Bubble boy

The focus narrows. There are now but two issues in the federal campaign. Healthcare and houses. And of those, guess which the biggest cohort of voters cares about most?

Bingo. Unleash the hormones. Mr. Socks has gone full-on with house lust.

The Liberal real estate strategy is breathtaking. It has all the depth a plan formulated in the campaign plane washroom on the back of those handwipe packets. In other words, the government party is throwing everything it can possibly think of at the housing file because – all of a sudden – it might not ace this election. If the object is to make houses cheaper, it’s a giant fail. But, of course, the goal is to win votes.

In case you missed it, here are the main points. Do not attempt to read this while drinking anything.

  • After gutting contributions for everybody’s TFSA, Trudeau wants to create a new one. But only for people under 40. And only to buy a house. They could stash $40,000 in there, grow it tax free and use the cash for a downpayment. Forty grand equals almost seven years of regular allowable TFSA contributions, by the way, but this amount could instantly be sheltered for a property. This is in addition to tax-free RRSP withdrawals ($70,000 per couple) to buy real estate. Now two newbies could suck $150,000 from registered funds with no tax payable. Over 40? Saving and investing for retirement? Well, suck it up. This is the Realtor® PM.
  • The federal government would also cover most closing costs by doubling the first-time homebuyers tax credit, from five grand to $10,000.
  • Mortgage borrowing would be made less expensive and leverage encouraged by slashing the cost of mandatory CMHC insurance for all high-ratio mortgages (less than 20% down). The premium would drop by 25%, saving more than $6,000 on average.
  • A multigenerational tax credit would be created to encourage families to buy and expand housing or to add a secondary unit.
  • Over $1 billion will be spent on a “rent-to-own” program which would “create a pathway” for tenants to become owners of a property within five years.
  • And the feds would hand over $4 billion to cities for a “pool of cash” to be used if they created “middle class housing.”

Can you think of additional ways to increase demand for scarce listings, rendering it more attractive and appealing for first-time buyers to compete for houses and further escalate prices? Nah, me neither.

There’s more. Lots more.

To feed unsubstantiated public myth and copy the Cons and Dippers, Trudeau would also ban any non-Canadians from buying a property. The Libs would find another $3 billion to repair “affordable” homes or convert office space (if people want to WFH they might as well move into their cubicle). The government would tax the poop out of anyone buying a home and selling it before 12 months had passed. But keep it for 13 months and pay 0%. They’d expand the anti-foreigner vacant home tax to apply to vacant land.

And more. T2 would create a “Home Buyers’ Bill of Rights”. Yes, some of these things are good, needed and responsible. But they fall 100% under provincial jurisdiction. They include a ban on blind auctions, total transparency on a property’s price history, increased realtor disclosure, automatic mortgage deferrals in the event of job loss (because a house is now a right) plus the legal right of buyers to a home inspection.

Oh, and did I mention that the Libs will build 1.4 million homes in three years? That came after the Con promises to put up a million. Both of those numbers are, of course, fiction. The entire private sector produces only about 200,000 units nationally, the bulk of those being condos.

Meanwhile, have we heard this story before? Like in 2015? That summer the average detached GTA house cost $792,000 as Mr. Trudeau was campaigning and promising to increase affordability. Now the average is $1,405,500. Yes, that’s a 77% increase since you saw this headline…

So, let’s face it. Governments and politicians seeking power have been instrumental in increasing demand and inflating the prices they now claim they can fix. The Liberals increased the limit on the RRSP Home Buyers plan. They oversaw a monetary policy creating historically-low rates. They supported real estate values during the pandemic with massive transfers of money and widespread mortgage forbearance.

They created a shared-equity mortgage encouraging buyers to borrow with minimal downpayments. And they shoveled $70 billion over ten years (this is number six) into a national housing strategy. The last economic statement contained $13 billion for the plan. All this money was to create 160,000 units. They have not been delivered. And now we’re told the “new new” version will create 1.4 million.

Now you know the plan. When something doesn’t work, keep doing it.

About the picture: “I am a fan of the blog and am a daily reader,” writes Michael. “My fiancé and I are in our late 30s and have been trying our best to build up our retirement savings. We both spent our 20s seeing the world (her becoming a divemaster in Thailand and me touring in a band), but in the last few years we’ve made it our mission to eradicate debt and build net worth. And by being flexible renters, we are succeeding! We live lightly and take up house sitting opportunities for most of the year, which keeps our expenses very low. This has freed up a lot of cash to reduce debt (which will be zeroed out by the end of the year) and invest in low cost index funds. If you’re in need of another dog photo for the blog, I’ve attached a photo of our pooch Dexter.”

195 comments ↓

#1 BlogDog123 on 08.24.21 at 2:26 pm

flood the market with supply, supply, supply of houses…

over-rule local NIMBYs and convert those big backyards into houses, houses, houses… with a small backyard each.

supply, supply, supply is the answer that no politician seems to be figuring out!

#2 dave on 08.24.21 at 2:27 pm

If Trudeau cared are real estate pricing – he would have already done something about it! Screw him!

#3 A01 on 08.24.21 at 2:32 pm

Garth get this, I tried to find the conservative candidate for my riding (Parkdale-High Park) and can’t find the info anywhere. I even emailed the local conservative association, no response. Zero chance they’ll win here, but no candidate??? WTH

#4 Trojan House on 08.24.21 at 2:33 pm

Let’s see if the mills fall for it. Never fails to amaze me how governments always make thing worse but people buy this crap.

#5 My Body My Choice on 08.24.21 at 2:34 pm

The 2021 Canadian Election Rhymes:

Trudeau is your foe, and must go.

O’Toole wants to rule, tries to look cool, but is likely a globalist fool.

Singh, the man who would be king, aligns mostly with Beijing.

Annamie is your frenemy: she’s the queen of ennui and entropy.

The PPC stands for you and me: a true north strong and free,

liberty, prosperity and personal responsibility – can’t you see?

On election day, don’t delay, okay? Else, you’ll pay.

#6 Shawn Allen on 08.24.21 at 2:35 pm

Just Wow! I’m speechless.

#7 Prince Polo on 08.24.21 at 2:36 pm

I guess dear Photo-op Minister missed my previously sarcastic recommendation to deposit $5M into each taxpayer’s account for the sole purpose of attaining 100% real estate ownership in this country. After all, aren’t all renters, a stain on his legacy? Excuse me, while I vomit in a garbage can…

#8 erik mtl on 08.24.21 at 2:38 pm

I feel that the ”About the picture” comment is more interesting than usual. I believe that the people described in this couple are closer to the average or median Canadian than the average blog commenter. And I’m not saying that the content of Garth’s post is interesting or inspiring to me or other reader’s, but I do wonder if it speaks to a large cohort of Canadians, however misguided or misinformed they may be. I personally still don’t get what’s so attractive in buying and owning a house, especially at these current day, incredibly high prices.

#9 Jay on 08.24.21 at 2:42 pm

If they really want to make housing affordable than they should do nothing so no one could afford them and at that point the turnaround will begin

#10 alexinvestor on 08.24.21 at 2:45 pm

The question is, why are the guys so bad at crafting policy. Is it:

a) stupidity – they lack understanding of 2nd and 3rd order impacts
b) willful blindness – much like DiCaprio on the environment, want to help people but unwilling to make the necessary personal sacrifices needed
c) liars – they actually like high housing prices

Regardless of motivation, if these guys get in, buy RE before the stampede because prices ain’t going down under their watch if they can help it.

#11 Woke up this morning... on 08.24.21 at 2:47 pm

Justin Trudeau and all his underlings. WOW.

The name of the game is: YOU EITHER COMPROMISE YOUR PRINCIPALS, ETHICS, INTEGRITY OR THERE IS NO ROOM FOR YOU.

Have we seen enough yet? Enough of the incredible lack of ethics? Enough of the compromised principals? Enough of the lies? Enough of the cheating? Enough of the deceptions?

Have we seen ethical individuals, with integrity stand up to them past few years?

How has it worked out for those people with these most noble traits? Jody did not compromise. How was she rewarded in the end? Did we demand to see her rewarded?

HOW IS COURAGE AND BRAVERY BEING REWARDED? …when someone stands up to lack of ethics, integrity, corruption in our organizations. HOW?

Oh…I see. So it’s a net-loss game to have ethics and integrity? Usually big loss at that?

Integrity and ethics are hardly profitable traits it appears. Not really rewarded much. Kind of a “nice guys finish last” category of qualities for fools.

And so, what makes us think these compromised values lacking ethics and integrity are present and fully accounted for in other organizations overseen by humans.

In those responsible for the country’s finances for example?

In those responsible for housing?

In those overseeing industry?

In those upholding our civil rights and freedoms?

In banking?

In charities?

Tell me of blogdogs, where can I find ethics and integrity exemplified by humanity? I need to see humans driven by more than just money and power. Surely that cannot satisfy and fulfill the human soul as the body nears end, can it?

#12 Don Guillermo on 08.24.21 at 2:50 pm

PM “Cry on Demand” T2 doesn’t want to waste his brain power thinking about monetary policy and Freeland is great at the Lyin’ Game. Who wouldn’t want to vote them back?

More importantly I saw the Stones in Vancouver June of 1972 and again in Istanbul September of 1998. Charlie was definitely the class of the group. RIP Charlie Watts!

#13 George S on 08.24.21 at 2:51 pm

Just like moths flying into a window screen and bouncing off, flying into it again, and bouncing off, ….. until it dies.

#14 604sam on 08.24.21 at 2:52 pm

Third?????

#15 XEQT and chill on 08.24.21 at 2:55 pm

Next thing you know, the Liberals are going to start saying they will make sure the 2021 election is the last one done under the FPTP system ;)

#16 Paterfamilias on 08.24.21 at 2:55 pm

I should have bought more houses, back when they were cheap. Like, last week.

#17 Cto on 08.24.21 at 2:56 pm

So….the right thing to do falls squarely on the heads of central bankers, what will they do?….000000000

#18 Soviet Capitalist on 08.24.21 at 3:00 pm

It seems to me that my assessment of Trudeau being the Canadian version of Chavez still stands true.
Some claim he is simply dummy.
It doesn’t seem to me that is the case. He is a very smart sociopath. There is no ethical/moral/legal barrier he is not willing to cross with ease to win this election. He counts on Canadians being ignorant and not being able to see through him.

#19 Former Liberal Voter on 08.24.21 at 3:00 pm

This is simply unbelievable. Trudeau and company (and the rest of the parties for that matter) don’t seem to get that there is no link between wages and housing costs anymore. Most of what he proposes is just going to further juice housing costs. How does this help in an environment where even high wage earners are priced out?

And the age discrimination on the first-time home buyer’s grant is BS. I’ve been saving for years to buy a place in BC and I just turned 40. So I get nothing because prices have been out of reach for ever? If you’re a first time home buyer, you’re a first time home buyer. Age shouldn’t be a factor.

#20 Arm chair economist on 08.24.21 at 3:01 pm

The liberal plan will be as ineffective as their last plan. They are trying to counter the con plan. Com plan is the best plan to tackle housing prices i have seen ever. Gov policy had driven up prices for decades, now it is time to focus on supply, freeing land, and removing red tape.

#21 some guy on 08.24.21 at 3:02 pm

This election is more depressing than the 4th wave. Canada needs an adult in the room, the students are running the class.

#22 Nonplused on 08.24.21 at 3:03 pm

Consider this article and the accompanying chart:

https://mishtalk.com/economics/instead-of-criticizing-billionaires-over-taxes-we-should-praise-them

So what we see (this is US data but I’m sure Canada is similar) is that the top 5% of earners pay about 40.4% of taxes. The top 20% pay about 66.5% of taxes.

So what is the end goal of “woke justice” in terms of taxes? Shall we have the top 20% pay 90% of all taxes? Unfortunately if you check the math it can’t be done because they don’t have enough money. There simply isn’t enough of them.

We are at peak tax.

#23 NSNG on 08.24.21 at 3:06 pm

Housing and healthcare.

