There will be no capital gains tax inclusion rate increase in the budget next Monday. No creeping tax on realized home equity, either. And no wealth or inheritance tax.
That’s the will of the Liberal grassroots, as expressed in the policy conference just completed. Add to that comments by the federal housing minister (‘no capital gains on residential real estate) plus a major TV interview by Ontario MP and housing policy dude Adam Vaughan (‘we can’t penalize homeowners counting on their houses for retirement’) and the conclusion is inescapable….
The feds intend to let the market run hot. They’re also scared about whacking investment capital or the TSX during a nascent post-bug recovery. So accountants everywhere can stop fretting.
But, but, but. The odds are large for a new tax bracket Hoovering off more from the high-income crowd, boosting the top marginal to 55%. Maybe a tad more. Just listen to that giant sucking sound. By the way, no hike slated for overall corporate tax rates, as the Third Wave crashes hard into employers. However, count on a lot more spending, continued deficits and a relentless increase in public debt (not that anyone cares any more).
The Liberal rabble wants a UBI, which is doubtful. They also want a free drug plan for everybody (more likely) and universal cheap child care (a certainty). Our finance minister has declared this a ‘shecession’, called the loss of female jobs because of Covid ‘dangerous’ and pledged to have the state far more involved in kiddie welfare.
In short, the budget on Monday next will raise little in new revenue, commit to a huge amount of new spending, kick the can of debt/deficit down the road so Gen Z can deal with it when they stop watching TikToks, probably guarantee a nice house in a decent hood slides further from reach and sets the stage for a federal election in the autumn, right after herd immunity arrives.
Oh, one more thing…
“I’m an irritating millennial living in Vancouver,” writes Allison. “I earn well above the median household income in this self-important village of a city. I’ve been looking at buying a condo for the last 3 years and haven’t pulled the trigger because (1) everything I can afford as a single person sucks; and (2) my rent-and-invest strategy is working out pretty well.
But – I live in a crappy rental apartment that is hundreds of dollars below market. If I want to move I will pay at least $700 more per month in rent. That’s a big dent in what I can invest each month. So why do rents feel like they are increasing so much faster than income is? How is the grotesque real estate situation influencing or not influencing that? How can rents possibly be limited by local incomes when median household income is around $75k? I would love for you to write a post that digs into how rents are or aren’t related to real estate craziness and local incomes and what it means for the finances of the average person.
Actually, Ali, renters are subsidized, coddled, supported and made special by politicians who suppress rents, ban evictions and hassle landlords. The costs of home ownership far exceed those faced by tenants, even in an age of cheap mortgages. If it were not for emotional market gains and tax-free profits, renting would be the totally valid choice. There’s no other compelling reason a young, single female (or male) would accept hundreds of thousands in debt, plus monthly fees and expenses to live in a place they could rent without care or obligation, investing the difference.
But we’ve lost our way. Real estate’s a cult now. Governments have fostered and helped create that. Prices are extreme and homeowners have become the elite. The maiden Chrystia budget will not have the stones to tax windfall capital gains, but it might just throw a bone to rising voters like Allison in the form of a rental tax credit.
The logic: if people buying real estate get a massive wealth advantage by completely avoiding taxation on gains which were handed to them by Mr. Market, renters should not be penalized just because they cannot afford to buy. So it’s only ‘fair’ the government levels the paying field by allowing a portion of rent to be deducted from taxable income.
Yeah, more government dependence and debt through reduced revenue. The T2 hole deepens.
$ $ $
As of this week the word ‘master’ will no longer be allowed in Toronto. At least not as part of real estate listings. Toronto realtors have decided to follow the lead of CREA, the national organization, and cancel the word forever. From now on no master bedroom. No master ensuite, either. The politically-correct word is ‘primary.’
Why?
Master is “largely associated with terminology rooted in slavery and/or sexism,” the realtors say. It has “offensive undertones”, is an “outdated term” and inhibits “productive communication between real estate professionals and their communities.”
Of course, if there is a ‘primary’ room in a house it means the others must be ‘secondary’ or worse. That seems a bit hurtful, exclusionary, elitist and smacks of privilege. How will the people sleeping in those diminished places feel? Perhaps they need compensation.
Anyway, it’s progress. The Mills love it. And this jibes with the loss of other innocuous but banned words many grew up with, like “Dominion” or “fisherman.” Could there be a master plan?
Oops.
About the picture: “Our Holly is our 16-month-old Sarplanenac,” says blog dog Sue. “She is a Yugoslavia Mountain Dog. They were bred to guard flocks cattle and sheep. We are sheepless so she guards us. She’s loveable and beautiful. You are welcome to use her photo.”
210 comments ↓
Small business post.
1. Wow Kanadians standing up to the new global order. Big March in Toronto https://twitter.com/canmericanized/status/1380941711111766020
2. Toronto businesses call for scientific evidence proving why they need to be closed
https://www.blogto.com/city/2021/04/toronto-businesses-call-for-scientific-evidence-why-closed/
A group of BIAs representing around 1,300 small businesses in Toronto has issued a desperate plea for more action from the provincial government now that Ontario is days into a 28-day shutdown and under a stay-at-home order
2. State of Quebec. Empty storefronts made to look occupied.
https://marcusbender.ca/?p=940
Old technique that blogger states:
But unknown to Stalin, were his Advisors would send in officers into the market ahead of him. There, they would clean out any “subversives”, or any sign of failure which might upset the Great Leader.
…
It turns out there were at least a half dozen store fronts, which were actually vacant lots, with “A Louer” signs in the windows, all which had the same happy, cheerful, colourful designs painted in the windows.
I never thought I would be able to use this word in a literal sense, but there it was. It was all a façade, both in a metaphorical, and a literal sense.
—————–
As predicted the Economic Shutdowns will continue until the UBI is passed. Calgary extended some CV bylaws until 2022.
.Liberal delegates endorse a universal basic income, reject capital gain tax hike
.New Brunswick’s top doctor says some hospitalized with COVID-19 were previously given vaccine (globalnews.ca)
. South African variant can “break through” Pfizer vaccine, Israeli study says (reuters.com)
.CDC director wants ‘stronger’ restrictions in Michigan, countering Whitmer (amp.detroitnews.com)
.Expert hints lockdowns may be necessary to prevent fourth wave? Ontario (twitter.com)
— Per UN Mandate SFH homes are to be banned. Apartment blocs only. It has started:
“Biden’s Infrastructure Bill Aims to End Single-Family Zoning” (nationalreview.com)
………………………..
– 6 months later where are we. Heed this.
“#74 Alphonse Kehaulic on 11.25.20 at 7:40 pm
28 days lockdown. Symbolism. Two 8s = 88 = double infinity. In other words: Endless, in perpetuity, no timeouts for your lockdowns. Put it to you this way: From now on there will never be a time of no lockdowns.
28 Days Later was a movie about a pandemic. Just a coincidence I’m sure.”
The Master of the house would say this is political correctness gone crazy, except that she is sleeping in today
With a rental tax credit there would be no more undeclared rental income from basement suites. (Sorry Vancouver house owners). It might even be revenue neutral for the government.
…and in Elon news, full self driving beta nearly ready:
https://www.google.com/amp/s/insideevs.com/news/500100/elon-musk-tesla-fsd-v9.0/amp/
Amazing guy. Creating all this new tech from nothing.
A masterclass in wokeness…..
About 20 years ago there was a plumbing supplier in England that recieved complaints that certain plumbing parts were named in derogatory terms.
“Ballcock valves”, “Female threads”, “nipples”
All were deemed to be names from an outdated, sexist system designed to denigrate females.
No problem.
The plumbing supplier agreed to rename any sexually suggestive plumbing parts and place them in a part of the store where potentially offended customers would feel safe to ask, search and find the newly renamed parts they wanted.
The catch?
Due to the cost of the relabeling, new shelving, etc…
Alll the renamed parts were double the cost of the exact same part in it’s original sexually offensive name.
Upon realizing this……
The customers bought the cheaper priced parts…..
I said it before and I’ll say it again – governments at all levels are raising RE values as the lovely way to tax more and since the foolish fools think they are paying it on a higher value asset, they pay these taxes with a smile. Bonus in the scam is you can only realize gains on house value if you sell as Garth notes repeatedly.
Since governments are hooked on the tax revenue, they wouldn’t dare touch RE. And so they will talk out of their butts while pumping leaseholds to land The Queen owns.
Add to this that it is the biggest economic contributor and pumping it makes this morbid consumer economy that produces little seem like it is growing and…what other choice does the Trudeau National Reality have?
Could there be a master plan? – Garth
————————————————————————-
If the plan has anything to do with the government, it will likely involve primarybation.
Now, if you’ll excuse me, my brakes need tending to. I need to replace my primary cylinder.
See? I’m woke.
Dang. And just as I was about to read ‘Master and Commander’, it’s being burnt on the ideological altar along with Dr. Seuss.
As for taxes, sure, no new ones but how about collecting them? When it comes to real estate, any revenue beyond your primary residence should be recognized as regular income; rent, Airbnb, flipping gains, granny’s betrothal, all of it. Google “New Zealand Bright Line”.
Master?
adjective
1. having or showing very great skill or proficiency.
“a heart-warming story from a master storyteller”
2. main; principal.
“the apartment’s master bathroom has a free-standing oval bathtub”
Oh Garth I am so disappointed. I once had a job where my title was Chief of Service. Well you can guess why that is now incorrect. Now I have to explain to my airedale terrier that I can no longer be his master. Sadly there is only one bedroom in my house and we don’t have an ensuite ( Is that word cultural appropriation; I apologize to the French.) I’m just so sorry. I apologize sincerely for being a white male. What was I thinking when I chose that color. How insensitive of me. I’m sorry for being old too because now I’m a senior. I didn’t mean to harm the feelings of those who are junior. Please forgive me. I’m just a sorry Canadian.
#102 Ponzius Pilatus on 04.11.21 at 10:49 am
#95 BillyBob
Agree with you that hatred/racism is probably part of humankind’s nature.
————————
I hate haters as well as hate in general.
This blog is educational as always. First I’ve heard of Yugoslavian Mountain dogs. Holly looks very alert!
Regarding a possible deduction of rent from taxable income. Yes, can see that being popular with those who are renting. Given the cost of providing shelter or services to the homeless, it might even be cheaper in the long run. After all, apparently 53% of Canadians are $200 away from insolvency.
‘Ali’ complains about her ‘crappy apartment’ but notes it is renting for well under market value. I know this is heresy but maybe she could fix the apartment up a bit to make it less crappy? There are quick fixes including paint that can make the space more inviting. Just remember that if the place was boring beige prior to any primping that you will need to repaint to the same boring beige before departing. Take photos of the before so when you depart the landlord can’t claim the upscale door pulls or other fancy fixings you put in were there when you entered the rental agreement. Keep the old stuff so you can put it back when you depart. Now, some things you won’t be able to take with you – for instance, if you refinished the floors or put in a new countertop – but my take is, if you are going to be living in a space for years on end, no reason why you should live in surroundings that are ‘crappy’. The landlord rented you ‘the basics’. Up to you to decide if that is how you want to live. If your landlord is a good one, you could possibly get them to discount your rent by the cost of the improvements. Or at least not raise it. Never know if you don’t ask!
@#1 Hate Hater
“I hate haters as well as hate in general.”
++++
Loathe is so much more encompassing……and I must admit…… I hate your name.
“The feds intend to let the market run hot.”
Hope that is the case, I was more concerned about them making cosmetic adjustments around the edges and just prolonging further the inevitable.
Ever heard of Icarus?
T2 said on Global News build back better and reaching the 2030 Agenda Goals. His words. 30 second clip. This is not going away…9 more years.
https://twitter.com/tiffanyrg9/status/1327980100361416704?
