The gift

A row house on a leafy street an hour (by car) west of the urban core sold last week with a flurry of offers and for hundreds more than asking. Yawn. Old news. This crazed behaviour is everywhere.

But it’s still interesting a decidedly middle-class home with no new renos increased 50% in 24 months, from the fives to the eights. Of course, this pales to recent flips in smoky hoods like Brampton, where flippers have been feasting on 6% monthly appreciation.

Now that mortgage rates have been gently rising and the vaccine’s started to flow, the market may mollify. But not soon. It’s spring. Time to grow antlers, sow oats and make offers. March stats could be epic. April will be orgasmic. And then you should expect significant change.

Next month also brings tax reality. Last year the feds pushed the tax-filing deadline way into the autumn to accommodate pandemic mayhem. The American IRS has done it again, giving people there until the end of May to get their stuff together. But in Canada your 2020 return has to be finished and submitted in six weeks.

Last year Ottawa sent $82 billion in CERB cheques to nine million people – that’s 61% of all the 14.8 million folks in the workforce. Of those, 650,000 were self-employed who filed incorrectly and were not eligible for benefits, but the Trudeau Liberals have forgiven them. Also not paying back money will be the 300,000 teenagers who collected $636,000,000 in CERB, while living at home, having no expenses. And let’s not forget the 114,000 people who earned well over $100,000 and also took the pogey.

Well, here’s the point. The federal government is spending $400 billion more than it’s taking in. Provinces are also a mess. Like Ontario’s $40-billion hole (the next budget comes on Wednesday). Toronto has a $2 billion shortfall, despite Covid cash coming from the feds. Every major city has, like provinces and the nation, seen revenues plunge and costs rise.

Meanwhile, what’s been happening with citizens?

Yup, all good. At least for the millions of WFH warriors who have kept jobs and incomes, seen living costs plunge, pocketed extra money in enhanced government benefits, and plumped their savings accounts by a collective $100 billion. Ah yes, and those with real estate have seen their net worth bloat since the pandemic started – as this pathetic and breathless blog has chronicled. Cheap money, aggressive nesting, WFH, urban flight and sheer FOMO have shoved personal net worth higher at the same time public finances have cratered.

It won’t last. It can’t. You know it.

This is why Vancouver has an ownership tax on non-residents plus a vacancy charge, and why Toronto’s about to do the same as well as mulling a land transfer tax jump for lux homes (over $2.5 million). Everywhere, property taxes will increase and the debate is being kicked up again about taxing homeowners on their unearned, windfall, capricious and often-obscene capital gains.

Will any such move happen in the maiden Chrystia budget, expected next month? Nope. Not a chance. T2 is eying a majority win now that O’Toole was hoisted upon the socon petard a few days ago. Nibbling away at homeowner equity gains will not be happening until later.

If the Libs increase the inclusion rate for capital gains on stocks, funds, rental properties and other assets in the federal plan (possible in April) it will only make more people ask a simple question: why not tax where the big profits lie? These days two-thirds of all capital gains sit in residential real estate. Not taxing them is a $7 billion gift to property owners, while the average family is shut out of owning the average home.

The US taxes gains on houses, albeit with an exception that spares most people. Around the globe some cities (New York, Paris) also tax them. Canadians selling properties in places like Florida are hit with a 15% withholding tax on gains. And everywhere Covid has pushed housing to an historic level, increasing real estate lust and speculation, taking valuations to absurd levels in the midst of a public health emergency that’s killed millions and pushed governments into debilitating deficits.

If there was ever a catalyst for ending this nonsensical exemption for residential profits, here she be. There are not enough rich people to whack with more tax to finance government largesse. It’s therefore inevitable the house tax will come. You may wish to factor that into your retirement strategy.

148 comments ↓

#1 Squire on 03.21.21 at 1:02 pm

I can’t take another 4 yrs of Sock Boy Jr. Thank O’Toole… What happened to Ambrose ? She would have given Sock Boy a good spanking.
CCP will love having Jr boy Sock puppet as majority leader. We gonna get sold out

#2 crowdedelevatorfartz on 03.21.21 at 1:12 pm

TAX THE RICH homeowner……

#3 Avid Reader on 03.21.21 at 1:16 pm

I know you are not a good flogger in general, but do you like mining companies at all with inflation on the horizon?

#4 crowdedelevatorfartz on 03.21.21 at 1:20 pm

@#161 EAT THE RICH

“SPIT OUT THEIR PRIVILEDGE”

++++

Jealousy still won’t get you up in the stratosphere……..where we are……

But hard work might….

:)

#5 Nita Graves on 03.21.21 at 1:23 pm

first!

#6 Cheese on 03.21.21 at 1:26 pm

I took one month of CERB (initial site closing).

I cleaned a Covid ward and worked the entirety of the pandemic at the hospital otherwise, yet i only make $2100 a month on average.

But its hard at times not to feel put out by the whole situation.

But life isn’t fair, is it?

Skip the house, its now an unattainable goal for most of us.

#7 DON on 03.21.21 at 1:28 pm

#100 Sara on 03.20.21 at 7:09 pm
#94 Damifino on 03.20.21 at 6:24 pm

Myself, I think the debate as to whether we’re effecting the climate in a minor way is over. The debate as to whether that justifies a religion of catastrophe and alarmism has only begun.

=============
So your point is that we (mankind) are Affecting the climate only in a minor way, so who cares? Curious, but at what point does minor become major

**********

When a cast away can live a luxurious,
sustainable lifestyle by collecting random supplies that wash ashore.

#8 The real Kip (Ret) on 03.21.21 at 1:30 pm

If the Libs tax principle residences then they’ll be able to write a book on it called How To Lose An Election In 15 Minutes.

#9 Arm chair economist on 03.21.21 at 1:33 pm

I believe your right. Capital gains tax coming on real estate. Also, liberal majority ensured in next election, given the conservatives stance on Friday on climate change. Conservatives committed political suicide Friday.

Been reading this blog daily for over a decade. Love it.

Also, predict major gains in the market this year, and a decade of major innovation in energy, transportation and medicine that will blow your mind. People will look back in 2030 and be amazed and what happened. Also predict in 2030, Conservative party of Canada will acknowledge climate change. More interesting predictions for 2030:
1. Justin Trudeau goes bald, losing his superpowers.
2. All countries will have ecoins, currencies no longer tied to GDP, revolutionizing economics.
3. Money for nothing, and love robots for free.

#10 TurnerNation on 03.21.21 at 1:36 pm

#36 Flop… on 03.19.21 at 3:36 pm
“Since reading your posts on here the last year or so, I no longer carry I.D…”

Haha doesn’t matter. A few checkpoints with NFI readers will do it. One of 101 tracking methods:

https://yro.slashdot.org/story/03/01/21/2332252/michelin-to-include-rfid-transmitter-in-every-tire
“According to the RFID Journal, Michelin (the tire manufacturer) has announced that it is planning on embedding RFID transmitters into every tire. The article states that ‘the microchip stores the tire’s unique ID, which can be associated with the vehicle identification number.’ Let the privacy invasion begin!”

………..

Two more weeks…of unlimited powers. Check. A doomer friend of mine is weakening. They openly disagreed with the new lockdown a few months ago. Recently they outright asked me ‘are we looking at another 9 years of lockdowns’.
“Well it’s funny you should mention that…but YES and here is a link as to why”
(Put it this way, did any of the new laws against us after Sept 11 get repealed? Power is never given away.)

– Ontario extends all emergency orders under the Reopening Ontario Act until April 20 (toronto.ctvnews.ca)

– The city of Miami Beach declares curfew over spring break crowds(axios.com)

……………….
— Toronto Grey War-zone:. We must be kept DIVIDED! No friends may sit together and chat, eat, drink. Those days are over here in the brutal New World Order.
(Our leaders know that most revolutions were plotted at pubs. That must never happen again.)

“Under the new grey zone, eateries will be able to open the figurative doors to their patios, so long as capacity limits are followed, all on the premises are able to heed physical distancing directives, ***and only those from one household sit at a table together***, along with other public health and workplace safety measures.” [emphasis added]

– Fairweather protestors – huge anti lockdown march in TO – first great weather day
https://twitter.com/canmericanized/status/1373353777667919872?

………………
1. What great timing. Issued on: September 19, 2019

https://trumpwhitehouse.archives.gov/presidential-actions/executive-order-modernizing-influenza-vaccines-united-states-promote-national-security-public-health/
Executive Order on Modernizing Influenza Vaccines in the United States to Promote National Security and Public Health
HEALTHCARE

Issued on: September 19, 2019
(e) The seasonal influenza vaccine market rewards manufacturers that deliver vaccines in time for the influenza season, without consideration of the speed or scale of these manufacturers’ production processes. This approach is insufficient to
meet the response needs in the event of a pandemic, which can emerge rapidly and with little warning

#11 Red_falcon on 03.21.21 at 1:38 pm

The sheeple will die on the bill rather than lose their beloved principle house not being taxed upon being sold.

Sheeple will be sheeple and will do as sheeple do. Pity them and their elk.

And… first!!

#12 Sunny Daze on 03.21.21 at 1:49 pm

None of this will happen. Nobody is filling that tax hole except the BOC.

Love your blog. But what you are saying is absolutely impossible. It’s waaaaay too late.

#13 Ponzius Pilatus on 03.21.21 at 1:50 pm

GIFT in German is “poison”.

#14 Concerned Citizen on 03.21.21 at 1:51 pm

I highly doubt any party will commit to eliminating the capital gains exemption on housing in their platform – too many would be against it. If it’s ever done, it will be a “surprise” announcement soon after an election.

What I think most would agree with are new measures to prevent money laundering and foreign purchases of residential real estate, new levies on unoccupied housing, increased land transfer taxes, and more. Re-orient the market to focus on places to live, rather than places to invest.

I also think there is likely good support for eliminating the personal capital gains exemption on investments. This exemption benefits mostly those that are well to do – the average Canadian has more than enough room to save with RRSPs, TFSA, RESPs, pension plans, etc.
With the central bank pumping assets to the moon, I look for the government to take more of the share of the winnings. Perhaps as early as this spring’s or next spring’s budget.

#15 Keith on 03.21.21 at 1:51 pm

@#147 Keith
“Vij’s is Vancouver’s most famous Indian restaurant…”

+++
Ri–i-i-i-i-i-i-ght.

I’m sure if I ask 100 people tomorrow all over the Lower Brainland what “Vij’s restaurant” is…..99 of them will stare at me blankly and shrug their shoulders.

Another “famous” restaurant ( insert “overpriced” here) that I will never stand in a line for, or , set foot in and could care less.

Pretentious Lower brainlanders and their “must experience” restaurants are a dime a dozen…. and in a few years most are busted and gone.

I remember the lineups for the “must eat” “JapaDog hotdog stands in Downtown Vancouver a few years back….

People lining up for Hotdogs cooked on a downtown sidewalk with afternoon rush hour buses belching diesel fumes mere inches away.
The “cook” ( does a hotdog vendor earn the moniker “chef”?) has no place to go to the bathroom or wash their hands.

The tiny, obligatory garbage can next to the food stained sidewalk is always filled to overflowing.

The customers drop their napkins, condiments, garbage seconds after finishing their “meal” everywhere within 50 feet of the Jap-a-dog stand as the crows battled for the scraps…

Utter filth and people lined up for it….?

No accounting for Lower Brainlanders capacity to be sheeple in a line because they read or heard from someone who told someone “its totally awesome!

+++

Once a restauranteur is famous from TV, they are too big to run their own place well. Years ago Umberto Menghi was the talk of Vancouver, by the time he had the TV show, books and everything else the quality was gone. The best restaurants are where the owner is also the chef, small places with local fresh supply and a smallish menu where consistent high quality is the norm.