LOL!

Just remember that before we all go off with voting cards in hand demanding government fix those things, those very things are in the state they are in because government put them there.

#24 crowdedelevatorfartz on 08.24.21 at 3:06 pm

This blatant stab at the younger vote smacks of desperation….and the campaign is only a week old.

TFSA or a “housing TFSA” doesnt mean squat if the younger voters dont have the cash….broke is broke.

As for “deferred mortgage payments if you lose your job….good luck with the deferred payments…years on top of the existing mortgage.

1.3 MILLION houses in 3 YEARS ?
bwahahahahahaha
Who’s building them?
Factories in China?

Total pie in the sky BS.
Vote accordingly.

#25 Ponzius Pilatus on 08.24.21 at 3:07 pm

Let the flood gates open.
The blue wave is coming.

#26 cuke and tomato picker on 08.24.21 at 3:11 pm

I would suggest that to solve the housing problem they
should look at building on crown land and bringing back the MURBS that T1 featured in the 70’s. We bought into the MURBS got the tax advantage when our incomes were high and later sold them it worked out well for us.

#27 Stuck in NB on 08.24.21 at 3:12 pm

Our brain-ducked dear dealer doesn’t care about monetary policy nor seems to have a clue how economy works.

No wonder Morneau bailed

#28 J Bidon on 08.24.21 at 3:13 pm

Not voting for Mr Socks this time! Too many broken promises and BS. But aren’t all three parties the same?

#29 Howard on 08.24.21 at 3:16 pm

And yet, Garth, the Ontario Real Estate Board hates the Liberal plan.

“Liberal Housing Plan to Criminalize Hardworking Families”

https://twitter.com/BetterDwelling/status/1430238453757890562

#30 Scott on 08.24.21 at 3:16 pm

We will see when millions in Canada lose their houses, condos because they can’t afford to keep them. Just like his father, nobody will remember Trudeau Jr. He is already becoming a has been.

They have nothing but the same old real estate crap. You know $40,000 will be wiped out quickly within months, maybe a year or two when all his carbon taxes and other taxes going up like property taxes, gas taxes, electricity prices, land transfer taxes, food prices much higher inflation from all his money printing is ravaging your money real estate, debt junkies.

#31 Dolce Vita on 08.24.21 at 3:17 pm

“This is the Realtor® PM.”
-Garth

THAT was good.

– If my Mail In Ballot is the only vote counted in the election, that will be his new job.

——————-

Sorry people (and some great observations by yourselves), 7 h difference between Italia and EST. You’re typing, I’m asleep or watching old Law & Order episodes.

So here goes…

———–
#9 TurnerNation on 08.23.21 at 3:27 pm
Dolce: Israel’s “Cases” reach record high. The poster child. So what’s not working here. The needle, the tests, or a bit of both?
By now ever single person will have had it.

-Not a Doc so no clue as to why but yes, reason for SOME WORRY I’d say. Listened to explanations by others and they made no sense – antithesis of Occam’s Razor.
-Something else is happening.
-I think the vax WEARS OFF SOONER than medical authorities are saying & probably why the BIG PUSH for a 3rd jab by Pfizer.
-NOT WORRIED YET. 26 deaths in Israel yesterday. Disconnect between cases and deaths. Will worry when many more end up in the morgue even if vaxd.
-Israel passes 1 million total cases, 9831 new cases, 6.6% positivity rate (high vs. Canada 3.6%, Italia 4.1%), 8.8M their 2021 population:

https://www.timesofisrael.com/israel-passes-1-million-total-covid-cases-approaches-one-day-record/?utm_source=dlvr.it&utm_medium=twitter

-Though, Israel deaths curve pretty steep this wave (why some worry by me). My guess, 3rd jab more targeted to Delta in the works for all us humans that would like to live and be healthy. Started already there.

https://i.imgur.com/5jBnVl1.png

———–
#29 Woke up this morning**… on 08.23.21 at 4:34 pm
Euro final, Green Pass, Privacy, Protection

-Euro Final no Green Pass in the UK to start with. 100’s of gate crashers before the game shown on Italian TV.
-UK Medical Community dead set against the Euro final with that number of people +70,000 in close quarters. Most I have found is that 3000 or so infections emerged from the game (no deaths).
-The fact anyone that carries a phone or uses Google Search means they have thrown their privacy out the door. “Does privacy, personal freedoms trump the health well being of fellow citizens?”
-I say no. “Do no harm to others”
-Ask Mad Max if he gets ICU Delta if he will not go to hospital on principle? Deeds and actions speak louder than words.
-Listen to what people say, watch what they do, compare and therein lies the truth of their convictions.

** I love that Frampton song.

———–
#35 Ponzius Pilatus on 08.23.21 at 4:53 pm
Me wanting to expedite Elections Canada mail in vote package.
-I know. Push, push, push…that’s all I do, right?
-Still love Canada, owe everything to her, get taxed by her and consume little of her resources by living in Italia…figure I have a say.
– Besides this Fed Election so far is just too juicy to pass up on.

#32 Howard on 08.24.21 at 3:18 pm

So Trudeau is offering every deadbeat mortgage borrower a 6-month deferral whenever desired.

Will renters will given a 6-month rent deferral when desired? Will anyone in the MSM ask him this question, and how it’s fair to give homeowners a break on their financial obligations but not renters?

#33 F Cook on 08.24.21 at 3:19 pm

The government’s modus operandi on housing is fake it til you make it, with the “make it” part at an indeterminate date.

#34 Howard on 08.24.21 at 3:20 pm

Here’s a link to OREA’s press release trashing the Liberal housing plan.

I wonder if this is a “wink-wink” to convince young people that the Liberals are standing up to the real estate mafia, while secretly loving this plan?

https://www.orea.com/News-and-Events/News-and-Press-Releases/Press-Releases/August-24-2021

#35 Dolce Vita on 08.24.21 at 3:25 pm

“if people want to WFH they might as well move into their cubicle”

Dear Overlord:

-Thanks for the tip.

——

Too funny Garth.

My take is the Liberals are desperate to throw all those RE goodies at < 40 yrs old Cdns.

Problem is that it is all in the future stuff.

The locals are restless NOW. Doubt it will stick or gain traction and be seen for what it is, pandering.

Then again, expect the unexpected in this Pandemic.

#36 Bubble Boy on 08.24.21 at 3:28 pm

Today’s blog has an 80’s synth song!
(also good for last week’s Bubble Boy)

I give you, I Satellite, Bubble Boy

https://www.youtube.com/watch?v=q0Sl7v-dQRQ

80s LIVE ON!

#37 BlogDog123 on 08.24.21 at 3:30 pm

spending more and more…

Cutting gov’t spending is not in fashion anymore. Nobody talks about cutting government spending. Always increasing.

A few ideas where to cut:
1. DB to DC pensions for gov’t. Yes some nasty strikes, but gotta control costs.
2. Elect not to do certain things. Like propping up some areas of science/research. Outsource or coordinate with another country ‘shared services’ model.
3. Anniversary/commemoration days, did we really need Canada 150?
4. OAS / GIS clawback at lower salary levels. Yep, your free cash goes down, but hey we’re $1T in debt.

etc…

#38 In Dog We Trust on 08.24.21 at 3:32 pm

And add to this growing economy… YES growing the economy by growing the number of immigrants allowed into this wonderful part of the earth and yes, buying a house becomes an ever better investment every single day of the year…

#39 Nonplused on 08.24.21 at 3:33 pm

Garth, today’s post is a sad comment on the state of the nation’s understanding of economy and finance.

The only way to make housing more affordable is to build more of it. This is best left to the private sector who will build anything and everything they can if there is a buck in it. But the public sector has to get out of the way. And the NIMBY’s.

As you have rightly pointed out, you can’t make things “more affordable” by extending financing ad nauseum. That makes things more expensive, because the monthly bids more. The buyer ends up at the same place on the monthly and the home floats ever higher in price to suck up all the extra money.

These proposals are a great example of “double-speak”. What a great boost financially to existing home owners and developers! Without doing a darn thing to address the supply constraints! I guess we know who the Liberal political donors are now. Developers and property owners.

Why should a special tax be applied to vacant land owned by foreigners? You can be assured that nobody is more interested in subdividing and building on that property and flipping it or renting it out than Blackrock. If they can get it rezoned. Which they can’t.

——————————————–

“After gutting contributions for everybody’s TFSA, Trudeau wants to create a new one. But only for people under 40. And only to buy a house.”

I’d like to see that one get through the supreme court. The concept of “equal rights” is threatened when programs are introduced based on superficial criteria. What if someone who is 41 wants to save for a house? This won’t go through.

—————————————

Hmmm $1 billion for “rent to own”, $4 billion for a “pool of cash”, and $3 billion for repairs, let’s see that’s $8 billions if I do my maths correctly. That’s the equivalent of 16,000 $500,000 houses. Not 1.4 million. This seems like it must be a phoney baloney kickback to somebody. About as useful as $5,000 energy upgrade grant not grant.

———————————–

I can’t believe people fall for this crap.

#40 J-Doggo on 08.24.21 at 3:34 pm

Sooo, who do you vote for??! if no party has a platform that will ACTUALLY bring down housing costs, or at least stabilize them, then what can we do? how do i exercise my democratic rights and maximize effectiveness?

#41 Dolce Vita on 08.24.21 at 3:36 pm

#11 Woke up this morning…

“I need to see humans driven by more than just money and power. Surely that cannot satisfy and fulfill the human soul as the body nears end, can it?”

-Words dear to my heart. Besides “Who am I, Why am I here and What should I be doing?” your words* are an age old Philosophical debate going back to Socrates.

Gnothi se auton. An unexamined life is not worth living.

My favorite monikers.

Well, unless I’m in a bitchy mood then I always look to Kierkegaard, who will always have it worse than anybody you know (cheers me up).

*Why I suspect Plato wrote The Republic and his Philosopher Kings.

——————-

Though, I’m going to vote Con this election.

Vagary.

#42 Linda on 08.24.21 at 3:37 pm

Dexter looks to be cocooning from home:)

Well, JT is certainly trying to appeal to the younger voting cohort. Of course, those aged 40 & up are obviously ‘too old’ to benefit from the largesse about to be unleashed should JT & crew win. As for the funds being thrown at ‘affordable housing’ with the promise to build X number of units within Y years, heard that one before. Never delivered upon. For the house lusty who want tres luxe (which, surprise, cost bucks!) the word ‘affordable’ equates with low end, poor types who live in government built, subsidized housing in the rougher parts of town. Not what they are looking for. What they want is the ‘tres luxe’ at the ‘affordable’ price. Good luck with that.

#43 Don't mind if I do! on 08.24.21 at 3:37 pm

This couldn’t make me happier! I’ve got four kids that will all need a house within the next few years …. and a few hundred grand looking for a nice, air-conditioned tax shelter. And thanks to Mr. Trudeau and his silliness, it looks like XMas came early this year for my family … and next year …and, well you get the point.

Yesterday, this blog advised me to vote selfishly. And of course, I always follow the advice I find here.

So vote Liberal on September 20th and help me .. help myself.

#44 Nonplused on 08.24.21 at 3:42 pm

Column: The global energy chasm, in stark terms
August 24, 20217:40 AM Terry Etam

“A blind horse should be slow.”

“Driving at 600 mph is certainly never the fastest way to get somewhere.”

Mixing some metaphors from Principia Politica by Nassim Nicholas Taleb

———————————

The article is about energy but I think the quote applies to all things Trudeau.

Here is the article:

https://boereport.com/2021/08/24/column-the-global-energy-chasm-in-stark-terms/

In short, buy O&G. They aren’t making any more of it and the renewable thing just isn’t going to work. Energy, like real estate, will become one more thing subject to outrageous price increases due to misguided government interference.

#45 Dave on 08.24.21 at 3:42 pm

Trudeau has failed at many things, but especially on housing. The latest bubble was on his watch, where people had way to easy access to money for real estate. He has done nothing to curb offshore money laundering. He has flooded the country with immigrants which has created a housing shortage and increased the price of housing.