——————-
We are done. A UN Banker trying to help us? Hey just give us the already planned Bank of Canada E-currency and get it over with. #COVIDRESET
Mark Carney’s part yesterday at the Liberal Convention:
“I’m working for the United Nations to channel the immense power of that financial system to help solve the climate crisis. This transformation to a sustainable system is gathering pace. Only last week, global financial institutions controlling over 30 trillion dollars of assets committed to the transition to a net zero economy, but as we’ve left it very late, much more will be required. The private sector is critical to addressing climate change, but it won’t solve it on it’s own.”
…………………
Why are the stalling shutdowns all over Kanada. Until UBI or intra-provincial passports or what?
“Albertas recovery roadmap said that if we got below 850 people on the hospital we could move to phase 2 (and we did.) our hospital available dedicated beds is 2250,btw.
We could go to phase 3 when we got below 450 cases.
We currently are at 330 cases… And the government moved us back to phase 1 (rather than phase 3) and changed the rules to be based on number of people vaccinated, rather than number of people in the hospital. We have to reach 75% vaccinations before we can fully reopen. Oh and the wording is ‘may consider’.”
———————-
Why were you not scared in 2019?
Posted: Jan 22, 2020
https://www.cbc.ca/news/canada/toronto/ontario-hospital-hallway-medicine-healthcare-beyond-capacity-1.5420434
83 hospitals were beyond 100 per cent capacity for more than 30 days. 39 hospitals hit 120 per cent capacity or higher for at least one day. 40 hospitals averaged 100 per cent capacity or higher. An expert on hospital administration calls the figures “astonishing” and says they demonstrate that overcrowding is now a widespread phenomenon around Ontario.
“These are really big numbers,” said Donald Redelmeier, a professor of medicine at University of Toronto.
Master? OK I’ll play along. I suppose the song Master Of The House from Les Miserables is toast. “Primary Of The House” doesn’t have the same ring to it. Can we no longer have a Master of Ceremonies? If not, then hip-hop artists using the acronym MC need to rethink their branding.
On the subject of the Real Estate madness, we live in the Tri-City area of the GVRD and there has been minimal obvious movement of properties in our area. That is, unless they are selling faster than the sign can go up. My gut instinct is that people who do want to move-on, can’t. There’s no where to cash-out to anymore.
Great points, Garth. You make too much sense, thank you.
You’re not alone, Ali. Just keep hunting for a suite, I find if the landlord knows you have a good job and will be reliable, the price can be negotiated.
No more Dominion of Canada anymore either I guess… :(
The feds intend to let the market run hot. They’re also scared about whacking investment capital or the TSX during a nascent post-bug recovery. So accountants everywhere can stop fretting.
So what’s Erin O’Toole going to do? Pretty much the same thing. The opposite would be to gut the housing market. Affordable housing is cheaper housing.
https://www.reddit.com/r/dataisbeautiful/comments/mhdudx/oc_where_have_house_prices_risen_the_most_since/
#15 Quintilian on 04.11.21 at 12:14 pm
Ever heard of Icarus?
//////////////////////////
Icarus?
That rings a bell.
Isn’t that the tale about a guy who was flying from Vancouver to Montreal, but flew too close to Toronto…
M46BC
“Primary bathroom” implies that everyone uses it. Ironically, that is not inaccurate in my house.
-LD
Garth, usually I just agree with the deplorables in the comments here, but today I’m right with you, bro!
A rental tax credit will increase home values over the intermediate term. You have an artificially scarce (restrictive zoning in the worlds second largest country and one of the worlds lowest population density levels) resource that everyone has to consume. If you increase budgets with a tax credit then it’s just a further wealth transfer to landlords from the public.
Since we’re all being woke on this fine Sunday, can a Rental Unit still have a Landlord? The word lord literally means “someone or something having power, authority, or influence; a master or ruler.” Hmmm…
Did anyone every seriously think that the Feds would introduce any measures to cool the market? That is some serious naivety to think that they would cook the golden goose that this leading the pandemic recovery. It is even more naive to think they would implement anything effective after their failures with DP changes, amortization, equity withdrawals, stress tests, and the list goes on.
All the little OSFI talk and media stories over the past week were the attempts to ‘talk the market down’ without having to actually implement any measures. Besides, even if they tried their hand at market intervention again, it would have the same result – 10 years of failed federal measures to cool the market. The last weeks have just been another attempt at stringing people along with hope that things will change.
The sooner people realize that Canada has irrevocably cemented the two class system in Canada – and is on its way to fully becoming Brazil – the better informed they will be with their rent vs buy calculations. And Canada has the people power solution to keep the market going forever. Just like T1, T2 has found the people power solution and is fully committed. Go forward with eyes wide open on how this market is untouchable.
#98 ARegularDogBlog?
The defense for former Minneapolis cop Derek Chauvin is relying upon centuries of racial stereotypes and health inequities to make a case for his acquittal.
———————-
Yeah, counterfeiting, high on fentanyl and meth, non-cooperative police resisting convicted criminal under arrest…who had at least 5 chances to stop the escalation of this case and who knows who’s child he was going to kill driving away high on fentanyl and meth from CUP FOODS if left to his own devices.
Maybe you’d feel differently about things if yours was the business Floyd was trying to steal from? Or if your stomach was the next one Floyd was going to put a gun to to commit the next aggrieved robbery?
Criminals who want VIP Police service while being arrested should behave like VIPs and they will receive the friendly police customer service with their VIP behaviour.
America has been in an economic war on black people, of that there is no doubt. Education and employment opportunities are few and far between. This all got us to the point of this inevitable encounter. Was it on the Police to solve those giant national socioeconomic issues? Or was it to arrest an individual who was a danger to others, himself and the three cops who couldn’t hold him in the back of the cruiser and prosecution’s own use of force experts declared the three officers actions were “FUTILE!” in their attempts to control this under arrest man.
One other thing I’ve learned in this trial to date – how complicated policing job has become. How much training and policies these cops have to learn, understand and apply. I have a whole new appreciation for what police do by learning about their policies and procedures and I simply don’t see how anything Chauvin did was outside that policy at any point in this arrest.
Still no proof of how much pressure was applied to 240 lbs Floyd’s back by this 140lbs cop. As noted Dr.Baker pulled the skin off Floyd’s back to see and couldn’t find a single bruise anywhere interestingly enough.
According to Wiki:
Between 1997 and 2005, Floyd served eight jail terms on various minor charges, including drug possession, theft, and trespass. In 2007, Floyd faced charges for aggravated robbery with a deadly weapon; according to investigators, Floyd had entered an apartment by impersonating a water department worker and barging in, then pointed a pistol at a woman’s stomach and searched for items to steal. Floyd was arrested three months later during a traffic stop and victims of the robbery identified him from a photo array. In 2009, he was sentenced to five years in prison as part of a plea deal and was paroled in January 2013.
Chauvin will be found innocent, because he is innocent. Even Wiki page now after Dr. Baker’a testimony notes cause of death as: Cardiopulmonary arrest.
#6 crowdedelevatorfartz on 04.11.21 at 12:02 pm
About 20 years ago there was a plumbing supplier in England that recieved complaints that certain plumbing parts were named in derogatory terms.
“Ballcock valves”, “Female threads”, “nipples”
All were deemed to be names from an outdated, sexist system designed to denigrate females.
No problem.
The plumbing supplier agreed to rename any sexually suggestive plumbing parts and place them in a part of the store where potentially offended customers would feel safe to ask, search and find the newly renamed parts they wanted.
The catch?
Due to the cost of the relabeling, new shelving, etc…
Alll the renamed parts were double the cost of the exact same part in it’s original sexually offensive name.
Upon realizing this……
The customers bought the cheaper priced parts….
**************************************
Simple solution for “woke” Canadians. Make all the products more expensive and they defeat the man once again.
Allison does not mention an occupation or profession, which may be relevant to what I might say. I am an elderly boomer, retired quite a few years now. I grew up in Vancouver, where I have not resided for some years and could not afford to do so now. I live in a smaller centre in British Columbia, where I own my own house, clear title. To replace what I have now, if I could do so in terms of neighbourhood amenities and relaxed pace of life, would cost me, at least, 3x in Vancouver and 1.5x – 2x in Victoria.
People working in my town, as teachers, police officers, nurses or postal workers, make the same money as people in those occupations in Vancouver or Victoria. When I found my skills to be transferable, I relocated. Otherwise, when equivalent work was unavailable, I commuted, where not too much inconvenient travel, would enable me to enjoy the accommodation I wanted. I considered it a question of priorities.
Linda: ‘Ali’ complains about her ‘crappy apartment’ but notes it is renting for well under market value. I know this is heresy but maybe she could fix the apartment up a bit to make it less crappy? There are quick fixes including paint that can make the space more inviting. Just remember that if the place was boring beige prior to any primping that you will need to repaint to the same boring beige before departing. Take photos of the before so when you depart the landlord can’t claim the upscale door pulls or other fancy fixings you put in were there when you entered the rental agreement. Keep the old stuff so you can put it back when you depart. Now, some things you won’t be able to take with you – for instance, if you refinished the floors or put in a new countertop – but my take is, if you are going to be living in a space for years on end, no reason why you should live in surroundings that are ‘crappy’.
I know this is heresy but maybe she could ask the landlord. If you’re going to repaint, put on upscale door pulls, refinish the floors and put in a new countertop you can ask for something in return. Like a seven year, fixed rent lease which can be terminated at the lease holders option.
#14 crowdedelevatorfartz on 04.11.21 at 12:14 pm
@#1 Hate Hater
“I hate haters as well as hate in general.”
++++
Loathe is so much more encompassing……and I must admit…… I hate your name.
$$$$$$$$$$$
I said it once and I’ll say it again fartzee, I hate haters and hate, and that includes your hate of my name.
#QuitHating #HateHate
“The logic: if people buying real estate get a massive wealth advantage by completely avoiding taxation on gains which were handed to them by Mr. Market, renters should not be penalized just because they cannot afford to buy. So it’s only ‘fair’ the government levels the paying field by allowing a portion of rent to be deducted from taxable income.
Yeah, more government dependence and debt through reduced revenue. The T2 hole deepens. ”
Something needs to be done to reduce the ever growing wealth gap between home owners and renters. And might such a tax credit for renters, dampen demand for home ownership thus putting downward pressure on prices?
I am a Jedi Primary?
“that giant sucking sound” this sounds like something a very old American ex-IBM salesman used to say.
Let’s stop saying that “renters are subsidized by the landlords” because this is not true. Let’s make a simple calculation.
Let’s say that after renting the house, paying all the expenses, fixes and taxes I have to pay an extra $200 per month from my pocket. And you know what, that’s totally OK, because:
1. An active is paid in 70% by itself, consuming only $200 per month from my own money.
2. Even if it doesn’t grow in price (haha, but let’s say), you win from the fact that the mortgage pays itself.
3. An amazing inflation hedge!
Now, let’s say I buy a house somewhere in Barrie for 1M with 30% down and rent it for 25 years.
Now let’s also say that the market grows 5% per year (after taxing the realized gains every year) and the housing market goes up as well 5% per year.
30% down = 300k. In 25 years total value of the portfolio = $1,015,906.
Now the house: 1M initially, after 25 years = $3,386,354. Ok, ok. Let’s take out the $2400 per year that I have to pay from my own pocket: $200 per month compounded for 25 year = 117,824.
Who’s the winner?
Of course you’ll start telling me that “but the rates won’t stay low forever”. Making a lump sum payment of 50 – 100k every 5 year to stay afloat is very possible. That still will beat the equity market.
Now let’s see if this comment will get posted.\
Grow up. It’s not a race. – Garth
I wonder what will become of master keys…we have certainly lost our way
Guess getting a “Masters” degree will need to be changed.
And Master of Ceremonies
We are having a week of sunny days on south Vancouver Island with temperatures reaching 13c to 16c this week. Time to get some real work done outside
My chart of SF detached prices in the six biggest Canadian metros is up with March data:
http://www.chpc.biz/6-canadian-metros.html
All six cities hit new high prices… that has not occurred before in the same as far as I know.
