Look out

On Wednesday local Ottawa politicians will thumbs-up an empty-house tax. The average property sells for $742,000 now (+35% in a year), so the tax would be $600 a month on a place not rented or owner-occupied for 184 days a year.

Of course, Vancouver does this, too. The tax there is an astonishing 3% of appraised value – in a city where a crap house is $1.5 million. In a few weeks Toronto politicians will finish designing their vacancy tax to apply in the country’s largest city where thousands of condo units are used by business travelers and others – all to be taxed extra.

In a few months the federal government will bring in its own 1% annual tax on the value of all properties it thinks are vacant or “under-utilized” owned by non-residents. In addition, Ontario has a 15% tax on the purchase cost of real estate in the high-density areas. British Columbia does the same, but at 20%. And there are enhanced property taxes in Vancouver, with a similar proposal still on the table in Toronto.

Now the Ontario NDP, sniffing Doug Ford’s precarious political future, is demanding a province-wide additional tax on under-utilized properties owned by anyone, plus a speculation tax on the full value of real estate held by anyone paying most of their taxes elsewhere, like another province.

In Ottawa, as in Vancouver (and soon in Toronto and likely Mississauga), all 307,000 property owners will have to declare the use of their real estate. If they fail to do so, it will be declared vacant and taxed continuously. In Vancouver some owners are taxed on unbuilt residential units since the city contends they should exist. And of course, you know jealous how the kids feel…

Meanwhile landlords and others see this as a politically-motivated, economically-challenged, brain-dead tax grab of monumental proportions. After all, the vacancy rental rate in the GTA has been sitting at the highest level in 50 years, according to Urbanation. It found almost 6% of all newer purpose-built rental apartment projects completed in the last 16 years are… empty.

“I think these results speak to how drastically the [COVID-19] pandemic altered the rental market in Toronto,” Urbanation’s president said. “Demand was lost due to increased population inflows out the city. We had low immigration, high unemployment, a sharp reduction in the number of post-secondary students. And at the same time, last year, in 2020, we completed a record number of new condominiums.”

In fact, rents have fallen in most urban centres for a year or more. Landlords have been trying to fill suites with inducements like free months, parking and storage units. A new survey by CMHC just found there are almost 75,000 basement apartments in Toronto, many of them illegal, competing with rental units which cannot be filled. Meanwhile Covid-caused delays, confusion and chaos at landlord-tenant tribunals have meant tenants who (a) don’t want to pay or (b) refuse to leave have faced no consequences. Owners have been unable to reclaim units or collect rents, while footing all costs.

In fact during the pandemic a majority of provinces passed no-eviction laws, basically abrogating private property rights. But wait. Canada doesn’t bestow the right to own land, buildings or real estate upon its citizens. So, tough.

In Ontario, by the way, Mr. Ford’s handling of the pandemic has cost him points. The opposition Libs and Dippers are nipping at his heels. A leftist coalition government is a threat – which would make the empty house/non-Ontario owner tax a thing.

There are two points to this post (in case you were wondering).

First, higher taxes don’t make real estate cheaper. The opposite. Heaping on purchase fees, under-utilization taxes, double land-transfer payments and levies at the city, provincial and national levels just ratchets up the insane escalation in property values. Rents climb higher, not lower. And fewer people – residents or non-residents – will want to be investors providing tenants homes. Let’s remember that these days most renters continue to be subsidized by landlords. So why would we whack them? There is zero chance housing will decline in price because governments are Hoovering it.

Second, be careful.

If you’re a landlord, they’re coming for you. If you’ve been considering buying a condo to rent out, bad idea. If you have a vacation property or secondary pad in another city or province, look out. And it you thought you lived in a country where you could do what you wish with an asset you bought, financed, paid for, maintain and pay property tax on, think again. During the most recent pandemic lockdowns in NS and BC, for example, people were forbidden from driving non-stop to their cottages where they’d see nobody. “You are privileged,” the authorities said. It was about class, not public health.

We’re only a few crazy politicians away from far worse.

Be liquid. Always diversified.

About the picture:  “This is Sunny,’ from Red Deer,” writes DB. “12 months old. Part Shepherd, part Husky, part Golden Retriever. All tongue. Adopted from a Saskatchewan reservation at 5 weeks old.”

156 comments ↓

#1 Zen Investor on 06.04.21 at 10:39 am

If you’re wondering just how full of duplicitous crap our PM in Waiting Marc Carney is :

https://financialpost.com/opinion/the-burden-of-proof-rests-on-mark-carney-and-he-hasnt-made-his-case-against-fossil-fuels

Some humans are born with several more blow holes than normal. But Marc has also been blessed with many more faces.

#2 Don on 06.04.21 at 10:50 am

Love your Trudeau, Freeland Liberal economics another 68,000 jobs lost in Canada. The second month in a row of job losses. Higher food prices, gas, energy prices due to 30% increase in carbon taxes and higher inflation from Bank of Canada money printing. It just gets better and better. Canadians swallow it and enjoy your failed economic, falling standard of living socialism.

#3 Ponzius Pilatus on 06.04.21 at 10:53 am

Should be a good time for renters.
Amateur landlords who own condos for appreciation only, will wanna rent out the units, rather than paying the tax.
Or sell, to crystallize capital gains.
Then Mrs. Gubernment collects capital gains.
Personally, I have no sympathy for people who hold property for speculation, rather than as roof over their head.

#4 crowdedelevatorfartz on 06.04.21 at 10:54 am

Spend spend spend, tax tax tax.
The Liberal mantra.

#5 Planetgoofy on 06.04.21 at 10:55 am

Your freedoms have been revoked. The Gov is out of control. In a country with citizens with any brains this leads to revolutions.

#6 Sail Away on 06.04.21 at 11:05 am

And the sun sets on a fantastic week of investing. 120% realized return on a meme stock and overall portfolio finishing on an ATH.

Looks like an extra Xmas for the Sail Away dynasty! I envision the multitudes of nephews and nieces as queuing meercats, each receiving their bestowal with polite gratitude.

#7 Dogman01 on 06.04.21 at 11:05 am

Covid Origin

Good article with another group “actually” investigating the virus origin.

https://www.vanityfair.com/news/2021/06/the-lab-leak-theory-inside-the-fight-to-uncover-covid-19s-origins

It is pretty apparent what happened. There was gain of function research, indirectly funded by the US. Lackluster safety conditions (cited by US investigators pre-pandemic) meant a manipulated virus escaped and jumped to a human host, giving us the three lab researchers hospitalized with COVID-like symptoms as reported in the WSJ, which was shortly followed with the mysterious 17 days cell-phone blank out surrounding the lab (suggesting an intensive cleansing going on). The Chinese authorities thinking they’d controlled the escape sighed with relief and said nothing to the larger world, then two months later all hell broke loose. Beijing, knowing immediately what to look for, clamped down on Wuhan severely and all travel from Wuhan to the rest of China, which meant a rapid spreading virus was controlled and didn’t emerge elsewhere in a country with one of the world’s largest and heavily used train network, but still allowed international travel, which allowed COVID to spread to the rest of the world.

What is most critically interesting is how the Tech Monopolies and our MSM clamped down on any speculation as they all knew the “Truth” and needed to protect us form “dis-information”

Natural Origin – “it was as if it had been “nailed to the church doors,” establishing the natural origin theory as orthodoxy. “Everyone had to follow it. Everyone was intimidated.”

The Vanity Fair Article suffers from Trump Derangement Syndrom, in essence it is Trumps fault the MSM did not take a lab-leak seriously as he should have know if he proposed it, then it was racist and we would all seek to counter what he said….so Trumps fault.

#8 Doug t on 06.04.21 at 11:09 am

In the near future :

YOU WILL OWN NOTHING – AND YOU WILL BE HAPPY !

#9 Prince Polo on 06.04.21 at 11:15 am

Brain-dead tax is quite fitting, but what else do you expect from foaming-at-the-mouth, real-estate-addled mind-zombies? Must. Overbid. By. A. Kilometre! (especially if nobody else bidding.)

#10 Millennial 1%er on 06.04.21 at 11:15 am

The only thing I feel like I truly own is the crypto I know the seed for. Everything else can be taken away by the government.

Feels bad man

#11 Woke up this morning... on 06.04.21 at 11:15 am

This story has EVERYTHING!

Multiple Canadian Real Estate holdings (3 houses).
Deadly viruses.
WIV – Wuhan Institute of Virology
“We will never jeopardize national(Canadian) security!”

Is this for real or a spy movie script? Amazing.

https://www.theglobeandmail.com/politics/article-wherabouts-of-two-scientists-fired-from-winnipeg-virus-lab-for/

Nothing to see here boys and girls. Move on.

#12 Yukon Elvis on 06.04.21 at 11:17 am

How else are they gonna pay for all the free stuff being handed out? This is just the beginning.

#13 Ponzius Pilatus on 06.04.21 at 11:20 am

#129 Walk away from Canada on 06.04.21 at 1:04 am
I started to exercise the idea of moving away from Canada, either to Florida or Israel, where there are warm beaches, better GDP per capita than that in Canada, and cheaper real estate.
The flip side is as much “diversity” in the USA as in Canada and rockets flying from Gaza to Israel…
———————
Or you could move to Mexico.
The weather is much nicer there, and housing is much more affordable.
But, like in the States, the air is thick with bullets.
There is an election going on in Mexico, and as of yesterday, there were already 35 candidates killed.
Better stay home, my friend, and pay your taxes.

#14 Quintilian on 06.04.21 at 11:23 am

“And it you thought you lived in a country where you could do what you wish with an asset you bought, financed, paid for, maintain and pay property tax on, think again. “

Healthcare, education, and shelter are not just assets, but basic human needs that should not be commodified.

If you want to spotlight an injustice, why not the government sanctioned theft from the savers to benefit the real estate speculators.

Owning real estate is not a human right. – Garth

#15 Debtful on 06.04.21 at 11:32 am

Garth, remember HPI “Frankenumber”?
(Frankenumber and all associated reference to are trade marked to http://www.greaterfool.ca as of Nov 22, 2012)

Look who’s taking accounting tips from RE Boards on number spin! Why it is none other than our Finance Minister!

“Canada has now, even after the extraordinary spending we’ve had to undertake to fight COVID, the lowest net-debt-to-GDP ratio in the G7,” Ms. Freeland told CTV’s Question Period after tabling her April budget.

Ms. Freeland’s characterization of Canada’s fiscal position has largely gone unchallenged in Ottawa. But the picture is not nearly as rosy as the Finance Minister suggests. The way the federal government calculates Canada’s net-debt ratio is highly controversial and smacks of creative accounting. By including the assets of the Canada Pension Plan and the Quebec Pension Plan in its net-debt equation, Ottawa is taking liberties no other G7 country takes.

https://www.theglobeandmail.com/opinion/article-chrystia-freeland-has-painted-a-misleading-picture-of-canadas/

#16 Rishu on 06.04.21 at 11:33 am

No wonder this van-life movement is growing. Cheaper for us to live in a van. Some notable names blogging about van life have seen their youtube subs explode in recent weeks.

#17 AO1 on 06.04.21 at 11:33 am

Garth, so a question for you. So does that mean that means if you own a Toronto residence and a cottage up in Muskoka, that you will need to pay additional tax because the cottage is obviously vacant for much of the year?