#46 Honest Realtor on 08.24.21 at 3:44 pm

The boom times in real estate ahead will be transformational for the financial wealth of average Canadians.

And this does not even yet consider the massive immigration boom we are about to see.

Price tripling by 2035 looks absolutely certain now to me in the best markets.

#47 Paul on 08.24.21 at 3:46 pm

“$70 billion over ten years (this is number six)”
Seems to mean ‘point number six’ etc,
‘(this is year number six)’ might be more clear…

“version will created 1.4 million.”
Ouch! ‘will create’

#48 Leichendiener on 08.24.21 at 3:47 pm

A01 I’m also in the area and would like to vote Conservative but realistically plan to vote NDP. I want the Liberals to change their party leader.

#49 Phil on 08.24.21 at 3:53 pm

DELETED (Anti-vax)

#50 Planetgoofy on 08.24.21 at 3:53 pm

Just a head shaker….good write-up.
Turdo is so predictable and pathetic…..maybe not that pathetic. People actually goble that sht up…thats pathetic.

#51 Sail Away on 08.24.21 at 3:54 pm

While the Prime Minister’s office made an absolute hash of the economy, the Minister of Finance nodded and smiled…

…she just nodded and smiled…

#52 Ponzius Pilatus on 08.24.21 at 3:57 pm

] #130 Don Guillermo on 08.24.21 at 12:14 pm
#122 Barb on 08.24.21 at 11:18 am
I sure hope Garth is going to be Mr. O’Toole’s advisor.
**********************************
] Pierre Poilevre will help keep him between the political buoys. Imagine having PP on the adult team as apposed to the head nodding Freelands, O’Regans etc.!
—————————
Yep.
He’ll be in charge of putting the 1,000 opium beds in the “welcoming” neighborhoods.
That task will take a pervasuave speaker.

https://vancouversun.com/news/politics/election-2021/election-2021-conservative-leader-erin-otoole-pledges-1000-treatment-beds-to-fight-opioid-crisis

#53 Faron on 08.24.21 at 3:59 pm

#126 Sail Away on 08.24.21 at 11:48 am

USD down a full percent past 3 sessions via DXY. For a currency that’s a cliff.-> China roars -> miners up. Don’t worry about me. Self-managed portion of my portfolio did extremely well past few days having zero to do with you.

So, file under Sail Away’s willful blindness in the face of fact. You know, like your inability to see the errors in Dr. Russ’ posts.

#54 The Ministry of Silly Socks on 08.24.21 at 4:01 pm

One would think the printing press would be overheated by now…Freeland must be one heck of a technician. Funny though I never see her in steel toes only stilettos.

#55 TurnerNation on 08.24.21 at 4:03 pm

We are this close to new Economic Lockdowns?

– Back to normal…soon! 2022-23 at minimum, likely 2025. How’s that Bank of Canada e-currency coming along…
Children will never again never know smiles.

https://www.journaldequebec.com/2021/08/18/une-normalite-qui-pourrait-devenir-permanente
UPDATE Wednesday, 18 August 2021 05:00
Questioned yesterday by a colleague of the Journal who asked him directly the question, the national director of public health Horacio Arruda did not rule out that the health restrictions could become permanent.

– —-
.Masks required in [Nova Scotia] schools as province returns to full in-class learning (atlantic.ctvnews.ca)

.Quebec Premier François Legault announced on Aug. 17 mask-wearing would be mandatory inside classrooms in junior colleges and universities (globalnews.ca)

.BC: Masks will be required for staff, students in Grade 4 and up for new school year. ‘students will have to complete daily health checks.’ (cbc.ca)

.Manitoba Will Require COVID-19 Vaccinations or Testing for Designated Government Employees. Mask Mandates also Return.(news.gov.mb.ca)

..Provincial employees who work with vulnerable people, including health-care providers, teachers and child-care workers, will have to be fully vaccinated, and masks will be required in settings including schools in Manitoba, Premier Brian Pallister and Dr. Brent Roussin announced Tuesday. (cbc.ca)

#56 Howard on 08.24.21 at 4:07 pm

Btw that TFSA for people under 40.

I’m sure that will totally please new immigrants who arrived a few years ago, have been saving, and now find themselves on the wrong side of middle-age and therefore ineligible to use this new financial tool. Did nobody in the Liberal brain trust think about that?

I’m all for new goodies aimed at younger Canadians, considering all the taxpayer cash that’s been thrown at the already-rich Boomers. But this isn’t the way to do it.

#57 Do we have all the facts on 08.24.21 at 4:10 pm

I wonder if the Liberal party has a realistic handle on the disposable income levels of first time homebuyers across Canada?

Every Canadian can deposit $6,000 per year in a tax free savings account with no questions asked when withdrawn. That means a couple could accumulate $150,000 towards a down payment before the new Liberal $40,000 TFSA plan took effect.

A proposal to create an additional tax free savings account for first time homebuyers to a maximum of $40,000 indicates that the Liberal party is under the assumption that a couple who do not already own a home have the ability to contribute $20,000 per year in surplus income into tax free savings accounts.

Given that the average savings of all Canadian households was less than $3,000 in 2020 this assumption seems a bit far fetched.

The average disposable income of the bottom three quintiles of all Canadian households in 2020 was slightly more than $50,000 and I would suspect that the disposable income of all households who do not own a home in 2021 would probably not exceed this level.

Like so many of Justin’s announcements the addition of an additional TFSA will end up having little impact on households with a gross income of less than $120,000 per year and certainly won’t make housing more affordable.

The Liberal seem focussed on optics while our economy has barely recovered to pre Covid levels and the number of employed Canadians as a percentage of the total labour force is declining.

Time to change our management. We have the ability.

#58 Lunatic Fringe on 08.24.21 at 4:15 pm

And more. T2 would create a “Home Buyers’ Bill of Rights”. Yes, some of these things are good, needed and responsible. But they fall 100% under provincial jurisdiction. They include a ban on blind auctions, total transparency on a property’s price history, increased realtor disclosure, automatic mortgage deferrals in the event of job loss (because a house is now a right) plus the legal right of buyers to a home inspection.

_______________________________________________________

In fact , some of these aren’t good things ….

1.) ban on blind auctions – NO. Pay only as much as you are comfortable paying, then walk away. It is YOUR stupidity as a buyer that exacerbates the situation. NO bids = no bidding war! Nobody is forcing you to pay anything!

2.) total transparency on a property’s price history – OK, but if you know where to look, it’s not a problem. Besides, what does what I paid for something have to do with the current price?

3.) legal right of buyers to a home inspection – NO! Don’t buy it or even consider it if you can’t inspect but you want to. Your choice. Walk away if need be. The seller has the right to make this a condition and sell to the greater fool. If you don’t like it, too bad. Move on.

4.) automatic mortgage deferrals in the event of job loss.- In whose books is this a good idea? Who is going to pick up the tab for this one? CHMC/banks just means that I am paying for it.

By intervening like this, you aren’t helping anything. Stop meddling and proposing these silly ideas like … you’re the PM.

#59 Faron on 08.24.21 at 4:17 pm

#51 Faron on 08.24.21 at 3:59 pm
#126 Sail Away on 08.24.21 at 11:48 am

Additionally, I was going to congratulate you on your picks from last week. But, you chose violence based on your blind bias. You chose bragging and bluster before discussion. I was a fool to expect anything more from the firstmost insufferable twit in the comments.

#60 Don Guillermo on 08.24.21 at 4:19 pm

Trudeau pledges to build 1.4 Million homes. Maybe he can use those 2 Billion trees he didn’t plant.

#61 KLNR on 08.24.21 at 4:20 pm

@#44 Dave on 08.24.21 at 3:42 pm
Trudeau has failed at many things, but especially on housing. The latest bubble was on his watch, where people had way to easy access to money for real estate. He has done nothing to curb offshore money laundering. He has flooded the country with immigrants which has created a housing shortage and increased the price of housing.

for sure he’s failed at many things.
He doesn’t control interest rates though and immigration has been the same for 30yrs now. The problem lies with your old stock canadians buying 2nd and 3rd investment properties combined with 20yrs of low interest rates.

#62 Billy Buoy on 08.24.21 at 4:21 pm

Mr. Turner:

Are there ANY Politicians left these days that are NOT shameless W_ _ _ _ – s. ?

Anyone who cares about the Long term viability of the country?

Anyone? I’m serious.

#63 Doug t on 08.24.21 at 4:21 pm

What a sad excuse for a “World Leader” – it’s actually embarrassing- Trump actually did a better job as president that T2 as PM

#64 PBrasseur on 08.24.21 at 4:22 pm

What a stupid idea, beyond stupid!

Like throwing gasoline on ongoing fire.

I can’t believe how clueless these politicians are!

#65 PBrasseur on 08.24.21 at 4:25 pm

As if millennials don’t already have plenty of rope to hang themselves let’s give em some more.

Stupid liberals!

#66 Richard L on 08.24.21 at 4:33 pm

It is unfortunate that this country seems to have come to the conclusion that the government will provide the solution to economic problems. The basic ideas in The Wealth of Nations still hold true. Politicians try to manipulate the maket for votes but this never ends well.

#67 NOSTRADAMUS on 08.24.21 at 4:38 pm

HALLOWEEN IS COMING EARLY.
And it’s going to be a scary time for all the tax dodgers who have lived the good life on the public dime. Garth you have mentioned a number of times the Government is going to be looking for tax dollars to address their out of control spending ways. I have just come across the term Super Priority, this refers to CRA SUPER PRIORITY FOR SOURCE DEDUCTIONS AND GST/HST TAX ASSESSMENTS. Perhaps in the interest of your readership you could entertain the idea of explaining this terminology and how it will financially impact countless tax dodgers. I am confident you can come up with other tax scams to enlighten Joe Six Pack, who has been wondering for years how his neighbor’s live like millionaires while he doesn’t have a pot to pi*s in. I am on my throne and I will not step down.

#68 bob on 08.24.21 at 4:43 pm

wtf does “build, maintain or repair 1.4m homes” even mean? good lord, Mr. Trudeau. hasn’t a clue.

#69 Howard on 08.24.21 at 4:45 pm

#60 KLNR on 08.24.21 at 4:20 pm
@#44 Dave on 08.24.21 at 3:42 pm
Trudeau has failed at many things, but especially on housing. The latest bubble was on his watch, where people had way to easy access to money for real estate. He has done nothing to curb offshore money laundering. He has flooded the country with immigrants which has created a housing shortage and increased the price of housing.

for sure he’s failed at many things.
He doesn’t control interest rates though and immigration has been the same for 30yrs now. The problem lies with your old stock canadians buying 2nd and 3rd investment properties combined with 20yrs of low interest rates.

——————————

The Bank of Canada’s mandate is under the purview of the Ministry of Finance. Immigration has not been the same for 30 years, and foreign students, TFWs, refugees, and 10-year visa holders have increased and added to the demand side. One can argue the pros and cons of these policies, but the fact is that every newcomer to Canada needs to be housed.

#70 cramar on 08.24.21 at 4:46 pm

Insane! Now the Libs want you to believe they are magicians. They will just throw money and magically another 1.4 million new homes will be built? Are people that stupid to buy this?

With a 77% increase in the cost of the average house in the GTA over 6 years—and those years under the TJ leadership, I hope the opposition keeps nailing him on this one. You had your chance and failed! Why should anyone believe you now? Trouble is the other parties are falling over themselves trying to appeal to the same house-horney demographic. The debates are going to be a gong show.

Get the popcorn ready!

#71 ImGonnaBeSick on 08.24.21 at 4:49 pm

“Oh, and did I mention that the Libs will build 1.4 million homes in three years?”

That’s a lot of concrete, diesel equipment, building supplies and extra utilities… The average US household produces 7.5 tons of CO2 equivalents per year, so that’s and extra 10.5m tons of CO2 (an +2% to current levels.) Thank goodness we have that carbon tax otherwise we won’t be meeting those targets in the next 3 years either..