Pandemic pricing by sellers has been met with exuberance from buyers.
Garth, being completely honest, we can consider you a “realtor” as well.
Think about it: the relators are the people who help creating and spending wealth on houses. You own a hedge fund that helps people create and spend money on equities.
There are realtor blogs that give us 1001 reasons why investing in housing is better than in equity market. Your blog is saying the exact opposite.
How do you consider yourself different from a realtor with a blog?
No hard feelings, but I truly wonder!
Cheers.
I do not own a hedge fund nor help people buy equities. This blog has always counseled buy a house if you need one and can afford it without gutting your finances. Did you have another point, or just come here looking for a washroom and free hand sanitizer? – Garth
Liberal delegates endorse a universal basic income, reject capital gain tax hike
https://www.cbc.ca/news/politics/liberal-universal-basic-income-1.5982862
Liberal delegates to the party’s policy convention have overwhelmingly endorsed a resolution calling for the establishment of a universal basic income (UBI) in Canada, while also rejecting a call to hike the capital gains tax.
By a vote of 77 per cent, Liberal members on hand for the policy plenary today backed a call to permanently implement an income program similar to the Canada emergency response benefit (CERB), which kept millions of people afloat with monthly cheques during the first wave of the pandemic.
Wife, kids, dog, cat…the only thing I am ‘Master’ of is my shed (a small no bedroom, no bathroom, fixer-upper located within driving distance of a Dollarama and a Timmies. Asking $250K — financing incredulously available!)
And that’s why the Government will build more social housing. Maybe Amazon will provide barracks for it’s employees. You’ll know things are winding down when you fly home one Amazon Air, check into the Microsoft Inn and Suites, book your next cruise on the Google Princess and ride home from the airport on the Justin Trudeau Memorial Bicycle Path.
DELETED
IG is full of rants of millennials going crazy over trigger words or expressions. It has become crazy, can I even say that or does it trigger some person who was called crazy as a youth? This is one reason I am not on social media very much only as it is connected to my business somewhat I need to use it. To many people getting angry over silly stuff , yet like you said no one cares about the big stuff like debt slavery of their kids. (Is slavery allowed?)
“Tax incentives may be more effective than disincentives to benefit the housing market .”
Interesting article – discusses a rental tax credit among other potential changes to housing related taxation.
https://financialpost.com/personal-finance/these-tax-changes-could-open-up-more-options-for-real-estate-investors-homeowners-and-renters-of-all-ages
So, the Canadian government has no intention of repaying the debt and every intention to spend more and more money. That means a default is in the cards. Later or sooner, they won’t be able to pay the minimum payments on the debt.
Their isn’t further room in the economy to raise more taxes. They chased every business out of the country except real estate, so they cannot expect more revenues from industry. They cannot afford the minimum payment if interest rates increase, and interest rates will increase. So the only play left to them is default.
Normally a default hurts a country almost beyond endurance, but if it gets buried by a series of defaults from other Western nations, the usual penalties may not apply?
So, as a little guy with retirement looming, how do I ensure my little nest egg isn’t destroyed by the above scenario? Gold? Bitcoin? Because any faith I have in any Canadian government is rapidly flying out the window.
Gartho, you almost sound like you’re giving up- Ballooning debt no one seems worried about, Orwellian censure of words- are you throwing in the towel and resigning yourself to it? I’m not blaming you; heaven knows I gave up a couple years earlier on trying to understand or change it. You’ve began to shift your advice towards the “keep your head down and live quietly amongst the masses” side of things, which coming from a cool-headed and pragmatic guy like you scares the daylights out of me. I know this is a financial blog, but you’re a wise man- what’s the end game here? What does Canada look like a generation hence? And how does one prepare their kids for the society they’ll find themselves navigating?
One thinks you just might be ready to join up with Mad Max Bernier.
Grow up. It’s not a race. – Garth
What is it then? I thought the whole meaning of being financially independent is to build equity. Yes, the housing investors are not difersified but they are definitely building much more equity than the ones who went the safe way, and that’s due to the huge margin they have. Put in the “renters are paying my mortgage” + the crazy market we had in the last 20 years and you have people who created equity almost out of thin air.
After watching Downton Abby , I like the ring of being addressed as “My Lord” in the future by wife Pat. When asked what she thought of this, she didn’t answer , but just stared at me with blank eyes. I’ m still waiting for an answer.
.
If they come out with a 20-30% renter tax credit they better couple it with a limit on how much interest income can be deducted on rental properties
Capping the interest write off at no more than 50% would help pay for the renters tax credit and likely increase the listings as many small time house hoarders list their “investments”
This country is a massive financial control and governance fraud
We’re becoming Argentina now – in the early 2030’s good luck to all
Now that I’ve made a 20x return on my cryptocurrency, the heat is too hot for me. Anyone want to buy my cryptocurrency? I think I should probably quit while I’m ahead P:
#95 BillyBob on 04.11.21 at 4:48 am
Thanks for proving one can be well-travelled enough to feel worldly and knowledgable yet utterly ignorant of race dynamics esp. As they pertain to the US. But olease feel free to make broad statements about humanity by all means. And the usual suspects fall in line here while crowing about their “free thinking”. OMG LOL. As soon as MN vs. Chauvin started posting all you sturdy, free thinking conservatives revealed you are already on the bus, the arm bands will be passed out shortly. I leave you with:
https://mobile.twitter.com/PlugInFUD/status/1380882611015458817
And
https://www.vice.com/amp/en/article/y3dm3m/cops-caught-on-video-holding-a-black-army-lieutenant-at-gunpoint-then-pepper-spraying-him?__twitter_impression=true
I ask when was the last time any of you were pulled over because of a new car purchase? Or felt compelled to ensure your being pulled over occurred in a well lit area because the popo assume you are dangerous?
What did I say? They are not going to rock the boat before an election. NO rate hike unless the USA does it first. They cannot simply afford it. Canada cannot afford to lose foreign money flow. Liberals will tinker, pretending to be doing something as they always do. HOuse fire has to burn itself out.
#12 Hate Hater on 04.11.21 at 12:08 pm
I do not discriminate I hate people of all races, ethnicity and cultures equally.
————————————–
Justin Trudeau is nothing more than a Pez Dispenser of far left progressivism idiocy, a Disney character of a Prime Minister.
Canada doesn’t produce much anymore but long speeches about how industry is bad for climate-change
Canada – stick a fork in it.
The pandemic has made everyone crazy in soooooo many ways!
There’s still a “Great Slave Lake” in the Northwest Territories, while Alberta is home to the even more offensive “Lesser Slave Lake”.
Clearly, there’s still much work to do.
————————–
Mr. Largo: Lisa Simpson, is there something funny about the word TROMBONER?
————————–
If a person wanted to emigrate to a solidly democratic country other than the US where freedom of speech is still treasured, meritocracy and individualism revered, taxes and public debt are managed judiciously, and wokeness has been rejected, where would one go? Thinking very seriously about taking my ball and going to play elsewhere. I believe strongly in classic liberal values, and until very recently in the idea of Canada as a place where I saw those values reflected. I used to fly a Canada flag in front of my property. The wind beats them up and the flags need to be replaced every couple years. It was getting pretty tattered in late 2019, and I elected not to replace it. Not sure this country still stands for the same things I do. Not sure it doesn’t though either- for what is a nation but the collective will, values, and efforts of its people, and most people I talk to still think like me. So either I’m living in a real life echo chamber that isn’t representative of the majority of the people in this country, or our government somehow isn’t reflective of the people, which makes no sense since we voted them in. Either way, not sure this is really my place anymore. Four of my great-grandparents were first generation immigrants to canada, arriving either as children or adults between 1884-1921 from Germany; two of my grandparents arrived as adults in the 1930s by way of Ireland and Scotland. We have an amazing country, but politically we’ve lost our values, our sense of country before self, and it might be time to follow my ancestors lead and set sail for other shores to make a better life for my children somewhere else.
Any suggestions? Not sure I can live in T2s world.
@#36 Overheardyou
“I wonder what will become of Master keys…
****
I must admit, I find Mistress keys a bit more appealing….
Interesting Doc. to watch, “Code Bias” 2020. Saw it on Netflix yesterday, but sure it’s other place too.
About half way through they mention that errors are in the stock market pick suggestions. And other societal issue related to Tech AI code that increasingly is running our lives.
Trailer 2-1/2 min YT link.
https://www.youtube.com/watch?v=jZl55PsfZJQ
#48 T-Rev
One thinks you just might be ready to join up with Mad Max Bernier.
——————————-
Bernier is like a stopped clock. Correct, twice a day.
#1 TurnerNation on 04.11.21 at 11:41 am
— Per UN Mandate SFH homes are to be banned. Apartment blocs only. It has started:
“Biden’s Infrastructure Bill Aims to End Single-Family Zoning” (nationalreview.com)
https://www.nationalreview.com/corner/bidens-infrastructure-bill-aims-to-end-single-family-zoning/
———————————————
Calgary same song sheet: https://calgaryherald.com/news/local-news/a-guide-to-the-debate-around-calgarys-new-city-planning-guidebook
Increase “densification”
Looks coordinated doesn’t it?
Incrementalism, a long term plan:
– No personal vehicle
– No owned House (warehoused into a shoebox rental)
– Precariat existence
– Surveillance State
– Community needs trump Individual rights
– A grey Goo of culture-less post national state humanity and a permanent ruling class.
“Primary”…LOL Enjoyed all the other examples of eliminating “Master” in the comments today.
Used to be a time when the older generation, with its vastly broader life experience, viewed the antics of youth with amusement and tolerance. Now we seem to be going out of our way to pander to it.
I thought we had reached the point of Peak Idiocy when our global leaders and the Davos billionaires started falling all over themselves to seek policy advice from, and photo opportunities with, a Scandinavian teenager.
I was wrong…
What rent control? Where?
Even in rental haven Montreal, rents have gone bananas since 2018. Investors buy at high prices, need to make money, so they rent at high prices (double market value). How? There is no real rent control. As long as you stay in an apartment, the landlord cannot increase your rent much (generally 1-2% per year). But they can evict you to renovate or to bring in family. When the place goes back to being rented – double or triple the old price. So you have no security as a renter now. If you live with cheap rent, you stay where you are and hope the landlord doesn’t evict you. You don’t have much freedom. In Toronto, my sister was paying a high rent to begin with, then got evicted twice because the landlord wanted the place back or was selling, so she was forced into buying. The only way these days is the debt way. The new Canadian way. Resist as long as you can i guess.
Any suggestions on new lyrics to our #1 song?
https://youtube.com/watch?v=IsvfofcIE1Q
Keep it catchy people! Top submission gets 2 tickets to a concert…on Zoom of course.
No measures to cool the market? Almost make you believe that the 600,000+ mortgage deferrals last year was but a dream.
A national pharmacare program? In a country that has to rely on others for vaccines just to try and stomp down this virus we actually think it is wise to further hamper to flow of pharmaceuticals by implementing a national pharmacare program? National pharmacare programs have been shown to cause drug shortages, reduced access to new drugs, worsening health outcomes, and higher taxes in other countries. Why would it be any different in Canada?
Garth: No increase in the GST rate in this budget?
T-REV #58: Not an uncommon sentiment. The folks that I know that seem the most concerned about the increasingly high handed way our governments are going about things are immigrants from Eastern Europe. They draw a lot of interesting parallels with the oppressive governments, capricious officials and increasing corruption of the Iron Curtain years they came to Canada to escape. We are a long way from that, but many of them are genuinely frightened with the tone of what is going on here.
Hey aren’t they playing The Primaries down in Augusta
Yes, it is very important to be socially correct now.
Master Freedom First
The Govt is right in not doing anything. Why be the bad guy when inflation and the bond market is going to do the dirty work for you.