If the NDP has its way. – Garth

#18 Peter pickles on 06.04.21 at 11:39 am

These taxes are tiny and weak compared to taxing principal residences or raising capital gains inclusion. They are symbolic gestures meant to buy votes, not public policy tools.

Shrieking about private property rights over so little is pathetic.

What ‘shrieking’? Most people have no idea they have no right to own property. Seems worth pointing out occasionally. – Garth

#19 Ponzius Pilatus on 06.04.21 at 11:43 am

#7 Doggie01
So, let’s assume it was a lab leak.
So what’s the rest of the world gonna do?
Isolate China even more.
Personally, I don’t think Xi, like Putin does not care what the rest of the world thinks.
The Pentagon did a computer simulation where the Chinese are invading Taiwan and America is riding to the rescue.
Guess what?
The Americans had to back off.
As far a I am concerned, the world was ready for a pandemic anyway, and this was a wake up call.
The CDC proved it is no longer the leading authority on medical and health matters worldwide.
Israel has shown the way and provides the model to deal with future pandemics.

#20 SunShowers on 06.04.21 at 11:45 am

“We have literal mountains of data collected over decades that proves supply-side economics doesn’t work, but it totally works for rent prices.”

#21 The West on 06.04.21 at 11:46 am

“If the American people ever allow private banks to control the issue of THEIR money, first by inflation and then by deflation, the banks and corporations that will grow up around them (the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.”

#22 Verifiable nothing on 06.04.21 at 11:49 am

#10 Millennial

The only thing I feel like I truly own is the crypto I know the seed for. Everything else can be taken away by the government. Feels bad man

Please put these in order of likelihood in which they can become worthless from most likely to least likely.

Metals (gold), FIAT currency, financial assets, crypto.

#23 Ponzius Pilatus on 06.04.21 at 11:54 am

18 Peter pickles on 06.04.21 at 11:39 am
These taxes are tiny and weak compared to taxing principal residences or raising capital gains inclusion. They are symbolic gestures meant to buy votes, not public policy tools.

Shrieking about private property rights over so little is pathetic.

What ‘shrieking’? Most people have no idea they have no right to own property. Seems worth pointing out occasionally. – Garth
————————-
Yep.
Canadian homeowners are all just squatters on the Queen’s land.
I’d say send the property tax bills to her.

#24 enthalpy on 06.04.21 at 11:55 am

I’m curious how this would effect cottages/cottage country?

Values are nutso up there and people use them 4 weeks of they year.

#25 Immigrant man on 06.04.21 at 11:56 am

Back in USSR it was illegal NOT to work. It was called “tuneyadstvo” or parasitism. Maybe Canada should look to this progressive practice, mmmm? I mean your property already *has* to work.

#26 Classical Liberal Millennial on 06.04.21 at 12:01 pm

Hey blog dogs, I’ve been given an renewal offer by my lender. Any thoughts?

5 year fixed 2.09%
4 year fixed 1.94%
5 year variable rate 1.39%

I’m going to shop around but if this is the best I can get, I’ll probably go with the 5 year fixed again.

#27 Corona w/Lime on 06.04.21 at 12:01 pm

#7 Dogman01

We’re to believe Wuhan Institute of Virology stopped gain-of-function on other coronavirus variants after the 2015 paper they published with the single variant?

Did you hear that these gain-of-function experiments were taking place in a BioSafety(BLS) Level 2 and BSL-3 labs, and not BSL-4? This was uncovered, confirmed and reported Nov 2020. Much lower safety standards obviously, and much more likely to have a lab “escape”. Pretty much every SARS thing this side of 2000 has been a lab escape by the way. Plenty of info on this.

https://nationalpost.com/news/a-brief-terrifying-history-of-viruses-escaping-from-labs-70s-chinese-pandemic-was-a-lab-mistake

Finally, after the dog-and-pony show that was the investigation by the WHO a year later of origin, and the press release they put out, and the repeated examples that WHO is highly politicized and compromised, does anyone honestly believe anything officially put out about the origin of this this?

This whole thing has been about trust. And the reality is that no one has proven themselves trustworthy. Do you trust?

As for you bringing up Trump – there was a fascinating story I tripped on a year back. Remember when Trump talked about delivering UV light into the lungs to kill the virus? Well, it turns out there is a company that has a catheter that has UV LEDs on it for this very purpose of delivering UV as treatment for viruses! They have been doing R&D on this for years prior. Media ridiculed Tump for suggesting it and the company’s social media accounts and others were taken down by Twitter/FB? etc. when this was/is a legit medical device that exists. They had to fight to get re-instated. Little was talked about this device, and even today I don’t know what the situation is really.

https://www.bioworld.com/articles/434719-uv-light-respiratory-catheter-for-covid-19-from-cedars-sinai-seeking-emergency-use?v=preview

#28 Slim on 06.04.21 at 12:04 pm

Then we wonder why people get angry and vote for someone like Trump. I guess we could always move to Kenney Country. But even here the NDP are becoming more popular. All because of the pandemic.
However, covid numbers are way down from just a few weeks back, in AB. We’ll just have to keep our fingers crossed after Stampede week. And I just got my second dose couple of days ago.

#29 Doug t on 06.04.21 at 12:05 pm

#11 woke up this morning

My god what has happened to this country ? Our supposed Authorities in charge of the security of this country are as inept as the keystone cops – throw in the, completely damaged beyond repair, RCMP and our bumbling politicians and we look like a country run by fools – no wonder people have lost faith in these institutions

#30 None on 06.04.21 at 12:07 pm

Owning real estate is not a human right and falls into hyperbole.

I would argue that a good and stable society is one where not everyone is pouring a large proportion of their income towards banks via real estate or rent. That’s where we are for everyone who has either bought a first house in the last 3 years or rented and moved in the last couple. Here in Victoria rents are astronomical. 2B/2B for around 2500 a month. Sure, you can be a basement dweller for cheaper but geez that’s a fair amount of cash for a single parent.

This is tough. i know you can’t evaluate an investing or home buying decision exclusively on its outcome but this home ownership thing is a hard pill to swallow.

#31 John on 06.04.21 at 12:07 pm

Garth, if we have no right to own property than we have no right to pay taxes.

#32 Cottagers STAY THE HELL AWAY! on 06.04.21 at 12:08 pm

The property taxes that inbred southern hillbillies brag about paying here are nothing compared to the burdens they have placed on our healthcare system.

There is no cottage season for 2021.

Get over it, all you slimy little pathogens.

Just.

Stay.

Home.

#33 Overheardyou on 06.04.21 at 12:10 pm

If your primary residence was damaged rendering it uninhabitable and repairs take a year or more could you be hit with the empty house tax?

#34 Polecar on 06.04.21 at 12:12 pm

We are selling our condo and it’s now empty as we’re renting, so if it doesn’t sell, we pay tax on it? This also kicks my plan of having a little cabin to escape to once in a while. Guess you can rent those too. I guess you’re right Garth, might as well just invest what I don’t spend on property and when I kick my oxygen addiction my daughter gets the money.

I miss smoking man…

#35 Felix on 06.04.21 at 12:18 pm

Happy Feline Friday!

Did you know –

A cat’s nose print is as unique as a human fingerprint.

Cats can jump up to 5 times their own height.

Cats can make over 100 vocal sounds.

Cats have 32 muscles to control their ears, allowing them to turn a full 180-degrees.

Cats can see with only one sixth the amount of light needed by humans.

Cats have been around since the ancient Egyptians, but the Sphynx cat is a relatively young breed. The first Sphynx was born in 1955 in Toronto, Canada.

(On the other hand, dogs, of course, will annoy all your friends by humping their legs, and lead to lawsuits from your neighbours by crapping all over their lawns and biting their innocent children)

#36 kommykim on 06.04.21 at 12:19 pm

RE: During the most recent pandemic lockdowns in NS and BC, for example, people were forbidden from driving non-stop to their cottages where they’d see nobody.

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

Because we all know that the “oh I’m not making any stops on my way” excuse is BS a lot of the time. Like most rules, warning labels, etc, they are designed to make it easier to protect/police the idiots and scofflaws.

#37 Sail Away on 06.04.21 at 12:21 pm

Hard to believe so much money changes hands for Canadian land tenureship leases. If everything goes sideways, at least my US lands have ownership rights enshrined in the constitution.

And it can indeed go sideways. Complacency is dangerous.

#38 TurnerNation on 06.04.21 at 12:26 pm

On: Economic Shutdowns and the state of Science in Kanada (btw Quebec is 5 months into their ‘2 week curfew’ -For your health Comrades .

– In my Prefecture after 6.5 months patios may reopen. But not indoor eating. Too dangerous! Only 4 people max to a table on the patio. By law. You add a 5th or 6th person and well sickness might ensue. We all know this.

– Watching the national sport of Hockey live in person. RISKY. 500 people each were allowed attndance to a Jets and Habs live games. But they had to be essential health care workers (not the subhuman Non-Essentials. Yuck). And they had to get an Injection first. Fact. Yes, in order to watch our national sport live you now need an Injection.
But wait, all CV protocols/religious rules still were in efffect. 15 months into this and you think it’s going back to normal??

#39 Squire on 06.04.21 at 12:40 pm

Something the younger people should consider
https://financialpost.com/investing/the-u-s-poses-a-serious-threat-of-enticing-canadas-skilled-workers-to-move-south

Meanwhile, other economies like the U.S. are already seeing the benefits of diversifying their economies into highly competitive and disruptive sectors such as technology, robotics, automation and renewables. Simply look at the number and size of the tech companies within the S&P 500, representing 27.5 per cent of the index, whereas tech accounts for 10.3 per cent of the S&P/TSX composite and is dominated by one company: Shopify Inc.

We are too dependent on Real Estate. Sock boy has done us a disservice. We will pay for this and even more so if he get’s a majority.

#40 Canada Commies? on 06.04.21 at 12:41 pm

Well, here it comes! State censorship of media, including individuals and social media. Already plenty of concern expressed over the independence of media in Canada as it stands…soon C-10 adds to those concerns.

You know how it’s done…you turn the temperature slowly, you don’t drop frogs into hot water.

>>>
Bill C-10, which updates Canada’s Broadcasting Act, did not generate much controversy when it was introduced by the government. However, it suddenly became a lightning rod of criticism in April over a Liberal amendment that removed a section of the bill that said the new rules do not apply to “programs” uploaded by social-media users.

https://www.theglobeandmail.com/politics/article-liberals-move-to-shut-down-debate-on-bill-c-10-controversial/

#41 Pecs Rockhard on 06.04.21 at 12:43 pm

And [if] you thought you lived in a country where you could do what you wish with an asset you bought, financed, paid for, maintain and pay property tax on, think again.

I think you’re equivocating here. The principle of relevant difference applies. Housing is fundamentally different from other assets, like say a car or a boat, in that housing is a human right. (As declared by the U.N. and supposedly acknowledged by our government.) So the government is justified in regulating how people use it.

We should still demand policies that are reasonable and effective, of course, but we can’t object to such policies on the basis that we own our real estate and should be able to do whatever we like with it.

