he will be able to roam about, otherwise he will be locked up in an apartment.
Hey papertiger don’t forget to the bow to the posters of great leader, they’re watching you

#71 -=withwings=- on 01.15.21 at 5:04 pm

Based on what was said on yesterday’s blog, “you know who” doesn’t even let its own citizens own property.

Foreigners can buy property after living ‘over there’ for one year. The prevents the flippers and speculators and seems like a reasonable approach. Source: ex pat friends who own their condos there.

Locals have restrictions in big cities to prevent flipping, you need as residency permit, etc but everyone owns their unit. You get a mortgage, you buy a place, just like here.


It bothers me that I have to choose between renting forever (and never having equity but what I invest) or leverage myself to the eyeballs to maybe own a piece of dirt in 25 years.

Why does it bother you if the rent is about the same as the mortgage+property tax?


The best China can do is be a local bully, and if they’ve got any brains at all, they will steer well clear of any Nation backed by the USA.

China is a bully in Africa, South America, Canada and the USA. Oh, and Europe. They can do whatever they want, especially under recent US ‘leadership’ that let them do whatever they want. In 20 years they will replace USA as the global power. They do it by buying influence with cash. No army needed. It can’t be stopped at this point. The only US response is nuclear or an invasion using their now useless military.

#72 IHCTD9 on 01.15.21 at 5:08 pm

#44 N on 01.15.21 at 3:53 pm

Feel bad for the folks that work hard and take risks to get a measly 7% return. Folks would have been way better off either gambling or taking a mortgage.
—————-

Don’t feel bad, I did both. The investments are going to win the long game, and that’s the only one that counts. When I’m retired, the house won’t pay me diddly.

#73 neo on 01.15.21 at 5:10 pm

#25 CJohnC on 01.15.21 at 3:18 pm
Self quarantine doesn’t work. People are selfish and these days seem to be only focused on “me, me,me….want want want”. The only quarantine that works is in military run quarantine centers…mandatory. Even Australia found that out.

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

Australia found out the same thing we did. The virus goes away when the weather warms up.

There second wave and lockdown was end of June to the end of August. That is their winter.

#74 walltiger on 01.15.21 at 5:10 pm

#51

I fully support HK police napping these traitors and terrorist supporters.

when I visit Beijing, or anywhere else in the world, I wear a Canadian maple leaf hat from Roots. Its a conversation starter and I get better treatment, usually.

And since you mentioned HK, take a look at this.

https://www.youtube.com/watch?v=hv3H9PNw4eQ

#75 Penny Henny on 01.15.21 at 5:11 pm

#54 twofatcats on 01.15.21 at 4:10 pm
Even places like this are selling within days for over asking:

https://www.zolo.ca/welland-real-estate/175-burgar-street
///////////////

Well you are right it Finally has sold but be aware it’s been offered up about a dozen times since 2017.
From Housesigma it sold last Sept for 230 and now flipped for 270

#76 walltiger on 01.15.21 at 5:15 pm

#72 Penny Honey

“papertiger is just trying to build up points on China’s social credit system so he will be able to roam about, otherwise he will be locked up in an apartment.
Hey papertiger don’t forget to the bow to the posters of great leader, they’re watching you”

you are so smart!

#77 Ken R on 01.15.21 at 5:15 pm

With the demise of small business and their contribution to local taxes, I would expect some surprises in property taxes for the next number of years. Local governments will look to homeowners as the solution to the funding shortfall. Property taxes are on the rise.

#78 yet another joke on 01.15.21 at 5:17 pm

Same question: why is one gain taxed and the other not? – Garth
_______________________________________

because home owners can’t write off expenses, interest costs, insurance, maintenance, depreciation, etc etc.

if you’re buying homes, renovating them , pretending to live there for a year (like my neighbour this year) and sell them tax free, that’s wrong. that’s a business. they do that over and over and it should be considered income. 100% taxable. records will show how many addresses one has lived at. easy enough to see.

if i am in my house for 40 years, and you want to tax my gains, fine. let me write off my costs.

#79 To the point. on 01.15.21 at 5:17 pm

“Comrade Premier Horgan is trying to seal off BC from visitors anywhere in Canada because of the virus, raising the question of why anyone would want to invest there”

Oh please Garth – get off the hobby horse about “Comrade” Horgan. Any other province would be happy to be in BC’s financial situation. Any other premier would kill to have John Horgan’s popular and electoral support. Any other large province would be better off to have British Columbia’s Covid infection rate, hospitalization rate or death rate.

I thought this blog was based on fact not prejudice.

#80 Faron on 01.15.21 at 5:19 pm

#53 Sail Away on 01.15.21 at 4:10 pm

#43 Faron on 01.15.21 at 3:52 pm

learn from their winning actions

Sorry for the bickering Garth, but I think this thread is relevant on a blog that promotes B+D investing.

Sail Away, by learning from you, do you mean a person like myself who doesn’t hold the assets to risk single stock ownership in any kind of scale should have YOLOed a big chunk of my retirement funds on a quasi fraudulent, fanboy plumped bubble stock — i.e. TSLA? Okay…

It’s obvious that you really want to tell people how well you did since the March low. Maybe just lay it out in $$$ terms so we can all be amazed. Seriously, why not? We get it. Congrats.

In case it’s not clear: I hold the bulk of my savings in a robo advised B+D portfolio. Any talk here of indiv stocks or sector ETFs are things I play at a very small scale for entertainment purposes only. It’s called risk management.

And w/re winning. That’s the hilarious thing about equities. People think they are really accomplishing something (winning) by dumping their dollars into some investment, sitting on their arse, and then reaping profit. It’s insane and hardly winning in my book. But I don’t judge winning or losing by the size of my port even if I get caught up in the greed now and then.

You seem bored today. I advise you to go for a walk. I’ll take my own advice now…

#81 Regjeg on 01.15.21 at 5:22 pm

Tax cap gains on PRs.

Rebate cap losses on PRs.

Use a sliding scale in both scenarios.

#82 IHCTD9 on 01.15.21 at 5:22 pm

#48 Faron on 01.15.21 at 4:00 pm
#21 IHCTD9 on 01.15.21 at 3:09 pm

I’d get behind a PR tax scheme something like this:

1-3 years ownership- 100% cgt
4-6 years ownership – 50% cgt
7-10 years ownership- 10% cgt
11+ years ownership – 0% cgt

Tweak it till it kills buying homes for profit.

Yep, I agree. Any kind of flipping should be taxed hard.

One thing. There will be a subset of the short term owners who had to move for work, family or whatever. They should be protected from said tax somehow.
——-

I disagree, even though you are correct that there will be some collateral damage. Folks will just have to be more careful about buying a house. Got concerns about maybe having to move? Rent. The minute you start trying to protect 5% of buyers, you open up loopholes that could undermine the whole scheme.

Government isn’t smart enough to manage stuff like this. Make it ham-fisted, build it like an old track layer, then it’ll be reliable, and get the job done.

#83 crowdedelevatorfartz on 01.15.21 at 5:23 pm

@#52 IHCTD
“Meanwhile, the USA has more aircraft carriers than the rest of the world COMBINED. ”

++++

Unfortunately.
Aircraft Carriers were state of the art tech 75 years ago.
Still usefull when enforcing embargoes against 3rd world dictatorships.
1st World dictatorships?
A whole different ball game

Todays Satellites, GPS, laser targeting …. Pffft.

They cant get within 1000 miles of China before they are sunk.

https://www.reuters.com/article/us-usa-china-missiles-specialreport-idUSKBN22I16W

It takes 7 YEARS to build a carrier and it could be sunk in 7 minutes….

Old tech.

#84 Drinking on 01.15.21 at 5:25 pm

#65 mike from mtl

lol,well I have noticed a few Quebec plates here in Cowtown; never noticed if they were potbellied or not. :)

As I mentioned, I trust Canadians, if they wish to travel within Canada then I expect most are doing all that they can safety wise. There are always a few exceptions that the media tend to focus on.

I agree with you and look at the mess Britain is in; they are an Island. They are a strong headed bunch but it is not helping there cause.

International flights is the largest contributor to this pandemic; unfortunately the cat is out of the bag and now countless responsible others will suffer for it. It makes me so angry when almost a year ago we were all screaming shut down international flights. Sigh!!!

#85 Dolce Vita on 01.15.21 at 5:28 pm

#21 IHCTD9, #48 Faron

Seems reasonable.

But right now RE one of the few GDP Sectors that has grown in the past year.

Bite the hand feeds the economy right now? Don’t now.

One thing for sure that tax scheme will reveal how much of that Sector are people just trying to buy a home to live in vs. those speculating on a home.

——————

#53 Sail Away

Ego. Hubris.

From someone that can’t admit he doesn’t understand a Sinking Fund calculation where even I gave up trying to explain it to the financial wizard that he is, maybe of Oz (not your Oz Flop, the Dorothy one).

“…even a measure of fame.”

He self-proclaims (from the BC hinterland forest primeval about to become its own Duchy).

Big fish, small pond? ‘Dunno.

Big ego, oh ya.

#86 Reality is stark on 01.15.21 at 5:29 pm

Finally an article addressing reality.
Expect massive increases in property taxes.
THEY NEED TO DOUBLE IN 5 YEARS.
GET YOUR HEADS OUT OF THE SAND.
This is a socialist government that thrives on tax revenue!
It is all and only about taxes. More taxes!
SO START TO PAY GODDAMMIT!!!!!!

#87 KLNR on 01.15.21 at 5:31 pm

@#46 Bezengy on 01.15.21 at 3:58 pm
Time for Torontonian’s to pay up.

Here’s another Toronto house worth 2,388 million. Toronto’s own tax calculator says they should be paying $14,300 per year yet they pay only 33 % of that being $4700 per annum. Meanwhile John Tory says other taxpayers should anti another 900 million. Unbelievable.

https://www.realtor.ca/real-estate/22724726/13-durie-st-toronto-high-park-swansea

btw….taxes on that house in Timmins would be $44k per annum.

thats the tax bill for the old house that was there.
rest assured the new owners are paying the 14k.

#88 Bezengy on 01.15.21 at 5:31 pm

#68 Henny Penny

– – – – – – –

How about this one then. They get a 50 % discount. Even more disgusting to me is how your city council can see fit not to charge existing homeowners the proper amount of tax yet “zap” the kids on their first home.

https://www.realtor.ca/real-estate/22696597/125-sorauren-ave-toronto-roncesvalles

btw….Why wouldn’t the home owner of my last example just pay the $14k owning and not the $10 k you suggest, representing a 30% discount?

#89 George S on 01.15.21 at 5:34 pm

#59 Stone said:
“Actually, it isn’t racist. We’re one race. Duh!