#72 leebow on 08.24.21 at 4:50 pm

See the semi-retards voting him in. Who cares about policy? Give us cash incentives! Great move JT. Let’s make sure we financially enslave all the future generations and finish off this fking Canada. Replace the maple leaf with a house already.

#73 jkhers on 08.24.21 at 4:57 pm

Biggest

Majority

Since

Mulrooney

Just lay doen and rot. Trudeau is unstoppable. If you aren’t on team Red, you really have no business calling yourself Canadian. This is what the majority wants: Back Rubs, stickers for getting your jab while throwing dissenters in jail or denying them healthcare or jobs. Ludicrous spending, woke social policy.

This is the 2021 Canada, and the 2021 Canadian. Govern yourself accordingly

#74 Breeze on 08.24.21 at 4:58 pm

I rarely comment, but what the cons and libs and dippers are shoveling out is just a massive load of crap which will do nothing to reduce prices. Garth. Everyone needs to hear this. Please Go mainstream.

#75 Ponzius Pilatus on 08.24.21 at 5:01 pm

Before every election, the parties are conducting polls, to find out what the unwashed masses want.
Then they draw up a plan based on what they believe will get them the most votes.
So the Liberal have polled, and affordable housing is on the top of the list.
Then they go on TEVEE and make a promise that housing will be their priority.
They either guess right, or wrong.
And they are either awarded or punished on Election Night.
The Cons and the Sozis are doing the same thing.
Not Tesla Rocket Science, my friends.
Just like asking kids what M&M they want.
Pick and choose, Cafeteria Politics.
Sad.

#76 Andy on 08.24.21 at 5:04 pm

This is just so f$%$ing stupid I cannot believe it.

It’s like an addict reaching for another bag of fentanyl to avoid dealing with the problem, and offering it to all their homies.

Stunningly irresponsible, and likely to lead to terrible economic results later.

And I am not a Conservative supporter.

#77 crowdedelevatorfartz on 08.24.21 at 5:05 pm

@#24 Ponzies PC Prediction
“Let the flood gates open.
The blue wave is coming.”

++++

Isnt that a somewhat blasphemous prediction coming from a Capital “L” Liberal such as yourself?

#78 Wait There on 08.24.21 at 5:06 pm

#63

What a stupid idea, beyond stupid!

Like throwing gasoline on ongoing fire.

I can’t believe how clueless these politicians are!

——————————————————
Not sure it is the politician that is clueless but more the people who BELIEVE them.

When someone deceives someone else, who is the party that is conned? That tells you what you need to know about the people that vote.

Politics similar to Banana Republics. Seen it before.

#79 Old Stock Canadian Voter on 08.24.21 at 5:11 pm

The whole economic system is broken. Govt’s pimping housing. CBs printing and buying assets at extreme rates. Inflation off the charts. We are in overdrive and not in a good way.

#80 Old Stock Canadian Voter on 08.24.21 at 5:11 pm

and free candy for everyone.

#81 Damifino on 08.24.21 at 5:13 pm

I thought for sure the central Liberal concern (by a country mile) was the so-called environmental crisis, which until recently, they never shut up about.

Now we have a new TFSA exclusively for houses?

The acrid smell of desperation…

#82 Ari Gold on 08.24.21 at 5:23 pm

My wife and I haven’t been homeowners for over 4 years, so I believe we qualify as first time buyers again…At least that was the rule for RRSP withdrawals for down payments

I’m 45 and she’s 38, so I’m assuming we could setup a “home buyers account” in her name, plop $40k in it, deduct the contribution from her income, receive ~$15k in tax refund and then withdraw the $40k (plus whatever gains have accrued) tax free next spring when we buy?

#83 Prairieboy43 on 08.24.21 at 5:26 pm

Help. Out of Popcorn.
PB43

#84 Sail Away on 08.24.21 at 5:28 pm

#58 Faron on 08.24.21 at 4:17 pm
#51 Faron on 08.24.21 at 3:59 pm
#126 Sail Away on 08.24.21 at 11:48 am

Additionally, I was going to congratulate you on your picks from last week. But, you chose violence based on your blind bias. You chose bragging and bluster before discussion. I was a fool to expect anything more from the firstmost insufferable twit in the comments.

———

Bragging? Yes… but always and only with proof.

Regarding this ‘violence’ you speak of: It is important to point out a person’s history of continual predictive wrongness. Consider it a civic service to new investors.

I want everyone to be rich. Doing my best to mentor.

#85 Paul on 08.24.21 at 5:29 pm

#75 Andy on 08.24.21 at 5:04 pm
This is just so f$%$ing stupid I cannot believe it.

It’s like an addict reaching for another bag of fentanyl to avoid dealing with the problem, and offering it to all their homies.

Stunningly irresponsible, and likely to lead to terrible economic results later.

And I am not a Conservative supporter.
————————————————————————————————

Yes you are! Welcome aboard!

#86 Cheese on 08.24.21 at 5:36 pm

Having just turned 40, and poor as dirt, I am very much against this house-TSFA nonsense. This will do nothing but polarize those of us 40 and over who never had the opportunity or wealth to buy a house even further away from that potential goal.

Polarization leads to violence, mark my words Mr.Trudeau, because I am angry now.

#87 Chimingin on 08.24.21 at 5:36 pm

Oh, how I wish that instead of glad-handing and eating ice cream and giving all our money away, the Liberal PM incumbent and his croaky US counterpart had to spend all next week at the airport in Kabul, facing a sea of desperate people waving their papers and their children in the stinking heat, all trying to get on a plane before the bombs start going off. I would love to see each of them have to decide, effectively, who lives or dies, instead of the 20-year old soldiers there now, who will have PTSD for the rest of their lives. God help them.

#88 Faron on 08.24.21 at 5:42 pm

#137 Sail Away on 08.24.21 at 2:01 pm
#132 Faron on 08.24.21 at 12:18 pm
#106 Russ on 08.23.21 at 11:55 pm
#124 Russ on 08.24.21 at 11:38 am

Could you please identify these errors you mention for my edification?

My pleasure. But, to be clear, I bring this up to poke fun at Russ. I don’t actually hold anyone to this standard in the comments section because I am only the third most insufferable twit here and most have better things to do. But, Russ boxed himself into a realm of absolute linguistic perfection by poking at my errors.

“…opine it be not much…”: This may be technically okay, but is archaic and reads poorly. Arguable.

“How much does this cost each year and which metrics are used to evaluate the performance.”: These are questions, so the sentence is punctuated incorrectly.

“Covid”: COVID is an acronym. Appears twice.

“And hysterical.” Sentence fragment.

“Are there comorbidity in these recent cases?”: This may also be debatable if Russ is in fact British and also a doctor in which case usage may differ. But, comorbidity is the singular form of the noun despite encompassing potentially a plurality of disease, thus the tenses disagree.

“friggin”: Contraction, needs an apostrophe after the n.

“…break on this media…”: Russ should seek a break “from” this media hype. It isn’t clear what a break “on” something means. You can break a stick over one’s knee. But, this may just be style.

Too harsh? Sloppy work Russ. But, rest your weary head, I don’t actually care about any of this.

#89 Father’s Daughter on 08.24.21 at 5:53 pm

This is possibly the dumbest housing plan one could have come up with. I can’t imagine sitting in a room with pitching this and a single other person thinking it’s a good idea. Not even a mask could hide the bewildered expression that any sane person would have. Thankfully for my turning 40 year old husband first time homebuyer, he married a younger wife who will open up a new TFSA to save for a house on our behalf

Amazing how only now they care about affordable housing. It’s too far gone. The affordability ship has sailed.
Also in High-Park Parkdale and Conservative candidate is MIA

#90 Faron on 08.24.21 at 5:54 pm

#83 Sail Away on 08.24.21 at 5:28 pm

history of continual predictive wrongness.

Or perhaps, if today is an example, your ego and your bias (emotive qualities BTW) interfered with your comprehension? I posit that someone who thinks differently from you and directly challenges you (which you dislike) and may even have deeper broad market understanding than you triggered your competitive instincts and blinded you to what I was actually talking about in my previous statements here. Many (most?) of which you took to be directional when they weren’t and inverse to my direction when they were. Good to see a free thinking righty like yourself get stuck in a narrative as seamlessly as any “SJW” may.

Enough pedantry for the day.

#91 Ponzius Pilatus on 08.24.21 at 5:54 pm

#76 crowdedelevatorfartz on 08.24.21 at 5:05 pm
@#24 Ponzies PC Prediction
“Let the flood gates open.
The blue wave is coming.”

++++

Isnt that a somewhat blasphemous prediction coming from a Capital “L” Liberal such as yourself?
——————–
Actually, I’m starting to relish the idea of a Con minority
with soldier boy leading us thru the 4th wave.
To show us what 12 years in the military has taught him to lead a country in the 21th century.
For me, the most pressing issue is the environment, and none of the major parties are given sh.t about it.
Well, it’s still 4 weeks.

#92 45north on 08.24.21 at 6:04 pm

And more. T2 would create a “Home Buyers’ Bill of Rights”. Yes, some of these things are good, needed and responsible. But they fall 100% under provincial jurisdiction.

In other words, this is a promise over which Trudeau has no authority. The Home Buyers’ Bill of Rights is really nothing. He’s willing to say just about anything to get re-elected.

#93 The Woosh on 08.24.21 at 6:11 pm

#1 BlogDog123 on 08.24.21 at 2:26 pm
flood the market with supply, supply, supply of houses…

over-rule local NIMBYs and convert those big backyards into houses, houses, houses… with a small backyard each.

supply, supply, supply is the answer that no politician seems to be figuring out!

————————————

Margaret Atwood is probably pulling out her hair right now!

#94 Wrk.dover on 08.24.21 at 6:17 pm

#81 Ari Gold on 08.24.21 at 5:23
I’m 45 and she’s 38, so I’m assuming we could setup a “home buyers account” in her name, plop $40k in it, deduct the contribution from her income, receive ~$15k in tax refund and then withdraw the $40k (plus whatever gains have accrued) tax free next spring when we buy?
_______________________________

To be repeated by every moister’s bank of Mom across the nation, so the value of our houses just went up by another 15 grand!

There, more affordable yet?
_______________________

Jimmy Carter lost an election over hostages. I wonder if the red menace will strategically free the Michaels in time for the bubble boy to win this one. (their choice of candidate?)

I’m 45 and she’s 38, so I’m assuming we could setup a “home buyers account” in her name, plop $40k in it, deduct the contribution from her income, receive ~$15k in tax refund and then withdraw the $40k (plus whatever gains have accrued) tax free next spring when we buy?

#95 Leftover on 08.24.21 at 6:17 pm

If the Liberals want to address the housing crisis and build more houses then they could kill two birds with one stone.

Get CMHC out of the mortgage insurance business and back to what they were set up to do – build housing. Also lets the taxpayer off the hook by privatizing high leverage debt.

Too obvious?

#96 Mark on 08.24.21 at 6:20 pm

Yikes – I’m a millennial and have typically voted liberal in the past but this housing platform is out to lunch. As an economist I can get behind a lot of crazy ideas but continuing to overheat this housing market is just foolish.

#97 Steven on 08.24.21 at 6:27 pm

I am so sick of do nothing Trudeau. He stands for nothing. Internationally he takes no stand. Nationally his promises are hare brained. He has no fiscal IQ because he was born without literally having to earn a dollar in his life. Wrong leader to have. Freeland and this edited statement from O’Toole was spineless. Don’t be fooled by the Liberal’s bag of tricks. I never vote Liberal especially since they do not deliver on anything. Remember Chrétien said he would get rid of GST? Then he gets the-elected 3 times! I am voting Conservative. They are leaning just enough left to vote for them. O’Toole is running a smart campaign. Now he just needs to remind of the past scandals people have endured under the Liberals. Do we really need 4 more years of that?