I like the Pink Peppercorn at Knight and Kingsway, chef owner Eddie used to work at the Cannery and his food is fantastic. The kitchy decor is part of the charm for me.

#16 Ponzius Pilatus on 03.21.21 at 1:56 pm

#155 Sail Away on 03.21.21 at 12:07 pm
For Ponzie:

Crack Austrian troops in an historic battle… well, against themselves protecting alcohol.
—————–
The Austrian Army was thus in many ways haphazard, not the least of which being the fact that it was made up of Austrian nationals, men from the Czech Republic, Germany, France, Croatia, Serbia, and Poland. Therefore, communication between the different nationalities was difficult, to say the least, and more often than not necessary communications were literally lost in translation.
———–
I blame the CZECHS, and by association BIllyBob

#17 UmiouiuS on 03.21.21 at 1:56 pm

“If there was ever a catalyst for ending this nonsensical exemption for residential profits, here she be.”

Agree. Only please, wait until after we sell, right Garth ?

#18 cuke and tomato picker on 03.21.21 at 1:56 pm

Now I read in the T.C. that Jagmeet Singh wants to give students a twenty thousand break on their university student loans.

#19 Damifino on 03.21.21 at 2:00 pm

If Chrystia Freeland’s budget (as dictated from the Prime Minister’s Office) will not address any of the nation’s pressing post pandemic economic issues then what, pray tell, will be contained within?

What is left to give away before the next election that hasn’t already been tossed from Santa’s sled?

#20 AlbertaGuy in AB on 03.21.21 at 2:02 pm

It probably makes sense but.. with a gradual phase out based on years owned. A total exemption for before year x. The idea of exemption if you buy another home with y months. A deduction of mortgage interest and expenses used to maintain or upgrade. Probably a lot more rules and conditions…The accountants will love it.

#21 Don Guillermo on 03.21.21 at 2:03 pm

#4 crowdedelevatorfartz on 03.21.21 at 1:20 pm
@#161 EAT THE RICH

“SPIT OUT THEIR PRIVILEDGE”

++++

Jealousy still won’t get you up in the stratosphere……..where we are……

But hard work might….

:)
************************************
It’s the Canadian version of Ivan getting one wish and using it to kill off Boris’s goats.

#22 Ponzius Pilatus on 03.21.21 at 2:12 pm

Vijay is a pompous a..
But he does not take reservations.
So even celebrities have to wait in the rain.
His one year stint with The Dragons Den was pathetic.
He didn’t have much money to invest.
He has an Austrian connection:
He trained in an Austrian Hotel in the Alps.
Many British Royals were regulars there.

#23 Linda on 03.21.21 at 2:14 pm

In Alberta it is an election year for municipalities. Even before the pandemic hit, revenues were dropping as O&G companies shed jobs & emptied out office towers in the DT core. So the expectation is that yes, municipalities will indeed be goosing property taxes. Except its an election year. So there have been epic efforts to ensure taxes won’t go up, because tax increases are never popular even in good times which these are not. Post election however is another story. 2022 may see the virus receding in the rear view mirror, but that tax semi is about to hit head on.

#24 Dave on 03.21.21 at 2:15 pm

We are living in hyper inflation society in Canada….housing, automobiles, food clothes all are extremely expensive.

Government will say inflation is in check….dont let them brain wash you….just look at your wallet

#25 Capt. Serious on 03.21.21 at 2:20 pm

Since politicians are in the business of being re-elected, I think there is almost zero probability of a capital gains tax on primary residence sale. I could see them playing around the margins and slapping something on foreign owners’ gains, or perhaps phasing something in for gains over X that would reduce with time of ownership. There is just no way people will vote for a party taking their money from their house. (Their framing words, not mine.) Another party could get elected just stating they would unwind such rules.
But capital gains inclusion rate on stocks and taxation rate of dividends? Well, only the “rich” own stocks, so they will be fair game.

#26 Winterpeg on 03.21.21 at 2:23 pm

If the Libs increase the inclusion rate for capital gains on stocks, funds, rental properties and other assets in the federal plan (possible in April) it will only make more people ask a simple question: why not tax where the big profits lie? -GT

So their strategy will a small increase to the inclusion rate on stocks to gain the vote of the “Eat the rich crowd ” for the snap election. Then after they win a majority in the election , sock it to the residential capital gains?

#27 Damifino on 03.21.21 at 2:26 pm

#100 Sara

So your point is that we (mankind) are Affecting the climate only in a minor way, so who cares? Curious, but at what point does minor become major?
—————————–

Minor never has to become major. Thanks to the impact we’ve been able to make upon “nature” with human ingenuity and copious hydrocarbon energy we have been able to avoid the nasty, brutish and short lives the “nautral” world has delivered us for two million years.

Nature is not a delicate nurturer. Rather, it’s a place of wild and almost limitless potential. It has no perfect balance and “it” doesn’t care about us. The physical word changes constantly under forces well beyond our puny controls. We alone are responsible for defending ourselves against it’s constant amoral tyranny.

We have done exceedingly well to date. Would you wish to turn back the clock on the comforts it took so long to procure? Would you wish to deny the billion folks still burning animal dung to heat their huts a chance to enjoy the lifestyles we are immersed in every day?

Those people need real energy. Sources of energy that far are less dense than the ones we now cleverly employ are not the path forward. It will be hydrocarbons for the next fifty or so years while we slowly decriminalize and move toward wide use of nuclear power.

#28 Ustabe on 03.21.21 at 2:30 pm

#8 The real Kip (Ret) on 03.21.21 at 1:30 pm

If the Libs tax principle residences then they’ll be able to write a book on it called How To Lose An Election In 15 Minutes.

If one were to pause for a moment, remove the us/them from the process and ponder what might happen if the emphasis was less on taxing income and more on taxing assets…well one could come up with some interesting points.

For instance, have a high income but chose to live a less ostentatious lifestyle then you pay less in tax than the guy who needs the McMansion and the latest Mercedes.

Becomes a choice then as to how much tax you pay…want that acreage outside of town to park your boat, RV, tractor, etc on well then pay up. Live more sustainably on a regular lot in a regular sized home, pay less. Rent a condo downtown pay even less.

Ramp it up: want to own that shopping mall and those apartment buildings then pay.

Just like the GST/HST…don’t want to pay it then just don’t buy stuff.

#29 GAV on 03.21.21 at 2:30 pm

We need a “crimes against humanity” trial of you know who. But Ontario will focus on climate change.

https://calgaryherald.com/news/local-news/corbella-15

“So, you know it’s been a blame game from their end, and he’s got, you know, 50 per cent support of the population in Ontario, so that’s absolutely astonishing to me,” says Lucas, “because people are dying because of his government botching this so badly.”

#30 Annek on 03.21.21 at 2:35 pm

Climate change: yes it is real!
However, Canada contributes only 3% of CO 2 emissions to the world.
Why doesn’t anyone address the biggest polluters such as China and India?Advocate to implement change there.
Yes, we can make change here as well. But it is kind of like “ pissing in the wind.”

#31 Flop... on 03.21.21 at 2:35 pm

Conservative Party Never-ending Crisis Headquarters.

“What was the name of that delinquent on Garth Turners blog who came up with the moniker Metrosexual Messiah for Justin Trudeau a few years back?”

“Flop, sir, his name is Flop, presumably because he is a failure at life.”

” Don’t care, he’s all we’ve got right now, we need him to come up with a catchy new slogan to discredit Chrystia Freeland, or we are so done in the next election.”

“Yeah, we might want to get ready for the 2025 election, sir, as this is the best he could come up with…”

Vote Conservative, Chrystia will Fist Ya…

M46BC

#32 Harry on 03.21.21 at 2:40 pm

It’s therefore inevitable the house tax will come. You may wish to factor that into your retirement strategy.
————————
Maybe buy a watch like Bill Gates.

#33 Dr V on 03.21.21 at 2:46 pm

Hmmm…this is a tricky one. How to make a tax on PR gain small enough to not anger the electorate, but how
to make it meaningful enough for the multi-million
gains. May require reverse engineering. More than a few thousand tax on my “gain” at current prices is
gonna PMO big time. Maybe a tax-free gain allowed each year of a few % to allowing doubling in a set time
frame of 15-25 years?? Then a tax of X% on the
remaining gain?

#34 crowdedelevatorfartz on 03.21.21 at 3:05 pm

@#15 keith
“The best restaurants are where the owner is also the chef, small places with local fresh supply and a smallish menu where consistent high quality is the norm.”

+++

Yep,
Anton’s Pasta was amazing 25 years ago when they were 5 tables and 90 % takeout.

Then the word got out.
They expanded to 20 -30 tables and started putting “celebrity” photos on the walls, huge line ups….
I never went back.

#35 crowdedelevatorfartz on 03.21.21 at 3:14 pm

@#1 Squire
“I can’t take another 4 yrs of Sock Boy Jr. Thank O’Toole… ”

++++

Nah.
Thank the idiots that elected him leader of the Conservative Party and then nuked him just before the pending election by declaring “Climate Change” isn’t a proven fact…. thus alienation a majority of Canadian voters that consistently rank “climate change” as in the top 3 of voters concerns .

Idiots.

Or they want O’Toole gone.

Either way.
Sock Puppet is back in.
The disastrous economic policies of Little Potato and the Fiction Writer will haunt us for decades.

#36 Don Guillermo on 03.21.21 at 3:14 pm

#15 Keith on 03.21.21 at 1:51 pm
@#147 Keith
“Vij’s is Vancouver’s most famous Indian restaurant…”
************************************

Imagine, if you will, a situation where a world leader takes his own Indian chef to India. And then imagine, if you will, you as a peasant taxpayer picking up the tab.

Guard: “PM, PM the peasants are revolting.”
PM: “Aren’t they though.”

#37 Leftover on 03.21.21 at 3:20 pm

Geez, even the Globe agrees that taxing capital gains on primary residences is a good idea:

https://www.theglobeandmail.com/opinion/editorials/article-canadas-wild-housing-market-is-making-a-case-for-the-countrys-most/

Meanwhile, in Joe Biden’s America, the New York Times has come up with a radical idea – rather than introduce new taxes, collect the ones that people already owe:

https://www.nytimes.com/2021/03/20/opinion/sunday/unpaid-tax-evasion-IRS.html?action=click&module=Opinion&pgtype=Homepage

Such radical ideas.

#38 Feudal King on 03.21.21 at 3:23 pm

Mr. Garth, didn’t you get the memo?

When the budget comes, the governments at both the provincial and federal level will balance the books

…by cutting welfare like Mike Harris, and telling the unemployed that the best social assistance is a job, despite welfare being only less than 5% of the total budget for the past century or so.

You see those condos in the skies? They’re for the rich. Canada is a neo-liberal corporatist facade masquerading as social justice.

#39 TurnerNation on 03.21.21 at 3:34 pm

What is this all about worldwide?
The spoils of this WW3: LAND. #stayhome right? Get off the land. The Crown owns it. (You know that ‘obsolete’ tourist pull across the pond)

-USA: ‘America, send us your ideas’: Biden pledges to protect 30% of US lands by 2030. It was an executive order that made waves in environmental circles: after only a week in office, President Joe Biden pledged to preserve 30% of US lands and waters by 2030.Feb. 17, 2021

– Kanada: https://www.canada.ca/en/environment-climate-change/services/nature-legacy/activities.html
The Government of Canada is committed to protecting at least 25 percent of Canada’s lands and 25 percent of its oceans by 2025, but we can’t do it alone. We need you, Indigenous Peoples, provinces, territories, private businesses, not-for-profits and others to join in the effort.