2021 and there are still those who believe we are multiple races. Answer me this: if we were multiple races, how can we interbreed? We may have different pigmentation on the outside but we’re all the same inside.”

You weren’t paying attention in your high school biology class. Race is not the same as species. There are many species of things that have different races that can interbreed. Usually the different races of a species result from geographical separation of groups of individuals that over multiple generations acquire adaptations that are within the genetic variability of the species that make it easier for the members of that group to survive. There are also many species that can interbreed, their offspring may be screwed up in some way but they can still interbreed.

It seems to me that bitcoin is a Ponzi scheme or similar, and people are going to get F-ed big time one of these days. Am I missing something? How is it even possible that a single transaction can use as much electricity as the average house uses in one month and people find it acceptable? Again, am I missing something, or has everyone gone crazy?

If you are feeling bad or in a bad mood because of all the nonsense in the news, a good cure is to take a dog for a walk to the off leash dog park. They are so happy that it rubs off on you. There is nothing like watching dogs play and have fun to brighten your day. My son’s dog is such a happy, joyfull dog it just makes my day.

#90 Stoph on 01.15.21 at 5:37 pm

#48 Faron on 01.15.21 at 4:00 pm
#21 IHCTD9 on 01.15.21 at 3:09 pm

I’d get behind a PR tax scheme something like this:

1-3 years ownership- 100% cgt
4-6 years ownership – 50% cgt
7-10 years ownership- 10% cgt
11+ years ownership – 0% cgt

Tweak it till it kills buying homes for profit.

Yep, I agree. Any kind of flipping should be taxed hard.

One thing. There will be a subset of the short term owners who had to move for work, family or whatever. They should be protected from said tax somehow.

—————————————————————-

I have not doubt that governments will find more ways to get money out of RE.

Ideologically, I think it’s fair that people should be able to sell a property, move and buy a new property without being taxed through the nose and having to pay the equivalent of multiple years of salary to do so. People don’t make lateral moves however, instead they climb the property ladder, so the profits from the previous sale are the down payment of the next purchase; combined with low interest rates and leverage the rising market allows for people to further bid up prices.

I agree that it doesn’t make sense that people should be able to flip primary residences without paying tax on the profit.

#91 45north on 01.15.21 at 5:38 pm

Insane. It’s the word du jour. This aptly describes real estate in cities like Toronto, Vancouver, Victoria and all of the bubbly burbs and hot hick towns in their watersheds. Prices are insane. Buyers are insane. Bidding wars insane. And, of course, mortgage rates are pure insanity.

people try to avoid insanity. first identify, then avoid.

#92 Steve French on 01.15.21 at 5:41 pm

#146 Comments! from Yesterday
——————————–

Respectfully Steve, you may want yo do some research and see how the citizens were treated in these democratic nations by police and public officials as they “eliminated Covid”. Terrifying to say the least.

LOL– yes it’s really terrible here down here in Australia! What with our lack of Covid, I can go shopping to the mall, to the movies, to the swimming pool, to dinner, to the pub… anywhere i want to really. Just like it was 2019!

And .. what…900 total deaths in Australia from Covid since March.

Yep eliminating Covid has been a real mistake…it’s a real dystopian totalitarian nightmare Down Under OMG!!

And our economy—- it’s… it’s… ticking alone quite nicely thank you.

But yes please save us Aussies from this living hell, all you Canadian freedumb-loving anti-maskers!!!

ppfffftttttt… I really do not understand why you North American anti-maskers seem to love spreading around disease so much?

Get a grip!

#93 Damifino on 01.15.21 at 5:42 pm

#44 N

Since many are heavily indebted, this problem is now too-big-to-fail. That’s why politicians will never muster the courage to increase property taxes.
————————————–

Then please explain why, for the last few years, the CRA asks on you tax return if you’ve bought or sold any real estate in the previous tax year.

Who wants to know? Are they just snoopy?

#94 Dolce Vita on 01.15.21 at 5:42 pm

#37 Brian Ripley

Good Comment.

Concur with your conclusion but add this that those that can do what you say are few and they are getting wealthy from the flight of capital invested elsewhere while the majority are not.

The debt numbers bear witness to a population, on balance, in hock trying to maintain a standard of living that is just not supported by the economy.

Also, your personal net worth calculations in the past weeks or so bear witness to that.

If the 10 year trend keeps up + the Pandemic rages on, it will ruin an economy that can and has done very well for its populace (in hock, but not bankrupt – able to pay their debt and have some loose change left over).

I give it less than a year. It won’t be just Canada.

#95 Drinking on 01.15.21 at 5:47 pm

#70 DON

Regarding your link one of the quotes said: “I would say the majority of patients that came to the clinic between Christmas and New Year were not Whistlerites. The majority were from the Lower Mainland,” Gareau said.

So now what? Ban Vancouverites from skiing at Whistler/Blackcomb. What do you say about that Horgan??? Ban, those bad Albertan’s,lol!!!

#96 Fred on 01.15.21 at 5:47 pm

Anybody been to Toronto of late ?

Omg the number of closed businesses is incredible!

This won’t heal for a long time . Writing Is on the wall for Ford . What a disaster

#97 Barb on 01.15.21 at 5:48 pm

#4 yvr_lurker on 01.15.21 at 2:23 pm

“It has nothing to do with wanting to kill investment etc…”

————————–
He didn’t say Comrade Horgan did!

#98 Ponzius Pilatus on 01.15.21 at 5:49 pm

#52 IHTc
Weep you asked for it.
Typical cold war thinking from a hick in the sticks.
What are the Americans gonna do?
Bomb the shit out of the whole world.
Remember mutually assured distruction.
Anyway, my daughter is already 3/4 through her UBC Chinese course.
I speak some basic and my wife is fluent.

#99 Dolce Vita on 01.15.21 at 5:51 pm

#70 DON

I don’t disagree with you, for the most part I agree.

I say let them travel. If Mother Nature thinks they need cleansing from the genome, as in the self-indulgent, reckless to most, then so be it she will act accordingly.

If Mother Nature wants them smited, she will find a way and her latest Covid variants might just be the ticket.

Leave them (self-indulgent) alone I say. Let Mother Nature to do what she does best:

Naturally Select.

—————–

People like yourself and others care and take precautions, then again, who knows? Maybe Mother Nature doesn’t like people that play it safe.

Luck of the draw is what is.

Tempt fate or not.

While find out soon enough with the glacial pace of vaxing Worldwide.

#100 Ponzius Pilatus on 01.15.21 at 5:51 pm

Trump finally got his wall.
Unfortunately, it’s around Washington.

#101 Dave on 01.15.21 at 5:56 pm

Garth
you are the only one who denies foreign speculation in BC Real Estate. Are you really that clueless or are you afraid of offending a certain cohort?

I’m a numbers guy. The stats have shown B.C. markets are dominated by locals, who set the prices. But I will agree, it’s a province full of hate and envy. – Garth

#102 bob on 01.15.21 at 5:57 pm

Garth, can you explain to me why printing money doesn’t lead to hyperinflation?

I would argue that due to real world constraints, things like CPI will not go berserk

But asset prices, like houses and equities, will go up in value. In other words, it isn’t just low interest rates that are causing price appreciation.

The money printed and handed up eventually (already has) move into stock markets, makes wealthy people richer, and allows them to buy more expensive housing.

In short, like you have mentioned before, printing money is a tax on savers and a boon for investors.

#103 Ponzius Pilatus on 01.15.21 at 6:05 pm

Once this is over, we’re planning a trip to China.
Gotta check out these concentration camps up north.
I’ll report back with pictures.

#104 Fred on 01.15.21 at 6:05 pm

…been reading for awhile without commenting but I gotta weigh in on this one. Its not ‘real estate’ that gets a free pass, its home ownership, and rightly so.!. I agree that some take advantage, gotta close those loopholes. Yes Insane real estate prices, I’m from the day of 15% mortgages. Money has never been so cheap but watch out when rates rise and they will!!! unfortunately many will be crushed by debt load…

#105 jess on 01.15.21 at 6:06 pm

The group said it plans to leave New York and reincorporate as a Texas nonprofit, in an move it is calling “Project Freedom.”

Attorney General James charges the organization with illegal conduct because of their diversion of millions of dollars away from the charitable mission of the organization for personal use by senior leadership,” a press release from James’ office reads.

==================

As vaccinations continue across the U.S., some companies are offering financial incentives to encourage their workers to get the shots.

plan to pay workers extra if they get vaccinated.

In-person college classes led to a surge of COVID-19 infections. Those communities now brace for spring semester

=================
https://www.dailymail.co.uk/news/fb-8193513/MEET-PETER-NAVARRO-ECONOMIST-AMAZON-JARED-KUSHNER.html

Who is Ron Vara? He only seems to exist in the books of Peter Navarro

#106 Howard on 01.15.21 at 6:06 pm

#73 -=withwings=- on 01.15.21 at 5:04 pm

China is a bully in Africa, South America, Canada and the USA. Oh, and Europe. They can do whatever they want, especially under recent US ‘leadership’ that let them do whatever they want. In 20 years they will replace USA as the global power. They do it by buying influence with cash. No army needed. It can’t be stopped at this point. The only US response is nuclear or an invasion using their now useless military.

————————————-

Yeah good luck with that.

China’s working age population peaked a decade ago and is getting old before getting rich (per capita). 40 million “bare branch” young males will be a constant source of instability for decades to come. China depends on the American-led order to protect ocean trade routes. Japan is Asia’s naval power and a staunch Taiwan ally and will keep China trapped in the South China and East China seas. It has unreliable agriculture and no energy resources. The government is propping up history’s biggest housing bubble and it’s been holding so far but trees don’t grow to the sky. Just imagine the mayhem to unfold when that gasbag blows up.

There’s also the matter that previous global powers exported cultural ideals that were eagerly received abroad, and this was a big factor in their success. There is no indication of anyone outside of China having much interest in modern Chinese popular culture.

In short, never bet against America.

#107 Penny Henny on 01.15.21 at 6:06 pm

#78 walltiger on 01.15.21 at 5:15 pm
#72 Penny Honey

“papertiger is just trying to build up points on China’s social credit system so he will be able to roam about, otherwise he will be locked up in an apartment.
Hey papertiger don’t forget to the bow to the posters of great leader, they’re watching you”

you are so smart!
/////////

Gracias

#108 weiners on 01.15.21 at 6:07 pm

I really hope that the current federal government announces the taxing of capital gains from principal residences, either in an upcoming budget or as part of a platform in an upcoming election. Given that some 8.5 million out of 12.4 million households in Canada own real estate, according to Statistics Canada, such a move would be political suicide for the current government. Just as well…..