Shelter is a human right. Real estate is not. – Garth

#42 Patrick on 06.04.21 at 12:44 pm

DELETED

#43 Millennial 1%er on 06.04.21 at 12:46 pm

#22 Verifiable nothing on 06.04.21 at 11:49 am
>Please put these in order of likelihood in which they can become worthless from most likely to least likely.

>Metals (gold), FIAT currency, financial assets, crypto.

Guns and ammo, guns and ammo, guns and ammo, and gasoline

#44 Chameleon on 06.04.21 at 1:00 pm

#35 Felix

Cats know how to use the bathroom in a civilized manner. Many even know how to use the toilet.

Dogs shame humans publicly. This poop scooping task is performed by dog-humans very unreliably, leaving it for non-dog humans to deal with. Good dog…owner.

#45 Island Gal on 06.04.21 at 1:14 pm

The travel restrictions in BC were not about class. They were about keeping people from flooding out of hotspots and into everywhere else. People from the Interior and the Island did not want people coming from the hotspot of the Lower Mainland (Whistler, Surrey, Abbotsford). People in the North and the Interior did not want people coming from the hotspot of Alberta. ​If people with multiple residences were more responsible than the rest of us, it wouldn’t have been an issue. But, there is a deep belief that they are only human and make some bad decisions, just like everyone else.

#46 45north on 06.04.21 at 1:16 pm

I live in Ottawa. Here’s the email I sent to the community association

the thing that really matters is that housing has become unaffordable. Never before has the cost of housing risen so much. You can only afford a house if you already have one. There are two factors

– federal involvement in the housing market – interest rates, mortgage regulations and government purchase of mortgage-backed bonds

– COVID, restrictions have put huge demand on housing

The bigger trend is the rich are getting richer and the poor are getting poorer.

It’s a do-good idea – in some small way housing may be more affordable.

from the Report submitted by Joseph Muhuni, Deputy City Treasurer, Revenue, Finance Services, City of Ottawa

“According to census data from Statistics Canada, in 2016, there were 1.34 million empty and temporarily occupied homes in Canada, with approximately 22,000 of these located in Ottawa. These vacant homes are a potential source of housing supply. “

so when Statistics Canada mails out their questionnaires, there are 22,000 empty houses in Ottawa. Less than half would be subject to the vacant unit tax. If the owner was in hospital, if the owner had just moved to a long-term care facility, if the owner is on vacation.

What if the cost of implementing the tax exceeds the revenues collected who’s responsible? What if the increase in the housing supply is minimal? How will we even know?

This is the wrong time to impose a new tax. The housing market has gone insane – prices have never increased so fast.

#47 Bezengy on 06.04.21 at 1:19 pm

As the pandemic winds down the in-fighting will ramp up as we try to find ways to pay for the damage it’s caused. I find it amusing how so many people are oblivious to our dire economic situation, or just think it’s just status quo from here forward. My job, benefits, and pension are safe, no worries, someone else will pay, Why can’t we just keep talking about more free stuff?

#48 Brian Ripley on 06.04.21 at 1:20 pm

My Calgary housing chart with May data is up:
http://www.chpc.biz/calgary-housing.html

Calgary Single Family Detached Prices
NEW PEAK PRICE MAY 2021
Up 22% in the last 10 years

Calgary Town House Prices
Down 24% from the MAR 2018 Peak
Townhouses are priced at 55% of SFDs
or 1 SFD = 1.8 Townhouses

Calgary Condo Prices
Down 18% from the JUN 2014 Peak
Condos are priced at 49% of SFDs
or 1 SFD = 2.1 Condos​

TOTAL Residential Listings
Down 50% from JUN 2010 high
TOTAL Residential Sales
Down 10% from MAY 2013 high
Current Monthly Absorption Rate = 44%
Current Months of Inventory = 2

The energy sector continues to move real estate ambitions.

#49 the jaguar on 06.04.21 at 1:21 pm

Lordy. We’ve had Dharma Bums kid twice and now we have the kids dog. Publicity hounds. Time for Dharma Bum to move out West. Sounds like his current hood is going to hell in a handcart anyway……

#50 Network Admin on 06.04.21 at 1:24 pm

Probably in about 60 years you can try claim your property back :)

In historic first, Swiss firm settles suit by U.S. family over seized property in Cuba

https://www.tampabay.com/news/florida/2021/06/02/in-historic-first-swiss-firm-settles-suit-by-us-family-over-seized-property-in-cuba/

#51 truefacts on 06.04.21 at 1:24 pm

Garth,

Government messes everything up, but…

…if you have speculators buying houses to flip/sit on, wouldn’t an empty house tax make that less appealing?

Wouldn’t these extra costs make them more motivated to rent or sell – thus increasing supply and lowering prices?

I don’t have a strong opinion on this, but seems like simple supply/demand to me. What am I missing?

PS – A capital gains tax on principle residence would be punitive as seniors trying to downsize would have to pay taxes and have less to buy a new house (house are part investment part consumer good)…

#52 Pecs Rockhard on 06.04.21 at 1:34 pm

Shelter is a human right. Real estate is not. – Garth

I agree. But this means that the government has an affirmative duty to ensure that everyone has access to suitable housing. And that means that the government gets a say in how many vacation homes and business condos you can own, where can own them, and what you can do with them.

Nope. – Garth

#53 YVR bear on 06.04.21 at 1:40 pm

There’s something I don’t get. Rents are mostly set by local incomes. Why would those taxes increase them?

#54 Faron on 06.04.21 at 1:40 pm

#6 Sail Away on 06.04.21 at 11:05 am

realized return on a meme stock

Hahahaha haaaa. So you sold it? I thought you weren’t a day trader? I thought you believed in the long term thesis (security contracts something something name recognition something something Microsoft something…)? I guess watching your 3x turn into a mere 2x taught you something? I guess someone who is simultaneously an Munger-ite value investor and a deluded TSLA hodler will demonstrate other forms of cog dissonance. And you poke at Stone and his Steady Eddie approach.

Also, I thought the sturdy conservative view was that cash handouts taught reliance on others, complacency and entitlement if not horrific socialist leanings? Shouldn’t one pull one’s self up by one’s bootstraps ‘n all? Whadda joke man. Thanks for the laffs.

#55 Pecs Rockhard on 06.04.21 at 1:42 pm

Nope. – Garth

Well, I guess we’ll have to agree to disagree on that point. :) But like it or not, that’s where we’re going–especially in areas of tightly constrained supply like Toronto and Vancouver.

#56 Leftover on 06.04.21 at 1:42 pm

Meanwhile, in the UK, they’ve cooked up a scheme that gives first time buyers a 50% discount on a new house:

https://www.theguardian.com/money/2021/jun/04/first-time-buyers-in-england-offered-new-homes-at-up-to-50-off

How do you think that’ll go?

#57 RG on 06.04.21 at 1:42 pm

Happy renter here. Have been living the same one bedroom rent-controlled penthouse pad in downtown Toronto for 15 years. Identical apartments, which were going for 130% of what I was paying pre-pandemic, dropped to 90%– but are now inching back up and are at par.

#58 Quintilian on 06.04.21 at 1:43 pm

#39 Squire
“We are too dependent on Real Estate. Sock boy has done us a disservice. We will pay for this and even more so if he get’s a majority.”

Liberals, Conservatives are from the same cesspool.
When the Cons were in power, and the bubble was about to burst, they immediately went into action instituting a 40 year mortgage.

Wrong. The 40-year mortgage came in during a period of real estate surge. Stop making stuff up. – Garth

#59 Concerned Citizen on 06.04.21 at 1:50 pm

Why would anyone work a real job today, when you can just sit on your butt and watch your home equity increase 10%-40% per year while making millions per year trading crypto-currencies and meme stocks?

The central bankers know they’re actively encouraging this crap. Yet not only do they not stop, they don’t even hint at stopping. What does that tell you? To me it tells me they actively and enthusiastically want a have/have not society. They want to reward wealth, not work. Have no wealth? Too bad.

From where I sit, the damage is now irreversible, even if the policymakers had a real interest in repairing it (which they obviously don’t).

#60 Another Deckchair on 06.04.21 at 1:54 pm

@10 millennial 1%er

I was around for Mt Gox.

Sounds like you were not.

Now I just follow Garths advice and have lots to show for it.

#61 Phylis on 06.04.21 at 2:06 pm

#10 Millennial 1%er on 06.04.21 at 11:15 am
The only thing I feel like I truly own is the crypto I know the seed for. Everything else can be taken away by the government.
Xxxxxxx
Oh dear, don’t tell me you lost the key already.

#62 Tales from the Crypto Keeper on 06.04.21 at 2:07 pm

#60 Another Deckchair

Mt. Gox….oh man…the funnies scam, bankruptcy and outcome I have EVER heard about.

When I was reading the piece below…well, let me just say there were words said out loud and plenty of laughter.

https://arstechnica.com/tech-policy/2017/11/ceo-who-presided-over-mt-goxs-collapse-could-end-up-with-massive-profits/

Mark Karpelès…is he Da Man? I think he’s Da Man? Yup. He is.

Wonder what will happen to Bitcoin when he starts liquidating? Or has he already at $70K+?

#63 OK, Doomer on 06.04.21 at 2:10 pm

“We’re only a few crazy politicians away from far worse” – Garth

______________________________________

You’re too kind. We blew past that STOP sign years ago. Next up is a “Thelma and Louise” ending.

#64 Brett in Calgary on 06.04.21 at 2:10 pm

Most taxes are crap, but at least they aren’t necessarily targeting foreigners with ’empty house’ taxes. I would still rather see interest rates go up, or capital gains on housing flipped within a certain period. The ‘primary residence’ clause has been completely abused IMO.

#65 Joseph Kahn on 06.04.21 at 2:10 pm

I agree with Garth that to own private property is not a right.

But it should be. – Garth

#66 L3 on 06.04.21 at 2:13 pm

#11 – Agree.

Wuhan, Chinese scientists with free reign in Level 4 clearance facilities in Canada. (Real estate) prices increasing…… The big picture seems to be a case of known unknowns, rather than unknown unknowns.

And lets not forget the increasing Chinese shareholdings, interests and ownership of Canada’s oil, gas, minerals and resources.

Seems like covid, inflation and real estate prices aren’t the only characters in this story.

#67 Joseph R. on 06.04.21 at 2:21 pm

“The central bankers know they’re actively encouraging this crap. Yet not only do they not stop, they don’t even hint at stopping. What does that tell you? ”

——————————————————————

Central Banks (CB) base their interests rates based on the unemployment rate, the relationship is inversely proportional.
CB’s will increase their rates once they calculated its time to do so without increasing the unemployment rate. However, inflation also increase employment.

CB’s are walking on a tight rope: how to control inflation without hurting the employment rate.

You will hear the term Non-Accelerating Rate of Unemployment (NAIRU) the next little while: https://www.investopedia.com/terms/n/non-accelerating-rate-unemployment.asp

#68 Sail Away on 06.04.21 at 2:30 pm

#54 Faron on 06.04.21 at 1:40 pm
#6 Sail Away on 06.04.21 at 11:05 am

realized return on a meme stock

———

Hahahaha haaaa. So you sold it? I thought you weren’t a day trader? I thought you believed in the long term thesis (security contracts something something name recognition something something Microsoft something…)? I guess watching your 3x turn into a mere 2x taught you something? I guess someone who is simultaneously an Munger-ite value investor and a deluded TSLA hodler will demonstrate other forms of cog dissonance. And you poke at Stone and his Steady Eddie approach.