…………
CLOSING BEACHES Brazil, Sweeden. You will be under house arrest as the New World Order rolls out, FYI. Wait till next winter…variants! Think 2025.

— ca.finance.yahoo.com › finance › news › brazils-rio-jan…
2 days ago — The beaches of Brazilian city Rio de Janeiro will be closed this weekend.

— Sweden: – Beaches, public pools and other bathing areas as well as marinas are forbidden to visit for recreational purposes.

………………………………
But why? What are the bankers up to?

— The Smart money is pulling out first.

Hedge Funds Kicked Off 2021 With $49 Billion Sale of Treasuries
By Stephen Spratt March 15, 2021, 10:41 PM EDT
https://www.bloomberg.com/news/articles/2021-03-16/hedge-funds-kicked-off-2021-with-49-billion-sale-of-treasuries

…and getting into…? Seen elsewhere, and I’d add BITCOIN to this list: Note that all of these things require extensive, daily programming to keep it into our minds.

“The big 3 money makers are things that are not tangible. Climate change, space exploration, and Covid-19.”

#40 Lee on 03.21.21 at 3:35 pm

“It won’t last. It can’t. You know it.” People have been saying this for twenty-five years. I think governments will keep finding ways to keep prices stable or rising. They’re like that guy who put his thumb in the dam to keep the apocalyptic flood at bay.

#41 Dr V on 03.21.21 at 3:41 pm

35 Fartz – sad isn’t it? What’s a small ‘c’ conservative
to do?

“GT for PM” is all I can say.

#42 Long-Time Lurker on 03.21.21 at 4:06 pm

DELETED & BANNED

#43 Complicated on 03.21.21 at 4:12 pm

Well if the only thing left tax free will be your principal residence then it seems even more reason to buy property. If you cash out of your house with 500K or so then have to invest in stocks then you need to make even more money after tax if Freeland puts up the tax rate on stocks and dividends. You can only put so much money in RRSP and TFSA so most of your houses equity would be taxable if into stocks. If you earn 7 percent per year on your investments and lose 30-40 percent to taxes then not very interesting if house prices keep going up even 3-5 percent per year. I guess this insanity ends at some point but will it really end by next year..

#44 Dolce Vita on 03.21.21 at 4:17 pm

Yukon DV here.

Son of a gun (not me) Yukon will probably see herd immunity if they administer DOSES ON HAND, unused.

——

Yukon Google 2016 Census Population = 35,874

So far vax’d:
1 dose = 21,752
2 dose = 10,598
Total = 32,350
60.6% have received at least 1 dose as of Mar 19 per CTV vax tracker site.

Vax sent to them = 51,400

UNUSED, vax on hand = 19,050 (51,400 – 32,350)

Looks like they’re vaxing 2:1 (1st dose vs. 2nd dose) or 2/3, 1/3.

Proportion of 19,050 (unused) to additional 1st, 2nd doses:
1st = 12,700 (19,050 * 2/3)
2nd = 6,350 (19,050 * 2/3)

If Yukon uses up all of their vax on hand, proportions vax as they have (2:1), their vax’d will be:
1 dose = 34,452 (Holy Holopchi Batman)
2 dose = 16,948

% 1 dose:

= 34,452/35,874
= 96%

NINETY-SIX PERCENT!

——————

Do not know the pace of vaxing there (will track it as of today) but if the Yukon gets their vax derrières in 6th gear will see HERD IMMUNITY, more than likely.

I say that since mRNA vax’s are about 92% effective with 1 dose.

Will give a whole new meaning to:

The GREAT White North. NUMERO UNO in the World to achieve herd immunity.

PS:

– Follow-up note to Maj Gen Dany Fortin in regards to my request yesterday…cancel the Yukon airlift for now.
– Follow-up note to Dr. Trudeau in regards to my request yesterday…extort the USA for herd immunity info say $350B (pocket change to them) so my tax bill this year will be:

$0.

BTW, NWT 3rd highest 1 dose % in the World, behind #2 Yukon, ahead of #4 UK (#1 Israel just ahead of Yukon…for now)

PS, PS:

Won’t I (and the World) be bummed out if herd immunity is > 96%…yikes.

#45 Don Guillermo on 03.21.21 at 4:18 pm

#165 David on 03.21.21 at 3:32 pm
154 Stone

I’m talking about the people making 50+ million. The actual 1% on this planet.

I’m not talking about the person making $800,000/year.
***************************************
As of 2015, the top 1% in the world are not all billionaires, but contain all people whose assets amount to $759,900 or over. There are only 123,000 ultra high net worth individuals (defined as those whose assets exceed $50 million) worldwide.

https://www.weforum.org/agenda/2015/10/who-are-the-1-the-answer-might-surprise-you/

#46 Faron on 03.21.21 at 4:21 pm

I was too busy skiing hard won powder with friends in the mountains above Cowichan Lake to notice: did Billy Bob come out of retirement yesterday solely to say something about my testosterone levels? That matter to him why exactly? Funny to read the words of someone living apparently jobless off of the work of his ladyfriend and who can’t even care for his own dog so foists it onto that lady friend’s parents because it’s too inconvenient for them to have a dog in the city yet they still claim it as “theirs”. I always thought the manly thing to do was earn your keep and care for your fellow beings even when it’s inconvenient to do so. But I guess that’s my low t-rone talking.

Welcome back sirrah, I look forward to ignoring tw*ts like you.

#47 [email protected] on 03.21.21 at 4:38 pm

The US taxes gains on houses, albeit with an exception that spares most people.

—–
Very important point unmentioned about the US is that mortgage interest is tax deductible, which benefits many people.

#48 Guelph Guru on 03.21.21 at 4:44 pm

Why tax the primary residence when we can just print it up? Mr. T is very good at it. As long as the BoC is happy to lend, Mr. T does not have a problem.
BTW. Anyone knows if Mr. T is planning to send us helicopter money like our neighbors?

#49 Grumpyauldscott on 03.21.21 at 4:46 pm

A capital gains tax on privately owned owner occupied property could be a double edged sword if it became part of the income tax law.
Having owned investment properties subject to capital gains I can tell you the the interest and property taxes are deductible as carrying charges while capital outlays are covered as capital cost allowance or as increases to the adjusted cost base. What I learned (the hard way) is that capital gains trend towards capital losses barring the fleetingly brief periods of bubble markets like the one we have been in for the last few years. So, unless they create a new category of investment class to cover the residential case, the short term taxes owed by sales during the current boom would turn to windfall capital losses available to those selling the family home in order to downsize upon retirement.
Losing a large part of the gain on the home you sell to taxes would also kill mobility as selling your home would not provide the capital required to buy the next one. This would have the effect of demotivating sellers and driving up prices even further.
Capital gains on the sale of owner occupied residential property would be political suicide and quite possibly a financial poison pill. Doesn’t mean they won’t do it.

#50 Mattl on 03.21.21 at 5:06 pm

65% of Canadian families own a home so not sure how the “average” family is shut out of home ownership. This is in line with historic home ownership numbers. So I call BS on the average CDN being shut out, that guy probably owns a home and a rental apartment.

That said, would absolutely love to see Trudeau and the Libs go after the 65%. He would get annihilated. And any cap gains rules would hurt middle class families the most – those with stable jobs and income and financial resources would be best positioned to manage the deductions. When has taxing something ever made it cheaper?

When not taxing makes them more expensive. And, yes, the average household cannot afford the average home in almost all major markets in Canada without already owning real estate to trade. – Garth

#51 Dolce Vita on 03.21.21 at 5:08 pm

RE capital gains tax…the Libs might but not for another year or 2 after the election this Fall.

They’ll say 1 or 2 years from this Fall we are trying to balance the budget, have raised taxes but still woefully in arrears and housing has become unaffordable for young families so we will be bring in a RE Capital Gains Tax. Also, debt interest payments high and using up too much of the budget that should go to benefiting Canada and its people instead.

i.e., we need cash bad, run out of things to tax.

Commenters here have come up with good ideas (and you Garth) how to do a RE Capital Gains Tax equitably in terms of single home ownership or 2 or more homes.

I would go lenient on the single homeowners and have a higher tax on owners of 2 or more homes, punitive if speculators/flippers (many RE sale transactions in a year, say 3 or more). I say 3 or more as some buy a 2nd home and no more, rent it out over the years and then sell it upon retirement or use the rent to supplement their retirement income. So no punitive on them.

My take on the premise the Libs will use to introduce the tax, if they do and some thoughts on tax equity.

#52 WEXIT on 03.21.21 at 5:13 pm

Tax, tax, tax, that is all we talk about in Canada.

The government sector should look themselves in the eye, and ask where can we cut expanses. But oh no, they will never do that, due to their high public sector wages and benefits.

As for Canadians you have voted for a government that is corrupt. You reap what you sow

#53 Tron Light on 03.21.21 at 5:20 pm

DELETED

#54 KNOW IT ALL on 03.21.21 at 5:22 pm

You mean “There are not enough rich people to whack with more tax to finance government’s incompetence in stewarding the cash stolen from hard working citizens.”

Tax revenue has been declining for years due to technological innovations and outsourcing to other countries.

So explain to me again how the Trudeau can print more money and pay it back if now we have more debt than before and declining tax revenue?

It’s all either a Ponzi Scheme or we just haven’t filed for bankruptcy yet.

Inflation comes from one thing only – the devaluation of the currency.

#55 Sail Away on 03.21.21 at 5:29 pm

#16 Ponzius Pilatus on 03.21.21 at 1:56 pm
#155 Sail Away on 03.21.21 at 12:07 pm
For Ponzie:

Crack Austrian troops in an historic battle… well, against themselves protecting alcohol.

————

The Austrian Army was thus in many ways haphazard, not the least of which being the fact that it was made up of Austrian nationals, men from the Czech Republic, Germany, France, Croatia, Serbia, and Poland. Therefore, communication between the different nationalities was difficult, to say the least, and more often than not necessary communications were literally lost in translation.

————

I blame the CZECHS, and by association BIllyBob

————

I agree the Czechs were probably the first to the booze. Exactly the reason I like hanging around Czechs.

#56 Burn down Bank of Canada on 03.21.21 at 5:36 pm

DELETED

#57 Stone on 03.21.21 at 5:37 pm

#50 Mattl on 03.21.21 at 5:06 pm
65% of Canadian families own a home so not sure how the “average” family is shut out of home ownership. This is in line with historic home ownership numbers. So I call BS on the average CDN being shut out, that guy probably owns a home and a rental apartment.

That said, would absolutely love to see Trudeau and the Libs go after the 65%. He would get annihilated. And any cap gains rules would hurt middle class families the most – those with stable jobs and income and financial resources would be best positioned to manage the deductions. When has taxing something ever made it cheaper?

When not taxing makes them more expensive. And, yes, the average household cannot afford the average home in almost all major markets in Canada without already owning real estate to trade. – Garth

———

The question is not to ask about how many Canadian families own a home. The real question is how many moisters own a home. If that disenfranchised segment is large enough, that’s all the liberals need.

If the liberals eliminate the PR exemption, they have my vote.

#58 crowdedelevatorfartz on 03.21.21 at 5:38 pm

@#46 Faron

You seem to follow Billybob’s lifestyle quite closely.
Lack of testosterone?

#59 crowdedelevatorfartz on 03.21.21 at 5:41 pm

@#36 Donny G
“Imagine, if you will, a situation where a world leader takes his own Indian chef to India. And then imagine, if you will, you as a peasant taxpayer picking up the tab.”

+++

You mean like BouBou Bourassa and his high flying hairstylist?
Couldnt travel anywhere without him.
All paid for by the Quebec taxpayer.
Vivre la Quebec Libre

#60 Polozi Scheme on 03.21.21 at 5:43 pm

Will a capital gains tax on RE be retroactive? If so, going back how far? Or will it only affect houses purchased moving forward?