Inflation will be the straw that will break the camel’s back. Ray Dalio mentions about a long term debt cycle coming to an end. Maybe he is right.
A nation of Gollum’s relieved.
Precious won’t be taxed upon sale.
—————————-
That was a primaryful write-up today Garth.
Look at the bright side vis-à-vis the Liberals, shadow NDP convention came up with this:
– Federal minimum wage to $20.
– Impose a 1% tax on fortunes over $20 million.
– Abolish billionaires by taxing all gross wealth above $1 billion at 100%. *
* Hopefully CBC made the “above” typo on behalf of the NDP. And, if the NDP get elected condolences to all 45 of you (but at least you’ll still be $1B’aires).
Garth: No increase in the GST rate in this budget?
Garth… As of this week the word ‘master’ will no longer be allowed in Toronto. At least not as part of real estate listings. Toronto realtors have decided to follow the lead of CREA, the national organization, and cancel the word forever. From now on no master bedroom. No master ensuite, either. The politically-correct word is ‘primary.’
*************************
Level of degradation west countries is fantastic and getting unbelievable speed.
Garth I disagree with that: The politically-correct word is ‘primary.’.
ABSOLUTELLY politically-correct word is numer – “ONE”, “Two” ….
Room one, Bedroom one
Room two, bedroom two…. etc.
Next 10000 years and until end of civilization, nobody will complaining.
Watch this 10 minutes for a useful take on the new real estate bubble in the US and the generational impact it is having, much like Canada.
https://www.youtube.com/watch?v=EBb9zf_zWvU
Special note that it appears pension funds and other corporations are increasingly taking over homes to rent out there, something not talked about much here but which I keep hearing has been happening more.
“Crisis leads to financialization, leading to crisis, leading to financialization…” is the story of things since 2008.
#13 Linda on 04.11.21 at 12:08 pm
Linda, your advice is spot on. My daughter advised me late last year to consider my rental apartment my permanent home for as long as I live here.
I rent a condo apartment located in an ancient converted flour/barley mill on the banks of the Grand, a heritage river in Ontario. The ceilings are 11 feet, the floors are wide wood planks some of which are slightly uphill in places (makes furniture placement an adventure) and the windows are soaring and have 18″ sills.
But in the last nine months I have replaced a basic electric stove in the kitchen with a self-cleaning one ($1300 incl tax and delivery) and the blinds on the living-room window (custom, $780 incl installation). Both of those improvements must remain with the apartment when I leave. I hope to stay here until my end but one never knows. But while I’m here I want to enjoy my home so leasehold improvements are part of the mix.
I just hope I’ve bought some goodwill with my landlord.
F73ON
Isn’t there a master slave relationship in some braking systems? How do these auto parts feel about these nomenclature issues, not to mention the mechanics.
Consider this Senoria, real estate and the Canadian economy like a big tire.
The tire wall holds in the air to allow all kinds of abuses to be heaped upon said tire, with the goal of projecting forward at an intended velocity … under load. All remains fine, so long as said tire rubber is molecularually youthful, supple and resilient. Not so much if said tire is aged, febrile and cracking, kind of like like our current economy. The tire wall is the productive economy. It is the collective, inventive, productive sweat-producing segment of society that renders value in all its aspects. The air in the tire is money, an invisible substance that cannot be seen smelled or touched , unless it is moving around a lot, or it is compressed. The governing banksters controll the national air compressor that inflates or deflates the air in said tire. As little as 3 pounds of reduced air will make said tire go wobbly. 10 per cent loss is disinflation and 30 percent is outright depression. Air pressure loss below this and you are stranded on the side of the road. Conversely, a blowout is when you inflate far beyond the safe pressure rating for said tire … and hit a government induced pothole (like covi lockdowns, versions one, two,ten or more) then you loose control of tire, car, and contents, et all. Basically your economic future just went kablooey.
So where on the road to the economic and real estate future are we at? Well with real estate we are fast speeding to kablooey. Every interest rate uptick is yet more air in an over inflated, over patched, worn, oxidized very bald tire. If that tire wasn’t so well built 40 years ago, when this imbrogillio started, it would have blown in 2008. This time there is not enough remaining wall in the tire to deal with the pressure needed to hold the load, speed and impacts from everything around it.
We are one pothole away from the natural collision from 40 progressive years of unnatural economic policy. Remember the Bank of Canada has the biggest air compressor in the land, and damn, were gonna use it – you and your children’s tires be damned.
Sigh.
MMT has been with us for just over a year and it’s just widening the wealth gap.
Will there ever be political will to end the experiment?
Methinks we’re due for a reality check.
Dunno, b-grade construction worker here.
The 5 different countries I’ve worked in have different terminology for the same thing, and because you work with guys all over the world, the most common terms for some of the bedrooms seems to be something along these lines.
Don’t hear the word primary or secondary.
Main Bedroom.
Guest Bedroom.
Kids Bedroom.
I don’t care what they call the room, I’ve just got to make sure I’m installing the right product in the right room…
M46BC
Woke speech is fun.
Last night, watching Abstract: the art of Design on Netflix, the episode with Paula Scher.
One (female) commenter said something like “she’s the best female typeface designer in the world”
I, as an old white guy, thinks Paula Scher is the best in the world, but now I’m wondering which male has her beat??
I don’t think gender matters, but I’m obviously not “woke”, I’d better get with the programme, so I’d better find out which male Primaried Ms. Scher’s beat.
(note to old boomers – “primaried” can be replaced with “mastered” but only until you’ve primaried “woke”ness)
#58 T-Rev on 04.11.21 at 2:21 pm
Any suggestions? Not sure I can live in T2s world.
/////////////////////////////////
I have lived in and loved Canada for 65 years.
I’m thinking of moving elsewhere. Can’t believe what is happening to this country.
A banana republic with no bananas.
Governments not following their own laws, extra judicial incarceration, ridiculous national and individual debt,
people snitching on their neighbors etc.
Great to see young people protesting in the streets but it seems governments are not responding and pushing ahead with ideological agendas with little parliamentary debate.
So sad, we had it all!
#59 crowdedelevatorfartz on 04.11.21 at 2:22 pm
@#36 Overheardyou
“I wonder what will become of Master keys…
****
I must admit, I find Mistress keys a bit more appealing….
==========================
CEF, you’d need a wife first. Not sure what they’d call you. Side-piece?
Unsurprising in extremis.
Which minority government would kill the only economic engine left in this husk of a country? Especially ahead of an election…
I also noticed a couple of typos in the post, so I took the liberty of fixing them for you:
“The logic: if people buying ETFs get a massive wealth advantage by completely avoiding taxation on gains which were handed to them by Mr. Market, the voters should not be penalized just because they cannot afford to invest. So it’s only ‘fair’ the government levels the paying [sic] field by allowing a portion of UBI to be deducted from taxable income.”
And on the lexicological woke wars: should people with postgraduate degrees get on the bandwagon as well?
Those having Master’s degrees shall henceforth have a “Primary” in Social Studies (for instance). Awesome, crystal clear and woke as dope.
My stupid question is: what should an undergraduate degree be called then?
This is an urgent plea to all those with Bachelor’s (how dare they!) degrees in Social Studies, please help remedy this great iniquity!!!!
(head explodes)
Oh, Kanada!
NDP can beat that easy.
@#71 GST
“Garth: No increase in the GST rate in this budget?”
++++
That will come after the election….
;)-
26 rinse and repeat
Go forward knowing nothings going to change until the FED raises rates. Will this blog still be around when that happens? Because I would love to see the comments then…
Here’s holding my breath….Not…
Holly is beautiful dog, and this where she came from, video below.
https://youtu.be/ih-Tr58PqRU
So on a national basis, our annual deficit is as large as the US on a per capita basis without the advantage of being the world reserve currency. I think the currency traders are going to notice very soon. Good thing they removed the 30% limitation to foreign content.
“Actually, Ali, renters are subsidized, coddled, supported and made special by politicians who suppress rents, ban evictions and hassle landlords.”
Bullishit! The goverment has stopped subsidizing rentals by allowing developers to build more condos, thus dimishing the rental supply.
Hello friends. Thanks for reminding me. The Masters is on. You can guarantee there is not a member there who gives a damn about the term Masters. Augusta National owns all tv rights. PGA has no say on coverage and who the analysts are.
In their not so humble opinion, if you do not like it, watch something else. Just do not watch with bikini wax.
WOKE is a 4 letter word. All this nonsense proves it for sure.
53 faronista
“I ask when was the last time any of you were pulled over because of a new car purchase? Or felt compelled to ensure your being pulled over occurred in a well lit area because the popo assume you are dangerous?”
++++
The majority of blogdogs live in Canuckda not the US.
Apples and Oranges.
I cant afford a new electric car yet….so that wont happen.
Where I live its RCMP.
Judging from their ads… they’re hiring from all walks of life so I suppose I could, eventually be harassed by a gender fluid, multicultural “bubba” with a badge….. but I’d have to work hard at it since the police seem to ignore most traffic violations until they’re picking pigeons off in a radar trap…..
DELETED
DELETED
It will be interesting to see what the budget is. Based on today’s blog, the easiest solution by T2 is simply to increase the top marginal rate to 55% (why not make it to 60% or even 75%) on anybody who is “rich” making over 220K per year. One stroke of the pen, change the online rate in the payroll tax witheld and presto it is done. All those living on dividends and capital gains or who have large inheritances, who can hire accountants and lawyers to protect their priviliged status, are given the immunity card.
#92 Ballingsford on 04.11.21 at 4:20 pm
DELETED
***
Not nice to delete Garth. It was kind of funny carrying on with words to substitute master with primary with.
Kind of funny, if you’re 12. – Garth
So many stupid comments on here today. All you need to know is that cancel culture will never go after the words balanced and diversified. That’s because that’s all you need. And if you can also have a B&D portfolio that is kicking out 10.29% ytd, then you’re golden.
Hey, that’s me! Yes, I feel golden.
There is definitely a master-tenant relationship in your condo rental. This is the crux of the problem with rental in Canada but particularly in large metro areas: little to zero purpose-built rental. So tenants can be tossed on 60 day notice. How does anyone get comfortable living in these small-investor domiciles?
Per
#74 LP on 04.11.21 at 3:16 pm
#13 Linda on 04.11.21 at 12:08 pm
Linda, your advice is spot on. My daughter advised me late last year to consider my rental apartment my permanent home for as long as I live here.
The electronics industry is full of terms that might be up for cancellation.
Male & female cables and sockets.
Master slave settings on hard drives and other equipment.
Motherboards
The nipple mouse at the middle of your keyboard.
That female socket is waiting for the male plug so that the juice can flow. I need a female female cable Etc etc.
T
Are you implying that RE will go up forever?
The recurring refrain of this blog for years and years has been renters win, renters rock, but now I’m reading it’s come to, homeowners are the elite and renters are losers i.e. the nesters were right.
The refrain has been that renting is a perfectly legitimate choice, especially when combined with active investing in a financial portfolio. Retaining freedom of mobility and eschewing debt are good things non-owners should be proud of. – Garth
remind Ali , we live in a needs based economy – get married – have some kids and the Crown will reward you with a middle class life. Stay single , no kids – it’s an apartment and 2nd hand car.
Read the rules on the back of the game board.
#13 Linda – You are spot on. Our adult daughter rents a crappy apt in east Van because it’s what she can afford as a single woman in this crazy town. On move in day we painted a couple of walls a cheery blue to match her furnishings and voila! It’s warm, bright and inviting. She’s been there 5 years and could be there a few more, till she meets Mr Right, not a promising prospect in a city of 45 year old skateboarding men blazing on weed.
Jeff Bezos has a fortune of more than $180bn – about twice the GDP of Kenya. He makes about 13.4 million dollars an hour. While the average hourly wage for Amazon workers in Canada this past year during the pandemic, was about $16.00.
The trickle down effect was just that. A trickle. These employees should be some of the highest paid in the country, with those kind of profits.