The way to lower the price of homes or to stabilize the price of homes is to make more of them. In most of our major cities, we have a supply problem, both in terms of owned and rental properties. Demand has outstripped supply. This housing shortage limits people’s choices to one of affordability.

Most of the problem lies at the local level. Ask municipal leaders to get creative by relaxing density restrictions on housing in areas where it makes sense. Loosen the municipal red tape for builders and responsible developers to allow them to bring these units faster to market. Give people more choice in where and how to live. Taxing gains on principal residences doesn’t solve the problem.

#109 Penny Henny on 01.15.21 at 6:15 pm

#90 Bezengy on 01.15.21 at 5:31 pm
#68 Henny Penny

– – – – – – –

How about this one then. They get a 50 % discount. Even more disgusting to me is how your city council can see fit not to charge existing homeowners the proper amount of tax yet “zap” the kids on their first home.

https://www.realtor.ca/real-estate/22696597/125-sorauren-ave-toronto-roncesvalles

////////////////

Not disagreeing with you but if that is someone’s first home for 3.3 mil then they are doing alright in my book and don’t need my help

#110 Leftover on 01.15.21 at 6:17 pm

#67 Linda

“how would allowing government to tax housing increase housing affordability?”
_____________________________________________

It goes something like this – if an investor can realize 100 cents on the dollar on an investment rather than 75 cents on another investment with the same risk, then they are willing to spend 33% more on the first investment.

That’s what’s happened to housing and if the playing field were leveled, including interest deductibility, then an economist would expect the price of the first investment to fall by 33%.

I know, economists are pea-brains, but that’s the theory.

#111 Linda on 01.15.21 at 6:22 pm

Was speaking (at a socially safe distance!) to a neighbor just now. Their son is friends with a young couple in Sudbury, who have been trying to buy a house there as a baby is on the way. Found a place that suited for $289K, put in a bid for $325K. Someone from Toronto bid $450K, sight unseen. The craziness continues, even in such hotbeds of housing desirability as Sudbury!

#112 CJohnC on 01.15.21 at 6:28 pm

For what it is worth: in the last 15 days confirmed COVID-19 cases

International flights to Canada = 207 To Vancouver = 25
Domestic = 169. To Vancouver = 55
https://www.canada.ca/en/public-health/services/diseases/2019-novel-coronavirus-infection/latest-travel-health-advice/exposure-flights-cruise-ships-mass-gatherings.html#wb-auto-5

Not small numbers

#113 Sail Away on 01.15.21 at 6:31 pm

#87 Dolce Vita on 01.15.21 at 5:28 pm

#53 Sail Away

Ego. Hubris.

From someone that can’t admit he doesn’t understand a Sinking Fund calculation where even I gave up trying to explain it to the financial wizard that he is

————-

???

DV, your numbers were just wrong. We (6 of us, by my count) attempted to point this out.

Not hubris, just accuracy.

#114 Freedom First on 01.15.21 at 6:35 pm

Beam me up Scotty. Looks like the planet “Earth” is finished. Time to classify “Earth” a “NO GO ZONE”.

Freedom First

#115 KLNR on 01.15.21 at 6:36 pm

@#98 Fred on 01.15.21 at 5:47 pm
Anybody been to Toronto of late ?

Omg the number of closed businesses is incredible!

This won’t heal for a long time . Writing Is on the wall for Ford . What a disaster

Never was a ford fan but the guys stuck between a rock and a hard place right now. If the idiots would just listen and stay home we’d all be better for it.

the second covid retreats TO business will be booming.
there will be so much pent up demand it’d be a great time to open up shop.

prepare!

#116 Sail Away on 01.15.21 at 6:37 pm

#82 Faron on 01.15.21 at 5:19 pm

It’s obvious that you really want to tell people how well you did since the March low. We get it. Congrats.

————-

Awww…. thanks!

#117 Rainman on 01.15.21 at 6:40 pm

Hey Garth – I have no problem if houses were taxed like stocks. As long as you can write off interest paid and a loss if that occurs. Sure. I’m sure you agree.

#118 Cow Man on 01.15.21 at 6:41 pm

New Zealand stopped, you know who from buying property their after realizing there would be no property left for New Zealand citizens. That is not racist it is realist. Just to the math on the population of Canada or New Zealand and you know whose country.

NZ – 268,000 sq km. Canada – 10,000,000 sq km. – Garth

#119 efficientsense on 01.15.21 at 6:43 pm

I agree. Pay cap gains on PR sales. Sellers are making off like bandits. I don’t plan on buying/selling RE any more and my kids won’t be able to afford RE anyway.

#120 Rico on 01.15.21 at 6:46 pm

The “numbers” disagree with you, Garth.

“In 2018, foreign owners accounted for 4,575 speculation taxpayers — a figure that dropped dramatically in 2019 to 2,104 as owners sold the properties or found tenants.”

It is not a racist tax since it nails Canadians more than foreigners.
Speculation on non-rental residential real estate is a real problem – hence the $90M.
The spec tax freed up 11,000 odd rentals before the pandemic.
Vancouver house prices rose slower than Toronto after the spec tax was introduced when it has always risen faster before.
No tax is going to offset ~0% interest rates when valuing hard assets, but it doesn’t mean it has no effect.

If you don’t speculate on real estate you don’t pay any of the tax. It is a specifically fair and viable way to control speculation.

How could a government media release possibly be misleading? – Garth

#121 Yukon Elvis on 01.15.21 at 6:46 pm

#85 crowdedelevatorfartz on 01.15.21 at 5:23 pm

Aircraft Carriers were state of the art tech 75 years ago.
Still usefull when enforcing embargoes against 3rd world dictatorships.
1st World dictatorships?
A whole different ball game

Todays Satellites, GPS, laser targeting …. Pffft.

They cant get within 1000 miles of China before they are sunk.

https://www.reuters.com/article/us-usa-china-missiles-specialreport-idUSKBN22I16W

It takes 7 YEARS to build a carrier and it could be sunk in 7 minutes….

Old tech.
……………………………………….

What do you think would happen to the somebody who happened to sink one? Didn’t work out well for Japan. Safest ship on the water.

#122 Do we have all the facts on 01.15.21 at 6:49 pm

The way our Federal government is operating these days taxation of capital gains on a principal residence will not be implemented until prices begin to fall and households are allowed to deduct any loss of equity from taxable income.

As interest rates rise and carrying charges increase (as they eventually will) the 14,000,000 households that own their home would be allowed to deduct increasing costs from their taxable income each year as well as any loss of equity when their home is sold.

Treating a principal residence like other capital assets will only generate taxation revenue if residences continue to increase in value each year.

Timing for implementation of a change in capital gains taxation seems out of sync with where the future value of Canadian homes appears to be headed.

Would anyone like to buy some nice tulip bulbs?

#123 Suffering Succotash on 01.15.21 at 6:57 pm

“You may have also heard Comrade Premier Horgan is trying to seal off BC from visitors anywhere in Canada because of the virus, raising the question of why anyone would want to invest there.”

++++++++++++++++++++++++++++++++++

Kind of rich coming from the biggest bubble in Canada, don’t you think! I guess this means that B.C. will become like the maritimes and begin living off the fortunes of others.

Perhaps your question should be “Why WOULDN’T anyone want to invest there?”

#124 IHCTD9 on 01.15.21 at 6:58 pm

#73 -=withwings=- on 01.15.21 at 5:04 pm

China is a bully in Africa, South America, Canada and the USA. Oh, and Europe. They can do whatever they want, especially under recent US ‘leadership’ that let them do whatever they want. In 20 years they will replace USA as the global power. They do it by buying influence with cash. No army needed. It can’t be stopped at this point. The only US response is nuclear or an invasion using their now useless military.
———-

Military not required eh? One naval blockade and China is screwed. It’s probably been done 100 times now in all of history, because it works. China can try to influence and bully, but Meng is still in custody in powerless little Canada yes? So much for bullying. These tactics will only hurt them in the future as the world watches.

There has been no time in the history of the planet where unresolvable conflicts have been settled thru bullying. These get solved through military power. Always has been, always will be. That is exactly why China is working on building military power. They DO need it, and it is absolutely not “useless”.

The reality is, the future of planet earth is global. Global trade alliances, Global military allies. China has little to no projectable military power itself, and no one except perhaps Russia to draw it from – and even Russia (who are MILES ahead of China on the military technology front) can not currently project power. If China wants to be a player in a future global economy, it will eventually have to come to grips with placating the ultimate military force the planet has ever seen, that of the USA, and the combined forces of the entire Western world. This is effectively 95% of all military power with the ability to show up on your doorstep that exists on Earth.

I’ll tell you what China needs to do. You might understand, you might not, but China urgently needs to make India its best friend. If you’re not following, just ask the Middle East.

#125 kommykim on 01.15.21 at 7:02 pm

RE:#10 Steerage Comrades on 01.15.21 at 2:38 pm
Well Atlantic Canada walled itself off…. which is why you have so little cases…. does that make you all Comrades as well

Unrestricted travel, but a 14-day quarantine. Sounds reasonable. – Garth

=======================================

Everybody knows that many don’t do it because there is no enforcement. Add in the fact that the covidiot rule flouters are more likely to be infected than someone willing to self-quarantine and you have a problem. When there is no enforcement, it’s just politicians making noise while trying to look like they are doing something.

After my last trip, they contacted me daily until jail was over. – Garth

#126 The good, the bad and ... on 01.15.21 at 7:05 pm

While we are in the process of abolishing free speech, can we also abolish long winded diatribes from the likes of TurnerNation?

Can you please tell him to go away and get his own blog? It’s so annoying to have to scroll through this daily menagerie of dribble.

I’d rather be subjected to Felix rants; at least they are somewhat brief.

#127 Nonplused on 01.15.21 at 7:08 pm

“As a result fewer people can afford a house.”

Then who is buying them? If nobody can afford a house prices should be dropping as demand evaporates.

I haven’t mentioned this for a while but it remains my contention that one of the main drivers of this craziness is zoning laws, which developers, who donate heavily to the campaigns of local politician, then conspire with said politicians to restrict supply. For example in Calgary there is so much undeveloped land within the city limits that there is no way a starter home should cost more than the cost to build it plus maybe 10%. (By cost I am including lot development and service as well.) But yet they grow hay. In the city.

Vancouver is a different story because the only way they have to go is up, but it is difficult to get land rezoned to higher densities. NIMBY is strong with those ones.

And of course there is the whole “cost of money” problem that arises with near zero % mortgages.

—————————-

“So, an enlightened society would tax houses just like equities. Half the gain you keep. Half you add to your income. The ACB (adjusted cost base) would reflect improvements and renos which added value. There could be a sliding scale reducing the tax for years of ownership. Whatever. Details. But the principle remains. Real estate should not get a free pass.”