#61 Larry App on 03.21.21 at 5:51 pm

Dear Garth, I am really facing my biggest dilemma ever . Should I sell , move away from S. Ontario and look west , where properties are cheaper or staying put and keep the wifey happy ? But then , our lifetime lottery ticket would just go up in smoke and we will be back to square one , with 65% of the wealth concentrated in one asset . Any suggestion?

#62 Kamloops realtor on 03.21.21 at 6:01 pm

698 west battle kamloops bc
499,900 list
7 offers over ask…
Winning offer 560k
Kamloops is having bidding wars now tell me isn’t that awesome, kamloops is the new Kelowna, everyone come to Kamloops, nite life is off the chains!!

#63 Heather on 03.21.21 at 6:07 pm

With 70% home ownership, wouldn’t taxing home equity be political suicide?

#64 mark on 03.21.21 at 6:20 pm

TFSA will be phased out.
Only for rich.

#65 Ponzius Pilatus on 03.21.21 at 6:24 pm

#30 Annek on 03.21.21 at 2:35 pm
Climate change: yes it is real!
However, Canada contributes only 3% of CO 2 emissions to the world.
Why doesn’t anyone address the biggest polluters such as China and India?Advocate to implement change there.
Yes, we can make change here as well. But it is kind of like “ pissing in the wind.”
————
No pissing in the wind.
There is some serious polluting going on here.

2018 rankings by per capita emissions

Rank Country CO2 emissions (total)
1 Saudi Arabia 18.48T
2 Kazakhstan 17.60T
3 Australia 16.92T
4 United States 16.56T
5 Canada 15.32T
6 South Korea 12.89T
7 Russian Federation 11.74T
8 Japan 9.13T
9 Germany 9.12T
10 Poland 9.08T
11 Islamic Republic of Iran 8.82T
12 South Africa 8.12T
13 China 7.05T

#66 Don Guillermo on 03.21.21 at 6:31 pm

#60 Kamloops realtor on 03.21.21 at 6:01 pm
698 west battle kamloops bc
499,900 list
7 offers over ask…
Winning offer 560k
Kamloops is having bidding wars now tell me isn’t that awesome, kamloops is the new Kelowna, everyone come to Kamloops, nite life is off the chains!!
***************************************

Your native son Henry Small is entertaining us in Mazatlán this winter. He’s good.

https://bcsbestlivemusic.ca/artists/henry-small

#67 Ponzius Pilatus on 03.21.21 at 6:32 pm

55 Sailo
I agree the Czechs were probably the first to the booze. Exactly the reason I like hanging around Czechs.
———-
Half of the citizens in Vienna have a Czech background.
That what makes Vienna such a fascinating City.
Before WWI is was the most cosmopolitan city on earth.

#68 mj on 03.21.21 at 6:33 pm

Rebel news wants to get Stephen Harper back. Can’t see it happening.

#69 Boombust on 03.21.21 at 6:40 pm

Garth, what are your thoughts on the various rock star Millennial realtors operating in Vancouver? Up for a major spanking and left with egg on their faces when this bubble blows?

#70 Stone on 03.21.21 at 6:41 pm

#61 Larry App on 03.21.21 at 5:51 pm
Dear Garth, I am really facing my biggest dilemma ever . Should I sell , move away from S. Ontario and look west , where properties are cheaper or staying put and keep the wifey happy ? But then , our lifetime lottery ticket would just go up in smoke and we will be back to square one , with 65% of the wealth concentrated in one asset . Any suggestion?

———

If you don’t want to move and keep the wife happy:

1 – Refinance the home to the max that you can afford and manage without strangling yourself financially.
2 – Ensure your financing is NOT an all indebtedness mortgage. You WANT a collateral mortgage. With a collateral mortgage, the bank can only go after the house, no other assets you own. The blue bank, at a minimum, offers that option.
3 – Invest the proceeds with a brokerage unrelated to your borrower to keep an arms length distance.

#71 Ministry Of Truth on 03.21.21 at 6:46 pm

DELETED

#72 Old Man on 03.21.21 at 6:48 pm

From yesterday:

Bill Gates wears a $48 Casio watch.

Mr. Money Bags! I wear a $16.88 Casio:

https://www.amazon.ca/Casio-MQ24-7B-Analog-Black-Resin/dp/B000JNKABW

Less when I bought it in 2016. This is my second – my original purchase was around 1987 for about $8. Similar to the $10 Seiko that Steve Jobs wore:

https://www.gq.com/story/watches-of-the-week-5-22-20

#73 Christopher Mewhort on 03.21.21 at 6:50 pm

The US taxes gains on houses, albeit with an exception that spares most people.

—–
Very important point unmentioned about the US is that mortgage interest is tax deductible, which benefits many people.

———————
Only if the itemized deductions are greater than the standard deductions. In other words, not many people.

Christopher Mewhort, EA
519-525-9277

#74 Nonplused on 03.21.21 at 6:54 pm

Respectfully, but when does taxing something ever make it more affordable? And realistically the gains are almost entirely in YYZ and YVR, which are strong bastions of Liberal support, so I don’t see Trudeau throwing those potential votes to the NDP.

A capital gains tax on what is essentially a consumer item will make it less affordable, not more. Sure, it might lower prices from where they are, but the total cost of ownership when calculated properly has to include the tax (and any other closing costs).

Right now it is in fact the hope of a capital gain that makes purchasing in YYZ and YVR even remotely affordable. It takes so much money to buy and finance the house that the hope of a gain is for many people the only retirement plan they have. Take that away and the math changes considerably. They need to start saving, so they can’t spend 55% of their income carrying a house. So yes, demand may drop along with prices but it doesn’t make the house any more “affordable”.

And if prices do fall as a result, what happens to all the people with capital losses? With other capital gains taxes you can write off losses. Or what about people who have to move for work or because they had some kids?

There are easier ways to skin this cat. If they really want to tax the “wealth” in property, they could simply impose a national property tax based on municipal assessments. Just for a number, let’s say 50% of what the municipality takes in. Much easier than trying to track capital gains. And it would hit everybody, not just YYZ and YVR. Yes, it would also make houses less affordable, but at least it is simple and the infrastructure is already in place. Also hard to cheat.

Or, they could just raise rates. The way housing is included in the CPI is bunk, there is no way we can have prices accelerating 50% a year if the interest rates are “fair”. It is a manipulation caused by a manipulation. It is no coincidence all this happened just as the 5 year mortgage rate dipped below 2% and the government was handing out free money left, right and center. And if they raised rates, maybe grandma will have to pay some taxes on her GIC’s for a change.

But regardless, no matter what they do tax receipts will not go up, because we are already at peak tax. Every new tax will result in less spending in other areas of the economy reducing tax receipts in those areas. People only have so much money. If raising total tax receipts were possible without killing the economy, we wouldn’t have a structural deficit. The government could just go “hummm, we need $400 billion this year. That means the tax rate is 85%.” Sort of like how municipalities set their mill rates.

#75 AM in MN on 03.21.21 at 7:24 pm

#8 The real Kip (Ret) on 03.21.21 at 1:30 pm

If the Libs tax principle residences then they’ll be able to write a book on it called How To Lose An Election In 15 Minutes.
———————————————————

If you watched any of the left wing news sites this weekend (which is almost all of them), you could be forgiven for thinking that the only issue voters care about is global warming, and how the Conservatives blew it by not jumping all over the decision by the rest of the self destructive world (not China!) to destroy their way of life that has been gifted to them by past generations of scientists and engineers and business men who figured out how to harness hydrocarbon based energy to make our lives longer, more comfortable and richer.

Thus, look for the big tax hikes and more currency devaluation (wealth tax) right after the next election. you can moan about it later, but you voted for it so you get it.

You go hunting where the ducks are… and with 25% of the nations economy involved in building and selling houses, that’s the only place where a big tax hit can be obtained without people being able to flee the country to avoid it.

The only other alternative is to re-industrialize the economy and produce real wealth, but the urban liberals will never allow it. Even O’Toole is looking at how he stick another fork into heavy industry.

My suggestion is for a huge tax on all steel, concrete & glass used for condos by urban liberals!

#76 Flop... on 03.21.21 at 7:29 pm

This one, where someone took a quick gain is doing the rounds, so I guess if we are talking taxing real estate, we can see how people on here stand on sales like this.

These people should, and still could, end up paying tax on this transaction, primarily residence exemption should be left in the back pocket.

Not saying for one minute these guys are up to anything dodgy, it’s more to do with the timeline and taxation.

The details…

36 E 37th Ave, Vancouver.

Paid 1.75 October 2020

Sold 2.12 March 2021

4 month turnaround.

So, it’s not the biggest gain, but taxing real estate seems like a ball of wool no one wants to play with, so I guess the next best thing is to tax transactions like this to the fullest extent of the law, no more turning a blind eye, no more saying we’ll keep an eye on things, real action.

Just maximum enforcement of the actual rules in place, before you worry about anything new.

That’s where you start with the ball of wool, and see where it takes you…

M46BC

#77 Ponzius Pilatus on 03.21.21 at 7:30 pm

Just wonder what Dolce gonna write about when the virus is over.
About Italian politics?
That’s always interesting.
Is Belusconi coming back?
He’s only 6 years older than Biden.
BTW, talking about rich.
He’s worth 8 billion.
No, not Lira. Greenbacks.

#78 mark on 03.21.21 at 7:35 pm

Bonds are not the place to be at all, god has spoken, Ray Dalio.

#79 Tron Light on 03.21.21 at 7:35 pm

DELETED

#80 Nonplused on 03.21.21 at 7:36 pm

#28 Ustabe on 03.21.21 at 2:30 pm

“Becomes a choice then as to how much tax you pay…want that acreage outside of town to park your boat, RV, tractor, etc on well then pay up. Live more sustainably on a regular lot in a regular sized home, pay less. Rent a condo downtown pay even less.”

————————————-

What is unsustainable about an acreage? My house on an acreage is smaller and uses less energy than many houses in town. I use maybe 60 liters of gas a year to run the tractor, so not a big deal, it wouldn’t hardly fill up my wife’s car once. It certainly won’t fill up my truck. When TSHTF I have room for a 1 acre garden, which would grow a lot of potatoes. We have slowly been terraforming the yard with fruit bearing trees and bushes but that takes a long time to get to serious production. That I have room to park my RV is an added benefit because it saves me $50 a month in storage fees and means I have some solar and a generator near the house if things ever go Texas around here. It also means I don’t do very many “fly away” vacations, so net-net my CO2 footprint is probably down.

There is a popular misconception that only the “rich” live on acreages, because you do see a lot of 5000 sqft houses with 4 car garages out that way close to town. But many acreages are further out, 1250 sqft bungalows built in 1965 with a horse barn and a wood fireplace. It’s not all insane wealth out here, mostly just lifestyle choices. You do pay more for the land though, because everyone knows eventually you will be able to subdivide. The city can’t be stopped and the municipality wants the tax revenue.

#81 COW MAN on 03.21.21 at 7:41 pm

Sir Garth:
Let us not over state the potential of a pending capital gains on residential properties. Having lived through the first capital gains implementation on land in 1971, if patterned the same, it will not be retroactive. The first capital gains placed on property was put in place from the evaluation date. So if a residential property tax is put in place it could well be from a the value as the day of implementation of the tax, up to the time the property is sold. Not from the purchase price of the residence when the owner bought it. That could soften home price increases going forward; as it would dampen speculation. A responsibly structured capital gain tax based on the date of implementation, going forward, is both astute and necessary. I am not a T2 fan.