Bezos employs more than a million people. Praise him. – Garth
Oh my! What are they going to do about this one?
Mr.
mid-15c., abbreviation of master (n.);
Better not tell the wokesters, Mr. Turner. They clearly haven’t cracked a book to figure that one out yet (I wonder if they get nauseated reading anything written before 1995?).
This could trigger the final battle in the wokester war.
#35 Bob The Cat on 04.11.21 at 1:09 pm
Let’s say that after renting the house, paying all the expenses, fixes and taxes I have to pay an extra $200 per month from my pocket.
*************************
Where did you get those numbers from?
Have you ever owned a house for 25 years? Those little “fixes” really add up.
—————————————
#35 Bob The Cat on 04.11.21 at 1:09 pm
Now let’s also say that the market grows 5% per year (after taxing the realized gains every year) and the housing market goes up as well 5% per year.
********************
Again, where did you get those numbers from?
I’m not finding a single 25-year timeframe where that has historically occurred.
———————————
———————————
If you start your comparison with
“Let’s say [numbers pulled from my butt]”
you can make any outcome you want.
#56 Ballingsford on 04.11.21 at 2:19 pm
The pandemic has made everyone crazy in soooooo many ways!
———————————
I agree to a certain point. It’s kind of like being in relationship with the wrong person. You can only hide who you really are for so long. Eventually the real you comes out. So, I believe covid simply brought out people’s true selves more so….
More importantly than the content of the budget, to Chrystia the Impaler will be her choice of new shoes. Votes please as to which designer she chooses:
Christian Louboutin.
Manolo Blahnik.
Jimmy Choo.
Walter Steiger.
Alexander Mcqueen.
Brian Atwood.
Louis Vuitton.
Gucci.
Eddie Bauer
MEC
#94 yvr_lurker on 04.11.21 at 4:28 pm
It will be interesting to see what the budget is. Based on today’s blog, the easiest solution by T2 is simply to increase the top marginal rate to 55% (why not make it to 60% or even 75%) on anybody who is “rich” making over 220K per year. One stroke of the pen, change the online rate in the payroll tax witheld and presto it is done. All those living on dividends and capital gains or who have large inheritances, who can hire accountants and lawyers to protect their priviliged status, are given the immunity card.
———
You have the answer to success. Knowledge is power. Why not use it to your advantage if the writing is on the wall?
I did. It was easier than I even thought.
#53 Faron
I ask you, is your expectation that cops should sacrifice their safety and lives so some lying doped up criminal can get the white glove treatment while resisting?
Nothing is 100% reliable. Not airplanes. Not cars. Not computers and not human beings.
Every human being is entitled to self preservation. No one seems to point out that George Floyd chose not to use his entitlement through multiple opportunities.
I didn’t like being considered as the ‘Master’ to my dog, my buddy, my pal, my loyal friend. We are equals! Woof!
Can I have a liver treat now?
#30 ’45’ – A long term lease with built in rent control is a wonderful concept, but don’t know that landlords would be willing to embrace the concept. Long term leaseholds are normal in Europe, but I don’t know whether there are such things as long term rental agreements in Canada. One year terms requiring annual renewal seem to be the norm here.
#74 ‘LP’ – your rental sounds wonderful, quirky slanted flooring notwithstanding. May you enjoy every minute!
#102 ‘YVR’ – glad to hear that your daughter is willing to invest in her surroundings. As for Mr. Right one of those wise sayings comes to mind “Better alone than badly accompanied”.
“The feds intend to let the market run hot.”
That’s great. The market will burn itself out without any help or should I say manipulating from the feds. Anything the feds do is counterproductive anyway. The best thing they can do is nothing.
Bezos employs more than a million people. Praise him. – Garth
Garth…why don’t you work at Amazon warehouse for a month?
Those of you who don’t like this man, what he stands for and how he treats his employees – I hope your money is where your mouth is and you’re not shopping there.
#57 Damifino on 04.11.21 at 2:19 pm
There’s still a “Great Slave Lake” in the Northwest Territories, while Alberta is home to the even more offensive “Lesser Slave Lake”.
Clearly, there’s still much work to do.
Upper and lower Canada has long stuck in my craw. It breeds inferiority…
And an old joke
Outside of a dog, you’ll find no better companion.
Inside of a dog it’s dark.
#84 crowdedelevatorfartz on 04.11.21 at 4:01 pm
@#71 GST
“Garth: No increase in the GST rate in this budget?”
++++
That will come after the election….
;)-
********
If a majority is won…much more will follow that hike in GST.
September/October should be fun.
Just wait until the woke hipster Founders and CEOs find out what the “C” stands for.
Good thing the Masters Golf Tournament isn’t based in Toronto.
#64 Pfff
What rent control? Where?
————————-
Right here. In Lotus-land. Comrade Horgan has made it so. I’m a tenant and I actually think my landlord has been screwed over to a certain degree lately.
I haven’t had a rent increase since Nov, 2019. By current legislation, there won’t be another one until at least Jan, 2022. Even then, it will be limited to whatever the Provincial Government decides is fair. Maybe about 2%. Glad I’m not a landlord.
And speaking of archaic terms carried over from less enlightened times, “landlord” is surely one of those.
How about landloser?
Loss of the word “Master” to describe a bedroom or ensuite – too funny. I guess some will consider my household to be archaic, but my husband and I still believe that we are the decision makers in the household and that our children must show deferrence for two people who have more life experience than they do, provide for them, and sacrifice much for their upbringing. It’s a strange world we live in when children think they are on equal footing with their parents. I tell me kids, “Your opinions matter, but the final decisions come down to us, your parents. Your point of view does not carry equal weight. When you are adults and pay your own bills then your opinion may carry equal weight, and later in life, when my faculties are not as sharp, your opinions may even carry more weight. For now, know your place.” Very old fashioned of me, isn’t it?
You just had to know they’d do nothing.
The only way they’ll do something is if inflation forces them to raise interest rates and reign in spending. And before that, they’ll probably lie about inflation and let it run hot.
If they ever had to raise rates to a real rate (positive after inflation), the asset bubbles would pop and it would be truly gruesome.
Hey Dolce Vita (or anyone)
Help me with my Vax math.
♦Kenny says we’ll get 100K shots every week for the next 3 months.
♦Kenny also says 800K doses have already been administered
♦The over 18 pop is about 3.3 mill in AB
So, 3.3m-0.4m=2.9m
2.9×2=5.8m
5.8m doses at 100K per week… Isn’t that 58 weeks?
—————————————–
Instead of going from demand, let’s try supply:
100K per week for 3 months = 1.2m dosses
plus
800K doses already administered
=
1.2+0.8 = 2m doses by mid-July
That leaves 6 weeks before Trudeau’s new “Every adult double dosed by end of summer” goal and doesn’t seem like enough time for ~3m more doses.
Source:
https://edmonton.ctvnews.ca/mobile/alberta-s-vaccine-rollout-extends-to-more-health-care-workers-monday-1.5382466
Just to annoy many, I am up 18% YTD on my portfolio. Preferreds are doing great and the rest okay. I guess I am up over a 120% since I got crushed March 2020. So I like stock picking. Late to the party but I been acquiring Tech. I have made good choices recently. Pmts, lumn, exro… I might add to them.
I won’t forget CFDs. I invested $3,000 and built it to $30,000 in a year. Then in a day it went to $200 (bastards took my cash). Don’t cry for me because I took my investment plus an equal amount of profit out – thank dog. I find options have less risk and have done well but most expire worthless if I am not paying attention.
Life, I will not surrender. Nothing better than good health and being able to pay my bills.
If the Liberals don’t act to calm the housing market then I will vote Conservative out of spite.
#111 ts on 04.11.21 at 5:26 pm
You meant of course to say…
“…personipulating from the feds.”
oh Canada,
Not even considered the ‘Nicest’ country on the world but definitely considered the wussiest in many of the countries I have been.
Wusses beget wusses…may as well call it the ‘Wusster’ bedroom…
I fear for my Wusschildren…
Og
“ Could there be a master plan?” – Garth
I’ve thought all along there’s a master plan. The UN saying “build back better” when? 2018? Build back from what in 2018? The pandemic/lockdown destroying small business and requiring mail in voting. Climate warming taxes needed when clearly the climate is cooling? I could go on and on but Garth said no and deleted any hint of conspiracy. So I stood firm and told others don’t be stupid. There is no conspiracy.
Mr. Turner are you implying there just may be something going on behind the curtain?
++And the ‘usual suspects’ fall in line here…”
” As soon as MN vs. Chauvin started posting all you sturdy, free thinking conservatives revealed you are already on the bus, the arm bands will be passed out shortly.”++
Well at least we have ‘sturdy’ going for us, and exactly what ‘arm bands’ would this refer to? What a coward. You’re too afraid to even make the accusation, because the reality is that Antifa is an exact modern day equivalent to everything that was evil in the Weirmar Republic and led to the rise of Nazi Germany, and the extreme left progressive agenda is nothing but a repeat.
“Antifaschistische Aktion”, which was a militant anti-fascist organization in the Weimar Republic started by members of the Communist Party of Germany, aided and abetted the Nazi Party . People, listen up! This group is where modern day ANTIFA comes from…. Who do you think those people were that dressed in ‘Black Bloc” on Canadian railway lines? Many First Nation people admitted they had never seen them before. They are anarchists.
Big following in PORTLAND, OREGON. Anybody here with roots in that city?
Want to know more? Read Andy Ngo’s book ‘ Unmasked, Inside Antifa’s Radical Plan to Destroy Democracy’.
F. A. Could be a person’s initials, or maybe just represents an apt description…
“(‘we can’t penalize homeowners counting on their houses for retirement’) and the conclusion is inescapable….”
Yes, they want their profits even if Canadians can’t live in the country they were born in and can’t afford the luxury of having a home and family of their own. Damn them!
This is genocide by an investment scheme.
#107 You have the answer to success. Knowledge is power. Why not use it to your advantage if the writing is on the wall?
I did. It was easier than I even thought.
——————
For those of us who were not born on 3rd base (i.e. inheritances, trust funds (T2), houses that remain in the family for generations, becoming a member of the family business etc..), one key way to raise oneself up the ladder and across the class divide is through high-paying jobs that typically require years of specialized training and dedication. If the Gov’t goal is to tax these “rich” people at 60% marginal over 220K, it takes away the incentive to kill yourself at your job to get promoted and raise further. It also makes it more difficult to save large sums starting from zero.
Once you already have a million “saved”, either through your own hard work or for being on third base to begin with, it is all much easier to increase the sum from the market.
I am more concerned with those who are trying to raise themselves from the basement to a higher floor.
“There will be no capital gains tax inclusion rate increase in the budget next Monday. No creeping tax on realized home equity, either. And no wealth or inheritance tax.”
All the above, to some degree, will follow the LPC securing a majority mandate in the election this autumn. Got a fiver backing up my contention.
DELETED
…so many lamenting that things are not fair, and the government needs to do something.
life isn’t fair, suck it up and move one. There isn’t a government in the world that can make it fair. And if they could, you probably wouldn’t like the results.
The worst form of inequality is to try to make unequal things equal.
– Aristotle
#22 Loonie Doctor on 04.11.21 at 12:29 pm
“Primary bathroom” implies that everyone uses it.
____________________________________________
Exactly, thank you!
CREA needs better English terminologists! Even “prime” would have been better than “primary.”
#62 Dogman01 on 04.11.21 at 2:28 pm
#1 TurnerNation on 04.11.21 at 11:41 am
— Per UN Mandate SFH homes are to be banned. Apartment blocs only. It has started:
“Biden’s Infrastructure Bill Aims to End Single-Family Zoning” (nationalreview.com)
https://www.nationalreview.com/corner/bidens-infrastructure-bill-aims-to-end-single-family-zoning/
—————-
I heard Hamburg in Germany is thinking of putting in some restrictions on construction of new SFHs.
Next on up: Townhouses.