I remain in strong disagreement. Houses as a retirement savings vehicle have traditionally been at best a forced savings program. The additional perceived benefit is that you don’t have to pay rent in retirement. It is only now that we are in a huge bubble that they can be viewed as an “investment” and ATM.

Many problems exist when talking about capital gains taxing primary residences.

First of all much of the gain could be pure inflation. Before the bubbles it was. So gains would have to be inflation adjusted.

Secondly, what if you are selling to move and then buy another house? Where is the gain? It is already hard enough to come up with the money to pay the realtors, where will the money come from to pay the tax? Should the realtor fees be deducted from the gain?

And what happens if the house has gone down in value as is happening in Calgary? Do you get a capital deduction?

And if we are adjusting the Adjusted Cost Base for major expenses, should not mortgage interest go in there? That is the majority of what people pay to buy a house, or at least it was once. 4 times more than the cost of the house used to be the standard, although I am sure it is less now. And you already paid taxes on the mortgage interest, since in Canada it comes out of after tax income, there is no deduction.

And then what do you do about the idiot who took out a HELOC to buy an RV and matching quads but now has to sell due to a job loss? The banks are going to have to start figuring out what your tax will be before setting the HELOC limit. So instead of the HELOC limit being 60% of equity, it is going to be 60% of (equity – tax). And what will that do to RV sales?

Houses are not an asset, they are an expense. (PR’s anyway) And they are not money. And taxing them is not going to make them more affordable (taxing something never does), as now potential homeowners have to put the tax into their cost of ownership calculation.

The primary residence exception is at best an acknowledgement of how darn expensive it is to buy a house and maintain it. Except during bubble times of course. The proposal is based on greed born of jealousy. One of the seven deadly sins.

And don’t forget, if you support this idea you are taxing your future self, not just some ethereal “rich people”. It will apply to you and your neighbors as well, and for most people it will be the single largest tax bill you ever see (unless you live in Calgary, then no tax). And you will pay it just when you need money for the old age home. Unless, of course, you perceive that you will never own a house or even a condo. There are people who won’t. But don’t be a pessimist my friends, especially if you are young. Bubbles don’t last forever.

#128 DON on 01.15.21 at 7:09 pm

#97 Drinking on 01.15.21 at 5:47 pm
#70 DON

Regarding your link one of the quotes said: “I would say the majority of patients that came to the clinic between Christmas and New Year were not Whistlerites. The majority were from the Lower Mainland,” Gareau said.

So now what? Ban Vancouverites from skiing at Whistler/Blackcomb. What do you say about that Horgan??? Ban, those bad Albertan’s,lol!!!
*************

Bravo, you skipped past the others quotes about visitors from Ontario and Quebec and went right for the local residents when the subject is a ban on inter provincial travel to try and stop the spread of the new strains taking hold in those provinces Kenny’s war room appreciates your effort.

#129 Ustabe on 01.15.21 at 7:09 pm

But I will agree, it’s a province full of hate and envy. – Garth

Not a good take at all. You need to be better than this…or are you sinking to the level of some of your blog dogs?

For instance I really don’t think I hate anything or anyone. Well, except for avocados, guac, anything slimy and green. So frogs maybe.

I certainly am not envious of anyone either.

So your statement is provably false and needlessly inflammatory.

Perhaps. I recant. But you don’t read what I delete. – Garth

#130 PRARIESKEPTIC on 01.15.21 at 7:13 pm

Totally agree. Profits made in the housing market should be taxed like everything else. The PR exemption is ridiculous.

#131 The Pope's knows on 01.15.21 at 7:14 pm

#6 Bob on 01.15.21 at 2:33 pm

Incidentally, “you know who” does not allow Canadians to buy property in their country, so I don’t see why we should extend them the courtesy in ours.

—————————————–

OK, I’ll play your silly game.
In fact, I know of literally dozens …. how about the Pope? Holy See.

#132 Rainman on 01.15.21 at 7:14 pm

I’m a numbers guy. The stats have shown B.C. markets are dominated by locals, who set the prices. But I will agree, it’s a province full of hate and envy. – Garth

Don’t let one person’s comment throw us all under the bus? I personally love our diversification and I know a lot of other people do too. :)

#133 Gladdi ... on 01.15.21 at 7:17 pm

took my profits from sales a few times already. Tax is coming … sooner or later … this is Canada …

#134 IHCTD9 on 01.15.21 at 7:20 pm

#100 Ponzius Pilatus on 01.15.21 at 5:49 pm
#52 IHTc
Weep you asked for it.
Typical cold war thinking from a hick in the sticks.
What are the Americans gonna do?
Bomb the shit out of the whole world.
Remember mutually assured distruction.
Anyway, my daughter is already 3/4 through her UBC Chinese course.
I speak some basic and my wife is fluent.
— ——-

The US doesn’t need to “bomb the shit” out of anyone. They only have to look in their direction. Only the American people themselves cut short what firestorm could come. It’s never once been fully unleashed since WW2, and you know how that turned out.

They don’t have to initiate a global nuclear Holocaust because they can project conventional power. They can enforce their will without killing millions of people. They are the only nation on earth that can really do this. They have power that is actually deployable. ICBM’s with nuclear warheads are not deployable, and are mostly political. Deployment of these means global annihilation. As you said, mutually assured destruction.

The simple fact Ponzie, is that it’s not about if they decide to bomb the shit out of anyone, it’s the simple fact that they CAN, and everyone knows it – that matters.

Enjoy your Chinese lessons. Just don’t forget that English is the number one, second language in the world.

#135 cuke and tomato picker on 01.15.21 at 7:20 pm

We went for a lovely drive around south Vancouver Island
today. It was sunny and 12c and very green. We love it here moving from the beautiful south okanagan 15 years ago – no regrets. We agree with our premier to close
our border till we all have the vaccine.

#136 Faron on 01.15.21 at 7:23 pm

#84 IHCTD9 on 01.15.21 at 5:22 pm

#48 Faron on 01.15.21 at 4:00 pm
#21 IHCTD9 on 01.15.21 at 3:09 pm

There are already enough barriers to physical mobility for econ reasons. It would add to the reasons people stay in any one place even when over priced. A mega tax on short term gains incentivises staying putness.

For example, when the oil sands boom, it’s helpful to have workers who can uproot to support the boom. Helps keep labour cheap in the new place and by draining skills in the emigration site, bumps wages there more in line with local econ conditiins. Spitballing here.

Agree about loopholes though.

#137 Cici on 01.15.21 at 7:30 pm

Oops, I posted in the wrong place. Was lost but now I’m found. Time for a glass of rye.

______________________________________

I get why we’re pumping real estate; it’s an easy fix to structural problems like tepid wage growth and insufficient retirement savings. And of course, as you mentioned above, there’s those hidden yet whopping taxes that most don’t care about, since they can tuck them into the cozy blanket of a long amortization period, while low mortgage rates and ever-inflating house prices eventually make them magically disappear.

But, I worry that we’re headed for (or may even already be in) treacherous waters. If the vaccine roll out doesn’t speed up and prove effective in curbing the bug, the damage to the country’s economy is going to monumental. This latest RE pump is a short-term solution intended to bolster a stimulus frenzy fed by pent-up demand following a new return to normal.

But there could be huge hiccups. What happens if the US gets the virus under control before we do and they are able to turn off the stimulus taps before us? Can we really continue going into debt if they’re pumping the breaks on spending? We managed it once, but only thanks to low NA rates.

I’m pretty sure that those countries, provinces and States which are able to keep COVID infections down to a bare minimum are going to come out of this major winners. In fact, I really don’t blame Horgan for not wanting us to ramp up COVID infections on his turf. The resulting costs to the healthcare system and the economy are staggering, not to mention that COVID’s political suicide. The virus doesn’t care what people think about it, so the politicians have to take the fallout from the angry, paranoid masses.

Garth, you really should thank Harper. He did you a tremendous favour ;-)

#138 the Jaguar on 01.15.21 at 7:33 pm

“I’m a numbers guy. The stats have shown B.C. markets are dominated by locals, who set the prices. But I will agree, it’s a province full of hate and envy. – Garth”
++++++++++++

I’m going to resist trashing BC (just this once), because it really is a beautiful province where I Iived for a couple of years. Right in hipster Yaletown. I retain close personal ties, visit yearly, and besides…..I might ask Fishman to marry me someday. If I propose and he says yes, I might also ask BillyBob, Don, & Don Guillermo to be my Bridesmen. Any maybe IHCTD9 could be my ‘flower guy’. Or maybe BillyBob could deliver me into the Burrard Inlet on a Sea Plane and walk me down the dock with one of Felix’s cats in my arms. A tuxedo cat would be nice. The possibilities are endless if one has the right attitude in life. Sigh..

But back to that business about taxes, and this comment from Garth “(By the way if you buy in Calgary the transfer tax.. doesn’t exist. Sweet.). Yes, there are many things to recommend life in Alberta, especially the south where the real heroic Albertans reside. Low Probate Fees for one…. One gets taxed in life and death. Maybe that would be a good blog topic one day, Garth. The old ‘Estate Planning” talk. How to minimize taxes and fees when exiting planet earth.

#139 Skeptic on 01.15.21 at 7:34 pm

A concern I have is that we are all jumping the gun on the vax. mRNA is not a true “vaccine” in the normal sense of the word, there are no inactivated covid viruses in there. It has never been proven to work, it is a new technology. It has only been proven to be relatively safe. Yes, it is all we have, and we need to give it a try, but it is on the optimistic side to not hedge your bets it might fail.

Until we know for sure, masks, social distancing, limit your cohort, wash your hands, and WFH.

#140 henry on 01.15.21 at 7:40 pm

there should not be capital gains tax on your primary
residence… high house prices is not the problem.. but
not having honest inflation reporting is .. how can house
prices and many other expenses triple, and no inflation..
impossible !

#141 TurnerNation on 01.15.21 at 7:41 pm

What’s really going on. (Did Doomer Dolce catch this?)

In ITALY restaurants were planning to defy the economic reset, and open up:

https://mobile.twitter.com/itstime2rise/status/1348550964135923712
“Jan 11 Italy. 50,000 restauranteurs have decided to open up against Covid19 restrictions, lunch and dinner, banding together to form an alliance. This is the only way to stop this, mass civil disobedience. Long Live the People. ”

AND THEN THIS HAPPENED. See no one escapes the brutal New System. They have it all planned out, every escape is blocked. A fresh “State of Emergency” was doled out as punishment:

https://www.ilsole24ore.com/art/speranza-non-c-e-strada-diversa-unita-contro-emergenz-ADSBGFDB

“New decree: travel between prohibited regions until 5 March, state of emergency to 30 April
The Government extends the restrictions experienced during the Holidays until March 5. And it also introduces a fourth white area”

….
Hint hint a year-long ‘state of emergency’, ain’t. It’s a new way of life – a prison planet – that rolled out March 2020.