#82 Nonplused on 03.21.21 at 7:49 pm

#45 Don Guillermo on 03.21.21 at 4:18 pm
#165 David on 03.21.21 at 3:32 pm
154 Stone

I’m talking about the people making 50+ million. The actual 1% on this planet.

I’m not talking about the person making $800,000/year.
***************************************
As of 2015, the top 1% in the world are not all billionaires, but contain all people whose assets amount to $759,900 or over. There are only 123,000 ultra high net worth individuals (defined as those whose assets exceed $50 million) worldwide.

https://www.weforum.org/agenda/2015/10/who-are-the-1-the-answer-might-surprise-you/

—————————————

Those stats surprise me, because there are way more than 123,000 50-foot yachts out there. But then I found out my neighbor sold his 50 foot yacht for $100,000, so I guess you don’t have to be ultra-rich to own one. A wake boat can cost that much.

Still, I don’t see how $759,900 in net assets makes one rich. That is a barely funded retirement account in my mind. You’ll still want that CPP and OAS.

#83 Dr V on 03.21.21 at 7:52 pm

46 Faron

“I was too busy skiing hard won powder with friends in
the mountains above Cowichan Lake..”

Cool! I don’t Strava but my wife constantly checks. she had acquaitances showshoeing up Mt Heather and
others mtn biking Gordon river where they also ran into a bit of snow. Great to see so many out enjoying what VI has to offer!

A dip in the lake after a strenuous workout in the spring is a great anti-inflammatory!

#84 crowdedelevatorfartz on 03.21.21 at 7:56 pm

Flop

Geez.
The apocalypse has hit the land of Oz.

First a biblical plague of mice!

https://www.theguardian.com/australia-news/2021/mar/19/you-cant-escape-the-smell-mouse-plague-grows-to-biblical-proportions-across-eastern-australia

Then the Floods!

https://www.cnn.com/2021/03/21/australia/australia-flood-natural-disaster-intl-hnk/index.html

Hopefully the floods will take care of the mice……

#85 cristian on 03.21.21 at 8:13 pm

Quote “Around the globe some cities (New York, Paris) also tax them” … LOOOOLLLL .. Toronto is nowhere close to these cities unfortunately … so lets slow down

#86 Phylis on 03.21.21 at 8:29 pm

#56 Burn
hey Garth, please check, it’s a little much….

Agreed. Now punted. – Garth

#87 Doug t on 03.21.21 at 8:30 pm

This 40 year lab experiment has come to a boil and should be about ready to meltdown like Chernobyl

#88 Coopoiler on 03.21.21 at 8:36 pm

How I think some of the online comments on this blog go

https://youtu.be/Tp2fylkLWA4

#89 Flop... on 03.21.21 at 8:39 pm

#84 crowdedelevatorfartz on 03.21.21 at 7:56 pm
Flop

Geez.
The apocalypse has hit the land of Oz.

Then the Floods!

https://www.cnn.com/2021/03/21/australia/australia-flood-natural-disaster-intl-hnk/index.html

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

Hey Crowdie.

That’s the first thing I saw when I turned on the idiot box this morning on Washington State t.v station.

A young couples house was floating down the river.

First thing I thought of was the doubt of them and a lot of other Australians having flood insurance.

I see in your story some people are being helped out by go-fund-me but the numbers of people needing help eventually will outweigh any goodwill.

In my younger days I recall it not raining for a couple of months or so, and then whoosh, 1 foot of rain on the ground, overwhelming the drainage systems.

The people that spent their version of CERB on a dinghy in the outback will probably have the last laugh…

M46BC

#90 Don Guillermo on 03.21.21 at 8:44 pm

#82 Nonplused on 03.21.21 at 7:49 pm
#45 Don Guillermo on 03.21.21 at 4:18 pm
#165 David on 03.21.21 at 3:32 pm
154 Stone

I’m talking about the people making 50+ million. The actual 1% on this planet.

I’m not talking about the person making $800,000/year.
***************************************
As of 2015, the top 1% in the world are not all billionaires, but contain all people whose assets amount to $759,900 or over. There are only 123,000 ultra high net worth individuals (defined as those whose assets exceed $50 million) worldwide.

https://www.weforum.org/agenda/2015/10/who-are-the-1-the-answer-might-surprise-you/

—————————————

Those stats surprise me, because there are way more than 123,000 50-foot yachts out there. But then I found out my neighbor sold his 50 foot yacht for $100,000, so I guess you don’t have to be ultra-rich to own one. A wake boat can cost that much.

Still, I don’t see how $759,900 in net assets makes one rich
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

If you lived in most developing countries or any underdeveloped country and had $759,900 USD of wealth you would be considered rich. That would be most of the world. If you were living where I am in Mexico you’d be considered very wealthy.

#91 Dr V on 03.21.21 at 9:01 pm

82 Nonplused

“Still, I don’t see how $759,900 in net assets makes one rich.”

NP, this is a world wide measure. Doesn’t surprise me at all. First world problems.

The latest measure I’ve been looking for is wealth percentile for your age. Found one site where you just punched in your net worth and age bracket.

#92 45north on 03.21.21 at 9:01 pm

If there was ever a catalyst for ending this nonsensical exemption for residential profits, here she be. There are not enough rich people to whack with more tax to finance government largesse. It’s therefore inevitable the house tax will come. You may wish to factor that into your retirement strategy.

maybe but the government needs mo money right now. And it cannot impose a capital gains tax on primary residences and then call an election. Basically it’s desperate. Which is probably why we haven’t seen a budget.

#93 steadyplank on 03.21.21 at 9:05 pm

Love this blog , you have a new avid follower Garth.

The daily commentary and ensuing kerfuffles about what this house of covid19 mirrors will finally reveal has kept me going many times throughout the last year . Where will it all end when we finally exit into the sobering daylight ? Sunshine is hell for hangovers and I believe we have drank too much of the sunny ways single malts. This inflationary housing spiral is becoming a bit of a joke at this point.

Living in a modest condo with my fam in a central location in Halifax ,paid off 7 years ago. Was going to upgrade but no way now .I would rather just sit back with my popcorn . Houses up almost 40 % this year. WTF.

Will sit tight with some cash stashed until the summer before I decide on planting it somewhere decisively. I feel the ice is,thinning quickly on this economy, no matter how shiny the days,ahead may look (for some.)

In rural NS, with new restrictions on forestry and the lumber industry , I would be upset with my acreage until I look at the price of lumber and see that it has doubled almost.. swings and roundabouts as they say. Overall though, I am a pessimist on the Canadian economy at this point .

#94 Canadarm 2 on 03.21.21 at 9:09 pm

#30 Annek on 03.21.21 at 2:35 pm
Climate change: yes it is real!
However, Canada contributes only 3% of CO 2 emissions to the world.
Why doesn’t anyone address the biggest polluters such as China and India?Advocate to implement change there.
Yes, we can make change here as well. But it is kind of like “ pissing in the wind.”
————
#65 Ponzius Pilatus on 03.21.21 at 6:24 pm
No pissing in the wind.
There is some serious polluting going on here.

2018 rankings by per capita emissions

Rank Country CO2 emissions (total)
1 Saudi Arabia 18.48T
2 Kazakhstan 17.60T
3 Australia 16.92T
4 United States 16.56T
5 Canada 15.32T
6 South Korea 12.89T
7 Russian Federation 11.74T
8 Japan 9.13T
9 Germany 9.12T
10 Poland 9.08T
11 Islamic Republic of Iran 8.82T
12 South Africa 8.12T
13 China 7.05T

—-

Let’s check that math:
per capita (per person)
Canada 15.32T
China 7.05T

Arguably, per person looks pretty bad for Canada. Hmmm. Canada- roughly 37,984,036
https://www.worldometers.info/world-population/canada-population/
China- roughly 1,443,353,714
Total Tonnage:
Canada: 581,915,431.52
China: 10,175,643,683.7

China’s overall polluting blows by Canada by 17X…now let’s do the rest of the world…

Yeah, let’s just admit that, as a species of humankind, we could be treating the planet, and ourselves, a LOT better.

#95 Nonplused on 03.21.21 at 9:20 pm

#120 The second coming! on 03.20.21 at 8:53 pm
#97 Nonplused on 03.20.21 at 6:49 pm
#12 Looking for suggestions on 03.20.21 at 10:48

And, of course, the Bible is worth a once through, if you have time for that sort of thing. Even if you don’t believe in God or that Genesis is literal and fact based, it gives excellent insight into the minds of the various writers through the years.

_______________________________

I tried reading the Bible years ago but found it to be as as useless and incoherent as a TurnerNation post on this blog. A whole lot of nothing about nothing. In other words….a complete waste of time.

————————————-

Actually, it is the incoherent that makes it so valuable. You get a real good look into the mind of mankind (or peoplekind). Jesus being an exception, I think he had some good ideas. So, of course, they strung him up. Also a good insight.

I mean, some of the things seem obvious. “Thou shalt not murder” for example. But yet it is still happening over the silliest of things. But it becomes more clear when one understands that the commandment was only applicable to “sons of Abraham”. It really meant “thou shalt not murder your neighbors and relatives, or anyone covered by this covenant. Canaanites are fair game. Enslave their daughters while you are at it.”

Thus, we can see why “collateral causalities” in Afghanistan, Iraq, Libya, and Syria are no big deal. They aren’t our people. It’s all right there in the Bible.

#96 crowdedelevatorfartz on 03.21.21 at 9:26 pm

@#88 Coopoiler

hahaha. Good one.

#97 leebow on 03.21.21 at 9:31 pm

Truth is most of people don’t make any money on this RE bubble. But they do understand that their kids are priced out and will be hanging around much longer than they should. So they’ll welcome certain measures from government.

Look at what this madness does to cities. No communities, just temporary cohabitation of flippers. Why even bother greeting your neighbours? They already bought a pre-construction in another Flipville 30 minutes down the highway. Just ignore them. In a few weeks they’ll be u-hauled away along with all the useless crap that fills their garages, their dyed hair spouses and obese offspring.

Idiots speculating in derivative products they do not understand. One day they’ll learn something new about risk management.

#98 Rosco on 03.21.21 at 9:50 pm

I must point out to the well intentioned folks that CO2 is most definitely not pollution.
Carbon monoxide is poisonous to breath but Carbon dioxide is most necessary for all life on earth and essential for plant photosynthesis.
Try to use your common sense when bombarded with climate propaganda.
CO2 is not a big deal and is not pollution. Think about it. It’s cover for the GREAT RESET. Think for yourself and don’t believe everything you read for goodness sakes.

#99 Repurchase Disagreement on 03.21.21 at 9:53 pm

#65 Ponzius Pilatus

The atmosphere cares nothing about per capita emissions, only aggregate emissions, IF there is a problem. Per capita emissions are a canard for people who asses this issue emotionally. Canadian variations in CO2 emissions do nothing to affect the temperature of the planet – that is a scientific FACT.

Regardless of what Faron says, there are a lot of Atmospheric Scientists who do NOT accept a catestropic CO2-driven outcome, based on the science (lots of issues with HadCRUT5 and other factors). One cannot say that if one works at ECCC, or anywhere grant driven, unfortunately. VERY sad to see so many brainwashed on this issue, and the poorest among us will suffer the most with the noble “taking action” or “tackling”.

#100 GRG on 03.21.21 at 9:59 pm

When not taxing makes them more expensive. And, yes, the average household cannot afford the average home in almost all major markets in Canada without already owning real estate to trade. – Garth

It’s not the lack of capital gains tax that has made housing more expensive. There hasn’t been cap gains tax on housing ever since T1 and his Finance Minister, John Turner, introduced taxes on capital gains decades ago. Why is the lack of cap gains tax being blamed for the current insanity.