#98 islander on 08.24.21 at 6:30 pm

” a future of denser, taller, more crowded, and smaller living units isn’t everyone’s idea of an affordable housing solution. So, as we work on the perennial problem of supply, perhaps we can remember a time, not long ago, when politicians talked seriously about the demand side of the equation as well”

https://thehub.ca/2021-07-23/howard-anglin-the-one-factor-in-the-housing-bubble-that-our-leaders-wont-talk-about/

#99 Quintilian on 08.24.21 at 6:45 pm

“So, let’s face it. Governments and politicians seeking power have been instrumental in increasing demand and inflating the prices they now claim they can fix.”

The conservatives put boosters on the rocket with the 40 year mortgage.

Had they not done that, the bubble would have deflated without real damage to the economy, but they traded that off for their political gains.

Just what you would expect from conservatives.
All calculations are based on the lowest common denominator.

It was a bad idea, but short-lived. The Cons rolled it back. – Garth

#100 summer_reading on 08.24.21 at 6:46 pm

None of these clowns (Conservatives, Liberals, NDP, etc.) will do anything substantial to make housing affordable. The Liberals’ promises to make housing more “affordable” are an absolute joke. In our current financial climate, it’s pretty simple to make housing prices more affordable – is just a matter of reducing credit available to borrowers. So policies like increasing down payment requirements and shortening mortgage amortization periods will work to reduce housing prices. But none of the parties have the guts to implement these measures.

If the Millennials (or anybody else for that matter) are serious about lowering housing prices so that they can afford to buy, they need to think about voting for independent candidates focused on affordable housing, or maybe start an “Affordable Housing” political party: https://www.reddit.com/r/canadahousing/comments/ouc3vs/its_time_for_an_affordable_housing_political/

#101 Happy Prairie guy on 08.24.21 at 6:52 pm

Don’t comment much but this has me not happy today. If this is true…”This is in addition to tax-free RRSP withdrawals ($70,000 per couple) to buy real estate. Now two newbies could suck $150,000 from registered funds with no tax payable”… then why did I have to pay back the 20G I borrowed for LLP, over ten years once I started second career, meanwhile losing out on growth of that 20. If I’d not paid it back tax would have been due. I had not planned to vote Liberal but if I had then this would have made me change my mind.

#102 Polecat on 08.24.21 at 7:08 pm

Yeah JT should go to Kabul, and see where this country is headed. Did 6 months in Panjwai in 08, knew pretty quick it was a lost cause. At leasr all my team made it back but we sent over a dozen brothers back in boxes. I didn’t go there to represent what this country is becoming, kind of depressing sometimes. I would hate to have to fight against tyranny in my own country. Rarely comment, good blog Garth, even read it in a tent in the desert when the financial crisis was happening back home. Some good dogs on here with good dieas and insight, part of my daily therapy. Keep it up dogs!

#103 jim tow on 08.24.21 at 7:11 pm

Liberals are shaky…running scared…

https://www.theglobeandmail.com/politics/article-liberals-vow-new-tax-free-savings-account-for-first-time-homebuyers/

#104 WE scandal, YOU scandal, WE ALL scandal! on 08.24.21 at 7:11 pm

#26 Stuck in NB on 08.24.21 at 3:12 pm

Our brain-ducked dear dealer doesn’t care about monetary policy nor seems to have a clue how economy works.

No wonder Morneau bailed

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

You must be thicker than the Kobe steak I had for dinner last night.
He left because he got caught with his hand in the proverbial”cookie jar” with his free trip, lied about his interactions with the WE boys, and got his daughter a job with them.

No, wait! Actually, it was because Justin needed a “scapegoat” to cover his role in the WE scandal. None of the stuff I mentioned was enough for him to get the boot by the Liberals.

#105 Sail Away on 08.24.21 at 7:15 pm

#81 Ari Gold on 08.24.21 at 5:23

I’m 45 and she’s 38, so I’m assuming we could setup a “home buyers account” in her name, plop $40k in it, deduct the contribution from her income, receive ~$15k in tax refund and then withdraw the $40k (plus whatever gains have accrued) tax free next spring when we buy?

———

Wrong. You don’t get a tax refund for TFSA.

Also, if you need the money next spring, account losses are equally probable as account gains. Un-declarable losses at that, because it’s a registered account.

#106 Joe on 08.24.21 at 7:15 pm

The only way to make housing more affordable is to buy one today before it’s more expensive tomorrow. And if you can’t afford one then this isn’t the country for you. Sorry to say but this is reality and nothing these elected officials say will help as they only make things worse.

#107 barnz0rz on 08.24.21 at 7:18 pm

Read the article about the Liberal housing plan first thing this morning….. He’s already desperate and he’s only a week in and hasn’t even really had much adversity…

Trudeau will be lucky to get re-elected on a minority (but seems more like he’ll blow it entirely), and end up exactly where he is now. After blowing $500 M on an election for nothing.

#108 Sail Away on 08.24.21 at 7:18 pm

#100 Sail Away on 08.24.21 at 7:15 pm
#81 Ari Gold on 08.24.21 at 5:23

I’m 45 and she’s 38, so I’m assuming we could setup a “home buyers account” in her name, plop $40k in it, deduct the contribution from her income, receive ~$15k in tax refund and then withdraw the $40k (plus whatever gains have accrued) tax free next spring when we buy?

——

Wrong. You don’t get a tax refund for TFSA.

Also, if you need the money next spring, account losses are equally probable as account gains. Un-declarable losses at that, because it’s a registered account.

——

Oh my, I spoke too soon. Yes, indeed, you are correct about the tax refund.

Looks like my kids will be getting $40k each toward a homebuyers TFSA, haha.

#109 islander on 08.24.21 at 7:18 pm

Why Canada’s politicians won’t do what it takes on the housing market:

https://www.canadianbusiness.com/economy/why-canadas-politicians-wont-do-what-it-takes-on-the-housing-market/

Slightly dated – most of the big names mentioned are either dead or gone but certainly worth a read….

Elected officials can see the fault lines in Canada’s housing market just as well as anyone else—but fixing them is too politically unpopular – K. Carmichael April 24, 2017

“For years, the International Monetary Fund and various other experts have pleaded with Canada’s federal government to invest in an independent body with the power to respond to financial threats. It is now received wisdom that central banks should operate at a distance from the executive or the legislative branch because politicians can’t be trusted to raise interest rates fast enough to stay ahead of inflation.”

#110 Bigd on 08.24.21 at 7:22 pm

Well, I guess I’ll wait to sell my house now. It will certainly be worth more in 12 months.

#111 Flop... on 08.24.21 at 7:23 pm

Liberals have lost the plot.

Trying to remember when was the last time I saw this much disturbing behaviour.

I recall now.

It was when I was watching a documentary on serial killer Jeffrey Dahmer, and he thought it was a good idea to cut the head off one of his victims and store it in his freezer so he could be reminded of his crime every time he went for ice-cream…

M47BC

#112 Celsius 451 on 08.24.21 at 7:23 pm

#58 Faron on 08.24.21 at 4:17 pm
#51 Faron on 08.24.21 at 3:59 pm
#126 Sail Away on 08.24.21 at 11:48 am

Additionally, I was going to congratulate you on your picks from last week. But, you chose violence based on your blind bias. You chose bragging and bluster before discussion. I was a fool to expect anything more from the firstmost insufferable twit in the comments.

___________________________________________

You mean … arguably “the firstmost insufferable twit in the comments”.

There’ s a lot of stiff competition from the likes of others whose names abound on a daily basis. They know who they are.

#113 jess on 08.24.21 at 7:23 pm

Robocalls targeting the 2020 election: – voter suppression activities ahead of the Nov. 3 presidential election, aimed at discouraging voting by mail.

The FCC is proposing to fine conservative conspiracists > than $5.1 million for allegedly coordinating more than 1,000 unlawful robocalls aimed at swaying last year’s presidential election — a proposed punishment that would be the largest in FCC history under anti-robocall laws.

https://docs.fcc.gov/public/attachments/FCC-21-97A1.pdf

…..”The recorded messages told potential voters that if they voted by mail, their “personal information will be part of a public database that will be used by police
departments to track down old warrants and be used by credit card companies to collect outstanding
debts.”The FCC is proposing to fine conservative conspiracists > than $5.1 million for allegedly coordinating more than 1,000 unlawful robocalls aimed at swaying last year’s presidential election — a proposed punishment that would be the largest in FCC history under anti-robocall laws.

#114 Planetgoofy on 08.24.21 at 7:28 pm

#138 Planetgoofy on 08.24.21 at 3:40 pm
DELETED
All posts deliberately misspelling or mocking a leader’s name will be deleted. Grow up. – Garth
———————————————–
I will respect your request but, Bubble Boys not far from where I was Garth.
And there is no resemblance of a leader there.
What has he done in the last 2 years???
Handed out free money that’s about it. That’s how you get votes.
Fortunately I can’t be bought. There’s one thing you can’t take from a man…pride and principal. Ok 2.

Im assuming I have to open accounts at your office to run?
A Pain for me…..That’s why I’m on the fence.
Cash
RRSP
LIRA
TFSA 1 and 2
Corp 1
Corp 2..

And I know a lot of peeps their all on board with the leader thing or there lack of. My neighbor a retired chemist is #1 on the hater list. Sent me some hilarious stuff today…Belly roll.

#115 Mary on 08.24.21 at 7:28 pm

The Conservatives should allow interest deduction for primary residences up to $10,000 a year but raise the down payment to 25% for non first time home buyers and non primary property.

They should do a TFSA matching up to $100,000 per TFSA or a maximum $4,000 a year interest credit to a TFSA up to 20 years. The only catch is they have to hold it for 20 years. If you reach a $750,000 TFSA balance you only get 50% of your OAS and at $1,000,000 TFSA balance you don’t get any OAS at all. RRSP’s should get a maximum $50,000 tax credit for medical, health related expenses and a $50,000 tax credit for having a older dependent living with them. These are both lifetime limits.

We should encourage more savings, investments and less depending on government benefits.

#116 Sweet Child of Mine on 08.24.21 at 7:28 pm

It’s times like this I’m grateful I chose to NOT have children.

The other time is when I listen to the stories of your children on this blog.

#117 Steven Rowlandson on 08.24.21 at 7:29 pm

Garth have you ever read the short story by Tolstoy about how much land does a man need? 2′ wide 6′ deep and 6′ long. Click on the link and read at your leisure.

https://www.ninalp.com/ART/Papers/How_Much_Land_Does_A_Man_Need-Leo_Tolstoy.pdf

#118 the Jaguar on 08.24.21 at 7:32 pm

It’s quite something. The desperation and panic (Liberals) is palpable.
They aren’t steady on their feet. Every move they make, every breath they take, they sink deeper into the quick sand. Of their own making, of course. They are like gamblers who can’t leave the table or exit the casino until they turn their losing streak around. Not this time.
Not today Satan. Not today.

@#96 islander on 08.24.21 at 6:30 pm
Excellent link. Thanks.

#119 Tom on 08.24.21 at 7:36 pm

capital gains should be included 100%, fully taxable but it should be indexed to inflation. So your house worth $800,000 and is probably worth $450,000 after inflation taken into account.

Also, primary residences should get all the regular tax deductions and ABC/ original cost considerations from renovation costs, interest expenses, lawyer fees, land transfer taxes, property taxes etc. etc. So really, a $800,000 might have a small gain or not much at all if this is all considered and is not a big windfall.

#120 Big Bucks on 08.24.21 at 7:38 pm

O’toole could actually win the election with more seats(and the popular vote)but Singh has said he will never in a million years work with the PC’s.(Layton would because his father was a PC MP for years)but Singh won’t.So what will happen is Trudeau even though he has less seats will remain PM working in a coalition with Singh.Makes me feel sick to the stomach but that is what I see happening.