Remember, its about control over our Feeding, Breeding, and Travel/movement.

“The UK is to close all travel corridors from Monday morning to “protect against the risk of as yet unidentified new strains” of Covid, the PM has said.”

“Covid 19 coronavirus found in ice cream made in China from NZ milk powder (nzherald.co.nz)”

#142 walltiger on 01.15.21 at 7:50 pm

#136 IHCTD9

You are such an expert on USA military technology. The thing is, the rogue nation you admire so much has been killing millions of people world wide since WW2. Why don’t you go join them.

#143 IHCTD9 on 01.15.21 at 7:54 pm

#85 crowdedelevatorfartz on 01.15.21 at 5:23 pm
@#52 IHCTD
“Meanwhile, the USA has more aircraft carriers than the rest of the world COMBINED. ”

++++

Unfortunately.
Aircraft Carriers were state of the art tech 75 years ago.
Still usefull when enforcing embargoes against 3rd world dictatorships.
1st World dictatorships?
A whole different ball game

Todays Satellites, GPS, laser targeting …. Pffft.

They cant get within 1000 miles of China before they are sunk.

https://www.reuters.com/article/us-usa-china-missiles-specialreport-idUSKBN22I16W

It takes 7 YEARS to build a carrier and it could be sunk in 7 minutes….

Old tech.
— – —-

ACC’s have been around a long time, yes. But they are by no means obsolete, in fact they are more relevant today than they’ve ever been since the demise of old school conventional warfare. Today, a fully assembled US carrier group comprises more firepower than most NATIONS have within their borders, and they can sail it to anyone’s doorstep that they want. They can strike anything, and are not an easy target by any means.

That Reuters article is kind of a joke as they are talking about the US as if they are banking on countering threats like hypersonic missiles with… other missiles. The US is actually countering hypersonic missiles with lasers and rail guns. Development is still ongoing (as far as we know…), but are well along. When deployed in their final versions, hypersonic missiles will be obsoleted overnight, unless China can figure out how to make their missiles travel faster than the speed of light.

That’ll be the end of just about any missile really. A nuke powered array comprising hundreds of high powered floating lasers is basically an unlimited ammunition, massive range, all destroying menace with no effective rebuke. And that doesn’t even take into account anything else on tap within a US carrier group – which is frankly, nuts.

I’m not joking even a little saying that a USCG can destroy entire countries, and they can choose to do so in multiple different ways. There is nothing else like it on earth – not even close.

#144 Elon Fanboy on 01.15.21 at 7:54 pm

Well since we’re talking about Horgan…

Who here in BC has applied for their Horganbucks we were promised before Xmas?

I applied 3 weeks ago and didn’t even get a confirmation email. Sent an email to follow up and got a canned response. Can’t even talk to anyone. Phone their contact line and have to listen to a 5 minute pre-recorded message. What a fustercluck.

#145 Tron Light on 01.15.21 at 8:10 pm

#117 KLNR on 01.15.21 at 6:36 pm

“…the second covid retreats TO business will be booming.
there will be so much pent up demand it’d be a great time to open up shop.”

Except that there could be 30% less of them.

#146 Sail Away on 01.15.21 at 8:18 pm

#140 the Jaguar on 01.15.21 at 7:33 pm

.I might ask Fishman to marry me someday. If I propose and he says yes, I might also ask BillyBob, Don, & Don Guillermo to be my Bridesmen. Any maybe IHCTD9 could be my ‘flower guy’.

—————

Per our private discussion: yes, Jag, I would be delighted to be your stagette entertainment. I can see why you might want to keep that quiet.

#147 Robert Lopresti on 01.15.21 at 8:28 pm

Sorry a couple revisions, ignore previous message.

Wow, tax primary residences! Here’s a better idea Garth. One house per person tax free (not couple). Each person gets to buy a house with no capital gains tax. Could be a city house or a cottage or whatever. Each person who owns more than one house gets any profit added to their marginal income, in other words, 100% inclusion on any capital gains. This protects those of us who have one or two homes between a couple and all those speculators can pay a ton of taxes until they move on to speculating on something else like bitcoin. Taxing those of us who use real estate for the intended purpose should not be taxed. BTW keep in mind that although Americans pay capital gains on their homes, the rates are lower and they get to deduct mortgage interest on their income taxes, we don’t. I know Canadian Governments like to suck and blow at the same time, but you can’t have it both ways.

#148 Dog Breath on 01.15.21 at 8:29 pm

So you want them to start taxing principal residences do you? Be careful what you wish for. Once to government is allowed to do that, there will be no stopping them. The tax will soon skyrocket and your home will really no belong to you or your family. Maybe this will all be part of “The New Reset”, build it back better and you will own nothing…and be happy!!

#149 Trudi Woods on 01.15.21 at 8:30 pm

I never really thought of a house/home in terms of investment but I was/am a “nester”. Im pleased my rural home has nearly tripled in price and as a rural resident just outside the GTA I don’t see that changing anytime soon…they can tax me all they want after I’m gone…the kids are alright and I’m educated on current tax laws

#150 fishman on 01.15.21 at 8:31 pm

Don’t be to hard on the hateful & envious wistfully peering out there basement window on a glorious bluebird day in La La land. They missed this last upswing & now they’ll never get in. Unless family money coming their done. Inflation smouldering & the forests tinder dry. A Garth portfolio could save them. Better is Vancouver R/E, Garth portfolio & bag of Maples. Makes things a lot easier to switch from the Party of Trump to the Party of Davos. With a week of bluebird days coming, Whistler’s party of Davos will be extraordinary. With Comrade Horgan running interference to keep out the undesirables, perfect. You my bro “cottagers STAY THE HELL AWAY”

#151 Ustabe on 01.15.21 at 8:32 pm

#146 Elon Fanboy on 01.15.21 at 7:54 pm

Well since we’re talking about Horgan…

Who here in BC has applied for their Horganbucks we were promised before Xmas?

I applied 3 weeks ago and didn’t even get a confirmation email. Sent an email to follow up and got a canned response. Can’t even talk to anyone. Phone their contact line and have to listen to a 5 minute pre-recorded message. What a fustercluck.

Fanboy, my two sons both applied, online, late in the evening to avoid the crowd. Confirmation email within the week, direct deposit a few days after that.

So what that means is it is 2 anecdotes to your 1 in favour of the system working well. Maybe the problem lies between the chair and the keyboard?

BTW, a tip: telling everyone you applied for the BC Covid benefit which is means tested is like telling everyone you get a GST rebate. Means you don’t make much money. Hope things look up for you in 2021.

#152 the Jaguar on 01.15.21 at 8:35 pm

#149 Sail Away on 01.15.21 at 8:18 pm
#140 the Jaguar on 01.15.21 at 7:33 pm

.I might ask Fishman to marry me someday. If I propose and he says yes, I might also ask BillyBob, Don, & Don Guillermo to be my Bridesmen. Any maybe IHCTD9 could be my ‘flower guy’.

—————

Per our private discussion: yes, Jag, I would be delighted to be your stagette entertainment. I can see why you might want to keep that quiet.

+++
You’ll need to put on that “Leopard Print” number I’m so fond of….

#153 IHCTD9 on 01.15.21 at 8:35 pm

#138 Faron on 01.15.21 at 7:23 pm
#84 IHCTD9 on 01.15.21 at 5:22 pm

#48 Faron on 01.15.21 at 4:00 pm
#21 IHCTD9 on 01.15.21 at 3:09 pm

There are already enough barriers to physical mobility for econ reasons. It would add to the reasons people stay in any one place even when over priced. A mega tax on short term gains incentivises staying putness.

For example, when the oil sands boom, it’s helpful to have workers who can uproot to support the boom. Helps keep labour cheap in the new place and by draining skills in the emigration site, bumps wages there more in line with local econ conditiins. Spitballing here.

Agree about loopholes though.
— – ——

I hear ya, but exemptions are risky. Next thing you know all the speculators are “moving” for their new “job”. Maybe the new oil patch workers might need to rent while on the job, and keep paying the mortgage.

And really, if a guy who bought to live there had to sell and pay taxes on whatever the CG gain was in 2-3 years of ownership, it’s not like he’s losing any money right? He’s just paying a pile of taxes on the gain – but still probably in the black once all said and done. Good enough deal for a legit mover, but still too crappy a return for the specuvestor to play.

#154 IHCTD9 on 01.15.21 at 8:39 pm

#140 the Jaguar on 01.15.21 at 7:33 pm

Any maybe IHCTD9 could be my ‘flower guy’.

— ———-

As long as you like yellow flowers, I’m down.

#155 jess on 01.15.21 at 8:41 pm

wtheck?

https://www.rollingstone.com/politics/politics-news/trump-meets-my-pillow-ceo-mark-lindell-martial-law-1115519/

#156 ford on 01.15.21 at 8:45 pm

We will shutdown until the numbers improve….might be May…or July….or

hahahahahahahahahahaha

Best wishes ontario

#157 SoggyShorts on 01.15.21 at 8:50 pm

#129 Nonplused on 01.15.21 at 7:08 pm
First of all much of the gain could be pure inflation. Before the bubbles it was. So gains would have to be inflation adjusted.
*******************
The same way that tax on other investments is inflation adjusted? If house flippers get an X% Y/Y gains write-off, I want one on my portfolio too then.
——————————–

#129 Nonplused on 01.15.21 at 7:08 pm
Secondly, what if you are selling to move and then buy another house? Where is the gain? It is already hard enough to come up with the money to pay the realtors, where will the money come from to pay the tax? Should the realtor fees be deducted from the gain?
*****************************
“Where is the gain?”
You bought a 300K house and now you are selling it to buy a 400K house…how is that not a gain?
I just sold some investments to buy other investments, and I will have to pay taxes on my “gains” regardless of inflation. Why the special treatment on a house?
—————————-

#129 Nonplused on 01.15.21 at 7:08 pm
And what happens if the house has gone down in value as is happening in Calgary? Do you get a capital deduction?
*****************************
I don’t see why not. Something would need to be implemented to prevent gaming the system by selling to a family member for $5 and having them wait out whatever the 0% cap gains term is.
—————————

#129 Nonplused on 01.15.21 at 7:08 pm
And if we are adjusting the Adjusted Cost Base for major expenses, should not mortgage interest go in there? …
*****************************
Sure, like borrowing to invest and writing off that interest, and with restrictions like other investments.
————————————

To all of your other points: No one is really asking for ALL gains on ALL houses to be taxed, some scale based on years lived there fixes almost all situations.