We all know it’s the continuous and ultimately counterproductive lowering of interest rates that has created a “free money” mentality. Reinforced with actual free money since COVID started. My late MIL’s home in Victoria just sold in an hour, no conditions. The buyer got 95% leverage financing for 5 years, fixed term at…get this…1.29%. Any wonder houses are being bid up? You’ve told us this yourself Garth. More than once.

Raise mortgage rates, raise the down payment requirements to reduce leverage, reduce the balance sheet of CMHC, make the banks take on more of the lending risk. Maybe that will bring this last 10 years of idiocy to a merciful end.

But if T2 is stupid enough to impose a cap gains tax on principal residences then I would expect there will be capital loss provisions for those poor souls buying this spring, for all those underwater Albertans that need to sell to move to find jobs, and all of us can leverage up and deduct the mortgage interest.

#101 Anna on 03.21.21 at 10:16 pm

I wonder if a simple way to apply a capital gains tax to principal residences is to only tax the increased value of the land. This would avoid issues with money spent on renovations etc. and keep it simpler. Also perhaps higher taxes on second, third homes etc.

#102 Faron on 03.21.21 at 10:33 pm

#83 Dr V on 03.21.21 at 7:52 pm

46 Faron

Cool! I don’t Strava but my wife constantly checks. she had acquaitances showshoeing up Mt Heather and
others mtn biking Gordon river where they also ran into a bit of snow. Great to see so many out enjoying what VI has to offer!

Cool. Yeah, agreed. There’s paradise around here, but you have to work for it. We hit snow at about 750m so should have been plenty up on Heather Mountain. Between the lake, the mountains around there and the river, the Cowichan is a paradise. We were on Mt. Landale a couple peaks east of Heather. There’s a nice little alpine lake up there on the north side to camp by in Summer.

A dip in the lake after a strenuous workout in the spring is a great anti-inflammatory!

Sounds great. Yesterday we were treated to the elk heard hanging out in Youbou. Must be a tough place to garden.

#103 Where's My Money Gone Greedeau? Selling out Kanada eh? on 03.21.21 at 10:48 pm

I always wondered how many people are so rich that they stop their names appearing on Bloomberg’s richest list.
Where’s the Rothschild, Rockefeller clans, etc on this list. These people are supposedly TRI-llionaires.
Are Bezos, Zuckerberg, Gates, Buffett, etc just slave laboe to these guys?
Rumor there is 5 in China. My bets one of them is the Triads head honcho.
Please someone enlighten me to the list where these guys land?
LOL

#104 Two-thirds on 03.21.21 at 11:28 pm

Yes, tax the house-owners, even if the house technically belongs to the bank, if there is still a mortgage, that is. Eat “the rich.”

Three points:

1) The tax would be collected upon a sale, correct? If so, would the tax not be paid (indirectly) by the buyer?

2) How can the average family be shut out from owning the average house, if Canada has an ownership rate in the upper seventy percent range already? Or is close to 80% considered average now?

3) Canada’s debt and (likely structural) deficit means not only houses, but ALL ASSETS not nailed to the wall will be targeted, including juicy financial portfolios, the epitome of inequality in our woke and broke society. Capital gains, dividend tax rates, TFSA, RESP rules, they can all be reviewed and adjusted accordingly, in a snap.

So yes, “we are all in this together” whether “we” like it or not. “First they came to tax the houses and I said nothing” type scenario…

Those with debt and no assets will receive from those with assets and no debt = justice and equality!!!

Wonderful! Kanada rocks, cannot wait for this woke paradise, coming soon after T2’s majority win!!!

Yay…

:(

#105 millmech on 03.21.21 at 11:55 pm

#64 Mark
You mean homeowners(the new rich)

#106 millmech on 03.21.21 at 11:56 pm

sorry #64

#107 Nonplused on 03.22.21 at 12:10 am

#90 Don Guillermo on 03.21.21 at 8:44 pm

“If you lived in most developing countries or any underdeveloped country and had $759,900 USD of wealth you would be considered rich. That would be most of the world. If you were living where I am in Mexico you’d be considered very wealthy.”

———————————

Ok, sure, but shouldn’t there be an adjustment for the cost of living?

And also it looks like I will be moving to Mexico at some point.

Anyway I was obviously talking from a Canadian perspective, where $759,900 USD is not bad but you’ll still be driving a Corolla.

#108 Lead Paint on 03.22.21 at 12:11 am

#84 CrowdedElevatorFartz

You forgot the horrific swarms of spiders

‘Horrific’: swarms of spiders flee into homes – and up legs – to escape NSW flood

https://www.theguardian.com/environment/2021/mar/22/horrific-swarms-of-spiders-flee-into-homes-and-up-legs-to-escape-nsw-floods

Flop i think we know why you moved to BC…

#109 Tim123 on 03.22.21 at 1:44 am

The pandemic has been bad financial for a certain group of people who lost their jobs but for some people, the pandemic has been the best thing financially to ever happen to them. The real estate market has rocketed higher as has the stock markets so there are a lot of wealthy millionaires out there. An increase in taxes is inevitable for real estate investors and stock investors. A crash in the housing market in late 2022 and 2023 may reduce some capital gains.

#110 Jane24 on 03.22.21 at 2:45 am

So I have just listed a spare bungalow for sale here in Southampton, England. It is listed as $831,000 as it has a potential building lot on the side of the house. The agent wanted 1.25% commission to list it but I said this was shocking and got him down to .9%. With VAT (GST) I am expecting to pay about $9800 Cdn to sell the house. This is a reasonable level for a RE commission and correctly reflects the work involved with finding a buyer for a house in a hot market.

Canadians pay over the odds for EVERYTHING. I just renewed my Kia full car insurance for all activities except racing for an annual $ 532 Cdn and my cell phone package is $18 Cdn a month. But nothing beats the massive RE listing commissions you happily pay for a few hours work. Why?

#111 X-ray Zenon on 03.22.21 at 4:36 am

Houses are already taxed….income is taxed, a plethora of sales taxes on taxes on taxes. Your home is paid for with after tax income. You mention the US…apples to apples please. In the US my interest and maintenance is all tax deductible. Totally opposite. Are you suggesting an additional layer of tax? If so, make Canadian mortgage interest and costs tax deductible.

Tax capital gain? So what, if you never sell you pay zero tax. Collect the dividend and apply the credit. Give Trudeau nothing. Blame it all on Mulrooney.

#112 BillyBob on 03.22.21 at 5:24 am

#46 Faron on 03.21.21 at 4:21 pm
I was too busy skiing hard won powder with friends in the mountains above Cowichan Lake to notice: did Billy Bob come out of retirement yesterday solely to say something about my testosterone levels?

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

Don’t take an idle observation so personally Faron, I’m sure your doc can sort you out. I just thought it was interesting. Hardly retired, just getting ready to move again. Lots of pieces jockeying for position in the industry, gonna be amazing. If it makes you feel better, I contribute at least 50% to all household expenses. Some of us have ample reserves to do so indefinitely. Enjoy the next few decades of payments on your inflated about-to-depreciate “asset”.

Funny little small world. Well, especially in a place like Victoria. I had forgotten of a specific tie to old family friends. It’s been so many years I had no idea that SD was UVIC’s SEOS director. (I’m better friends with his brother K.) Didn’t set out to identify you IRL, but MAN it does explain a few things.

I do sometimes wonder what your colleagues would think of your more rabid rantings on here?

I mean really…(brace yourself: more idle musing ahead!) why do the two most polarizing commenters on a Canadian blog both hail from the same place? Weird they both ended up on VI as well.

‘Murrica! Eff yeah.

https://www.youtube.com/watch?v=GkXBVSFjA6E

Carmen Vandenberg killing it on a beat-up Tele. She’s a sweetheart (Carmen), should hear her play blues on a Strat with Jeff Beck.

#113 Steven Rowlandson on 03.22.21 at 7:29 am

DELETED

#114 Immigrant man on 03.22.21 at 7:38 am

RE in the big cities has gone insane – true. But even more tax for the government to waste? That’s the solution? Cancer over plague?

#115 maxx on 03.22.21 at 8:03 am

@ #15

You are so on the money. There is almost nothing in life worth lining up for. Sheeple debase themselves by lining up for junk, most of which is useless.

Lining up…..remember the stories about fools doing this, equipped with pee jars and lawn chairs, so that they could get a shot at an over-priced new “release”?

It’s easy to feel disgust with human behavior when you witness “competitive” maneuvers such as this.

#116 crowdedelevatorfartz on 03.22.21 at 8:08 am

@#112 Billy Bob
” Weird they both ended up on VI as well.”

+++++

That’s as far west as Canada goes…

#117 crowdedelevatorfartz on 03.22.21 at 8:11 am

@#108 Lead Paint
“You forgot the horrific swarms of spiders”

++++

8 legged FREAKS!
Then come the snakes?

#118 crowdedelevatorfartz on 03.22.21 at 8:18 am

@#110 Jane24
“So I have just listed a spare bungalow for sale here in Southampton, England.”

++++

Unloading excess Brit real estate before Brexit hammers the economy?

#119 Do we have all the facts on 03.22.21 at 8:21 am

Most Canadians have accepted that real inflation is much higher than the government projection of 1.6% for 2021/22.

The Fall Economic Statement 2020 projected that nominal GDP growth between April 2020 and March 2026 would average 3.2% per annum and that real GDP growth would average 1.4% per annum. This projection indicates that the Government of Canada is expecting Canadians to believe that real inflation will average 1.8% per annum over this six year period.

Since actual inflation is not being accurately reported it is difficult for Canadians to evaluate what impact inflation is having on Nominal GDP growth. If average real inflation was 3.0% per annum and average nominal GDP growth was 3.2% then average growth of real GDP over six years would be O.2% per annum.

What is the point of reporting GDP growth within Canada if the impact of real inflation on our economy is not being recorded. Real economic growth is essential for Canada and ignoring real inflation could create a false sense of security and encourage the accumulation of additional debt.

Is any institution attempting to measure and report the impact of real inflation on the Canadian economy.

One curious mind would like to know!!

#120 Dogman01 on 03.22.21 at 9:32 am

“When it becomes serious, you have to lie,”- Jean-Claude Juncker

“Reality is that which, when you stop believing in it, doesn’t go away.” Philip K. Dick

#119 Do we have all the facts on 03.22.21 at 8:21 am

Since actual inflation is not being accurately reported it is difficult for Canadians to evaluate what impact inflation is having on Nominal GDP growth. If average real inflation was 3.0% per annum and average nominal GDP growth was 3.2% then average growth of real GDP over six years would be O.2% per annum.
What is the point of reporting GDP growth within Canada if the impact of real inflation on our economy is not being recorded.

——————————————
The plan is to inflate the massive debt away, they have no choice. The Inflation rate will be the lie that allows the low interest rates.
As long as all the Western powers are doing this in concert it should have minimal effect on the dollar.
This is the substitute for growth to keep the system functioning.

Money printers go brrr, Bitcoin goes up.

#121 Dharma Bum on 03.22.21 at 9:35 am

“April will be orgasmic.”

– Garth
————————————————————————-

Something to look forward too.

April showers bring May flowers.

#122 IHCTD9 on 03.22.21 at 9:47 am

#80 Nonplused on 03.21.21 at 7:36 pm

What is unsustainable about an acreage? My house on an acreage is smaller and uses less energy than many houses in town.
———-

Sustainable is a tricky thing to define. Sure it would appear that an urban 500sf condo dweller has a “small footprint”. But does s/he really? Totally reliant on trucked in refrigerated food, powered and treated water, powered and treated sewage, heating totally reliant on fossil fuel or electricity. Massive infrastructure in the case of a tower building.