#121 DON on 08.24.21 at 7:40 pm

#98 summer_reading on 08.24.21 at 6:46 pm
None of these clowns (Conservatives, Liberals, NDP, etc.) will do anything substantial to make housing affordable. The Liberals’ promises to make housing more “affordable” are an absolute joke. In our current financial climate, it’s pretty simple to make housing prices more affordable – is just a matter of reducing credit available to borrowers. So policies like increasing down payment requirements and shortening mortgage amortization periods will work to reduce housing prices. But none of the parties have the guts to implement these measures.

If the Millennials (or anybody else for that matter) are serious about lowering housing prices so that they can afford to buy, they need to think about voting for independent candidates focused on affordable housing, or maybe start an “Affordable Housing” political party.

*********
Nicely put. It takes borh knowledge and courage to go against the grain/herd. A million dollar ++ mortgage is risk. Rising interest rates and/or hyper high real estate prices can change sentiment and instill fear amoung the highly leveraged which starts the cascade effect. Meanwhile wages can’t keep up to the cost of living. At the moment it appears we are marching towards unsustainable house prices. Gobble Gobble Wobble Wobble. Remember once elected into a majority promises are just that…the next crisis will be used as prudent reasons.

Mainstreet not doing so hot right now…according to all the headlines.

I promise if elected supreme dictator I will bring income in line with housing overnight while maintaining everyones automatic equity gains. Razzle Dazzle vote for the biggest bull shitter. Promises Promises break my heart.

The housing market will have to fall on its own double edged sword.

#122 crowdedelevatorfartz on 08.24.21 at 7:42 pm

@#91 The Woosh
“Margaret Atwood is probably pulling out her hair right now!
+++

O….M….G!
Thats her REAL hair?
Crikey!

#123 crowdedelevatorfartz on 08.24.21 at 7:48 pm

@#87 Fathers’ Daughter
” I can’t imagine sitting in a room with pitching this and a single other person thinking it’s a good idea.”

+++++

Well you can be certain that Freeland was nodding nonstop at everything Trudeau said…..

#124 Loonie Doctor on 08.24.21 at 7:50 pm

If I were over 40 and saving for my first house, I’d be pissed. Same if I had chosen to rent, live within my means, and invest. This seems like divisive, ageist, tax policy. It is particularly hilarious when just a few years back, Trudeau attacked the TFSA – I guess it is only ok to save and invest if it is towards a house. Seems to be a railroad to having everyone in a one asset “investment” strategy. Wow. This is irresponsible on so many levels.

-LD

#125 Katherine on 08.24.21 at 7:57 pm

The sad thing is that the masses will fall for it, reading comments on social media and news reports has me convinced that the majority of people are clueless.

#126 miketheengineer on 08.24.21 at 7:59 pm

DELETED (Anti-vax)

#127 DC on 08.24.21 at 7:59 pm

My blood boils… he needs to go before he ruins this country with his lack of knowledge and common sense.

#128 Shine on you crazy Cheese! on 08.24.21 at 8:05 pm

#84 Cheese on 08.24.21 at 5:36 pm

Having just turned 40, and poor as dirt, I am very much against this house-TSFA nonsense. This will do nothing but polarize those of us 40 and over who never had the opportunity or wealth to buy a house even further away from that potential goal.

Polarization leads to violence, mark my words Mr.Trudeau, because I am angry now.

_____________________________________

Cheese, I’m pretty sure you could take the “over 40” thing to the Supreme Court and win based on age discrimination.

You keep complaining on this blog that you are so hard done by and haven’t amounted to much.
So get off your kiester and make it so! It’s your time to shine.

#129 Drill Baby Drill on 08.24.21 at 8:05 pm

Trudeau is one dumb u know what. Freeland has to post amateurish edited videos of O’Tool speaking. They are both in panick mode. Pass the popcorn.

#130 ImGonnaBeSick on 08.24.21 at 8:10 pm

#100 Polecat on 08.24.21 at 7:08 pm

Thank you for your service ol’ boy.

#131 DON on 08.24.21 at 8:10 pm

#89 Ponzius Pilatus on 08.24.21 at 5:54 pm
#76 crowdedelevatorfartz on 08.24.21 at 5:05 pm
@#24 Ponzies PC Prediction
“Let the flood gates open.
The blue wave is coming.”

++++

Isnt that a somewhat blasphemous prediction coming from a Capital “L” Liberal such as yourself?
——————–
Actually, I’m starting to relish the idea of a Con minority
with soldier boy leading us thru the 4th wave.
To show us what 12 years in the military has taught him to lead a country in the 21th century.
For me, the most pressing issue is the environment, and none of the major parties are given sh.t about it.
Well, it’s still 4 weeks.

***********

Environment in the second to last week and back to affordability and continued cerb for the fall???

#132 DON on 08.24.21 at 8:18 pm

#25 cuke and tomato picker on 08.24.21 at 3:11 pm
I would suggest that to solve the housing problem they
should look at building on crown land and bringing back the MURBS that T1 featured in the 70’s. We bought into the MURBS got the tax advantage when our incomes were high and later sold them it worked out well for us.

******
Tell us how this worked…much appreciated!

#133 SW on 08.24.21 at 8:28 pm

#84 Cheese on 08.24.21 at 5:36 pm
“Having just turned 40, and poor as dirt, I am very much against this house-TSFA nonsense. This will do nothing but polarize those of us 40 and over who never had the opportunity or wealth to buy a house even further away from that potential goal.
Polarization leads to violence, mark my words Mr.Trudeau, because I am angry now.”

Don’t get mad. It’s just an election bauble, unlikely to come to pass. And if it does, it’s doesn’t seem likely to be constitutional to discriminate based on age like this.

#134 DON on 08.24.21 at 8:28 pm

#104 Joe on 08.24.21 at 7:15 pm
The only way to make housing more affordable is to buy one today before it’s more expensive tomorrow. And if you can’t afford one then this isn’t the country for you. Sorry to say but this is reality and nothing these elected officials say will help as they only make things worse.

****************
TOOT TOOT
TOOT TOOT TOOOT
TOOT TOOOOOOOOOOOOOOT!

#135 DOUBLE on 08.24.21 at 8:29 pm

#112 Planetgoofy
#138 Planetgoofy
DELETED
All posts deliberately misspelling or mocking a leader’s name will be deleted. Grow up. – Garth
———————————————–
I will respect your request but, Bubble Boys not far from where I was Garth.

Sometimes I think there are two Garths.

My statement was clear. No adolescent treatment of proper names. – Garth

#136 When a Ban isn't a Ban on 08.24.21 at 8:30 pm

The Libs foreign buyers ban does not stop foreigners from buying recreational property (hmmm, define that one) and gives other loopholes. Here’s what their website says:

” As a temporary measure to help stabilize the housing market coming out of COVID-19, we will ban foreign money from purchasing a non-recreational, residential property in Canada for the next two years, unless this purchase is confirmed to be for future employment or immigration in the next two years.”

Just a coincidence the ‘2 year temporary ban’ is the same amount of time that one can be ‘future employed’ or ‘future immigrated’ lol

#137 Mr Canada on 08.24.21 at 8:31 pm

T2 has lots of creativity — Lets’ just throw more borrowed money at everyone and party till the cows come home…..and while we are at it, hire more government workers to administer these duplicate/wasteful programs…

#138 CSmith on 08.24.21 at 8:33 pm

What possible difference could 1.4 million new homes make, with speculators and Airbnb investors waiting to scoop them the minute they’re built, or even before?

#139 Haas Say Yhoo on 08.24.21 at 8:36 pm

#36 Where do you think the money for OAS/GIS comes from? Hmm? The Seniors who are now retired with the taxes they paid while they worked years before there was CPP or garenteed pensions of any kind…that is where, and before the wealthy made their money from the backs of the poor. In a country like Canada there does not need to be any such words as ” the poor”. These words ocure due to greedy people who keep the masses living within the sphere of those ugly words.

#140 Charity Carstairs on 08.24.21 at 8:41 pm

Canadians who mistake one person trading a house to another as an economy are just stupid. It’s musical chairs. It’s otherwise called a Ponzi. Government is wholly irresponsible. Affordability is not because of foreign buyers, it’s interest rates at zero. Foreign buyers good, zero rates bad, but you won’t read that in Trudeaus spew. You’re too stupid to see through the puking. Zero rates have caused the 70% annual bump, not foreign buyers. Geez, are you stupid ? Giving noobs a savings account over 7 years is nonsense. It doesn’t add up. $40 grand isn’t a DP on a 4 million dollar house. If Trudeau keeps rates at zero prices will accelerate . Multigenerational hotels? They already exist. Where does the land for 1.4 million homes come from Justin? You’d have to pave over the entire ALR and build 100 story skystabber 200 sq ft coffins. Great idea , just no thought behind it. Same in TO. WFH a bust? Then those high rise devs will have to include even smaller sweets and a whole lot more floors. Reality, click, bang, mind blown. Justin, stick to the faux rage.

#141 Billy Buoy on 08.24.21 at 8:46 pm

I know this is a financial blog but let’s have a little respect for perhaps the soul of a great Rock n’ roll band who died today and without a doubt brought some joy to your lives, Charlie Watts.

Have a little balance in your life, gang. Money isn’t everything and you are not taking it with you when you go.

#142 DON on 08.24.21 at 8:46 pm

#46 Honest Realtor on 08.24.21 at 3:44 pm
The boom times in real estate ahead will be transformational for the financial wealth of average Canadians.

And this does not even yet consider the massive immigration boom we are about to see.

Price tripling by 2035 looks absolutely certain now to me in the best markets.

***********

Just read recently something about China clamping down on the ability of Hong Kong residents to get retirement funds out of the country.

#143 Garth's Son Drake on 08.24.21 at 9:07 pm

Laughable plans.

Let’s face it. Real estate is too big to fail and they won’t let it. In turn, money will pile in recognizing this amazing government support – this has already happened.

The 30% not in the housing market are screwed.

iBuyer is coming.

#144 The Spectre on 08.24.21 at 9:16 pm

Thanks for bringing some clarity to this joke of election, Garth.

This Lieberal government is the most incompetent, corrupt and vote buying government in the history of this country.

How can people still vote for these clowns?

#145 Indigirl on 08.24.21 at 9:39 pm

The optimist in me is dying a little bit more every day over this election. There is no good option at the moment. I have no clue which of all the evils will get my vote, but I’m in a blue Alberta riding, so how I vote won’t even matter…

#146 crowdedelevatorfartz on 08.24.21 at 9:39 pm

Hmmm.
Polling suggests the Conservatives are slightly ahead in Voter rich….Ontario.

Could this be “the turn”?
Lets not relax folks, keep hammering the Libs at every opportunity.
For Canada’s sake and the future of the next 3 generations….
Get these spendthrifts……. Oh….Yew….Tee…..OUT!

#147 Ponzius Pilatus on 08.24.21 at 9:43 pm

#142 DON on 08.24.21 at 8:46 pm
#46 Honest Realtor on 08.24.21 at 3:44 pm
The boom times in real estate ahead will be transformational for the financial wealth of average Canadians.

And this does not even yet consider the massive immigration boom we are about to see.

Price tripling by 2035 looks absolutely certain now to me in the best markets.

***********
Just read recently something about China clamping down on the ability of Hong Kong residents to get retirement funds out of the country.
————-
Yep,
The exodus is on from HongKong to Britain and Canada (mostly Vancouver and Toronto).
Mostly parents with their kids.
This time, they won’t go back.

#148 Blacksheep on 08.24.21 at 9:44 pm

Drake # 143,

“Let’s face it. Real estate is too big to fail and they won’t let it. In turn, money will pile in recognizing this amazing government support – this has already happened.”
————————-
A little naive I guess, but eventually figured this out by Dec 2013, tried to spread the word here, but was just labeled RE pumper…

Each to his own.

#149 crowdedelevatorfartz on 08.24.21 at 9:57 pm

@#142 Don
“Just read recently something about China clamping down on the ability of Hong Kong residents to get retirement funds out of the country.”

+++

Pffft.
Any rule, Law or govt organization created to relieve our asian amigos of their hard earned money…….. doesnt stand a chance.