Only so much livable dirt left.
Empty condos have to be repopulated.
Is David Rosenberg right or wrong?
https://www.bnnbloomberg.ca/canadian-housing-bubble-worse-than-lead-up-to-u-s-subprime-crisis-rosenberg-1.1579481
Congratulations to the first Japanese player to win the Primary golf tournament in Augusta.
“There will be no capital gains tax inclusion rate increase in the budget next Monday. No creeping tax on realized home equity, either. And no wealth or inheritance tax.”
Finally some sanity from the Liberal party. Perhaps somebody with a brain finally pointed out to them that redundant taxes aren’t worth the effort and they should just raise income taxes and the GST if they want more money. It’s way more reliable and harder to cheat.
For example, inheritance taxes are easy to minimize. Just spend all the money before you die! Or “gift” the kids large amounts of money for a down-payment before you die. Is the government going to come after that too? Enforcement will be a nightmare.
Wealth taxes are a nightmare because wealth is not money. What if you have a farmer who is sitting on 640 acres of land? That is certainly worth millions. But where does he get the money to pay a “wealth tax”? Farmers aren’t generally rolling in the doe unless they have milk quota. And it is the quota that is worth all the money, not the milk.
Primary residences aren’t businesses and shouldn’t be thought of as such. They are purchased with after tax money. Besides, most of the problem is in YVR and YYZ, two areas the liberals must hold if Trudeau is to stay in power. A capital gains tax in YYC doesn’t look like it’ll produce much in the way of revenue for years to come. We can build all the windmills we like, we won’t be selling any power to Texas. And Biden says we aren’t allowed to sell them our oil anymore, they must buy from Saudi Arabia.
The capital gains inclusion rate is a matter of international competitiveness, as are corporate income taxes. That is why the Biden administration is proposing a global corporate income tax rate, that he proposes to set. I’m pretty sure that isn’t going to fly. But it shows that even the commies understand that corporations are often mobile. (As are the “rich”; observe that Musk is moving to Texas. Texas wins, both in terms of tax revenue and jobs, California loses.)
And a tax credit for renters? Now that is one whacky idea. I’d say a majority of renters aren’t paying a lot of tax already, so that won’t move the needle. And it would put upward pressure on rents, benefiting landlords. (Subsidize something and demand goes up.) And in terms of fairness, owners still have to pay income tax on the money they use to pay interest on their mortgage, so how is that “fair”? And we must continue to hold in mind all this talk is inspired by just two markets, YVR and YYZ. If the helium ever leaks out of this balloon, now you have a tax credit for renters while home owners are suffering capital losses. Can they deduct those? I bet no.
I’ve said it before but it bears repeating: We are at peak tax. You can only turn so much wheat into flour before you don’t have any seeds to plant next year.
——————————————
Our finance minister has declared this a ‘shecession’, called the loss of female jobs because of Covid ‘dangerous’ and pledged to have the state far more involved in kiddie welfare.”
It’s strange how one’s personal experience can deviate so far from the experience “at large”. Everyone I know who got laid off is a white male, excepting say restaurants and hair salons. And their jobs are not coming back even post covid.
Plus I don’t see how subsidized child care helps the unemployed, other than giving them more time to go to the gym. Which is closed.
Subsidized child care has been a long time liberal talking point, but the fact remains it only helps people that already have jobs. And chose to have kids. Nobody is forcing you to have kids. Except maybe the Pope if you are Catholic.
—————————————-
“As of this week the word ‘master’ will no longer be allowed in Toronto. At least not as part of real estate listings. Toronto realtors have decided to follow the lead of CREA, the national organization, and cancel the word forever. From now on no master bedroom. No master ensuite, either. The politically-correct word is ‘primary.’”
This is getting silly. Language evolves on its own, you can’t legislate it. And even if they can get this utter nonsense to stick, pretty soon they will have to replace the word “primary” because it implies there are “secondary” bedrooms occupied by “secondary” people.
Nobody in their right mind assumes anymore that because somebody is sleeping in the “master” bedroom then people sleeping in other bedrooms are “slaves”. That is not what the word means in that context.
I suppose the Teenage Ninja Turtles will have to start calling the rat “Primary Splinter”. Golf will have to start holding the “Primary’s”. “Mastery” of a skill is now, what? I can’t even figure out how to say that. No more master craftsmen, er, master craftspeople, they’ll have to be called something I cannot figure out how to say either. “Adepts” maybe? But that implies there are people who are not “adept”. Shoot the words “proficient”, “accomplished”, “professional”,, “talented”, and “expert” are all going to have to go too.
Oh and Canadian Tire is going to have a PR nightmare rebranding the “Mastercraft” line of tools. “Maybe they can switch to “Peoplecraft”.
Each and every day I wake up and think things can’t get any more ridiculous than they were yesterday, or at least we could get one day off. Then, no.
——————————————-
Whew, long comment, but it is Sunday and there is nowhere to go here in lockdown. And it is really three comments. Can we use the word three? OK, a “primary”, “secondary”, and “tertiary” comment. No wait that implies the comments are not equal. “Three equal comments not to be discriminated against due to order or word count”?
#91 crowdedelevatorfartz on 04.11.21 at 4:17 pm
53 faronista
“I ask when was the last time any of you were pulled over because of a new car purchase? Or felt compelled to ensure your being pulled over occurred in a well lit area because the popo assume you are dangerous?”
++++
The majority of blogdogs live in Canuckda not the US.
Apples and Oranges.
—————–
You sure?
Well Garth, you finally talked me into it, picked up the Harley yesterday…but I’ve been scratching my head all weekend, for the life of me I can’t figure out how to plug it in???
Let the good times roll!
#6 crowdedelevatorfartz on 04.11.21 at 12:02 pm
About 20 years ago there was a plumbing supplier in England that recieved complaints that certain plumbing parts were named in derogatory terms.
“Ballcock valves”, “Female threads”, “nipples”
All were deemed to be names from an outdated, sexist system designed to denigrate females.
——————————————–
Did the plumbing parts “transition”? Just asking.
#8 Dharma Bum on 04.11.21 at 12:05 pm
“Could there be a master plan? – Garth”
“Primary plan.”
@#137 Pugnacious Patter
“The majority of blogdogs live in Canuckda not the US.
Apples and Oranges.
—————–
You sure?”
+++++
Yes I’m quite sure most are Canadian….with the odd (emphasis on odd) Austrian tossed in for turnip recipes.
What about my masters degree?
#25 Pylot Project on 04.11.21 at 12:34 pm
Since we’re all being woke on this fine Sunday, can a Rental Unit still have a Landlord? The word lord literally means “someone or something having power, authority, or influence; a master or ruler.” Hmmm…
——————————–
“Land Primary Person”
@#81 sara
“CEF, you’d need a wife first.”
++++
Been there, done that… but I’m touched.
I knew you cared.
Bingo. Change Master to Primary is so important, and UBI is the way to go. House price is going up forever!
What’s next?
https://nationalpost.com/news/politics/trudeau-takes-aim-at-otoole-in-address-to-liberal-party-faithful
I have heard a lot of BS in my time, but Justin’s tossed salad as reported …… c’mon, not a single adult in the room? Marc Carney can bring himself to support the Covid Bungle ?
Justin blamed a ghost administration ( it can’t be me) that’s been holding back the vaccine, while assuring the dead that vaccine “ is on the way”.
Really? You’re still cheerleading?
DELETED
#118 Karla Germaine on 04.11.21 at 5:53 pm
“emerging adults”
OK, I think I am done now, but it has been fun.
Re: master. Yes, we’ve gone through that, required by corporate to remove such terms from customer facing documentation and training material, and strongly encouraged to migrate away from such terminology in internal working documents. Sign of the times.
#126 the Jaguar on 04.11.21 at 6:33 pm
If ya wanna doxx just doxx. Tis a ngoble act.
#66 Kona
National pharmacare programs have been shown to cause drug shortages, reduced access to new drugs, worsening health outcomes, and higher taxes in other countries.
—————
Interesting comment.
Could you expand on which countries you’re referring to?
Also, a lot of new drugs are just a tiny improvement over the older ones, but are much more expensive.
I.e. There seems to be about 100 different pills for high blood pressure, but one of the most prescribed is a 10 cent “water pill”, which in most cases does the job.
Higher taxes in other countries?
Why would that be a bad thing for Canadians?
Let our rich American cousins pay the higher taxes.
#148 Nonplused on 04.11.21 at 8:24 pm
#118 Karla Germaine on 04.11.21 at 5:53 pm
“emerging adults”
—————
Stop picking on CEF.
“The feds intend to let the market run hot.”
Great news! Just let the housing market do it’s thing. We just have to leave well enough alone. The housing market is in great shape and doing just fine. Long live home ownership!
#1 TurnerNation on 04.11.21 at 11:41 am
—
Garth are you also posting as TurnerNation in your own blog ? He is always #1 post :)
Well,
Our beloved Prime Minister has poo poo’ed a Canadian award to the Taiwanese Prime Minister for her excellent job in stymieing the Covid virus in her country.
Perhaps we should create a new award with two faces and have Jody Wilson Raybould present it to our kowtowing PM for his volte face on recognizing, strong , competent, honest female leaders……?
https://www.politico.com/news/2021/04/11/trudeau-hailfax-security-forum-taiwan-480722
OAS going up 0.5% this April. Max now $618.45 from $614.14. La-di-dah. Nothing from NDP or Libs concerning the plight of underserved Seniors in this country. A national disgrace.
Wokeness has invaded spaceflight as well.
We now have ‘crewed’ missions now instead of ‘manned’.
Neil Armstrong was apparently sexist with his famous quote, as we now only have ‘humankind’.
Nevermind the fact the germanic definition of ‘mankind’ is ‘all of humanity’.
So what do I call a manhole now?
In other positive news….only 3 lockdowns until Christmas!
‘If ya wanna doxx just doxx. Tis a ngoble act.’
That’s really funny. You ‘doxxed’ yourself. In your sickening need to draw attention to yourself you identified yourself.
Don’t blame me for applying the wisdom of ‘keep your friends close and your enemies closer’.
After annoying so many on this blog who wouldn’t want to understand where all that anger and ugly commentary came from?
I do know your identity. And you are my idea of nothing. Now run off to your next Antifa meeting…
157 fanboy
“So what do I call a manhole now?”
it’s an access lid. Also works for smaller openings and
shallow ones.
P.S. to the ‘Dox” thingy…..
If my post was confusing, just say the word and I will provide the post and clue to enlighten you.
TORONTHOLE SCORES A HAT TRICK!
3 Shootings in one day!
https://www.thestar.com/local-toronto-north-york/news/crime/2021/04/11/3-shootings-reported-in-toronto-saturday-2-people-seriously-injured.html
Too bad 2021 is a fake season for hockey, but at least Toronturds have something real to be proud of.
If those earning less than $40,000 are not paying any net taxes what good is a rental tax credit ?
Hello? Still standing by….did you want that post reference? I am only too happy to put your troubled mind at rest.
I’d love to know the moment that buying a house became detached from the reality of being a product purchase to its being treated as an item in an auction house; highest bid wins!
Our current situation is the nearing the zenith of avarice, greed and the descent into survival of the fittest, a lowly commentary on the current state of housing and our society.
We don’t even purchase the average vehicle in this fashion. And before anyone talks about cars deteriorating with use, you need look no further than any reno show to discover the faulty wiring/plumbing behind the walls, the old furnace, the leaky roof and the cracked foundations to realize that houses deteriorate too- and not in a good way like fine wine or a rookie card encased in hermetical acrylic.
#100 Pepe LePeu on 04.11.21 at 4:45 pm
The refrain has been that renting is a perfectly legitimate choice, especially when combined with active investing in a financial portfolio. Retaining freedom of mobility and eschewing debt are good things non-owners should be proud of. – Garth
Garth, don’t you get it? People don’t want freedom of mobility and eschewing debt. They want to maximize their equity. All the things you were saying were making perfect sense and your followers wanted to believe that “the things will go back to normal” in the real estate market. That didn’t happen when the rates went up, didn’t happen when the virus hit. Now you’re changing the fundamental belief you were telling about for so many years (yes you are!).