#158 Comments! on 01.15.21 at 8:50 pm

#94 Steve French on 01.15.21 at 5:41 pm
#146 Comments! from Yesterday
——————————–

Respectfully Steve, you may want yo do some research and see how the citizens were treated in these democratic nations by police and public officials as they “eliminated Covid”. Terrifying to say the least.

LOL– yes it’s really terrible here down here in Australia! What with our lack of Covid, I can go shopping to the mall, to the movies, to the swimming pool, to dinner, to the pub… anywhere i want to really. Just like it was 2019!

And .. what…900 total deaths in Australia from Covid since March.

Yep eliminating Covid has been a real mistake…it’s a real dystopian totalitarian nightmare Down Under OMG!!

And our economy—- it’s… it’s… ticking alone quite nicely thank you.

But yes please save us Aussies from this living hell, all you Canadian freedumb-loving anti-maskers!!!

ppfffftttttt… I really do not understand why you North American anti-maskers seem to love spreading around disease so much?

Get a grip!

————————————-

Wow you are an angry and snippy little pooch aren’t ya?

I guess fining people thousands of dollars for exercising, destroying tens of thousands of businesses, horrific law enforcement overreach like tearing a small child from his mother’s arms and tossing her into the back of a police wagon in front of him, fining the homeless thousands of dollars for sleeping in their cars, totalitarian curfews, closing your provincial boarders so thousands that were vacationing in other parts of Australia over the Christmas holidays were left stranded, makes you so much more civilized than the rest of the world doesn’t it? Australia is also an isolated and tropical continent that doesn’t suffer the cold winters (high flu season in Canada don’t ya know) that we have here. Also, very few people really give a rats ass about your ex prison colony to be honest, where real estate is more ridiculous than it is in Canada, yet no one lives there.

Get off of your high horse mate. Not everyone of us is misinformed.

#159 IHCTD9 on 01.15.21 at 8:57 pm

#144 walltiger on 01.15.21 at 7:50 pm
#136 IHCTD9

You are such an expert on USA military technology. The thing is, the rogue nation you admire so much has been killing millions of people world wide since WW2. Why don’t you go join them.
—————

Yes you are correct. One of the most horrid acts of destruction the US ever initiated was the bombing of Japan in WW2. Acute destruction like the world had never seen up till then, and has never seen since.

Of course, it did bring about the end of the war though. Also, an invasion of the Japanese mainland was estimated to produce over a million casualties too – much more than the two nukes caused.

But, maybe you’re right. Maybe the USA should have stayed right out of WW2, and just let Japan carry on with whatever “activities” they were up to around that time?

Let me know your thoughts on that one homie…

#160 IHCTD9 on 01.15.21 at 9:07 pm

#149 Sail Away on 01.15.21 at 8:18 pm
#140 the Jaguar on 01.15.21 at 7:33 pm

.I might ask Fishman to marry me someday. If I propose and he says yes, I might also ask BillyBob, Don, & Don Guillermo to be my Bridesmen. Any maybe IHCTD9 could be my ‘flower guy’.

—————

Per our private discussion: yes, Jag, I would be delighted to be your stagette entertainment. I can see why you might want to keep that quiet.
—— –

Jag must be following Mr. T’s investing advice, I hear Venezuelan gigilos ain’t cheap.

#161 jess on 01.15.21 at 9:13 pm

Billionaires backed Republicans who sought to reverse US election results

Guardian analysis shows Club for Growth has spent $20m supporting 42 rightwing lawmakers who voted to invalidate Biden victory

https://www.theguardian.com/us-news/2021/jan/15/trump-republicans-election-defeat-club-for-growth

#162 Im from the government, & here to help on 01.15.21 at 9:24 pm

#25 CJohnC on 01.15.21 at 3:18 pm
Self quarantine doesn’t work. People are selfish and these days seem to be only focused on “me, me,me….want want want”. The only quarantine that works is in military run quarantine centers…mandatory. Even Australia found that out.
======================÷÷÷÷================

So…. um….. its to the raicars it is? Seriously strange plan.

#163 Ponzius Pilatus on 01.15.21 at 9:29 pm

#149 Sail Away on 01.15.21 at 8:18 pm
#140 the Jaguar on 01.15.21 at 7:33 pm

.I might ask Fishman to marry me someday. If I propose and he says yes, I might also ask BillyBob, Don, & Don Guillermo to be my Bridesmen. Any maybe IHCTD9 could be my ‘flower guy’.

—————

Per our private discussion: yes, Jag, I would be delighted to be your stagette entertainment. I can see why you might want to keep that quiet.
————————-
Sailo can bring the moonshine and the banjos.

#164 walltiger on 01.15.21 at 9:38 pm

#161 IHCTD9

You are such an expert on USA military technology. The thing is, the rogue nation you admire so much has been killing millions of people world wide after WW2. Why don’t you go join them.

#165 The Woosh on 01.15.21 at 9:38 pm

#120 Cow Man on 01.15.21 at 6:41 pm
New Zealand stopped, you know who from buying property their after realizing there would be no property left for New Zealand citizens. That is not racist it is realist. Just to the math on the population of Canada or New Zealand and you know whose country.

NZ – 268,000 sq km. Canada – 10,000,000 sq km. – Garth

——————————————

Canada – 10,000,000 sq km.
Usable land for housing in Canada – 268,000 sq km.

Most Canadians live next to the US border. Not surprisingly, I don’t hear about huge price increases for real estate in Nunavut since Covid made an appearance. Statistics are fun when used reasonably.

#166 Ponzius Pilatus on 01.15.21 at 9:40 pm

IHTC
Your last victory of your mighty American Army was in WW2.
Since then they got snookered every time they ventured into one.
Of course, there was mighty Nicaragua.

#167 IHCTD9 on 01.15.21 at 10:01 pm

#108 Howard on 01.15.21 at 6:06 pm

…There is no indication of anyone outside of China having much interest in modern Chinese popular culture.
— ——

Indeed. There is actually a pretty decent ability to assert that future Chinese culture… is American culture. The richer they they get, the more USA they get.

China has massive issues coming down the pipe, and you hinted at them. China is arriving “too late”. They’ve been in a huge rush for 4 decades, but it looks like technology is going to beat them to a nationwide Western standard of living. Then really, all of us are going to be in the same boat, we’ll just have a half billion less subsistence farmers than China does.

What comes after the demise of human labour and brainpower is anyone’s guess, but I doubt China will have a consumer led 1st world economy in place when it needs to figure it out.

#168 Doug t on 01.15.21 at 10:07 pm

#137 cuke tomats

You should have gone through beacon hill park for a scenic tent tour and then royal athletic park followed by pandora for fun – do you have those rose coloured glasses staple gunned on – you always sound like your in a Valium induced haze

#169 Hookshott on 01.15.21 at 10:15 pm

#110 weiners on 01.15.21 at 6:07 pm
I really hope that the current federal government announces the taxing of capital gains from principal residences, either in an upcoming budget or as part of a platform in an upcoming election. Given that some 8.5 million out of 12.4 million households in Canada own real estate, according to Statistics Canada, such a move would be political suicide for the current government. Just as well…..

The way to lower the price of homes or to stabilize the price of homes is to make more of them. In most of our major cities, we have a supply problem, both in terms of owned and rental properties. Demand has outstripped supply. This housing shortage limits people’s choices to one of affordability.

Most of the problem lies at the local level. Ask municipal leaders to get creative by relaxing density restrictions on housing in areas where it makes sense. Loosen the municipal red tape for builders and responsible developers to allow them to bring these units faster to market. Give people more choice in where and how to live. Taxing gains on principal residences doesn’t solve the problem.
…….
The well worn Real Estate industry rant!

#170 Lorne on 01.15.21 at 10:18 pm

#120 Cow Man on 01.15.21 at 6:41 pm
New Zealand stopped, you know who from buying property their after realizing there would be no property left for New Zealand citizens. That is not racist it is realist. Just to the math on the population of Canada or New Zealand and you know whose country.

NZ – 268,000 sq km. Canada – 10,000,000 sq km. – Garth
……
All of NZ’s 268 000 sq kn is habitable. Canada….not so much!

#171 KLNR on 01.15.21 at 10:19 pm

@#147 Tron Light on 01.15.21 at 8:10 pm
#117 KLNR on 01.15.21 at 6:36 pm

“…the second covid retreats TO business will be booming.
there will be so much pent up demand it’d be a great time to open up shop.”

Except that there could be 30% less of them.

out with the old, in with the new.
will be a great opportunity for some.

#172 Hookshott on 01.15.21 at 10:20 pm

#146 Elon Fanboy on 01.15.21 at 7:54 pm
Well since we’re talking about Horgan…

Who here in BC has applied for their Horganbucks we were promised before Xmas?

I applied 3 weeks ago and didn’t even get a confirmation email. Sent an email to follow up and got a canned response. Can’t even talk to anyone. Phone their contact line and have to listen to a 5 minute pre-recorded message. What a fustercluck.
…….
Perhaps you are not eligible? A friend got hers the week after applying.

#173 Nonplused on 01.15.21 at 10:21 pm

#159 SoggyShorts on 01.15.21 at 8:50 pm

Reasonable response, I only take exception to one point:

““Where is the gain?”
You bought a 300K house and now you are selling it to buy a 400K house…how is that not a gain?
I just sold some investments to buy other investments, and I will have to pay taxes on my “gains” regardless of inflation. Why the special treatment on a house?”

The point I am trying to make is that the new house was probably $300,000 when it was first bought too, so nobody actually made any money if they are staying in the home ownership market. You need all the illusionary “equity” you gain just to buy the same house closer to work.

#174 Sail Away on 01.15.21 at 10:33 pm

#162 IHCTD9 on 01.15.21 at 9:07 pm
#149 Sail Away on 01.15.21 at 8:18 pm
#140 the Jaguar on 01.15.21 at 7:33 pm

.I might ask Fishman to marry me someday. If I propose and he says yes, I might also ask BillyBob, Don, & Don Guillermo to be my Bridesmen. Any maybe IHCTD9 could be my ‘flower guy’.

————-

Per our private discussion: yes, Jag, I would be delighted to be your stagette entertainment. I can see why you might want to keep that quiet.

————-

Jag must be following Mr. T’s investing advice, I hear Venezuelan gigilos ain’t cheap.

————-

¡Ay, caramba! The tear-away pilot’s uniform on its own was $600!

#175 MalcolmM on 01.15.21 at 10:34 pm

Not sure how BC’s foreign buyers tax could be considered racist. It is based on residence of the buyer, not race. If most of the people paying the tax are from Asia, that simply means that is where most of the foreign buyers are located.