#150 The Canadian Housing Path on 08.24.21 at 10:08 pm

How We Got Here

1. Low mortgage rates.

2. Immigration – Canada isn’t building enough homes to keep pace with population (population of the Greater Golden Horseshoe region, which stretches around Toronto and the western end of Lake Ontario, is estimated to have grown by 780,000 people in the five-year period between the second half of 2016 and the first half of 2021, according to an analysis by Hemson Consulting. That represents an increase of more than 50 per cent compared to the 510,000 people the area added in the previous five-year period, the data shows. But in the same five-year span between 2016 and 2021, the region likely added only around 270,000 new homes, a modest increase from around 214,000 homes added in the previous five years.

3. Using homes as an investment (Investors accounted for 20 per cent of property purchases in Canada in early 2021 – growing presence of corporate investors like private equity firms, real estate investment trusts (REITs) and financial institutions).

4. Using homes to launder dirty money (the Expert Panel on Money Laundering in B.C. Real Estate, for example, estimated that money laundering makes home prices in BC 7.5 per cent higher than they would otherwise be).

The Fix

1. Only allow the ownership of one home per Canadian household for living in. This literally eradicates all of the criminal element associated with housing. Any shortfall in supply to be pumped out immediately by the Federal gov to fulfill the duty of having enough homes for people to live in.

2. Investment money to be only accepted for new stock to help pump supply. Existing homes cannot be touched by investment dollars.

Why this will never happen: because housing will normalize and cause a huge financial fallout and cause the immediate party in power to be thrown out (a 70% owner cohort gain from increasing house prices). This is why government facilitates the housing crisis instead of fixing it. Also, push economics are usually at play like pumping immigration first then having developers play catch-up – not the other way around. They call it stimulating but in actuality is causes mayhem regarding a basic need in shelter.

#151 R on 08.24.21 at 10:26 pm

A politician’s currency is votes. Nothing else counts. T2 has demonstrated this by showing he has the economic depth of a puddle. Canada needs less T2

#152 Shawn Allen on 08.24.21 at 10:26 pm

Where does Old Age Pensiona dn Supplement Money come from?

#139 Haas Say Yhoo on 08.24.21 at 8:36 pm asked (rhetorically)

#36 Where do you think the money for OAS/GIS comes from? Hmm? The Seniors who are now retired with the taxes they paid while they worked years before there was CPP or garenteed pensions of any kind…that is where, and before the wealthy made their money from the backs of the poor.

****************************
Actually nothing was set aside from years ago. Today’s old age pension and supplement comes out of today’s taxpayers and also to a good extent from government borrowing.

That may be fair since those old age pensioners who actually worked and paid taxes had some of their taxes go to seniors as well so it’s sort of their turn to be subsidised or gifted of money. But subsidised or gifted of money they clearly are.

#153 NSNG on 08.24.21 at 10:33 pm

This is more proof that the government has always been at war with GenX. All the biggest benefits go to the generations surrounding it. Silent, boomer, and then skip to the mill’s generation. GenX is again left outside with their after-school TV and their latchkeys, forced to make something of the hand-me-downs.

Someone should write a book. The Government War Against GenX. No one but GenXers would buy it, of course. But it would be loaded with cynical truth and future anthropologists would use it as a key text in defining this era.

#154 DOUBLE on 08.24.21 at 10:35 pm

No adolescent treatment…of adolescents?

Got it.

#155 david on 08.24.21 at 10:41 pm

#122 Loonie Doctor
“If I were over 40 and saving for my first house, I’d be pissed. Same if I had chosen to rent, live within my means, and invest. This seems like divisive, ageist, tax policy”

And useless. Tax free? For what? Most people who save for a down payment won’t risk it in the financial market so there won’t be much tax efficiency anyway.

Only well off families will make the best of it and they will risk in the financial market because they would have invested in it anyway.

#156 Woke up this morning... on 08.24.21 at 10:44 pm

Apparently Justin got heckled!

As he launches into his sales pitch for his new housing plan, he is heckled aggressively by a young man in a red t-shirt. “You had six years to do something. You’ve done nothing,” the protester bellowed, knocking the Liberal leader off-stride with his boisterousness. “These houses are worth $1.5 million. Are you going to help us pay $1.5 million? Are you, buddy?”

https://nationalpost.com/news/john-ivison-lessons-from-a-heckler-on-trudeaus-six-years-of-failed-promises-of-affordable-housing

#157 the jaguar on 08.24.21 at 11:29 pm

@#134DON

Shameful. TOOT, TOOTing? You’re just plagiarising my WOO WOO WOO. Spelling might be off. I hate the tablet…..

#158 Robert Ash on 08.24.21 at 11:43 pm

I sure have lost even more respect for the LPC, with this nonsense. What is next they accompany us on our first date for a modest fee… Time to send a message, and get rid of these fiscally dangerous organizers..

#159 Russ on 08.24.21 at 11:53 pm

DON on 08.24.21 at 8:28 pm

#104 Joe on 08.24.21 at 7:15 pm
The only way to make housing more affordable is to buy one today before it’s more expensive tomorrow. And if you can’t afford one then this isn’t the country for you. Sorry to say but this is reality and nothing these elected officials say will help as they only make things worse.

****************
TOOT TOOT
TOOT TOOT TOOOT
TOOT TOOOOOOOOOOOOOOT!

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

Hey DON,

Good warning for Joe. I hope others are paying attention.

I just got back from the yacht. This afternoon was the time I laid the third coat on the brightwork, handrails & Dorade boxes.
These pieces are made from colonial Burmese teak, over 40 years ago, before the country became Myanmar.
Nice.

Anyhow, ‘ might wanna have a chat with your deckhand. It is 5 blasts from the ship’s whistle (or horn) for “you are standing into danger”. The 6th toot should just be a long pause.

A little tidbit: do you know the ventilation Dorade box is named after the yacht Dorade from whence the type was first noticed?

Cheers, R

#160 That Guy on 08.25.21 at 12:15 am

Nothing like a good dose of politics to make a man more cynical. Canadians will vote for him because these new breaks will let them afford new housing, they don’t see how these things will only goose pricing higher. Hewers of wood and drawers of water indeed.

#161 You know Val on 08.25.21 at 2:38 am

Tell the people that governments are puppets to the central banks of the world , they hold real control. Money supply has always been the end game.

#162 IHCTD9 on 08.25.21 at 2:45 am

Attn. RE-less kids. If Trudeau gets in, just start making plans to leave immediately. You’re living in a country hell-bent for leather on driving RE to the moon. No one could possibly be worse than this ******* quack nimrod blockhead PM we have now, and if us dimwitted Canucks give him another mandate, then you know the whole damn country is against you. A nation of rent seekers after 75% of your paycheque. That’s all the proof you’ll ever need.

Don’t waste any time, the USA beckons. Even if you have to buy health insurance, you’ll still be waaaay ahead of the schmucks who immigrated into this crap ****hole banana republic twit infested dump country. I can not believe how far we have fallen in only 6 years.

Gtfo if Trudeau wins. You’ve been warned…

#163 Howard on 08.25.21 at 4:50 am

#153 NSNG on 08.24.21 at 10:33 pm
This is more proof that the government has always been at war with GenX. All the biggest benefits go to the generations surrounding it. Silent, boomer, and then skip to the mill’s generation. GenX is again left outside with their after-school TV and their latchkeys, forced to make something of the hand-me-downs.

Someone should write a book. The Government War Against GenX. No one but GenXers would buy it, of course. But it would be loaded with cynical truth and future anthropologists would use it as a key text in defining this era.

————————————-

Gen-Xers mostly entered the workforce in the 90s, when housing costs were at a 50-year low relative to income, the job market for entry-level positions was strong (after 1992), and salaries were rising.

Some “war” against your generation.

#164 Summertime on 08.25.21 at 7:16 am

It seems Canadian standard of living has declined 4-5 times in the last decade and a half in terms of ability to purchase home/invest in financial assets when compared to income.

The continuous outrages lies from BoC and the statistics about the real inflation/cost of living are pathetic as is the indexing of fixed income programs – CPP, old age etc. by the government.

It is basically a theft, robbery from savers and retirees.

I did read the ‘opinion’ column by the BoC boss on the ‘transitory inflation’ and was terrified by his ignorance and lies. The time to run for the hills is now.

Things must be really bad for him to sit there and spit that nonsense.

#165 RE_Investor on 08.25.21 at 7:27 am

#150 The Canadian Housing Path on 08.24.21 at 10:08 pm
…..The Fix
1. Only allow the ownership of one home per Canadian household for living in. This literally eradicates all of the criminal element associated with housing. Any shortfall in supply to be pumped out immediately by the Federal gov to fulfill the duty of having enough homes for people to live in.

Wow, you really researched the housing fix. How do you remove the extra houses that RE Investors own and rent? I really want to hear your detailed analysis and response on this one.

#166 Summertime on 08.25.21 at 7:29 am

#124 Loonie Doctor on 08.24.21 at 7:50 pm
Seems to be a railroad to having everyone in a one asset “investment” strategy. Wow. This is irresponsible on so many levels.

-LD

——-

When there is no economy left expect housing and related financial services, this becomes normal.

We just need to recognize the predicament which is out of control inflation of everything that matters, exacerbated by idiotic zero rate policies.

Of pretty much exponential scale.

Labour is doomed and the owners need their rent.

#167 Prince Polo on 08.25.21 at 7:35 am

We can debate how directly responsible they are, but the Liberals have presided over what could very well turn out to be the end of mass affordability in home ownership in Canada. On Tuesday, they announced a series of proposals aimed at giving young adults a fighting chance to get into the housing market in the years ahead…….Only a major price reversal can restore mass affordability and the federal parties won’t touch policies that would make this happen.

A whopping 1,000,000% tax on politicians’ lip-service might actually do the trick!

https://www.theglobeandmail.com/investing/personal-finance/young-money/article-only-a-big-price-drop-will-restore-housing-affordability-no-federal/

#168 NoName on 08.25.21 at 7:52 am

They say picture is worth 1000 words, but me thinks now we can maek successful argument that picture is worth only 1 pronoon, 1 definite artickle and 1 werb.

https://twitter.com/neighbours_wifi/status/1430217421701406724/photo/1

#169 Do we have all the facts on 08.25.21 at 8:01 am

The relationship between employment and affordable housing is not receiving the attention it deserves. Canada is a very large country but after the Department of Regional IdustrialmExpansion was abolished in 1987 very little has been done to support the creation of employment opportunities in regions where housing might become more affordable.

In 1957 the Gordon Royal Commission recognized the importance of resolving regional economic disparities to the future of Canada. In recent years our Federal governments have all but ignored the creation of employment opportunities in underdeveloped regions of Canada. As a result of this shift in priorities the majority of our labour force now lives in a handful of larger urban areas where the price of housing has escalated beyond the reach of most citizens.

Federal politicians from 1950 through 1987 saw the importance of distributing employment opportunities in a more equitable manner. Now that the cost of housing in areas where the majority of our labour force has chosen to live has become unaffordable it might be time to revisit previous initiatives intended to redistribute employment opportunities across Canada.

Canada has access to billions of dollars of investment capital held by Canadian citizens and it seems like a good time for our Federal government to stimulate the creation of productive employment opportunities in regions of the country where housing will be affordable.

Just a thought from one very concerned citizen.

#170 Sail Away on 08.25.21 at 8:06 am

Meme stocks caught fire again yesterday. This could be fun.

#171 Phylis on 08.25.21 at 8:25 am

#162 Howard on 08.25.21 at 4:50 am
#153 NSNG on 08.24.21 at 10:33 pm
This is more proof that the government has always been at war with GenX. All the biggest benefits go to the generations surrounding it. Silent, boomer, and then skip to the mill’s generation. GenX is again left outside with their after-school TV and their latchkeys, forced to make something of the hand-me-downs.

Someone should write a book. The Government War Against GenX. No one but GenXers would buy it, of course. But it would be loaded with cynical truth and future anthropologists would use it as a key text in defining this era.