It turned out all we had to do is go with the flow. The ones who could buy 5 years ago and waited, are biting their nails now.. to the bone. It turned out we chose to ignore other indicators (like immigration, or how you say it “the constant growth of demographics”) and hoped our saved money will have more weight when finally buying something. But it never happened.
Anyway… You get my point….
# 112 F Bezos!
So agree!! Amazon has create an army of minimum wage jobs, so a million workers pay no “net tax” and this deserve praise??? Looks like the high earners will make up the tax difference….its exploitation to a degree, with that much profit at the top…just wrong…
This is the preamble from Canadian Real Estate Wealth – tell me we’re actually smarter people…..:When it comes to investment opportunities in the True North, investing in real estate is one of the safest options for those looking to increase their net worth and invest in properties that will quickly grow in value. For those looking to buy property in Canada, there are plenty of options for making an income by buying land. As an investor, purchasing a rental property or investment home can help you grow your income, while also contributing to the Canadian housing market and economy.
Since the onset of the COVID-19 pandemic, there has been a dramatic increase in people looking to purchase property and move abroad. According to a study conducted by Remitly, “how to move to Canada” was the most searched emigration query in 30 countries out of 101. Part of Canada’s appeal is low unemployment rates, lower interest rates and immigration options.
Currently, Canadians are taking advantage of closed borders and the real estate market is seeing an influx of first-time buyers from Canada. However, when the border reopens post-pandemic, the Canadian real estate market will see a heightened number of investors from abroad scooping up real estate investment opportunities.
#121 westcdn
Lots of good holdings there, exro is in mine I am holding until at least $7.00/share, gdnp is another that I am holding until at least $4.00/share. Great news is that de.v is paying a divvy of .02 per month per share now, they were paying .03 but it is still an easy $400/month to drip back into more shares.
I just studied the definition of both words.
Primary does make more sense and is a better word choice.
A quote from our Housing Minister secretary:
Adam Vaughan MP
@TOAdamVaughan
·
5h
Replying to
@SabrinaMaddeaux
and
@JustinTrudeau
That’s exactly what I’m talking about..its what I advocated on TVO..we need to address the impact off-shore speculation is having on the needs of Cdns as it relates to safe & secure home ownership..I don’t disagree with you on this..I just don’t want to wipe out Cdns home equity
—————————————————–
He’s in support of a massive real estate bubble. Read the last sentence.
I’m voting NDP.
While we still have actual slaves in third world countries we worry about terminology for our bathrooms? Let’s not get ahead of ourselves.
#119 Concerned Citizen on 04.11.21 at 6:00 pm
You just had to know they’d do nothing.
The only time a liberal shows courage these days is when they are throwing us under the bus.
The conservatives are not much difference. They are just driving a limo.
Oh and Canadian Tire is going to have a PR nightmare rebranding the “Mastercraft” line of tools. “Maybe they can switch to “Peoplecraft”.
Nope. They’ll change it to witchcraft.
#49 Bob The Cat on 04.11.21 at 1:54 pm
Grow up. It’s not a race. – Garth
What is it then? I thought the whole meaning of being financially independent is to build equity. Yes, the housing investors are not difersified but they are definitely building much more equity than the ones who went the safe way, and that’s due to the huge margin they have. Put in the “renters are paying my mortgage” + the crazy market we had in the last 20 years and you have people who created equity almost out of thin air.
_ _ _ _ _ _ _ _
Buy vs rent is only a race if you look at it that way.
My partner and I are outliers because we choose to rent in the GTA. We love the freedom the extra money gives. Without going into debt, my partner started his own business. And having “FU $” – thanks to Garth and Sinan – has made me a happier, less stressed and more productive employee.
I think a quote by Peter Thiel on the problem with framing issues as competition is helpful here, although his quote was made in a different context: “This is, I think, the big problem with competition: it focuses us on the people around us, and while we get better at the things we’re competing on, we lose sight of anything that’s important, or transcendent, or truly meaningful in our world.”
So even if my partner and I may have been richer on paper if we had bought a house, focusing on buy vs rent for our situation – and I suspect the situations of many renters who choose to rent – isn’t helpful because the path we’re on wouldn’t be possible without renting.
I know it’s not possible for all Canadians renters to think this way, due to the cult of real estate in Canada and some renters living hand-to-mouth, but I beg you – stop competing with home owners and stop dreaming of owning a house. Think bigger. Dream bigger. And you will likely end up doing something greater in your life than buying a house in Canada.
RE: #96 Stone on 04.11.21 at 4:32 pm
So many stupid comments on here today. All you need to know is that cancel culture will never go after the words balanced and diversified.
========================================
Well, maybe not diversified, but I wouldn’t bet on balanced once the unbalanced become offended.
#159 Dr V on 04.11.21 at 9:42 pm
157 fanboy
“So what do I call a manhole now?”
it’s an access lid. Also works for smaller openings and
shallow ones.
——————————–
My dad lost a peoplehole cover once. He thought it was reallocated (stolen), so he went and upwardly redistributed (bought) a piece of plywood to cover the peoplehole until he could get a new steel peoplehole cover. Turns out it was under his planet destroyer (truck). He’d appropriated the land (parked) over it.
Coincidentally, I ran my rent, market vs. controlled on a spreadsheet just before reading this. Garth is totally delusional on some advice. Market rent goes up 7% per year on average in my area, whereas controlled rent goes up around 3 or 4%. But with a growing family, or other life changes, who can stay in the same place? If I’m forced to pay market rate on a two bedroom at the 7% growth rate, it will be over $6000 a month when I retire in 15 years (at 55) or $13,000 a month if I retire in 15 (at 65), and eat up all my pension!
The alternative is have a home that is paid off, or at least some equity to increase the options. Renting vs. buying should not be a total calculation to the barebones no mental health costs attached comparison. Mowing your own lawn makes you feel like a real man or whatever you are. Yes, owning has some initial costs in the beginning, but after a few years my friends who did not follow this blog (obviously) have lower monthly costs than my rent and have build up several hundred thousand in equity. The future is unpredictable, but at this rate a $1m passive investment fund will not generate enough to pay rent upon retirement as market rent is going up too fast.
I think taxing capital gains in conjunction with tax deductible mortgage interest rate makes more sense as it would concentrate benefits of money in hands of owners at the beginning of home ownership when interest is generally higher and risk of default is higher, rather than at the disposal and less risky side). It would also be more equitable across the country, as not everyone is having massive capital gains, or able to pay cash in hot markets and then flip tax free. Some homes in the prairies are still valued less than what people paid years ago during the oil boom, so I’m sure they would have preferred tax deductible mortgage interest over capital gains exemptions. Governments are too chicken to make a big move that would benefit generations.
Finally, I think we need to stop calling things FOMO when millennials are discussed as dumb for buying real estate as it moves up and not timing the market (but not when buying index funds when they go up, timing that market is dumb apparently). FOMO should be renamed something like FOPMRTYCAWR or Fear Of Paying More Rent Than You Can Afford When Retired, or just Retirement Planning for short.
Oh, no… I guess martial arts dojos everywhere better ban the title of “master” when addressing their teachers also.
Garth gave two possible subjects to talk about: (1) a government that plans to give everyone free money, no Canadian will ever have to work again, and more benefits raining down like mana from heaven with no care in the world about the consequences, or (2) a throwaway bit about woke culture.
And everyone talks about #2. And that’s why we are doomed.
PS: good luck finding a camping spot anywhere this summer, everywhere will packed to the brim with people enjoying the summer on benefit, who will be briefly recalled from the festivities for an election to choose between continuing the party or voting for a bunch of boring curmudgeons who don’t even dress up or smoke weed.
How about master planned community?
Master’s degree?
Masters tournament?
All gotta go!
“The Revolution will be complete when the language is perfect” George Orwell, 1984.
Is this the excuse Trudeau will use to leave rates at zero ?
My call on USD Commodities for CDN investors might be the pick of the decade. And then ? Do rates knee jerk up into double digits, like the 80’s ? Somethings got to give.
https://www.marketwatch.com/story/powell-says-it-will-be-a-while-before-fed-taps-the-brakes-on-economy-11618182158?link=sfmw_fb&fbclid=IwAR2yUaBS9X7PnSNzQfAgwGyELjPlP6J_2OSxbh9kSdR8Vu0iluIO_0Ph1ZY
Apparently moving 200 miles north from one leftist hotbed to another makes one an expert on US race relations. Who knew? A bit bizarre considering my remarks on tribalism were in response to comments about anti-Asian bigotry. I’m completely comfortable standing by my comments based on first-hand experience, that sadly, racism does not flow in only one direction nor is anything other than universal.
What I find even more odd, is an Austrian sympathetic to PROC. Not wishing to reignite the Cantonese debate, but as Ms. BillyBob pointed out: German was the official language in (what is now) Czech Republic for 300 years (those naughty Habsburgs!). Yet the Czech language thrives today, and with only about 11 million speakers (+1 new one!) China can declare Mandarin the official language all it wants in HK, it won’t change the reality of Cantonese.
Also find some parallels with China itching to invade Taiwan striking. The two countries both speak the same language and share ethnicity. Yet the Taiwanese are fiercely independent and unique with a distinct history and cultural identity.
Like, say….Germany and Austria.
So if China taking over Taiwan is deemed acceptable by the world standing back and doing nothing, what was all that fuss with Germany annexing Austria in 1938?
Because I seem to recall there was some minor squabbling over that that historians usually refer to as WWII. Is it really that difficult to learn from history the outcome of appeasement?
Seriously though, I can’t track the ethical contortions of how someone from the country that suffered Anschluss could be sympathetic to China’s imperialist ambitions.
@#181Billybob
“Seriously though, I can’t track the ethical contortions of how someone from the country that suffered Anschluss could be sympathetic to China’s imperialist ambitions.”
+++
Well said.
Well if past history on Ponzie’s insistence that Mandarin is the predominant lingua spoken in HK……. he’s predictably stubborn?
We’ll see what excuse he comes up with the “explain” the Communist invasion of Taiwan in the next few years.
They haven’t built the largest navy in the world without itching to use it.
The rate that the real cost of purchasing goods and services has increased over the past few months is alarming and reminds me of the build up that preceded record high interest rates in 1980. You can only hide increases of 1.0% per month or more from the general public for so long before increases in interest rates become unavoidable.
Let’s face facts the Government of Canada and the Bank of Canada overreacted to the Covid 19 crisis and the massive increase of $400 billion in M2 money supply fuelled real inflation that was reinforced by even larger increases in M2 money supply by our major trading partner.
Rather than admit to an overreaction Central banks tried to convince the general public that inflation was under control. I heard that same song and dance from out governments in the 1970’s until inflation became far to obvious to hide with lies and massive increases in interest rates became necessary to bring the beast under control.
When a surplus of money chases a limited supply of assets the end result always inflation. Somehow the general public seems to have accepted that increases of more than 1.0% per month in the value of equities, homes, groceries, building materials, oil, basic commodities etc. does not represent inflation. Why? Because our wonderfully attired Emperor told us so!
No matter what the impending budget might want us to believe those of us old enough to remember the lead up to 20% interest rates in 1980 know what real inflation looks like and the importance of nipping it in the bud.
Inflation cannot be controlled by lies and propaganda.
It is time to admit past mistakes and to commence remedial solutions.
Promising not to increase interest rates until 2023 and promising to increase M2 money supply in Canada by an additional $100 billion in 2021 are solutions designed to curtail inflation.
We can handle the truth so please change the narrative before serious damage is done.