Also, I thought the sturdy conservative view was that cash handouts taught reliance on others, complacency and entitlement if not horrific socialist leanings? Shouldn’t one pull one’s self up by one’s bootstraps ‘n all? Whadda joke man. Thanks for the laffs.

———-

I’m happy that you’re happy. Let’s consider this a win-win: you gain ideological joy, I gain bags of money. As someone posted last week, happiness is worth more than money in the bank.

I ardently hope we get to do this many more times.

#69 Brian Ripley on 06.04.21 at 2:34 pm

Excellent post today Garth. I’m sure it will bring out a record number of comments and inflame the steerage section.

In 2016 I wrote a long post out of frustration of what I thought was the peak in real estate values and a dangerous widening of inequality.

My 2016 post is titled “Death & Taxes”
http://www.chpc.biz/history-readings/death-taxes

… and is segmented in 3 parts:

1) The Need for Tax Reform
2) The Need for Policy Reform
3) The Need for Land Entitlement Reform

Regular readers know my opinion on Tax Reform… a version of an‘Automated Payment Transaction Tax’ (APT) is needed instead of what we have now which is a hodge podge of carrot and stick tax incentives that shifts direction in each election cycle towards the most sought after electorate. In my opinion the APT or a variant of it will happen one day as sure as Uber, Airbnb and Torrents have arrived and driverless freeways will eventually emerge. It’s a peer to peer thing; it’s the internet, it’s inevitable. “Software is eating the world.” said Marc Andreessen.

My complaints about the glacial speed of Policy Reform in Canada is that the current “patchwork policy has failed to get capital investment into productive employment and we have settled for consumption and waste. Asset values may look good on a balance sheet in terms of credit worthiness, but the social contract does not serve our collective needs. Governance has clearly failed and the media is busy chasing sirens and shootouts.

My thoughts on the “The Need for Land Entitlement Reform” is no doubt going to bring out the name calling. But I invite anyone to put forward a better idea set.

Here’s how I see it (a few snippets):

1) All land and territorial space inside the jurisdiction of Canada (the Land) would be owned by the Canadian Government (the State) on behalf of Canadian taxpayers (the Tenants).
2) The land would be leased to the tenants.
3) The state would set the value of the land lease and term according to use.
4) Only the improvements allowed on the land are owned by the tenant or transferable to another tenant in an open and free market place.

This simple idea would put an end to the endless inflation of the cost of land since the value of the land would be set by the central organizing body of the state which would assess the needs of the community of tenants and the responsibilities of all of us towards the well being of our health and environment.

The improvements on the land would by definition be valued by their utility and composition of materials all of which are readily assigned value by an open marketplace and would be more prone to deflation than inflation because improvements have to be maintained to retain value.

Valuations would be rational, transparent and immediate. Affordability would be easily controlled. Tenancy agreements on the land would be available to both domestic and foreign users and when combined with the ‘Automated Payment Transaction Tax’ outlined above, all land lease revenue and all improvement transactions would trigger APT revenue to the state for reinvestment.

We humans have accomplished a lot of ambitious and technically challenging projects and have expanded our knowledge base to a degree that suggests we should be able to transform our puny little financial problems in a politically impartial way free of ideology to the benefit of the greater good.

#70 Stone on 06.04.21 at 2:37 pm

#10 Millennial 1%er on 06.04.21 at 11:15 am
The only thing I feel like I truly own is the crypto I know the seed for. Everything else can be taken away by the government.

Feels bad man

———

You don’t need the gouvernment to take away the value of your crypto. Elon is already doing a wonderful job with that.

#71 Lead Paint on 06.04.21 at 2:38 pm

#54 Faron on 06.04.21 at 1:40 pm

Man, you are one bitter dude! Careful, that stuff will kill ya.

#72 SunShowers on 06.04.21 at 3:03 pm

“Shelter is a human right.” – Garth”

In theory, yes, but not in practice.

In Canada, we can say that healthcare is a human right, because anybody, regardless of income, can walk into a hospital and get treatment with no costs at the point of service, and stay until medical services are no longer required.

If shelter was a human right in Canada, then there would be government funded places where anybody, regardless of income, could live rent-free, until such a time when they wish to find their own accommodations.

No such place exists.

And never will. – Garth

#73 Sail Away on 06.04.21 at 3:06 pm

#54 Faron on 06.04.21 at 1:40 pm

Also, I thought the sturdy conservative view was that cash handouts taught reliance on others, complacency and entitlement if not horrific socialist leanings? Shouldn’t one pull one’s self up by one’s bootstraps ‘n all? Whadda joke man. Thanks for the laffs.

———-

You may be right. I wouldn’t know.

My personal ideology is opportunism, which consists of turning all situations possible to an advantage. Political affiliation is fluid. Let’s call it non-binary.

Looking forward to the new free Liberal heat pump. Considering a small mural of Che Justin on the side.

#74 Jim on 06.04.21 at 3:14 pm

The Vacancy rate in Vancouver sure isn’t anywhere near six percent. You rent a crappy 60 year old apartment for $1800 a month. So there is obviously a shortage. Foreign students are snapping them up. UBC has tonnes of them…

#75 Millennial 1%er on 06.04.21 at 3:14 pm

#60 Another Deckchair on 06.04.21 at 1:54 pm

>mtgox

Come on bro, do you really think I’m dumb enough to keep my crypto on exchanges?

#76 JSS on 06.04.21 at 3:21 pm

#48 Brian Ripley

can you do a similar analysis for Edmonton please thanks

#77 Stoph on 06.04.21 at 3:22 pm

#52 Pecs Rockhard on 06.04.21 at 1:34 pm
Shelter is a human right. Real estate is not. – Garth

I agree. But this means that the government has an affirmative duty to ensure that everyone has access to suitable housing. And that means that the government gets a say in how many vacation homes and business condos you can own, where can own them, and what you can do with them.

Nope. – Garth

—————————————————————–

In general housing isn’t a zero-sum situation. ie. If someone owns multiple properties, it doesn’t mean that someone else is losing out on owning property – more houses and condos can be built. The amount of land in a desirable location limited, but land can be developed to increase property density in the desirable location (eg. converting SFD homes to townhouses to condos). Even the amount of land in a desirable location isn’t fixed as more locations become desirable.

#78 Human Rights on 06.04.21 at 3:27 pm

Shelter is a human right. Real estate is not. – Garth

You brought this to our attention a while back Garth. Clarification is needed on your statement. And we’re waiting for court rulings as well in Canada.

The actual UN Human right is not to shelter, but housing. That is the specific word used – “housing”

https://www.un.org/en/about-us/universal-declaration-of-human-rights

This is duplicated in Canada. “Housing” not “shelter”.

https://chra-achru.ca/blog_article/right-to-housing-is-now-law-in-canada-so-now-what-2/

Housing finds the root in “House” apparently defined as:
– a building for human habitation, especially one that is lived in by a family or small group of people.
– accommodation, and (indeed) shelter

Owning is indeed not a right as you note, nor is it a human right. However, “housing” is indeed a human right of the land. How does one square the two?

It surely bings us to – who’s responsibility is it to provide this human right? And is eviction a violation of a person’s human right? As such are government sanctioned hearings and tribunals on evictions violating human rights of the land? To be seen.

This will surely work through the courts, which will take a little longer. However, I don’t see how owner’s rights to own a property can be put ahead of the tenant’s human rights to housing. Thus evictions in Canada will surely eventually be declared as a violation of human rights.

In the end…

A landlord is not obligated to grant the human right of “housing” to any individual.

However, once they decide to grant this right, surely it is a violation of human rights to try to take this right away for any reason.

Landlords don’t have a human right to be paid rent, or to revenue from the property they own. Tenants on the other hand DO have the human right to housing.

Being a landlord in Canada is going to become real fun in the very near future. By being a landlord you are taking it upon yourself to grant a human right to your tenants, and surely according to laws you do not have the right to take that human right away.

I don’t see it any other way.

#79 Ponnaps on 06.04.21 at 3:32 pm

How are landlords allowed to qualify and borrow at retail rates? End of the day, these are subsidized rates meant for people who need a home to live in, not for landlords to run their business..

You want LLs to pay more so rents can rise? – Garth

#80 Editrix on 06.04.21 at 3:36 pm

So where does the empty house tax put seasonal cottages? Ours gets used most weekends from May to Thanksgiving plus a two week vacation during that time. It cannot be an all-year house because snow makes the road un-navigable. The only plus is that we live in the same province as the property.

#81 SunShowers on 06.04.21 at 3:39 pm

“And never will. – Garth”

Then shelter isn’t actually a human right, and I question why you say that it is, since you don’t seem to think that it should be.

#82 Linda on 06.04.21 at 3:52 pm

So what are all these taxes meant to do? Presumably fund government coffers for the politically correct cause of the day (which the politicians adore, especially in an election year). Vancouver at least indicated an intent to spend some of the money on providing affordable housing. I’ve no idea as to whether that has actually occurred. Since they’ve been collecting said tax for what? 3 years or more? one might presume at least one affordable housing project has been funded by those taxes. Does anyone know whether that has actually happened?

As for anyone owning more than one property, I take it that the intent is to encourage those owners to sell. Various levels of government get their cut & said property becomes the principal residence of whoever purchases it. Except Vancouver, Toronto, Ottawa are all very expensive locales. How are people who can’t afford to buy in the first place going to be able to purchase those properties? Garth is correct. This is nothing but a tax grab, whitewashed to present a picture of the government doing something to promote housing affordability to the masses. There’s gold in them there floorboards, partner!

#83 Brian Ripley on 06.04.21 at 3:58 pm

“#48 Brian Ripley can you do a similar analysis for Edmonton please thanks” #75 JSS on 06.04.21 at 3:21 pm

JSS, Edmonton data are here: https://realtorsofedmonton.com/web

Unfortunately Edmonton publishes access to data only back to January 2020. I publish a plot of Edmonton SF detached prices on my 6 biggest cities in Canada chart, but that data only go back to mid-2003.

What we need in Canada is way more public access to data and way more collecting of data. (Policy Reform)

If real estate is a public good, let the public in.

#84 Sail Away on 06.04.21 at 4:00 pm

#79 SunShowers on 06.04.21 at 3:39 pm

“And never will. – Garth”

Then shelter isn’t actually a human right, and I question why you say that it is, since you don’t seem to think that it should be.

——–

SS, you mistake a right for the responsibility of others to provide for you. This is common.

While shelter is a right, the provision of shelter is a benefit. Two different things.

#85 Pecs Rockhard on 06.04.21 at 4:02 pm

Then shelter isn’t actually a human right, and I question why you say that it is, since you don’t seem to think that it should be.

Rights are enshrined in law. Once they are, you have said rights, even if your government declines to respect or enforce them. It’s up to an informed citizenry to hold the government accountable in such cases. If you’d like to know why housing is a human right, you can find more information here:

https://www.un.org/ruleoflaw/files/FactSheet21en.pdf

Note that this doesn’t mean you have a right to a “house,” which is probably why Garth insists on referring to it as a right to shelter.