#176 Steve on 01.15.21 at 10:50 pm

A simple solution in ON, have MPAC declare a property value for what it’s currently worth. Our yearly tax assessment is undervalued by at least half. If a new owner pays X dollars, have MPAC assess it for just that. Everyone glees in thinking there home is worth so much more. Maybe that wouldn’t happen if taxed appropriately.

#177 Masks really do make some people more attractive on 01.15.21 at 11:00 pm

Have you seen this, Garth?

https://www.addyinvest.com/how-it-works/?utm_source=twitter&utm_medium=twitter&utm_campaign=promoted-tweet-1-15-21

#178 mike from mtl on 01.15.21 at 11:06 pm

#161 IHCTD9 on 01.15.21 at 8:57 pm

But, maybe you’re right. Maybe the USA should have stayed right out of WW2
////////////////////////////////////////////////////////

Yeah there’s more nuance to that story, again that was the 40s, totally different world now. I agree there’s no easy answer or option. Not a very good time to be in the wrong place at the wrong time.

Though to be fair to the obvious CCP fanboy, the postwar USA hegemony has gotten rather deranged in the decades since.

Cuba, that nearby island that has no practical trade, its people either flee or try to game the system, is somehow an immediate threat?

Korea because communism?!?!

Vietnam because communism?!?!

Iran, that far away Islam menace like oh Saudis but not the Saudis. No they’re a clear threat, the oil backed bucks make it somehow different.

Afghanistan, because we need a 9/11 enemy. Egypt and Saudia being actually responsible.

Iraq, because.. Bush Jr – enough said.

Most recently China because they might trade with Iran? Honestly I don’t care if they do, what difference does it make.. The CCP in control or the NSA? Both equally bad.

Whilst I respect our American friends and neighbours, they’ve also got quite the baggage and questionable world affairs.

#179 millmech on 01.15.21 at 11:08 pm

Canada is averaging about 1% vaccination rate a month, so about another eight years of lockdowns. Israel will have their whole country done in three months, we are the laughing stock of the world when it comes to this pandemic.

#180 Calgary on 01.15.21 at 11:11 pm

Cheapest to buy real estate in Calgary. No transfer tax.

#181 Faron on 01.15.21 at 11:17 pm

#140 the Jaguar on 01.15.21 at 7:33 pm

Sorry, just threw up in my mouth a little bit. Reading mature women choose which jocks are invited to their non-existent infantile tea party will do that.

Gonna go brush my teeth and take another walk.

#182 Paul on 01.16.21 at 12:11 am

#131 Ustabe on 01.15.21 at 7:09 pm
But I will agree, it’s a province full of hate and envy. – Garth

Not a good take at all. You need to be better than this…or are you sinking to the level of some of your blog dogs?

For instance I really don’t think I hate anything or anyone. Well, except for avocados, guac, anything slimy and green. So frogs maybe.

I certainly am not envious of anyone either.

So your statement is provably false and needlessly inflammatory.
__

Perhaps. I recant. But you don’t read what I delete. – Garth

____

I enjoyed this honest exchange.

On another note, I’d wager we have a new Sail Away posting these days. The original was more interesting.

#183 fishman on 01.16.21 at 2:17 am

Lets not plan my demise too soon bloggie doggies. Any prospect you matchmakers have lined up have a few hard acts to follow. My women have always been very supportive. Always encouraging me to do what I loved. Another trip? I’ve washed & folded your laundry. Homemade dinners & baking in the freezer ready to go. Shouldn’t you be gone by now? Last year fishing was pretty good about now. The crew needs money now. Looks like good tides & weather for travelling now. Yes dear,everything perfectly under control on the home front. So much positive reinforcement. They were kind too. Kinda pretty good looking. Kinda grouchy if I lazed around the house drinking beer & giving orders like a sea captain. Kinda happy as they drove me to the boat.

#184 Burt Simpson on 01.16.21 at 3:06 am

India will vaccinate 300 million citizens by July, millions already vaccinated, roll out started . Trudeau will not provide any vaccine to Canadians until “ October so he says”. Yay, India will vaccinate 10 Canada’s before Trudeau gets anything done.

I imagine he’s too busy finding new faces to pander for his election to save a single life.

#185 BillyBob on 01.16.21 at 5:59 am

I’d be honoured and delighted to play any part in the Jaguar’s nuptials.

At first I was a bit sceptical about Sail Away as entertainment, but then I thought, any ceremony that includes a floatplane and a D9 can easily carry someone dancing the joropo in a leopard-skin thong.

It would be a party for the ages.

#186 BillyBob on 01.16.21 at 6:07 am

#2 No left turn on 01.15.21 at 2:17 pm
Garth, a communist propagandist has infiltrated this site. At first it was informational in exposing the other communist sympathizers here. Now it’s just absurd. Allowing evil and disastrous communist ideals to be promoted here is just as immoral as allowing the anti-vaxers to post here. Just saying.

==============================

the Jag floated the idea of seeing if there was consensus to get rid of him a few days ago, but there was a bit of a hissy-fit and it was dropped. We takes the bads with the goods.

“Tolerance” and Inclusivity”aren’t just Liberal buzzwords in these parts, my friend. We walk the talk here in GF steerage.

#187 Justin s on 01.16.21 at 6:47 am

#120 Cow Man on 01.15.21 at 6:41 pm
New Zealand stopped, you know who from buying property their after realizing there would be no property left for New Zealand citizens. That is not racist it is realist. Just to the math on the population of Canada or New Zealand and you know whose country.

NZ – 268,000 sq km. Canada – 10,000,000 sq km. – Garth

———————————————–

Yup – Garth nailed it! We have just a bit more room to build housing here than NZ does.

Thank you for the interesting posts and great blog Garth.

#188 Howard on 01.16.21 at 7:06 am

#189 Justin s on 01.16.21 at 6:47 am
#120 Cow Man on 01.15.21 at 6:41 pm
New Zealand stopped, you know who from buying property their after realizing there would be no property left for New Zealand citizens. That is not racist it is realist. Just to the math on the population of Canada or New Zealand and you know whose country.

NZ – 268,000 sq km. Canada – 10,000,000 sq km. – Garth

———————————————–

Yup – Garth nailed it! We have just a bit more room to build housing here than NZ does.

Thank you for the interesting posts and great blog Garth.

———————————————-

Well okay then. After we go on a massive building spree and every single Canadian family is housed in an affordable, livable home at a realistic distance to job markets, THEN we can open up any leftover homes to foreign speculators. But not before.

#189 Howard on 01.16.21 at 7:11 am

#177 MalcolmM on 01.15.21 at 10:34 pm
Not sure how BC’s foreign buyers tax could be considered racist.

————————————————

Well of course it isn’t, anymore than restricting voting to citizens.

Another logic fail. – Garth

#190 KNOW IT ALL on 01.16.21 at 7:17 am

It will NEVER change.

Its called the free markets at work.

The intersection of human survival, societal norms, and greed make for interesting results.

Don’t panic from it – PROFIT FROM IT!

#191 BillyBob on 01.16.21 at 7:19 am

Oh yeah.

And tax housing cap gains already. Government revenue up, housing prices down, and maybe MF can afford a house one day instead of instead of waiting to steal it from his parents.

Wins all around.

#192 NoName on 01.16.21 at 8:05 am

#187 BillyBob on 01.16.21 at 5:59 am
I’d be honoured and delighted to play any part in the Jaguar’s nuptials.

At first I was a bit sceptical about Sail Away as entertainment, but then I thought, any ceremony that includes a floatplane and a D9 can easily carry someone dancing the joropo in a leopard-skin thong.

It would be a party for the ages.

I think that you guys underestimating trauma that would stay after alcohol weares off and party finishes…

#193 Penny Henny on 01.16.21 at 9:03 am

More for MF

-“Younger Canadians moving away from big cities at record levels

The nation’s three largest cities — Toronto, Montreal and Vancouver — saw a sharp jump in the number of citizens moving to suburbs, smaller towns and rural areas, according to Statistics Canada data released Thursday

It’s not a new phenomenon. People have been leaving the big cities in large numbers the last few years, replaced by new immigrants. But the pandemic has accelerated the trend, particularly among younger cohorts.”

https://www.bnnbloomberg.ca/younger-canadians-moving-away-from-big-cities-at-record-levels-1.1548707

#194 Penny Henny on 01.16.21 at 9:09 am

#115 Sail Away on 01.15.21 at 6:31 pm
#87 Dolce Vita on 01.15.21 at 5:28 pm

#53 Sail Away

Ego. Hubris.

From someone that can’t admit he doesn’t understand a Sinking Fund calculation where even I gave up trying to explain it to the financial wizard that he is

————-

???

DV, your numbers were just wrong. We (6 of us, by my count) attempted to point this out.

///////////

Not just wrong but stick out like a sore thumb wrong.

#195 Mehling on 01.16.21 at 9:33 am

https://www.theglobeandmail.com/business/careers/article-here-is-whats-in-store-for-workplace-law-this-year/

“Here is what is in store for workplace law this year”

Globe and Mail – January 16th.

#196 Dharma Bum on 01.16.21 at 9:56 am

“Insane………..Prices are insane. Buyers are insane. Bidding wars insane. And, of course, mortgage rates are pure insanity.” – Garth
——————————————————————–

Insanity is the new sanity.

We are all insane. Insanity is now normal. If you don’t hop on the insanity bandwagon, you’ll be left behind.

Lost in a Roman wilderness of pain
And all the children are insane
All the children are insane
Waiting for the summer rain, yeah

– Jim Morrison

If you didn’t take CERB, you are sane.
If you don’t buy a house, you are sane.
If you don’t invest in stocks, you are sane.
If you don’t invest in bonds, you are sane.
If you don’t amass gobs of debt, you are sane.

In other words, if you are sane, you lose. Insanity rules.

Insanity is the way to survive in this insane new world.

Just, get me to the airport, put me on a plane
Hurry, hurry, hurry, before I go insane! – Joey Ramone

#197 Masks really do make some people more attractive on 01.16.21 at 10:34 am

#183 Faron on 01.15.21 at 11:17 pm
#140 the Jaguar on 01.15.21 at 7:33 pm

Sorry, just threw up in my mouth a little bit. Reading mature women choose which jocks are invited to their non-existent infantile tea party will do that.

Gonna go brush my teeth and take another walk.

//////////////

Jaguar’s what women call a “pick me girl”. Not many female friends, is my guess.

#198 Sail Away on 01.16.21 at 10:38 am

#183 Faron on 01.15.21 at 11:17 pm
#140 the Jaguar on 01.15.21 at 7:33 pm

Sorry, just threw up in my mouth a little bit. Reading mature women choose which jocks are invited to their non-existent infantile tea party will do that.

Gonna go brush my teeth and take another walk.