Add all that up, and compare it to a rural dweller with a simple well, gravity powered septic, a 1/8 acre garden, wood heat, living in a house built with local materials, by human and animal power, 150 plus years ago.

My old house has raised several generations in the same basic structure. If I go down in the cellar and look at the floor structure and walls, I nearly weep at the amount of human labour it must have took. I see sawmill cuts – by a mill that would have been powered by falling water. I also see marks left by broadaxe and chisel. Instead of trucked in and pumped Portland cement, there is hand split granite fieldstone and lime mortar. I look at the big centre beam in the basement and realize it was probably a seedling in the mid 1700’s, and here it is still working today 270+ years later.

The fact is, I am living in a structure that likely consumed zero fossil fuels originally to build, doesn’t need a water tower or sewage treatment plant, and heats with a carbon neutral fuel source. All things considered, a pretty small footprint compared to a 25th floor condo that relies on a host of technology, infrastructure, and energy to remain a liveable space.

#123 Sail Away on 03.22.21 at 9:55 am

#112 BillyBob on 03.22.21 at 5:24 am

I mean really…(brace yourself: more idle musing ahead!) why do the two most polarizing commenters on a Canadian blog both hail from the same place? Weird they both ended up on VI as well.

————-

Someone needs to keep the lights on in this place. Can’t do it from Prague or Italy or England.

#124 Mattl on 03.22.21 at 9:57 am

#57 Stone on 03.21.21 at 5:37 pm
#50 Mattl on 03.21.21 at 5:06 pm
65% of Canadian families own a home so not sure how the “average” family is shut out of home ownership. This is in line with historic home ownership numbers. So I call BS on the average CDN being shut out, that guy probably owns a home and a rental apartment.

That said, would absolutely love to see Trudeau and the Libs go after the 65%. He would get annihilated. And any cap gains rules would hurt middle class families the most – those with stable jobs and income and financial resources would be best positioned to manage the deductions. When has taxing something ever made it cheaper?

When not taxing makes them more expensive. And, yes, the average household cannot afford the average home in almost all major markets in Canada without already owning real estate to trade. – Garth

———

The question is not to ask about how many Canadian families own a home. The real question is how many moisters own a home. If that disenfranchised segment is large enough, that’s all the liberals need.

If the liberals eliminate the PR exemption, they have my vote.

————————————————————–

How do you win by alienating the 63% to try and win a portion of the 37%.

This blog is all about Canadians obsession with RE. If that is true, that we are all obsessed with RE, and the majority of us own it, good luck finding a populist position on making it more expensive to own for most of us.

I couldn’t care less if they roll this out, I am in a bracket that will likely benefit. We aren’t flippers, don’t move often, will have the resources to hire accountants to write our cap gain down to zero, and IF it reduces prices, will move up. I’d love to live on the water.

If they do go after primary residences, you can bet it will end up being a tax on the middle class, the people that have all their net worth in their homes, the ones who have job disruption and periodically need to move etc. Tax on the rich? That’s a good one.

#125 Doug in London on 03.22.21 at 10:00 am

So why would the benevolent government want to tax real estate capital gains, and increase the capital gains tax inclusion rate? Simple, that’s where the money is right now.

#126 Faron on 03.22.21 at 10:52 am

#122 IHCTD9 on 03.22.21 at 9:47 am

#80 Nonplused on 03.21.21 at 7:36 pm

What is unsustainable about an acreage? My house on an acreage is smaller and uses less energy than many houses in town.
———-

Sustainable is a tricky thing to define. Sure it would appear that an urban 500sf condo dweller has a “small footprint”. But does s/he really? Totally reliant on trucked in refrigerated food, powered and treated water, powered and treated sewage, heating totally reliant on fossil fuel or electricity. Massive infrastructure in the case of a tower building.

I’m in the camp of keeping infrastructure of all kinds rather than wasting resources rebuilding what has been built well even if there’s an efficiency gain. A hand built house of wood and stone is far more “sustainable” from a materials perspective. You are right about that. IHCTD9 could probably disassemble his house and re-use every timber. Tedious, but great from a life-cycle perspective.

There are a few things to consider though. One is that you are trucking in your own food in a far less efficient fashion. You are also probably trucking yourself around a lot more unless you derive all of your entertainment from your property which isn’t impossible. water in/water out do take energy, but it’s beans in relation to your transportation. Heating an isolated structure in a cold climate is a killer. You may heat solely with wood which helps, but most don’t/wont and your heat loss is massive relative to that of a condo dweller.

Finally you have to consider a growing population. If you grow your city or community by sprawling it all over the damn place, you are building in far far more energy intensity than if you cram people into a centre. I haven’t read the studies, but I’m almost certain that the CO2 outlay for the lime in concrete is offset fairly quickly by the central distribution that a city offers. Adding more people to the planet can’t be done Calgary Style. Plus, suburban sprawl is lifeless, inhuman hell in my book.

I encourage you both to read some reports on net energy intensity of structures and lifestyles. This is studied widely and is well understood from raw capitalist perspectives (energy is money) and from climate change minded researchers.

#127 BillyBob on 03.22.21 at 10:52 am

#118 crowdedelevatorfartz on 03.22.21 at 8:18 am
@#110 Jane24
“So I have just listed a spare bungalow for sale here in Southampton, England.”

++++

Unloading excess Brit real estate before Brexit hammers the economy?

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

Already happening. Exporters are in dire straights. From Scotch to beef to fish, they’re getting pounded by the new bureaucracy. ROI exporters shipping by sea right around to the continent, even at higher cost, to avoid the Customs nightmare of crossing through England. It’s not being reported heavily in the weirdly pro-Brexit press, but the stats coming out are alarming.

Then there’s The City. Billions and billions and hundreds of jobs gone forever, and more leaving all the time for Amsterdam, Frankfurt, Paris, Zurich. In a way the Cons were lucky, the pandemic has been good cover for the economic carnage of their epic own goal.

For now.

My field has it’s own twist. Most of my former colleagues were British, and now they’re crying because EASA (EU aviation authority) isn’t offering automatic validation of their UK licences. I had a UK license and saw the writing on the wall and changed the state of issue to Ireland in 2019 when it was a paperwork exercise. SEE ya.

Meanwhile the UK CAA will issue UK licenses to EU-holders as of April, valid for two years. And there’s really no leverage to force reciprocity – that’s kind of how it goes when you deliberately go from being 1-of-28 to 1-of-1. Rule-maker to rule-taker. It would appear they confused “sovereignty” with actual power.

But credit where it’s due. I’ve already been able to get my first Pfizer shot, even if I had to jump through a lot of hoops to travel to Blighty (part reason for the radio silence). Keeping my UK sim card was a good idea, still got the NHS texts for the “jab”.

With a bit of luck maybe my parents in Canada might get the chance to get their first dose only several months after I’ve had my second.

#128 Faron on 03.22.21 at 10:56 am

#123 Sail Away on 03.22.21 at 9:55 am

#112 BillyBob on 03.22.21 at 5:24 am

I thought he was referring to “cuke and tomato picker” and “Dr. V”.

#129 KLNR on 03.22.21 at 11:05 am

Just when you thought the Toronto housing market couldn’t get any more insane lol.

virtual house sells for 500k

https://www.dezeen.com/2021/03/22/mars-house-krista-kim-nft-news/

#130 BillyBob on 03.22.21 at 11:14 am

#124 Mattl on 03.22.21 at 9:57 am

How do you win by alienating the 63% to try and win a portion of the 37%.

———————————————-

By SELLING it as a tax on the rich. Doesn’t mean it actually will be. Since when has this patently dishonest government not been willing to be completely disingenuous? ie the lowering of the TFSA limits was because they were “unfair”, even though they’re definitively more egalitarian than the RRSP contribution rules.

You are correct, it will harm the home-owning class the most. Not sure if you’ve noticed, but most people are financial simpletons. If the Liberals say a tax is to hurt the rich, everyone will cheer and vote for it. It doesn’t have to actually be TRUE! It just has to “resonate” and “feel right”.

Camouflage it in enough correct language (fairness/equality/etc), and it’ll be easy.

Just watch.

#131 Faron on 03.22.21 at 11:33 am

CBC headline:

Conservative delegates reject adding ‘climate change is real’ to the policy book

Stay irrelevant CPC. May as well fully jump the shark and bring abortion opposition into the platform. MADAGA — MAke the Dark Ages Great Again.

#132 Stone on 03.22.21 at 11:36 am

https://www.bnnbloomberg.ca/more-canadians-than-ever-before-are-expecting-higher-home-prices-nanos-1.1580489

Uppa! Uppa! Uppa!

Or is:

Uppa? Uupa? Uppa?

#133 Wrk.dover on 03.22.21 at 11:39 am

#112 BillyBob on 03.22.21 at 5:24 am

https://www.youtube.com/watch?v=GkXBVSFjA6E

Carmen Vandenberg killing it on a beat-up Tele.

——————————————————

About as exiting & genuine recording as Milli Vanilli

#134 Wrk.dover on 03.22.21 at 11:41 am

edit; maybe a ‘c’ in exciting, but just as good without.

#135 Mattl on 03.22.21 at 12:28 pm

#130 – exactly. Doug had a post over the weekend that demonstrated how much low net worth individuals have tied up in their homes, almost 70% of NW. So any extra taxes will hit these people the hardest.

And I still don’t believe we have a home ownership crisis. 500K mortgage is 2K a month with these stupid low interest rates. 100K from your parents and you can own a starter condo in most Canadian markets for under 2K a month, about as much as it would cost you to rent.

Home ownership rates have been climbing steadily the past 20 years.

It all goes back to rates, two people making 40K each can easily carry a 500K mortgage at 1.5% or 3%.

So bring on the taxes and the deductions that will come with them, as long as rates are sub 3% home ownership will stay in the 70s. Not everyone has to own a home.

#136 Dr V on 03.22.21 at 1:03 pm

130 BB

“By SELLING it as a tax on the rich”

You got it bang on BB.

#137 The West on 03.22.21 at 1:16 pm

#52 WEXIT

Tax, tax, tax, that is all we talk about in Canada.
The government sector should look themselves in the eye, and ask where can we cut expanses. But oh no, they will never do that, due to their high public sector wages and benefits.

As for Canadians you have voted for a government that is corrupt. You reap what you sow

————————————————

I take it from your chosen title we share much of the same social beliefs.

You are delusional to believe The House of Common(er)s answer to the voters. Before anything can be solved (all of us) first need to understand this.

#138 IHCTD9 on 03.22.21 at 1:26 pm

#126 Faron on 03.22.21 at 10:52 am

I’m in the camp of keeping infrastructure of all kinds rather than wasting resources rebuilding what has been built well even if there’s an efficiency gain. A hand built house of wood and stone is far more “sustainable” from a materials perspective. You are right about that. IHCTD9 could probably disassemble his house and re-use every timber. Tedious, but great from a life-cycle perspective.

There are a few things to consider though. One is that you are trucking in your own food in a far less efficient fashion. You are also probably trucking yourself around a lot more unless you derive all of your entertainment from your property which isn’t impossible. water in/water out do take energy, but it’s beans in relation to your transportation. Heating an isolated structure in a cold climate is a killer. You may heat solely with wood which helps, but most don’t/wont and your heat loss is massive relative to that of a condo dweller.

Finally you have to consider a growing population. If you grow your city or community by sprawling it all over the damn place, you are building in far far more energy intensity than if you cram people into a centre. I haven’t read the studies, but I’m almost certain that the CO2 outlay for the lime in concrete is offset fairly quickly by the central distribution that a city offers. Adding more people to the planet can’t be done Calgary Style. Plus, suburban sprawl is lifeless, inhuman hell in my book.
———

All valid points, and they go to my original thoughts that sustainability is some tough math.