Keep in mind that this is all fairly new in Canada. Canada acknowledged this right in bill C-97 in 2019. (I recall Garth warning darkly of the consequences at the time.) As with all new rights law, it will take time for court challenges to force the government to live up to its obligations.

#86 The Totally Unbiased, Highly Intelligent, Rational Observer on 06.04.21 at 4:04 pm

“We’re only a few crazy politicians away from far worse.” — Garth

I agree.

Also, there are already far more than just “a few” crazy politicians out there.

#87 Kiril Peev on 06.04.21 at 4:13 pm

Ottawa Real Estate Market Stats for May 2021

The story for May was cancelled listings way up. 600 cancelled listings in May 2021 compared to about 300 in May 2020.

Lots of homeowners are testing the market and if they do not receive their desired price the listings are being cancelled.

Buyer demand remains strong and prices were mostly flat from April 2021. Inventory continues to climb. Historically inventory peaks each year in May/June.

https://www.kirilpeev.ca/ottawa-real-estate-market-update-may-2021/

#88 Stoph on 06.04.21 at 4:13 pm

#82 Sail Away on 06.04.21 at 4:00 pm
#79 SunShowers on 06.04.21 at 3:39 pm

“And never will. – Garth”

Then shelter isn’t actually a human right, and I question why you say that it is, since you don’t seem to think that it should be.

——–

SS, you mistake a right for the responsibility of others to provide for you. This is common.

While shelter is a right, the provision of shelter is a benefit. Two different things.

—————————————————————

Let me see if I get your thinking SA. Just because Americans have a right to bear arms, doesn’t mean that the government has to buy everyone a gun.

#89 Lemon on 06.04.21 at 4:21 pm

#26 – These are effectively teaser rates. Look out in 4-5 years, with the variable rate even sooner. Canadians pride themselves on fiscal prudence relative to the USA. Clearly, this is BS.

#90 alexinvestor on 06.04.21 at 4:29 pm

There is, of course a tradeoff between liquidity and yield. In other news, unemployment increased to 8.2% and there was a net decrease in jobs in May. It doesn’t look like interest rates are going up or that the BOC are going to stop buying government bonds anytime soon.

It will all look much, much different next month. And, yes, rates have only one direction in which to travel. – Garth

#91 the jaguar on 06.04.21 at 4:31 pm

Where is VLADTOR?
Vladimir, I surmise…just like the current Russkie Prez.

Tell us why Anton Siluanov announced Russia is divesting US dollar assets from its National Wealth Fund? I long to hear your insights.

By the way, Vlad…you don’t box, do you? I know someone who needs a new sparring partner…

#92 rknusa on 06.04.21 at 5:00 pm

simply declare it is occupied?

how are officials going to enforce this or confirm occupancy?

people will simply declare it is occupied even if it is not

any fine for fibbing?

Huge fine. – Garth

#93 Trojan House on 06.04.21 at 5:04 pm

#16 Rishu on 06.04.21 at 11:33 am

If this is the case, the price of vans will start increasing faster than the price of real estate! What then? A van tax? A vacant van tax? A van parked down by the river tax?

#94 NOSTRADAMUS on 06.04.21 at 5:10 pm

KISSY BUM !
I am grateful Garth has the balls to take on difficult issues, even if I am sometimes at odds with his reasoning. Garth is owed some latitude, he is not required to be 100% correct in every case only to consistently suggest a reasonable range of alternatives. Meanwhile, the hot potatoes roll on, burning fingers along the way. Well, that is all I have to say on that for now.

#95 Sail Away on 06.04.21 at 5:10 pm

#86 Stoph on 06.04.21 at 4:13 pm
#82 Sail Away on 06.04.21 at 4:00 pm
#79 SunShowers on 06.04.21 at 3:39 pm

“And never will. – Garth”

Then shelter isn’t actually a human right, and I question why you say that it is, since you don’t seem to think that it should be.

——–

SS, you mistake a right for the responsibility of others to provide for you. This is common.

While shelter is a right, the provision of shelter is a benefit. Two different things.

——–

Let me see if I get your thinking SA. Just because Americans have a right to bear arms, doesn’t mean that the government has to buy everyone a gun.

——–

Excellent analogy. Thanks!

#96 tbone on 06.04.21 at 5:12 pm

Dump investment properties , buy blue chip dividend paying stock with the proceeds , and let the good times roll.
Worked out ok. Better than ok actually.
I will never be a landlord again and i warn others not to be.

#97 Ponzius Pilatus on 06.04.21 at 5:16 pm

#37 Sail Away on 06.04.21 at 12:21 pm
Hard to believe so much money changes hands for Canadian land tenureship leases. If everything goes sideways, at least my US lands have ownership rights enshrined in the constitution.

And it can indeed go sideways. Complacency is dangerous.
—————–
Complacency.
Indeed, or as the old Romans would say: Resting on your Laurels.
Too bad, your American friends have not learned much from history.
The Romans, too, thought they were the greatest and unbeatable.
Americans have been raised to believe that they are the best, the strongest, the smartest etc.
Best of Show, always.
Always way ahead of the field.
And suddenly,someone is breathing down their neck.
Discussed China and the latest GDP numbers with friend.
They are reporting a 18.3%  jump in GDP in Q1 2021.
Says he: can’t trust them. The numbers are most likely fudged.
Probably, says I, but what if they are right?
What if it’s “just” 12%.?
How can a Nation come out of nowhere and become the second strongest economy just based on fudged numbers.
Moral of the story:
Never underestimate your competition.

#98 wallflower on 06.04.21 at 5:16 pm

my visit portfolio is now officially
50/30/20

dawgs/humour/advice+guidance

I have no plans for rebalancing

#99 Concerned Citizen on 06.04.21 at 5:30 pm

#66 Joseph R. on 06.04.21 at 2:21 pm
“The central bankers know they’re actively encouraging this crap. Yet not only do they not stop, they don’t even hint at stopping. What does that tell you? ”

——————————————————————

Central Banks (CB) base their interests rates based on the unemployment rate, the relationship is inversely proportional.
CB’s will increase their rates once they calculated its time to do so without increasing the unemployment rate. However, inflation also increase employment.

CB’s are walking on a tight rope: how to control inflation without hurting the employment rate.

You will hear the term Non-Accelerating Rate of Unemployment (NAIRU) the next little while: https://www.investopedia.com/terms/n/non-accelerating-rate-unemployment.asp

*****

Actually, only the Fed bases rates in part on unemployment. They have a dual mandate of maintaining an inflation target and low unemployment.
The BoC and other major central banks have just the inflation mandate.

Of course, that’s officially speaking. Now central banks have another, unofficial, mandate to prevent asset markets from falling ever again. Bernanke’s so-called “wealth-effect” policy. That’s why they won’t get rid of the money printing and negative real rates even in the face of high inflation and low unemployment – because they know massively overvalued assets would fall in value. Stratospheric housing prices and a rapidly rising cost of living for most of society is something they’re more than willing to live with if it means they get to keep pumping asset prices.

#100 Yukon Elvis on 06.04.21 at 5:41 pm

Transport Canada has issued a no-fly order for airspace above the former Kamloops Indian Residential School.

The federal agency announced the move in a tweet on Friday morning.

“The news from last week was devastating and we stand ready to support the community and all Indigenous communities as they grieve,” the agency said on Twitter.

“In collaboration with the Tk’emlups te Secwepemc First Nation, we have issued a [notice] restricting all air traffic up to 500 feet above ground, including drones, in the Kamloops Indian Residential School area.”

#101 Ponzius Pilatus on 06.04.21 at 5:49 pm

Watching the new Season of “Alone”.
Filmed at Chilko Lake in BC.
The highest elevation lake in North America.
Awsome scenery.
Anyone been there?

#102 Hilroy on 06.04.21 at 5:57 pm

When an American writes a folk anthem it’s, “This land is your land – this land is my land – this land was made for you and me”

Does Canada have a folk anthem this possessive? Can’t think of one.

We get “Canada is the Rocky Mountains – Canada is Prince Edward Island – Canada is a country full of love”

#103 SunShowers on 06.04.21 at 6:00 pm

#93 Sail Away on 06.04.21 at 5:10 pm
#86 Stoph on 06.04.21 at 4:13 pm

SS, you mistake a right for the responsibility of others to provide for you. This is common.
While shelter is a right, the provision of shelter is a benefit. Two different things.
——–
Let me see if I get your thinking SA. Just because Americans have a right to bear arms, doesn’t mean that the government has to buy everyone a gun.

—–

This is actually a pretty bad analogy, because you both mistake “rights” for “human rights.”

As it is now, the “right to bear arms” doesn’t realistically apply to people who are too poor to afford guns, therefore it’s not a human right. It’s a plain old right granted by a government, which can be (and regularly is) rescinded at the government’s pleasure.

A better example of a human right would be, as I had mentioned before, the Canadian healthcare system. Not only is there a right to healthcare, but there is a right to the provision of healthcare. Canadians cannot be turned away because they’re poor, or because the doctor doesn’t like their face, or any other reason. Your right to healthcare can not be rescinded by the government, or anyone else. It’s inalienable, a true human right.

#104 mj on 06.04.21 at 6:08 pm

the liberals are a minority now. It’s scary to think of what they would do with a majority.

#105 Rogerhomeinspector on 06.04.21 at 6:38 pm

#95 Ponzius Pilatus

I couldn’t agree more. Complacency is deadly.

Being from Kitchener/Waterloo, I watched the rise of RIM/Blackberry. They were on top of the world for a while and I feel like they too rested on their laurels.

I recall the mass layoffs- all the office buildings they had and were constructing went empty. Many sit that way to this day. It was incredible for a while, they could t build new campuses fast enough. Anyone moving in around you worked at RIM.

That was a real shocker for me personally. It seemed to happen almost over night- they led the industry of telecom one day and the next no one knew what a Blackberry was.

I fear the same thing is coming in industrialized western countries like Canada. We’re sitting pretty now, but will we too suffer a sudden and harsh fall from grace? Personally, I believe so. We want wealth while providing little for it. Almost an assumed entitlement- we just deserve it. Meanwhile, smart and energetic people willing to work and innovate in places like China will pop up like Apple did with their iPhone and change the game.

#106 George S on 06.04.21 at 6:41 pm

#10 Millennial 1%er on 06.04.21 at 11:15 am wrote:
“The only thing I feel like I truly own is the crypto I know the seed for. Everything else can be taken away by the government.”

With crypto you only own the seed. It could be “worth” something or not depending on the vagaries of the crypto market or what Elon Musk feels like after his morning bowel movement. Just like almost everything else, only worse.

#107 Sail Away on 06.04.21 at 6:48 pm

#101 SunShowers on 06.04.21 at 6:00 pm

A better example of a human right would be, as I had mentioned before, the Canadian healthcare system. Not only is there a right to healthcare, but there is a right to the provision of healthcare. Canadians cannot be turned away because they’re poor, or because the doctor doesn’t like their face, or any other reason. Your right to healthcare can not be rescinded by the government, or anyone else. It’s inalienable, a true human right.