—————

It’s all right, Faron. Anytime in my life I’ve not been on the first guest list, I naturally assume it was an oversight and invite myself. People make mistakes! You could try the same.

A bit of advice: when inviting yourself to the big event, always have something to offer.

#199 Apocalypse NOW on 01.16.21 at 10:45 am

Martial law, domestic catastrophe and global war are coming in days, even hours. Trump held meetings about this yesterday. Meeting notes reference all of the above.

This is real. Time is almost run out.

https://www.nytimes.com/2021/01/15/us/politics/mike-lindell-notes-west-wing.html

PREPARE

#200 IHCTD9 on 01.16.21 at 10:51 am

#187 BillyBob on 01.16.21 at 5:59 am

…but then I thought, any ceremony that includes a floatplane and a D9 can easily carry someone dancing the joropo in a leopard-skin thong.

It would be a party for the ages.

—— ——-

Yes it would. Imagine if a drunken brawl broke out during the reception, the ensuing carnage would be off da hook. I see a dance floor strewn with plane wreckage, and burning crawlers. Hundreds of half naked Men in thongs, tattered pilots uniforms, and hip waders passed out on the floor.

#201 the Jaguar on 01.16.21 at 10:52 am

Great article on TFSA accounts in today’s National Post. Take a bow, Garth.

https://pressreader.com/article/282132114091261

#202 IHCTD9 on 01.16.21 at 11:09 am

#183 Faron on 01.15.21 at 11:17 pm
#140 the Jaguar on 01.15.21 at 7:33 pm

Sorry, just threw up in my mouth a little bit. Reading mature women choose which jocks are invited to their non-existent infantile tea party will do that.

Gonna go brush my teeth and take another walk.
—— – —-

You’re just jealous that you won’t be piloting the party dozer across the dance floor while Sail Away twerks on the hood…

…how’s your stomach now?

#203 Sky on 01.16.21 at 11:12 am

@ walltiger :

“…you and many are brainwashed with western propaganda to smear and stall China.”

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

I apologize. I certainly never meant for you to take Maoist atrocities personally.

But you’re also excusing current CCP actions. That’s not OK.

The 20th century bloodbaths of the west are anything but OK in my books. They were truly horrific & the communist Soviets paid the largest price in terms of lives lost.

The 1600s & 1700s gave us the European Enlightenment which ultimately led to the rejection of an arbitrary authoritarian state. The concepts of a social contract, natural rights for man & democracy led to reforms & revolutions in the west.

A high degree of literacy for the general population was necessary in spreading the ideas of the Enlightenment. China, throughout the ages, and to this very day suffers from all the restrictions that illiteracy brings – through no fault of the Chinese people themselves.

The demands of memorizing thousands & thousands of Chinese characters are daunting & leave many people with only a bare bones degree of literacy.

I’m sure you know what I’m talking about… but for those who don’t — this is a great link which explains many of the serious language limitations China faces :

http://pinyin.info/readings/texts/moser.html

So where did the Chinese get the idea for communism in the first place? Well, that soul & life crushing idea originated in western universities via Marx & Engels.

Modern Chinese infrastructure is an achievement to be proud of but I can’t help but think that a little less action with engineering infrastructure & much more action regarding language reform would have served the people better.

Propaganda in the west has been aimed at muslims & Russia for the last 20 years. NOT at China. With the exception of Trump & trade imbalances etc.

Modern western state propaganda is now almost entirely focused on getting their citizens to accept their own state’s actions & lies as being justified & moral. E.g. The lie that Iraq had WMDs to justify the American invasion.

These same western countries are now flushing centuries of Enlightenment teachings down the toilet — brutal & unscientifically based lockdown measures. And most people have been so heavily propagandized that they actually think the state is saving them… when the opposite is true.

The Enlightenment is in its death throes. The En-dark-en-ment is next up. Despite this, I hope you make it to China for your planned travels. Political ideology & propaganda be damned!

#204 Doug t on 01.16.21 at 11:15 am

B.C. – “Hate and Envy” is on our license plate –

#205 Don Guillermo on 01.16.21 at 11:32 am

#177 MalcolmM on 01.15.21 at 10:34 pm
Not sure how BC’s foreign buyers tax could be considered racist. It is based on residence of the buyer, not race.

******************************************
Mexico has capital gains tax on all non residents selling real estate. Residents are exempt after three years. Seems simple.

#206 BC Living on 01.16.21 at 12:16 pm

It’s a bit off to deride the Premier as “Comrade Horgan” for a move to restrict travel that has led to less virus in provinces like yours. Seems the people of Atlantic Canada are benefiting from mandatory travel quarantines.

Maybe it’s not the move that will help the economy this quarter, it could certainly improve the quality of life.

Sealing borders and requiring quarantines are not synonymous. And it’s “Comrade Premier Horgan.” Please remain respectful. – Garth

#207 the Jaguar on 01.16.21 at 12:25 pm

@#204 IHCTD9 on 01.16.21 at 11:09 am

You’re just jealous that you won’t be piloting the party dozer across the dance floor while Sail Away twerks on the hood…

…how’s your stomach now?
++

I love this. So ‘Zamboni-like’.

#208 Dr V (Not DV) on 01.16.21 at 1:10 pm

87 Dolce – As far as ego and hubris are concerned, you only have to look at your responses from that post a few days back. Going down that road doesn’t solve anything.

You have to fix (or at least recognize) the problem, and that was your error in your calculation. This is a financial blog, so you will get others who understand the calculation. Several pointed it out, as well as provided advice as to what the error probably
was. No other person supported your number(s).

The error was very obvious just by quick estimation.

#209 Dr V (not DV) on 01.16.21 at 1:34 pm

170 Doug T

“You should have gone through beacon hill park for a scenic tent tour and then royal athletic park followed by pandora for fun…”

The fallen leaves reveal lots. Definitely a crisis.

#210 DON on 01.16.21 at 1:51 pm

#204 IHCTD9 on 01.16.21 at 11:09 am
#183 Faron on 01.15.21 at 11:17 pm
#140 the Jaguar on 01.15.21 at 7:33 pm

Sorry, just threw up in my mouth a little bit. Reading mature women choose which jocks are invited to their non-existent infantile tea party will do that.

Gonna go brush my teeth and take another walk.
—— – —-

You’re just jealous that you won’t be piloting the party dozer across the dance floor while Sail Away twerks on the hood…

…how’s your stomach now?

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

Now…that was funny! Thanks!

@fishman…you provide the halibut and I will call in whatever entertainment you like. Safe travels out there. Calm before the next wind/rain storm.

Jag…will this be Flintstone theme, clothing? My jock mind is too fragile for doing up any buttons.

#211 Linda on 01.16.21 at 3:41 pm

So my question is this: IF taxing property ‘capital gains’ will result in lower housing prices, why is it that the increased levels of taxation already in place in the most popular housing markets – GTA/YVR – haven’t resulted in prices going down? Land transfer tax, foreign buyer tax, unoccupied housing tax – all these & more have been applied, some quite recently & yes, the original rate has increased too. Yet housing continues to increase in price & housing affordability doesn’t. How many times do we have to test a theory before it becomes clear that it won’t work?

#212 yvr_llurker on 01.16.21 at 4:28 pm

#213 So my question is this: IF taxing property ‘capital gains’ will result in lower housing prices, why is it that the increased levels of taxation already in place in the most popular housing markets – GTA/YVR – haven’t resulted in prices going down? Land transfer tax, foreign buyer tax, unoccupied housing tax – all these & more have been applied, some quite recently & yes, the original rate has increased too. Yet housing continues to increase in price & housing affordability doesn’t. How many times do we have to test a theory before it becomes clear that it won’t work?

———————
House prices in YVR were coming down significantly in 2018 and especially 2019 in many neighbourhoods after the new foreign buyer tax and other measures were put in. This is a fact. However, COVID has introduced a huge perturbation; 5 year fixed at around 1.9% (so that the monthly payment is down but prices are up as a result) peoples “safety need” to have extra space and out of buggy condos etc…etc…. We were on the right track at least in YVR until this maelstrom….

#213 Linda on 01.16.21 at 6:10 pm

#214 ‘yvr’ – out of curiosity, what do you consider to be ‘affordable’ when it comes to housing prices? In 2018 as per the mighty Google, median YVR housing prices dropped by 2.4%. In 2019, an additional 3.1% drop. That brought the ‘average’ house price to a mere $1,001,000. Also per Google, the median household income in 2020 in Vancouver was $96,426 (before tax) or around $78K net. So housing prices did drop from previous years, but have to say that a price tag of $1 million does not equate in my mind as ‘affordable’. Yes, Covid has had a detrimental effect, but one must believe that once Covid is yesterday’s news that housing prices still won’t be affordable given the median prices/household income figures, notwithstanding historically low mortgage rates.

#214 Linda on 01.16.21 at 6:28 pm

#214 ‘yvr’ – ran the figures using most recent average house price of $1,060,000. Most favorable terms – a 1.39% mortgage rate, 20% down payment & even allowed for absolutely no mortgage rate increase whatsoever. Results: $212,000 down payment; $19,200 land transfer tax; $43,501 annual mortgage payments which is $3,625 per month. Which is 55% of the net average YVR household income & doesn’t include any other costs associated with owing a home. After 25 glorious years of mortgage payments you own that sucker free & clear – & even at 1.39% for the entire 25 year term will have shelled out $1,206,257 in principle & interest. Plus the $19,200 in land transfer tax & an unknown sum for property taxes, utilities, insurance, maintenance & so forth. I’ve a number of terms to describe this scenario, but ‘affordable’ isn’t one of them. BTW, how do you stand on the concept of taxing capital gains on principle residences? For or against?

#215 yvr_lurker on 01.16.21 at 7:44 pm

It has not been affordable in YVR for young families, even those with high dual incomes, without huge assistance from the family plan (inheritance or gifts) since at least 2008. The progress in 2017–2019 was that there were no longer 10–15% year-on-year increases, and that prices were coming down from the stratosphere. My paid off place came down 15% in assessment from 2018-2019 and I was perfectly fine with it, as this trend hopefully indicated that the next generation (my kid, my neighbours kid, the ones I coached in soccer years ago) might be able to afford living in YVR with good jobs. Foreign overseas buyers and speculators were largely driven from the market.

With regards to taxation on capital gains in housing, there needs to be accounting for:
i) captial renovations done that improve the property
(and hence lead to a higher price point).
ii) the time for ownership
Then, perhaps some taxation would be reasonable. However, there is also a great deal of room to tax those high earners who shelter $$$ in bogus one-person corporations and other such constructs, and for those landed gentry-types who live on low-taxed dividends. The solution to paying the Covid bill can’t be just to increase the marginal tax rate up to 60% and leave this other group a free pass.