Yes I drive a gas guzzler to the tune of about 4000 litres of gasoline per year for everything. 15 minutes to the grocery store one way. The BTU’s my house consumes in the winter is off the charts. I’d guess 10 bush cords equivalent/yr.

On the flip side, I could totally get by with an EV via some moderate lifestyle changes. The condo dweller is still adding to the PPM via FF heat compared to me, no matter how much of my wood heat travels through the walls.

I still think my “all-in” footprint is pretty small. It could (and might) get minuscule some day. An EV could happen some day, or maybe that truck mounted gasifier.

Come to think of it, I can exercise a lot of options towards lowering my footprint that an urban dweller just can’t do.

As far as population growth in a sustainable fashion goes, it’s going to take a breakthrough new technology in energy production to make it happen. Cities are built with concrete and steel, and these materials require huge energy inputs. If we ever got nuclear fusion to work cheaply, we could electrify basically everything and be off to the races.

For now though, imho; you probably couldn’t beat a dude out in the sticks living in a 1000sf self built stone/wood cabin, a well, septic system, with clean modern wood heat, and driving an EV.

#139 Shortymac on 03.22.21 at 1:41 pm

Hey Garth,

I am upset over the presumption that the teenagers that took CERB “didn’t have expenses”.

I got a job at 14 to help support my family as my ill Father couldn’t work anymore and I have a disabled brother as well.

I gave 50% of my paycheck to my Mother and sometimes my family had to take my whole paycheck if an emergency expense came up. Even though I was only making minimum wage, the extra cash was very helpful to my family and enabled us to stabilize during a chaotic time.

I know for a fact that I am not the only teenager that had to do this and there will always be more. There’s more than you think in Canada.

Please keep this in mind, not everyone is lucky enough to have their teen job for fun money.

Situations like mine, and worse, are the reason why the government allowed under-18 workers to qualify for CERB.

#140 BillyBob on 03.22.21 at 1:52 pm

#133 Wrk.dover on 03.22.21 at 11:39 am
#112 BillyBob on 03.22.21 at 5:24 am

https://www.youtube.com/watch?v=GkXBVSFjA6E

Carmen Vandenberg killing it on a beat-up Tele.

——————————————————

About as exiting & genuine recording as Milli Vanilli

——————————–

Oh, sorry.

How many Grammy nominations have you received again, and when were you asked to co-write and tour with Jeff Beck again?

Yeah, that’s what I thought.

You do know it’s possible to play live over sequences…right? Bones UK isn’t exactly her only gig, and it’s a great cover.

At least TRY not to sound like an uninformed idiot.

#141 Silent the people on 03.22.21 at 1:53 pm

Government has always had the best tool to collect needed monies! GST/HST
Use it! The skies the limit!!!!

#142 Planetgoofy on 03.22.21 at 1:54 pm

From prior.
#164 David on 03.21.21 at 3:23 pm
#161 EAT THE RICH on 03.21.21 at 12:46 pm
—————————————–
I assume your poor with that comment? lol
How many hours a month do you work?
Not many I would guess. Me owe about 350….for 30 years.
There’s the difference. Its called work ethic.
Get off your ass.

———————

Check out comment 142. But I see where 161 is coming from. I also see your perspective.
————————–
Hey David….If people think they have it tough in Kanada they they haven’t been anywhere. My family came from Europe 325 years ago.
My wifes from the Philippines.
Go yo to Dominican or Haiti. Hell Just go to the Philippines or China.
This is a full on Nany state here now with cry babies abound.
I have no room for these people with their hand out life’s not fair boo Hoo…
Kanadas broke, T2s an idiot he could not run my smallest company.
My biggest customer in one company is Telus. My biggest renter in my RE company….Telus…
You want to know what I have to deal with to satisfy them regarding insurance liability bureaucracy that is beyond comprehension of most.
I pay mega taxes and work mega hrs.
My family built this country’s last name Marquis and MARQUIS PROUD!
3500 strong. No time for lazy asses. If you work for the gov your good. Pensions health care sick daz as longs as you want.
I need a tooth repair $2000 out of pocket not a tax deductible event.
No health care for us. Lose your job no free money safety net or pension.
Business people that are not crooks (ie SNC Bombardier ect ) paid in bribes from the gov…are the most knowledgeable smartest people you will ever meet. Their rich for a reason.
I’ve got zero time for idiots. I want to be proud of this great country and contribute….Its becoming an awful stupid place with dum dum leaders that are in the business of bribery.
Dont worry about me I’ve sand bagged the shit out of my family. It would take an apocalyps to take me down. Thats what you dooo. Most do the opposite. Last year in the crash i was in 100% cash and then backed up the truck. Today 50% cash and JUST sold oil stock that went up 500%. CR.to was .20 sold at $1.16 today. Dont care if it goes higher.. People have lost their marbles again.
Note History repeats, the same crappy fools rise to the surface in government…their pandering ways…. and promises that are impossible to keep (simple math that they can pay everyone to sit on their asses)…In the end that is how empire’s are destroyed. Kanada scares me now..socialism always self destructs.
Just watch the majority do the opposite and you will thrive.
Cheers
I’m going logging

#143 BillyBob on 03.22.21 at 2:08 pm

#128 Faron on 03.22.21 at 10:56 am
#123 Sail Away on 03.22.21 at 9:55 am

#112 BillyBob on 03.22.21 at 5:24 am

I thought he was referring to “cuke and tomato picker” and “Dr. V”.

—————————————–

Sorry, was this another one of my posts you “weren’t noticing”?

———————————-

#123 Sail Away on 03.22.21 at 9:55 am
#112 BillyBob on 03.22.21 at 5:24 am

I mean really…(brace yourself: more idle musing ahead!) why do the two most polarizing commenters on a Canadian blog both hail from the same place? Weird they both ended up on VI as well.

————-

Someone needs to keep the lights on in this place. Can’t do it from Prague or Italy or England.

——————————————

That’s fair. I readily admit I derive no small satisfaction from not contributing one cent towards that increasingly dubious effort.

The fact you choose to is slightly puzzling tbh. I can see the appeal for expat socialist pseudo-scientists, less so for red-in-tooth-and-claw capitalists. I figure you must be constantly assessing the calculus of continuing to do so.

But hey life would be boring if we were all the same. Lest we forget the truly important things in life, some exquisitely sensitive playing for a demo:

https://www.youtube.com/watch?v=GgTb9tNsK1E

#144 Faron on 03.22.21 at 2:11 pm

#138 IHCTD9 on 03.22.21 at 1:26 pm

I’m mostly with you and am certainly not criticizing. I prefer (and despite mocking the griz, somewhat envy) your lifestyle to the suburban one I have going now. In balance I’m happy, but were I to make changes I’d remote work from Sooke. I miss splitting the week’s wood and burning the stove hot enough to be able to keep the bedroom window open at night and listen to the surf.

I don’t doubt that your impact is fairly moderate. But, I think it’s easy to overlook the efficiencies that come with people being central. More so because there is a lot of ugliness in cities because the pollution is so concentrated even if it’s better overall per capita.

Your model is the “hub and spoke” where each household has to run the spokes frequently using small, inefficient engines among other things like more infrastructure to reach single homes in the styx. It works okay and conscientious people like yourself do it well. But it won’t scale.

People have done the math and by “people” I mean everyone from Shell Oil to EXXON to Total to green Uni geeks similar to myself. The numbers are out there.

Maybe a simpler and more cynical way to think of it is to ask why capitalism pushes the urban condo model? It’s because it’s got high margins per capita meaning there are efficiencies to scrape profit from. None of that in sub-urban or ex-urban or rural living.

and that future growth will demand it if we are to have any hope of lowering GHG emissions.

#145 KLNR on 03.22.21 at 3:10 pm

@#142 Planetgoofy on 03.22.21 at 1:54 pm
From prior.
#164 David on 03.21.21 at 3:23 pm
#161 EAT THE RICH on 03.21.21 at 12:46 pm
—————————————–
I assume your poor with that comment? lol
How many hours a month do you work?
Not many I would guess. Me owe about 350….for 30 years.
There’s the difference. Its called work ethic.
Get off your ass.

———————

Check out comment 142. But I see where 161 is coming from. I also see your perspective.
————————–
Hey David….If people think they have it tough in Kanada they they haven’t been anywhere. My family came from Europe 325 years ago.
My wifes from the Philippines.
Go yo to Dominican or Haiti. Hell Just go to the Philippines or China.
This is a full on Nany state here now with cry babies abound.
I have no room for these people with their hand out life’s not fair boo Hoo…
Kanadas broke, T2s an idiot he could not run my smallest company.
My biggest customer in one company is Telus. My biggest renter in my RE company….Telus…
You want to know what I have to deal with to satisfy them regarding insurance liability bureaucracy that is beyond comprehension of most.
I pay mega taxes and work mega hrs.
My family built this country’s last name Marquis and MARQUIS PROUD!
3500 strong. No time for lazy asses. If you work for the gov your good. Pensions health care sick daz as longs as you want.
I need a tooth repair $2000 out of pocket not a tax deductible event.
No health care for us. Lose your job no free money safety net or pension.
Business people that are not crooks (ie SNC Bombardier ect ) paid in bribes from the gov…are the most knowledgeable smartest people you will ever meet. Their rich for a reason.
I’ve got zero time for idiots. I want to be proud of this great country and contribute….Its becoming an awful stupid place with dum dum leaders that are in the business of bribery.
Dont worry about me I’ve sand bagged the shit out of my family. It would take an apocalyps to take me down. Thats what you dooo. Most do the opposite. Last year in the crash i was in 100% cash and then backed up the truck. Today 50% cash and JUST sold oil stock that went up 500%. CR.to was .20 sold at $1.16 today. Dont care if it goes higher.. People have lost their marbles again.
Note History repeats, the same crappy fools rise to the surface in government…their pandering ways…. and promises that are impossible to keep (simple math that they can pay everyone to sit on their asses)…In the end that is how empire’s are destroyed. Kanada scares me now..socialism always self destructs.
Just watch the majority do the opposite and you will thrive.
Cheers
I’m going logging

the only folks bellyaching post in here daily.
and maybe the CP backbenchers.

#146 Disappointed on 03.22.21 at 8:45 pm

now it seems like “too big to fail” – (almost) everyone household and every level of government are in debt, a rising interests/mortgage rate, a collapsing of R.E. market and a new tax targeting house owners will simply trigger a big recession, or a suicide for Mr. Socks’s government. it is not going to happen.

Hopeless & Disappointed. the only successful Canadians are those who have been adding loans and buying properties in the last 8-10 years, and they are “too big to fail!”

#147 Exodus2020 on 03.22.21 at 10:27 pm

The solution is to make mortgage interest tax deductible, and tax capital gains on principal residence.

This will alleviate many sides, including pressure on all the new owners as interest rates rise, reducing inequality between sellers and buyers, allowing people to move up the ladder in bigger homes with advantages of new mortgage tax deductions offsetting capital gains, and still keep lowly renters in their disadvantaged place without any tax advantages, unless rent becomes deductible too.

#148 Alan Hodgson on 03.23.21 at 1:36 pm

#82 Nonplused

Still, I don’t see how $759,900 in net assets makes one rich. That is a barely funded retirement account in my mind. You’ll still want that CPP and OAS.

====

You’re not wrong, but you’d be surprised how few people have funded their retirement accounts at all well. Even in Canada $759,000 per person would put you in the top 25% of net worth at retirement age (and I believe that includes house wealth which doesn’t help you all that much until you sell).