——–

And if you are human, but not Canadian, does this inalienable human right you describe apply?

Hmmm… sounds a bit like a benefit, no?

#108 crowdedelevatorfartz on 06.04.21 at 7:28 pm

Ponzie’s Plateau
“Filmed at Chilko Lake in BC.
The highest elevation lake in North America.
Awsome scenery.
Anyone been there?”

++++
Yes.
1996
I flew in on a beautiful sunny August day for a 7 day river rafting expedition from Chilko Lake Lodge ( north end of Chilko Lake)….
Flight was from Van Airport South Terminal
Three rafts. 3 guides. and 15 guests ( A lot of Canucks, an American family from New York and a few Germans.). We carried all our food, tents , everything for 2 days and were replenished at several stops.
Spent 2 days on the Chilco river which then joins into the Chilcotin river ( through some class 4 rapids/waterfalls) and then 3 days on the Chilcotin .
The Perseidies Meteor showers were only surpassed by the Nothern Lights at night.
There are areas that are semi arid and I stepped on a small cactus on the 4 th day while hiking.
Down through the Chilcotin River finishing with some very epic class 3 rapids/waterfalls into the upper Fraser River.
Saw a bit off wildlife along the way, salmon were running upriver and Natives were dip netting off the rocks in a few spots. We camped near a cave one day and it was full of bats that swooped our camp fire at night eating the bugs.

Hyak River Tours.
Excellent company to go with.
Be ready to pack and bring your own booze for nightcaps. They supply a bit but not enough for me and I rarely shared….. :)
Oh and bring cash to tip the guides.
If your survive the trip in one piece and alive….they’ve earned it.

#109 Bartman on 06.04.21 at 7:33 pm

But the socialist/communist are a majority comrade.

#110 Two-thirds on 06.04.21 at 7:41 pm

“Be liquid. Always diversified.”

That is good advice, but even better is:

“Be in debt. Always have nothing for them to take.”

The ant and the grasshopper have traded roles in our post-national, woke, dope-fueled society, so be a grasshopper and you shall reap what you did not sow, from the ants.

Liquidity can be traced and redistributed easier than physical assets, especially when the former is in registered accounts.

Maybe things have gotten so messed up that it is time to become a goldbug now?? Or up the wazoo in debt?

Oh, Canada!

:(

#111 Nonplused on 06.04.21 at 7:46 pm

“First, higher taxes don’t make real estate cheaper. The opposite. Heaping on purchase fees, under-utilization taxes, double land-transfer payments and levies at the city, provincial and national levels just ratchets up the insane escalation in property values.”

It seems like that should be self-evident. Even if the taxes did not ratchet up property values, they still have to be paid, so a poor first time homeowner has to come up with the money.

In fact what the governments are doing is blatantly trying to hover up some of the home equity. A move up buyer can probably get a bigger mortgage to cover these fees, and that is what the government is after. First time buyers be damned.

#112 binky barnes on 06.04.21 at 7:48 pm

When the PM PM returns from his well-deserved weekend off he will get stuck in to this housing mess. Things will get sorted out lickety-split. Our PM PM solves problems, and fiscal issues are his specialty. So enjoy the weekend folks.

BB

#113 Sunshowers on 06.04.21 at 7:48 pm

#107 Sail Away on 06.04.21 at 6:48 pm
And if you are human, but not Canadian, does this inalienable human right you describe apply?

—-

It would apply if we could do away with primitive notions like citizenship, and just treat humans equally no matter what geographical area they were born in. But it would apply in whatever nation that person is a citizen of, unless they’re from a backwards failed state like the USA.

But you see the difference, yes? A “right” to something can easily be rendered useless and impotent without a right for it to be provided to you, and it’s especially vacuous in the context of shelter/housing. The precedent for a right to provision exists in health care systems worldwide, it is not a novel concept.

#114 Nonplused on 06.04.21 at 7:54 pm

#1 Zen Investor on 06.04.21 at 10:39 am
If you’re wondering just how full of duplicitous crap our PM in Waiting Marc Carney is :

https://financialpost.com/opinion/the-burden-of-proof-rests-on-mark-carney-and-he-hasnt-made-his-case-against-fossil-fuels

Some humans are born with several more blow holes than normal. But Marc has also been blessed with many more faces.

————————————-

“Net Zero 2050” is a scam. It just won’t happen. It’s like cutting down the tree and expecting more apples.

I say this without reflecting on whether or not we’ll face a climate emergency if we don’t cut down on fossil fuels. Maybe we will, maybe we won’t. But at present we don’t have a technical solution to their continued use.

We could do some things to reduce consumption, like maybe quit all this crazy Bitcoin mining which uses an insane amount of electricity and produces nothing of value, but we aren’t going to be heating our homes at night with solar power any time soon.

#115 crowdedelevatorfartz on 06.04.21 at 8:00 pm

@#97 Ponzie’s Plagiarist Pals
“How can a Nation come out of nowhere and become the second strongest economy just based on fudged numbers.
Moral of the story:
Never underestimate your competition.”
+++

Well,
I’m sure their lack of scruples when it comes to copyright and patent infringement might have something to do with it.

https://thediplomat.com/2020/11/how-chinas-legal-system-enables-intellectual-property-theft/

I seem to recall last Spring when the WHO and every other country on the planet was asking China to allow virologists into Wuhan to determine how and where the Covid virus started…they refused.

But it didnt stop them from trying to hack the Vaccine formulas from Western Society.

https://www.nytimes.com/2020/07/21/us/politics/china-hacking-coronavirus-vaccine.html

Sadly the inventors of gunpowder and toilet paper are long past.
China is a nation of followers not independent thinkers

And the recent kowtowing of several of China’s Billionaire entrepreneurs speaks volumes about which way the Chinese Communist party is headed
.

https://www.bbc.com/news/technology-56448688#:~:text=Jack%20Ma%20was%20about%20to,the%20world's%20largest%20tech%20giants.

House arrest for some.
Long prison terms for other because they had the foolish idea that “capitalism with Chinese characteristics” meant “democracy”….
Silly billionaires.

Yes the 18 year sentence one unfortunate billionaire received for criticizing the leadership on a website has Has basically set the tone for the rest of them.

https://www.nytimes.com/2020/09/22/world/asia/china-ren-zhiqiang-tycoon.html

“Make money” but never, ever criticize the leadership.

#116 Stoph on 06.04.21 at 8:02 pm

@Sunshowers

Canada has a cost of housing problem that need to be addressed. IMO the way to do this however isn’t for the government to give people houses or to provide rent-free housing to whoever wants.

The government should work towards ensuring that people have the capability to afford housing – meaning the cost of housing needs to come down or salaries need to go up. How to do this without screwing something else up is the challenge.

With the substantial price increase of real estate over the last decade or two, I’m genuinely curious to know where the money from the price increase is going in the case of new builds? Is it primarily in higher input costs of a new build (land, material, labour), higher profits for the builder, or higher fees from government?

#117 Barb on 06.04.21 at 8:06 pm

#78
“…Landlords don’t have a human right to be paid rent, or to revenue from the property they own.”

———————————

Wow.
They live among us.
And they vote.

#118 crowdedelevatorfartz on 06.04.21 at 8:17 pm

Improperly docking a ship in Taiwan leads to ……. unemployment…..

https://www.youtube.com/watch?v=pEi24lKOFJk

#119 VladTor on 06.04.21 at 8:19 pm

I support empty-house tax. Should be temporary – not forever. When RE price went to normal – cancel. Now should be. Good idea b’s too many people buying only for selling. Too many has more than 1. With this tax and rising RE prices they will not lose too much. This tax just help to share speculative profit with all Canadians and help cities with budget and decreasing rent. Cottages should be excluded from taxation

In my opinion much better would be capital gain tax. Should be flexible. For example,
if you sell :
within 1 year after buying – 95%
1-2 years – 90%
after 3 years – 70%
after 5 years – 30 %
after 10 year – 5%
more than 10 years – 1%

So, if you buy RE to live in – you will not care about this. If for speculation – you should pay.

Of course should be some rules. For instance, if one of the partner pass away or received full time disability after buying house and b’s of that other have to sell – no tax, doesn’t matter how many years pass.

#120 Sunshowers on 06.04.21 at 8:32 pm

#116 Stoph

Oh, you misunderstand, sorry if I’m being unclear.

I don’t think that the government should give people places to live as a way of reducing Canada’s inflated housing market. I’m not 100% sure that would work anyway.

I think the government should give people places to live because I believe that shelter is a human right, one that carries with it a duty not to exclude those unable or unwilling to pay, much like our healthcare system and K-12 education.

There’s no reason why we can’t treat shelter the same way we treat healthcare and K-12 education, it’s been done before in the past.

https://youtu.be/LVuCZMLeWko
Skip to 3:35 if you just want to cut to the important part, the first bit just outlines the housing crisis as it stands in the USA. Interesting, but not particularly relevant.

#121 Nonplused on 06.04.21 at 8:34 pm

“Most people have no idea they have no right to own property. Seems worth pointing out occasionally. – Garth”

But there is something to be said for the rule of law. If you bought it with your own money, the government should not be able to seize it without fair compensation. Sometimes they have to do that, say to build a road or something, so we have “eminent domain” laws. But if the government takes away the right to own something you bought and paid for the economy will collapse. No economy can survive without laws.

A good example of this is what’s going on in California, where several jurisdictions have decided not to prosecute shoplifting offenses under $950. Guess what’s happened? Stores are closing because many people aren’t paying. The guards don’t interfere because they know the cops won’t do anything and the management doesn’t want to put their staff at risk of a hostile conflict, so it has turned into a free-for-all. But you can’t run a business that way. So if you are Target and you have a store that is being emptied daily and many people aren’t paying for what they take, what are you to do? You have to close. This is bad for everybody, because now you have to drive that much further to get your stuff, if you can get their before that store closes too.

Laws are important and they must be enforced. If the law is not enforced, whatever social construct the law was meant to enforce, in this case “thou shalt not steal”, soon becomes old news and whatever social chaos the law was meant to prevent soon becomes reality.

This is why the “defund the police” thing is so absolutely perhaps the most insane idea ever envisioned. Can you imagine what would happen in certain neighborhoods if laws against theft, rape, murder, drug dealing, pimping, squatting, fraud, etc. were no longer enforceable?

Ya, sure, most people aren’t going to do those things until they have to because they’ve already had all they had stolen. But some will. And then it spreads like a meme. “Why should I pay for my groceries if other people aren’t?” But then the next thing you know the store is closed because they cannot operate unless social norms against theft are enforced.

Disclaimer: Fair taxation is not theft. Targeted taxation usually is.

#122 Sail Away on 06.04.21 at 8:37 pm

#113 Sunshowers on 06.04.21 at 7:48 pm
#107 Sail Away on 06.04.21 at 6:48 pm

And if you are human, but not Canadian, does this inalienable human right you describe apply?

———-

It would apply if we could do away with primitive notions like citizenship, and just treat humans equally no matter what geographical area they were born in. But it would apply in whatever nation that person is a citizen of, unless they’re from a backwards failed state like the USA.

But you see the difference, yes? A “right” to something can easily be rendered useless and impotent without a right for it to be provided to you, and it’s especially vacuous in the context of shelter/housing. The precedent for a right to provision exists in health care systems worldwide, it is not a novel concept.