Speaking of perpetual gov’t largesse:
https://www.theglobeandmail.com/business/article-whatever-we-may-think-of-modern-monetary-theory-its-day-in-the-sun-has/
@113 NSNG ” Upper and lower Canada has long stuck in my craw. It breeds inferiority…”
Physics/geography is now to be “woke”-end?
(sorry – done lots of canoeing and sailing my whole life, I do tend to think of things in terms of water flow, not politics; 600 or so feet difference. Water flows from upper land areas to lower. Sorry)
(oh, and if you can’t tend towards referencing physics/geography, use it anyway, because S**T floats, and Ottawa’s higher than the Atlantic area. Sorry sorry sorry to any politicians I’ve inadvertently offended. Well, maybe not)
Overheard two of my boomer/late gen-X neighbours who have both become “rich” through real estate from no hard work of their own while I was sitting in my backyard this weekend:
“I really hate my job. I have a lot of equity built up (his house is a dump), I’m just going to buy a few rental properties so I make about $5,000 a month and then retire to Collingwood.”
My thoughts:
1. Collingwood is about as expensive as where we are (York Region)
2. Is that $5,000 in ‘revenue’ or profit? He has two young kids. GOOD LUCK.
3. THIS IS WHEN YOU KNOW ITS A BUBBLE! When every dingbat in the neighbourhood thinks buying “a few properties” is a can’t lose strategy for retirement.
The other neighbour was just a daft. But I’ll leave his genius for another day. Let’s just say he was having a party during a stay at home order because he’s vaccinated, so “it doesn’t matter”.
#121 westcdn on 04.11.21 at 6:04 pm
Just to annoy many, I am up 18% YTD on my portfolio.
//////////////
Don’t worry David, you are not annoying.
I would say very interesting.
Another black man killed in MN by police.
Traffic stop. Many outstanding warrants discovered. He resists by jumping in the car to try to run away. Car is a weapon and pursuit would put public in danger – so police fire a weapon at him inside the weapon that is his car.
What did you expect if you resist? Did you expect the police to say “Our bad! We change our mind about arresting you. You have a nice smile – we’ll let those warrants go this time!”
When will people learn that cops aren’t there to discuss your guilt. Their job is quite binary, and if you’re under arrest – YOU ARE UNDER ARREST. This is not the time to be resisting of putting yourself and others in danger with your actions. Put your head down and accept the arrest. Those cops who have families aren’t the reason why you have outstanding warrants.
For the love of pete people!! The conversation started with what to now describe the relative size of a described bedroom. And as per usual on here has rapidly descended.
When there was a “master” in our household- and don’t any of you dare start! – we referred to our bedroom as the principal bedroom. The attached bathroom, accessible only by the occupants of said bedroom, was called the ensuite. End of story.
And Karla, good on you!!!
Sheep
Sheeple
Sheepless
…in Seattle.
Canada outpacing the US in new Covid cases per capita for the last couple of weeks and accelerating the disparity.
This is why you don’t call a win at halftime.
Yeah, didn’t think the Libs had the southern brass to do anything.
Man, I am so damn glad to have had the good fortune to get my life off and running under Chretien, Martin and Harper. Tough times still came and went, but we never saw the permanent, wholesale destruction of our high standard of living in Canada like we have with Trudeau, even thru the GFC. It’s really a pivotal moment where Canada changes permanently for the worse. Well, at least for anyone that didn’t buy a house at least 5+ years ago.
We bought our “needs-work” 4 acre home base for 123K in 01, our combined income at the time was ~90K. Rate was 6.4%, payment was about 1K/month all in. We had it paid off in 14 years. We raised two kids, put them through private schooling, and built a decent nest egg – all alongside the mortgage paydown. In the next 2-3 years, we’ll be empty nesters living rent/mortgage-free with a total all-in cost of living under 3K/mo., with income at about 11-12K/mo. No debt, and reliably plodding towards a 7 figure nest egg by retirement.
^ That’s the old Canada where regular schmucks could build a pretty decent life on non-elite incomes. That’s all gone now. Today, you’d need to make near 400K/yr to buy our house at current market “value” in order to be in the same financial position as we were when we bought it. On top of that, thanks to Trudeau’s spending – your QOL and COL will soon take additional hits in the form of increased taxation and reduced services and entitlements. That goes double for anyone who has worked hard and become successful.
5+ years ago, it was still possible to do close to what we did in our area, but no longer. That goes for a lot of Canada’s other smaller centers too. Today, you’d better be prepared to live among the stunted black spruce way up North if you want to own a home (if you’re not rich, of course).
#183 Do we have all the facts
“Promising not to increase interest rates until 2023 and promising to increase M2 money supply in Canada by an additional $100 billion in 2021 are solutions designed to curtail inflation.”
Surely you didn’t mean “curtail”? …how about “increase” instead?
Otherwise I agree with you. Interestingly, the rise of rates didn’t suppress FOMO back then. We bought a semi-detached in Toronto in 1983 for $67.5K, and by the time we sold for $212K in ’87, rates were approaching 18%.
Great for us (we didn’t buy back into RE) but brutal for many who paid top dollar before the crash. It took 14 or so years before their house was again worth what they paid.
#181 Billy Bob
Seriously though, I can’t track the ethical contortions of how someone from the country that suffered Anschluss could be sympathetic to China’s imperialist ambitions.
——————
Was not there during the “Anschluss”.
But I heard that a lot of Austrians lined the streets when Hitler’s motorcade drove into Austria.
Ever heard of Realpolitik?
“Landlord” is pretty offensive too. Lets get rid of that while we’re at it.
@#186 John
“Overheard two of my boomer/late gen-X neighbours who have both become “rich” through real estate from no hard work of their own while I was sitting in my backyard this weekend:”
++++
If the world wasnt populated by stupid idiots how would the rich become richer?
Let them leverage themselves to the hilt with HELOC’s and when it all comes crashing down and the “for sale” signs go up at reduced prices….
Swoop in like a blood soaked vulture and …… feed.
#170 Better Dwellings on 04.11.21 at 11:13 pm
I’m voting NDP.
__
Yeah, that’ll help…
Just a heads up, it doesn’t matter who you vote for when it comes to home prices. Trudeau’s inaction on the policy front has etched this one into stone, any changes made by any politician to control house prices guarantees decimation at the next election. Too many Canadians have everything – including their personal self-worth riding on their home equity.
Vote how you like, but RE will be more expensive next year, and the year after that. It goes down when it blows – and government can point the finger.
UBI? The ‘fake/leaked – PMO’ from Garth’s Oct 15/21 article talks about UBI – i have it saved to my desk top to see how wrong the PMO is and we can laugh at it later
‘– Enhanced lock down restrictions (referred to as Third Lock Down) will be implemented. Full travel restrictions will be imposed (including inter-province and inter-city). Expected Q2 2021.
– Transitioning of individuals into the universal basic income program. Expected mid Q2 2021.
– Projected supply chain break downs, inventory shortages, large economic instability. Expected late Q2 2021.
– Deployment of military personnel into major metropolitan areas as well as all major roadways to establish travel checkpoints. Restrict travel and movement. Provide logistical support to the area. Expected by Q3 2021.
DELETED
#193
I was being sarcastic. Clearly printing more money and keeping interest rates low will only exacerbate inflation.
For clarity just add ‘not’ in front of ‘solutions’ or add a question mark at the end of the sentence to suggest an element of irony.
Sorry for the confusion.
Mr. Potato head is a transphobe and Dr. Seuss is racist. You can’t say master bedroom or midget hockey. The Canadian National Anthem – cant say ‘sons’ – lets change it. What about the Edmonton Eskimos – thats offensive. Washington Redskins? – no good. Manhole cover – thats sexist.
“Every record has been destroyed or falsified, every book rewritten, every picture has been repainted, every statue and street building has been renamed, every date has been altered. And the process is continuing day by day and minute by minute. History has stopped. Nothing exists except an endless present in which the Party is always right.”
― George Orwell, 1984
A frank admission acknowledges what many have been saying – but does the government really care?
In an interview this week on TVO’s The Agenda (click play button to watch above) the federal Liberal government’s Parliamentary Secretary for Housing, Adam Vaughan, had this to say about Canada’s housing market:
“We’re a very safe market for foreign investment but we’re not a great market for Canadians looking for choices around housing.”
This is an unbelievable admission from a federal politician. It is the first time ever that our federal government has made it clear that they have allowed our housing market to work better for foreign investors than for hard working tax paying Canadians.
https://www.movesmartly.com/articles/liberal-government-says-canadian-housing-is-great-or-foreigners-bad-for-canadians
#194 Ponzius Pilatus on 04.12.21 at 10:33 am
#181 Billy Bob
Seriously though, I can’t track the ethical contortions of how someone from the country that suffered Anschluss could be sympathetic to China’s imperialist ambitions.
——————
Was not there during the “Anschluss”.
But I heard that a lot of Austrians lined the streets when Hitler’s motorcade drove into Austria.
Ever heard of Realpolitik?
==========================
Of course. And no doubt many in Austria either truly believed the Germans taking over was a good thing, or had little choice but to pretend it was. Survival instinct makes people pragmatic.
But in Canada in 2021? Approval for the CPC either openly or tacitly is hardly the same thing. When you read the Liberals statement about Taiwan it’s so ambivalent one could almost think Taipei was the aggressor for not wanting to fall under the jackboots.
Disgraceful.
184 Prince Polo – thank you for this link. I believe the article gives a good overview of the potential benefits and pitfalls of MMT. I have read Kelton’s book, and recommend reading it.
Where I agree with Kelton is in her analysis of how the
system currently works – basically MMT.
Where I start to disagree is how the further application of MMT and resulting inflation can be effectively
controlled.
Where I really disagree is with the overall application of MMT and “guaranteed” employment.
As far as Canada goes, it is one of the few countries where MMT could be applied, due to its perceived
political and fiscal stability. The canuck buck is ranked in around sixth as a reserve currency.
#186 John on 04.12.21 at 9:04 am
#196 crowdedelevatorfartz on 04.12.21 at 10:46 am
I know an insincere and sleazy realtor who made $300k to $400k in gross commissions last year. He and his spouse blew their salaries on a $600k+ pre-construction property in northern Ontario as an investment. They don’t seem to have any other money saved up.
Now, that’s bad enough – except that his social media encourages others to follow suit by taking out mortgages/HELOCs on their houses and using that money to invest in secondary properties – and of course, to contact him to make those dreams come true. *eyeroll*
What is this Canadian economy coming to?
#200 Do we…facts
I was slow on the sarc uptake, thinking it was a typo.
In total agreement with your comment.
We’ll see if history repeats. Surely something has to give…?
“As of this week the word ‘master’ will no longer be allowed in Toronto.”
Oh man! What will I do with my M****** of Business Administration degree! Should I call it the Mword of Business Administration? Or maybe they will just inflate it to a Doctor’s Degree! Call it quantitative degree easing.
Garth:
I generally admire and respect your opinions. They’ve even begun to shape my life habits.
However, your comments, and those of others talking about apartments, at least those in the GTA, come across to me as completely out of touch with modern reality.
I’d be willing to wager than neither you nor many others here have lived in apartment in 25 years (if ever). And I’m fairly sure you have no idea what they’re like nowadays. Again, I’m talking about T.O. only.
I recently downsized from my house. The first few hundred places I viewed online at $2000.00 per month to $2100 per month (sans parking) were holes. Literally, there were holes in the wall going right to the outside of the building. Barking dogs, garbage that wasn’t picked up. Windows that were seized. Mold, unfinished floors. One complex had a single super for 4 buildings. These are not just a few bad apples, tons of buildings and management companies are like this.
Very crooked landlords, outright theft, bedbugs. You folks have no idea. So please, next time you talk about apartments, at least in Toronto, think again.
Oh, and BTW, I’m not completely ignorant of the business. I’ve owned 4 apartment REITs, and a relative was a real estate lawyer (albeit years back).
In smaller, less expensive cities, that’s another story. Again, I’m only talking about Toronto.