———-

Believe what you will. My pointing out inaccuracies and emotive conclusions won’t change your mind.

#123 VladTor on 06.04.21 at 8:40 pm

#91 the jaguar
Where is VLADTOR?

I’m here!

Vladimir, I surmise…just like the current Russkie Prez.

Thank you. I wish!

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

Answer on your question:

“We, like the Central Bank, have made a decision to reduce the NWF’s investments in dollar-denominated assets. If today we have 35% of the NWF’s investment in dollars and 35% in euros by structure, then we have decided to withdraw from dollar assets completely, ” Finance Minister Anton Siluanov told reporters on the sidelines of SPIEF-2021.

The share of the euro will grow from 35% to 40%, the yuan – from 15% to 30%, the pounds – will decrease from 10% to 5%, the yen – will remain at 5%. The share of gold is set at 20%

Here is why:

The decision of Russia to completely withdraw the funds of the National Wealth Fund from dollar assets was made against the background of sanctions threats and was discussed at the highest level, First Deputy Prime Minister Andrei Belousov told reporters on the sidelines of SPIEF-2021.

“Yes, it was discussed,” he said, in response to a question whether the decision, announced earlier by the Ministry of Finance on Thursday, was passed to the level of the country’s leadership.

“This is a sensible decision, this is also due to the threats of sanctions that we received and perceived from the American leadership,” Belousov said.

#124 VladTor on 06.04.21 at 8:48 pm

#91 the jaguar
********************
in addition:

The head of the Ministry of Finance Anton Siluanov said at the SPIEF that Russia is fundamentally changing the structure of investments of the National Wealth Fund, completely abandoning dollar-denominated assets, whose share was still close to half. At the same time, the share of the Chinese Yuan will double and the euro will increase slightly. The share of gold assets in the structure of NWF investments was also recorded.

Initially, the structure of NWF investments was as follows: 45% each for the dollar and the euro, 10% for the pound sterling. In February of this year, the Ministry of Finance announced that Russia changed the currency structure of the NWF funds, giving 20% ​​to Asian currencies – 15% Yuan and 5% yen. For this, the share of the dollar and the euro was subjected to the same reduction. At the same time, amendments to the Budget Code were adopted, allowing part of the NWF funds to be placed on deposits and balances in bank accounts with the Central Bank in precious metals. To implement these amendments, a government decree was issued in May, allowing the NWF to place funds on accounts with the Central Bank in precious metals, in particular, in gold.

The change in currency structure, uncovered in February, proved to be just a prologue for much more radical changes. “We, like the Central Bank, have made a decision to reduce the NWF’s investments in dollar-denominated assets. If today we have 35% of the NWF’s investment in dollars and 35% in euros in terms of structure, then we have decided to withdraw from dollar assets completely, ” Siluanov told reporters.

The share of the euro will grow from 35% to 40%, the Yuan – from 15% to 30%, the pounds – will decrease from 10% to 5%, the yen – will remain at 5%. The share of gold is set at 20%.

The structure of the NWF’s investments will be brought to new proportions “quickly enough, within a month,” Siluanov said.

And:

When asked how this decision could affect the ruble exchange rate, the First Deputy Prime Minister Belousov replied: “Honestly? No way ‘

Buy Russian companies shares (add in your portfolio) -you will be among the winners ! Russia now fast growing economy.

#125 VladTor on 06.04.21 at 9:02 pm

Garth: Rents climb higher, not lower.

***********
Number is interesting.
Todays betterdwelling introduced some details about this:

Breaking down those numbers, StatCan only has rent increasing by 0.9% over the past year. Not much of an increase.

Most renters can tell you that is totally off, but more official sources also show that. Canada’s national housing agency estimates primary rental prices are up 3.7% in 2020.

StatCan numbers – from where? From CEO grandma?

What will be in 2021?

#126 Nonplused on 06.04.21 at 9:12 pm

#84 Sail Away on 06.04.21 at 4:00 pm

SS, you mistake a right for the responsibility of others to provide for you. This is common.

While shelter is a right, the provision of shelter is a benefit. Two different things.

—————————–

SA, it is hard for some people to realize that what they came to understand as a “right” when dad and mom were providing it is no longer a “right” when they are of age to provide for themselves. Adulting is hard.

#127 Drinking on 06.04.21 at 9:29 pm

Sigh, 99.9 % responding to Garths blog, get it!!!
Yet we are continuosly being worn down to accept the most damaging (scared tactics) almost genius to fall for it.

Most of us love the concept of Canada but unfortunately too many have taken advantage or have been taken advantage of a very corrupt system that plays region against region; until we become a country then there is no hope.

I just do not understand how politicians and so called leaders (CEO) can sleep at night. E.I. Air Canada CEO’s collected 10 million dollar bonuses with tax payers bailing the company out! I see no hope, what say you???

#128 Nonplused on 06.04.21 at 9:31 pm

#103 SunShowers on 06.04.21 at 6:00 pm

“A better example of a human right would be, as I had mentioned before, the Canadian healthcare system. Not only is there a right to healthcare, but there is a right to the provision of healthcare. Canadians cannot be turned away because they’re poor, or because the doctor doesn’t like their face, or any other reason. Your right to healthcare can not be rescinded by the government, or anyone else. It’s inalienable, a true human right.”

Nothing could be more delusional. Health care in Canada is a “collective”, not a “right”. If the government has to provide it, it is not a “right” it is a “benefit”. When the government goes away, so will health care. And health care is not “free”, it is just paid for collectively. The government has taken the role that insurers play in the US. It is probably better that way but it is no right. “Rights” are what you can do for yourself that the government can’t take away from you.

The classic example form the US of “the right to bear arms” is a good example. You can go out and buy a gun and the government can only take it away in limited circumstances. But that doesn’t mean the US government is handing out free guns. If they were, it would be a “benefit”.

And health care in Canada is no where near “free”. The government is the insurer, and they control costs by restricting access. Same as a co-pay in the US only you wait instead of paying.

#129 Nonplused on 06.04.21 at 9:46 pm

#113 Sunshowers on 06.04.21 at 7:48 pm
#107 Sail Away on 06.04.21 at 6:48 pm
And if you are human, but not Canadian, does this inalienable human right you describe apply?

—-

It would apply if we could do away with primitive notions like citizenship, and just treat humans equally no matter what geographical area they were born in. But it would apply in whatever nation that person is a citizen of, unless they’re from a backwards failed state like the USA.

But you see the difference, yes? A “right” to something can easily be rendered useless and impotent without a right for it to be provided to you, and it’s especially vacuous in the context of shelter/housing. The precedent for a right to provision exists in health care systems worldwide, it is not a novel concept.

—————————————

OMG, now I am expected to provide housing and health care for the whole world???? I am sorry, I don’t make that much money.

#130 Ponzius Pilatus on 06.04.21 at 9:47 pm

#24 Vladimir
So you’re telling us that Russia is abandoning the Dollar in favor of the Yuan and Euro?
Interesting.

#131 Maximum on 06.04.21 at 9:49 pm

I think the main issue for real estate is transparency. How can someone buy a million dollars house without RE registry – property transfert history, sale prices, RE property identification, etc…

Let’s compare that to a corp listed on a stock exchange. They have to submit Fin statements yearly, Revenue and income forecasts, make regulatory fillings etc..

How on earth, from a single individual perspective, who on avg owns 10k of shares of Apple per example, can pressure the regulatory bodies to enforce strict compliance on a million of things for publicly listed corps. While, the single asset that carries most of the risk for that same dude is as transparent as Mafia payroll.

Deuxièmement, RE taxation is just a mess. Land transfert tax, empty house tax, utlities tax, squirrels and birds taxes and the likes. This is Kafka at his best, and each addition in those flavors just create distorsions on each sides – owners and renters.

The right way to do it, is to simplify the tax code to tax any capital gains the very same way. I know, lots of work, but when all capital gains will be treated the same, every actors – outside the shady middle man – will get the best picture on opportunity cost.

Garth, keep doing your great work.
Writing could be sketchy, be kind on a QC frog ;)

#132 leebow on 06.04.21 at 10:11 pm

#124 VladTor

The whole fund is under 200 billion USD. So what, they’ll be selling 60 billion? Wow. Trump and other sanctions are on the way. No wonder they want to get rid of the US dollars.

#133 Sunshowers on 06.04.21 at 10:14 pm

#122 Sail Away
#128 Nonplused

A lot of nitpicky words that ultimately don’t explain why we can’t treat housing the same way we treat healthcare or K-12 education.

You can call it whatever you want, I don’t particularly care. As long as we get it.

#134 Russ on 06.04.21 at 10:18 pm

Stoph on 06.04.21 at 4:13 pm

Then shelter isn’t actually a human right, and I question why you say that it is, since you don’t seem to think that it should be.


SA
yada yada,

While shelter is a right, the provision of shelter is a benefit. Two different things.

—————————————————————

Let me see if I get your thinking SA. Just because Americans have a right to bear arms, doesn’t mean that the government has to buy everyone a gun.

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

Hi Stoff,

That amendment of the American constitution is often misinterpreted due to a typo over the ages.

The original intention of it was to allow Americans the right to wear T-shirts. It was largely supported by the cotton industry.

As many laws & local edicts go, it is to support special interests & corporations.

#135 the Jaguar on 06.04.21 at 10:29 pm

@#123 VladTor on 06.04.21 at 8:40 pm
#91 the jaguar
Where is VladTor?

I’m here!

Vladimir, I surmise…just like the current Russkie Prez.

Thank you. I wish! ++++++++++++++++

I knew it! Fantastic! We’ve got our very own Alexander Ovechkin / Dmitry Orlov bloggie dog!

(That’s Dmitry Orlov the writer, not the hockey player peeps!).

Somebody pinch me! Schastye!

#136 Job#1 on 06.04.21 at 10:35 pm

Sunshowers #113, #120

“It would apply if we could do away with primitive notions like citizenship, and just treat humans equally no matter what geographical area they were born in. But it would apply in whatever nation that person is a citizen of, unless they’re from a backwards failed state like the USA.”

What exactly does that mean? “…do away with citizenship…but whatever nation that person is a citizen of.” These are mutually exclusive terms. You better make up your mind how you intend to participate in the social compact. To which authority do you intend to remit your fair share of taxes? The World government?
And what’s that bit about the failed state like the US? That failed state that everybody is clamouring to get to?

And this: “…one that carries with it a duty not to exclude those unable or unwilling to pay,” What do you mean unwilling? Like tax cheats or welfare scammers? or the Parkdale “keep your rent” movement from last year?

You spout disjointed pieces of paint-by numbers/cut-and-paste wisdom gleaned from boiler-plate SJW neo-marxist ideologies, without being able to fit the fragments into a cohesive whole.

I get your message. Society “owes” you, or them, or the oppressed, or whomever, whether or not you’re willing to contribute to the social weal.

Whatever happened to Economystical? A free lunch and nobody in the kitchen. Apparently he/she has some adherents, lost and wandering in the desert of ignorance.

#137 Linda on 06.04.21 at 11:03 pm

#72 ‘Sun’ – there is this thing called a homeless shelter. You can stay there, rent free, for as many nights as you want – always presuming there is a space available, that is. Like health care, the homeless shelter is available to whoever shows up at the door.

Of course, when folks talk about the ‘right’ to shelter, they are NOT thinking about staying in a homeless shelter. Nope, they are thinking about a place of their own, complete with all the amenities. But such things cost money. Tricky, that.

#138 Stoph on 06.04.21 at 11:13 pm

#120 Sunshowers on 06.04.21 at 8:32 pm

—–

No need to apologize about a misunderstanding. In retrospect, I was being presumptuous.

Interesting video. The proposition of the government to provide at-cost housing (as I understood was the case in Vienna in the 1920s) that people actually want to live in is reasonable in principle. (This is similar to some other government services). The devil would be in the details though to ensure its success.

My uneducated opinion on why the Vienna situation worked vs. massive housing projects in the States is that it’s less about the quality of construction or amenities like courtyards, but rather about who lives in them. In Vienna, it seems like you’d have all cross-sections of society living in government housing (the doctor living next to the plumber living next to the grocer) whereas if you put the down and out all in a housing complex you still haven’t dealt with the issue of why people were down and out in the first place – I don’t think the reason is just because the didn’t have a roof over their head to being with.

I see housing as a benefit. Yes, someone shouldn’t get kicked out where they live because they got sick or lose their job, but that’s where tenancy laws come in to ensure fair treatment. They need to be both fair to the tenant and the landlord.

Shelter though is separate from housing. There should be options other than living on the street for people who are down and out.

#139 yogo21 on 06.04.21 at 11:16 pm

#115 Nothingtaboo on 06.02.21 at 5:21 pm
We hold businesses accountable and payable for their sins, so why not the Catholic church. Lets have them give 1 million dollars to the descendents of every missing residential school child. So that should start with the 215 million dollars with Kelowna. This should start to get some healing done.

Why is this always about money? – Garth
———————————-

Well its not about logic.

#140 Moses71 on 06.04.21 at 11:52 pm

YEah, it’s called raise interest rates. Look at inflation. Mingle with the rules but they know what needs to happen. Just needle it up..Just do it—MORTGAGE RATES

#141 Michael in-north-york on 06.05.21 at 12:11 am

Unfortunately the new policies won’t be very effective, and they create a massive incentive for fraud. Sorry, for tax optimization.

Spouses declaring themselves separated, or even filing for divorce, in order to claim two properties as principal residences: impossible to nab.

People “renting” to an adult son/daughter of their friends, who doesn’t need the place and won’t actually move in? Or, forging a rental agreement with nonexistent tenants? Professional “multi-tenants”, who get paid for providing their IDs and signing rentals in multiple jurisdictions? Possible to nab in some cases, but that will be hard and laborous.

#142 Michael in-north-york on 06.05.21 at 12:28 am

A better set of policies:

1. In the urban areas, calculate the property tax based on the property size rather than market value. Gives a much better incentive to use land rather than hoard it.

2. Cut the zoning restrictions. Unless there is a utility capacity problem, multi-storeys have to be allowed in most places. If the only obstacle is that the locals don’t want new residents, or don’t want a shadow over their backyard – tough luck.

3. Dramatically enhance the landlord protection. If the tenants don’t pay, then the city or the province have to either evict them, or compensate the landlord for 90% of the unpaid rent.

Both the rentals and the properties for sale will become a lot more affordable.

And for short-term / speculation capital tax: #119 VladTor on 06.04.21 at 8:19 pm , proposed a pretty good scale.

#143 fishman on 06.05.21 at 1:01 am

I’m with VladTor here. My Russian ETF keeps plonking along. Steady Eddy. Even though over weight in oil. With electrification & western political pressure Russian’s are predicting a future with huge surpluses of diesel fuel. In this country farmers, fishermen,truckers have watched diesel go from 5% to 20% of fixed cost. Even more on bad years. A country with fuel costs at 5% is a country like ours 30-40 years ago. I think if your young, you got a better chance of getting rich there than you do here nowadays. And as a side benefit those slavic green eyed blondes are unbelievable.

#144 Ponnaps on 06.05.21 at 1:16 am

You want LLs to pay more so rents can rise? – Garth

Same argument can be made for borrowing rates for business.. why are they high, so customers end up paying higher prices?

Whatever the consequences(and who are we to prejudge ,let the market decide), LLs cannot be allowed to run a business borrowing at such low rates that are not meant to subsidize them..

#145 TurnerNation on 06.05.21 at 1:28 am

Economic lockdowns not going away a long time.

.Ontario asks for stronger border enforcement again, says variants are threatening reopening plan (globalnews.ca)

— Yes Australia is the test zone.

https://www.theguardian.com › australia-news › may
May 20, 2021 — Scott Morrison insists vaccine passport key to unrestricted domestic travel.


— More purges in Kanada!

https://www.msn.com/en-ca/news/canada/another-senior-soldier-has-been-removed-from-the-vaccine-rollout-project/ar-AAKI8aP?ocid=News
Another senior soldier has been removed from the vaccine rollout project


– Fact. You require an Injection in order to hug your parent. I’m not editorializing. Their words.

.’Brief hugs’ to be allowed in Ontario long-term care homes regardless of vaccine status(cp24.com)
“Where both the resident and visitors are fully immunized, close physical contact, including handholding, can now take place safely,” the government added while emphasizing that all parties should continue to wash their hands and mask appropriately.”


— Oof inflation.
The Globe and Mail reports in its Friday, June 4, edition that hefty new tariffs on living-room furniture from China are delivering severe sticker shock for Canadian buyers and retailers. The Globe’s David Parkinson writes that the Canadian industry has suffered badly from years competing on an uneven playing field with Chinese producers. Last month, the Canada Border Services Agency issued a preliminary ruling on a complaint spearheaded by Palliser Furniture, which is one of Canada’s biggest makers of sofas, chairs, sectionals, ottomans and the like. It alleged that China and Vietnam have been harming this country’s manufacturers by “dumping,” or sending heavily subsidized furniture to Canada at prices even cheaper than in the countries’ domestic markets. The CBSA agreed in a big way, assigning provisional duties as high as 296 per cent on some Chinese exporters, and up to 101 per cent on some Vietnamese suppliers The ruling flew under the radar at first, but has begun to make the news as consumers have seen price tags on affected goods as much as tripling.
© 2021 Canjex Publishing Ltd. All rights reserved.

#146 under the radar on 06.05.21 at 5:48 am

Being a landlord with purpose built units and mix of industrial and commercial properties is not fun.
We always have issues to deal with that require capital and time. Every time a residential unit turns over it costs us about 2k and that’s when we don’t need to buy new appliances or rip out a bathroom or put in a new kitchen. Most tenants I encounter do not take care of their units. Appalling comes to mind.

#147 the Jaguar on 06.05.21 at 7:53 am

Excerpt from this mornings newspaper. What happens when you throw money at a problem:

“We’re trying to find skilled painters, skilled carpenters, even an administrative bookkeeper. I can’t. It’s very difficult to find anybody,” Newsam said.

From construction to manufacturing to hospitality, all sorts of industries are having trouble finding workers, raising questions about how quickly the economy can return to full steam, even as provinces slowly reopen, and whether wage hikes will be needed to entice people back to work, thereby fuelling inflationary pressures.”

Oy vey.

#148 millmech on 06.05.21 at 8:21 am

This is not an issue, just rent the abode out for a dollar to yourself.

#149 The mighty buck on 06.05.21 at 8:37 am

I long for the day when people understand basic economics.

Countries claiming they will ‘stop using the US$’ or will ‘sell their US treasuries’ are making useless gestures that the uneducated masses take seriously. Sigh.

To those who take these political blowhards seriously, please explain: 1) Who will they sell their US$ to? 2) How will they sell products to the USA (by far the biggest consumer in the world) if they don’t accept US$ in payment?

The replies to this should be hilarious.

#150 Cow Man on 06.05.21 at 8:48 am

Sir Garth:

Not to minimize the potential impact of which you write in this post, it all pales to the Natural Heritage Designation imposed on farmers in the Greenbelt. The Natural Heritage Designation includes a 45 metre set back distance from the top of the valley bank and from woodlots, or wetlands. Any buildings within that set back are now existing non conforming. They cannot be replaced. All previously tilled soils within the Natural Heritage Designated area are no longer allowed to be used for agricultural purposes. Some might consider such a designation theft. Especially if they were the farmers who have titled ownership. Yet all that is written is praise for the “preservation” of these lands. Confiscation would be a more appropriate term. Except the farmer still pays the property taxes. Farmers in Canada make up less than 1% of the voter base. So there is little push back on the Chrystia’s, Kathleens and Catherine McKenna’s in the positions of power.

#151 Gravy Train on 06.05.21 at 9:02 am

#146 under the radar on 06.05.21 at 5:48 am
[…] Every time a residential unit turns over it costs us about 2k and that’s when we don’t need to buy new appliances or rip out a bathroom or put in a new kitchen. Most tenants I encounter do not take care of their units.[…] Here’s a little-known secret: have potential tenants complete (and sign) rental application forms, and thoroughly check references from current and previous employers and landlords. If everything checks out, also do a credit check. You’ll save thousands of dollars in repairs and maintenance. Best wishes. :P

#152 Dharma Bum on 06.05.21 at 10:17 am

How about if I say that I live full time in the house in Toronto and the wife lives full time up at the cottage.

We get along better that way.

Both houses fully occupied year ’round.

Knowwhutimsayin’?

Go away, you NDP pricks.

#153 Doug t on 06.05.21 at 11:01 am

#78 human wrongs

Troll alert lol

#154 greaterfool on 06.05.21 at 3:03 pm

these type of vacancy tax and/or non-residential tax will not make the house more affordable. Changing the capital gain rule on houses are going to have much more effects. Houses have been treated as financial assets now.

this is the fundamental problem. Houses should not be a pure financial assets. But now, it is, we Canadians make it be, then it should be taxed the same way as other financial assets. Primary residence exemption has been abused.

#155 David Greene on 06.05.21 at 10:15 pm

Nope, it’s a false equivalency. Housing is generally always a necessity (esp. considering Canadian weather patterns). Guns are generally not a necessity. **

**Notable exceptions for people in south Texas and Kentucky.

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

#88 Stoph on 06.04.21 at 4:13 pm

#82 Sail Away on 06.04.21 at 4:00 pm
#79 SunShowers on 06.04.21 at 3:39 pm

“And never will. – Garth”

Then shelter isn’t actually a human right, and I question why you say that it is, since you don’t seem to think that it should be.

——–

SS, you mistake a right for the responsibility of others to provide for you. This is common.

While shelter is a right, the provision of shelter is a benefit. Two different things.

—————————————————————

Let me see if I get your thinking SA. Just because Americans have a right to bear arms, doesn’t mean that the government has to buy everyone a gun.

#156 Greg Tanesh on 06.08.21 at 9:31 am

Liberals, NDP, Green Party etc. stop talking about the peanuts $1,400 or $2,000 a month Guaranteed Annual Income or Universal Basic Income or Unified Social Assistance Program. Canadians deserve much better. Give everyone $10 million immediately so we can all be wealthy and fight the wealth gap and inequality.