————————————-

Gen-Xers mostly entered the workforce in the 90s, when housing costs were at a 50-year low relative to income, the job market for entry-level positions was strong (after 1992), and salaries were rising.

Some “war” against your generation.
Xxxxxxxxxxx
….and it began with a yield curve inversion and long recession. Why do you think houses were cheap at that time? Not until the end was one able to find that employment to take advantage of the lower prices. Pointing out instantaneous events without context is bias.
Sweet dreams, see you in the morning.

#172 crowdedelevatorfartz on 08.25.21 at 8:28 am

@#158 Russ
“TOOT TOOT
TOOT TOOT TOOOT
TOOT TOOOOOOOOOOOOOOT!”

+++++
Danger signals or not.

All those whistle blasts…..still didnt stop the Halifax Explosion…..

#173 TurnerNation on 08.25.21 at 8:38 am

Shutting down the Tourism economies? (Control over our travel/movement is a main goal.) GEE never saw this coming! Why government$ already bought boosters – into 2024.

.Which? @WhichUK – twitter
“Aug 19 New: Croatia and Austria have become the first countries to set vaccination ‘expiry dates’. This change could affect thousands of holidaymakers. The new rules mean you are only considered immune from Covid-19 for 270 days after your 2nd vaccine.”

https://www.haaretz.com/israel-news/israel-may-deny-green-passports-to-people-who-have-not-received-covid-booster-1.10147312

—-
— All the old culture must go Comrade. Oktoberfest in Munich Germany 2021 is Cancelled – again.
Do you recall the crazy ‘new system ‘ prediction list – from the late 60’s – a ‘leak’. One was that, Soccer
would be the sole sport remaining? Yep CV can do this too.

https://dailycaller.com/2021/08/23/saints-jaguars-tickets-1-coronavirus-vaccine-negative-test/
“The Saints are playing the first game in the NFL to require fans to be vaccinated or provide a negative PCR COVID-19 test. What has that done to ticket prices for Monday night? Driven them straight into the ground.
According to Darren Rovell, some tickets on the secondary market are selling for less than $1 before fees.”

#174 That guy on 08.25.21 at 8:46 am

So, looks like folks actually don’t care about the environment after all. Hah, didn’t see that coming. /sarcasm.

Here’s the solution: we need fewer Canadians! This will reduce our carbon emissions and house prices.
How, you ask? Why thank you for asking:

1) Reduce Canada Child Benefit over the next ten years until it reaches zero.
2) Ban immigration except for limited numbers of family reunification and refugees.
3) Double the current subsidies for electric vehicles and track purchase behavior. Adjust until EVs reach a significant percent of new vehicle purchases.
4) Ban daycare subsidies i.e. the cheap daycare in Quebec, that folks want to have in other provinces as well.
5) The budget will balance itself: demand the UN subsidize our budget shortfalls because we are taking a hit to lower the emissions of one of the highest per capita polluters on the planet.

Who is with me?

#175 milly on 08.25.21 at 9:04 am

automatic mortgage deferrals in the event of job loss… jesus housing is too big to fail. How is this fair to renters? How will they prevent milking of this system to save more money? Awful, I hope this clown isn’t elected for this nonsense alone.

How about making renting attractive to curb demand? Like a renters tax credit, extra TFSA room if you do not own property, building family-style rental buildings. Renters are ignored why taxpayer dollars pay for the “wealthy” to own homes…. right. Definitely for the “middle guy”

#176 To the moon with HOUSE PRICES! on 08.25.21 at 9:59 am

#148 Blacksheep

Drake # 143,

“Let’s face it. Real estate is too big to fail and they won’t let it. In turn, money will pile in recognizing this amazing government support – this has already happened.”
————————-
A little naive I guess, but eventually figured this out by Dec 2013, tried to spread the word here, but was just labeled RE pumper…

Each to his own.

————————-

Clearly the leaders realized that real-estate is a key piece.

When it decreases it is the cause of BANK headaches, recessions, consumer spending decreasing, etc.

And so a coordinated effort has taken place to ensure that never happens. The benefits are plentiful.

First and foremost – BANKS are taken care of. No need to bail them out. No need for lost profits.

Second, economy shows growth – even though without housing there would be no economy or growth.

Third, increasing values allow for increased collection of taxes at time of purchase during land transfer, etc.

Fourth, higher values mean re-assessments and MORE PROPERTY TAXES!

WHAT POLITICIAN WILL SAY NO TO THAT WINNING COMBINATION?

Decreasing house prices are bad for everything! UNPATRIOTIC!

#177 Wrk.dover on 08.25.21 at 10:11 am

#108 Sail Away on 08.24.21 at 7:18 pm

Looks like my kids will be getting $40k each toward a homebuyers TFSA, haha.
________________________________

So, you throw away 80 grand, your massive house goes up 15 grand in value, and so does my little one!

Hook line and sinker Ponzi scheme.

#178 Quintilian on 08.25.21 at 10:14 am

Interestingly, up to now politicians have used euphemisms such as “affordability” and now they refer to it by the proper name: “housing crisis”.

After the election all they will tinker with some ineffective, cosmetics.

Prices will continue to escalate as long as humans remain emotional and not rational, and interest rates remain low enough that with herculean efforts people can still enslave themselves with colossal debt loads at the expense of a real productive economy.

But, now that they have actually acknowledged the problem they created, they have a tiger by the tail.

Sooner or later, they will have to let it go, and that tiger will be very angry.

Tick Tock, Tick Tock

#179 crowdedelevatorfartz on 08.25.21 at 10:16 am

Gee whiz.
The Prime Minister’s gonna have to come up with some good “spin” to “splain the unfolding “evacuation” disaster that is the Afghanistan mission….
All about to unfold in less than a week.

“20,000 will be evacuated…”

Try, maybe 2000.

I wonder which Canadian General they’ll hang from a pole to throw stones at when, it’s their own politically correct bureaucrats that are to blame.

#180 Linda on 08.25.21 at 10:19 am

This meme that ‘owning’ a home means one is ‘wealthy’. Once it is paid for, maybe. Meanwhile, one pays a mortgage (root word ‘mort’ means ‘death’). So whoever holds the mortgage – usually a bank – is actually the ‘owner’.

Second, for a lot of home owners the house is their only asset. They are as Garth says ‘house rich but asset poor’. The house is in effect their future retirement plan/income. To realize the funds they have to a) sell; b) tap the equity some way. A lot of seniors either borrow or set up a reverse mortgage on their paid for house to have enough funds to cover their expenses. Potential beneficiaries (those who may inherit) could therefore see that much anticipated windfall resemble a withered crabapple rather than a fat, juicy apple. Or find to their shock & horror that all they inherited was some debt. Lots of folks retiring with a mortgage these days. Hard to see how that results in leaving $ to ‘the kids’ when the parents aren’t even clear of debt when they retire on a fixed income. For sure CPP/OAS isn’t going to be enough to live on so guess what gets tapped if there are no other assets? If you guessed the house, you’re a winner!

#181 Ponzius Pilatus on 08.25.21 at 10:34 am

#172 TN
“The Saints are playing the first game in the NFL to require fans to be vaccinated or provide a negative PCR COVID-19 test. What has that done to ticket prices for Monday night? Driven them straight into the ground.
According to Darren Rovell, some tickets on the secondary market are selling for less than $1 before fees.”
—————————
Here we got the solution to high house prices.
Only vaccinated people can buy houses.

#182 DON on 08.25.21 at 10:44 am

#162 Howard on 08.25.21 at 4:50 am
#153 NSNG on 08.24.21 at 10:33 pm
This is more proof that the government has always been at war with GenX. All the biggest benefits go to the generations surrounding it. Silent, boomer, and then skip to the mill’s generation. GenX is again left outside with their after-school TV and their latchkeys, forced to make something of the hand-me-downs.

Someone should write a book. The Government War Against GenX. No one but GenXers would buy it, of course. But it would be loaded with cynical truth and future anthropologists would use it as a key text in defining this era.

————————————-

Gen-Xers mostly entered the workforce in the 90s, when housing costs were at a 50-year low relative to income, the job market for entry-level positions was strong (after 1992), and salaries were rising.

Some “war” against your generation.

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

Where the hell did tou get your analysis. Two recessions….no boomer retirement….yes housing was lower and so was the ability to gain stable employment 5 years before the bank would even look at you for a little loan. Context matters.

#183 The joy of steerage on 08.25.21 at 11:27 am

Go bald guy go… there is a dog in heaven..

The libs are tanking!

https://338canada.com/

#184 Sail Away on 08.25.21 at 11:39 am

#176 Wrk.dover on 08.25.21 at 10:11 am
#108 Sail Away on 08.24.21 at 7:18 pm

Looks like my kids will be getting $40k each toward a homebuyers TFSA, haha.

——-

So, you throw away 80 grand, your massive house goes up 15 grand in value, and so does my little one!

Hook line and sinker Ponzi scheme.

——-

Never a throwaway when tax-free $ goes to the SA dynasty, but there is still much due diligence and vetting to be done. Might not even happen, for that matter.

Our house is 1,700 s.f. Hardly massive. A bit too big since I’ve built every counter, cabinet, island, dresser, bed, table in the place. Cherry and fir furniture and local maple flooring. Black walnut shelving and steambent clear fir entryway. And yes, all proper slow and careful joinery, lots by hand and chisel but most box dovetails on router.

When the tipi is set up in the yard it adds another 450 s.f. of living space. Guests often choose to sleep there.

#185 KLNR on 08.25.21 at 11:44 am

@#150 The Canadian Housing Path on 08.24.21 at 10:08 pm
How We Got Here

1. Low mortgage rates.

2. Immigration – Canada isn’t building enough homes to keep pace with population (population of the Greater Golden Horseshoe region, which stretches around Toronto and the western end of Lake Ontario, is estimated to have grown by 780,000 people in the five-year period between the second half of 2016 and the first half of 2021, according to an analysis by Hemson Consulting. That represents an increase of more than 50 per cent compared to the 510,000 people the area added in the previous five-year period, the data shows. But in the same five-year span between 2016 and 2021, the region likely added only around 270,000 new homes, a modest increase from around 214,000 homes added in the previous five years.

3. Using homes as an investment (Investors accounted for 20 per cent of property purchases in Canada in early 2021 – growing presence of corporate investors like private equity firms, real estate investment trusts (REITs) and financial institutions).

4. Using homes to launder dirty money (the Expert Panel on Money Laundering in B.C. Real Estate, for example, estimated that money laundering makes home prices in BC 7.5 per cent higher than they would otherwise be).

The Fix

1. Only allow the ownership of one home per Canadian household for living in. This literally eradicates all of the criminal element associated with housing. Any shortfall in supply to be pumped out immediately by the Federal gov to fulfill the duty of having enough homes for people to live in.

2. Investment money to be only accepted for new stock to help pump supply. Existing homes cannot be touched by investment dollars.

Why this will never happen: because housing will normalize and cause a huge financial fallout and cause the immediate party in power to be thrown out (a 70% owner cohort gain from increasing house prices). This is why government facilitates the housing crisis instead of fixing it. Also, push economics are usually at play like pumping immigration first then having developers play catch-up – not the other way around. They call it stimulating but in actuality is causes mayhem regarding a basic need in shelter.

Nah, it’s much simpler.

how we got here – 20yrs of low interest rates

the fix – raise interest rates more than the token 1/4 point here and there.

#186 Howard on 08.25.21 at 11:45 am

#170 Phylis on 08.25.21 at 8:25 am
#181 DON on 08.25.21 at 10:44 am

Yes I’m well aware of the 90s recession, which is why I mentioned the strong job market AFTER 1992. Unemployment fell precipitously through the decade. The tech bust was concentrated in one industry. Interest rates, though high by today’s standards, were a very reasonable 5% with fluctuations.

I’m sure there were hardships but come on. Most Gen Xers were university-aged or younger (some still in elementary school) during the early 90s recession. And to say that housing in the 90s was “lower” is a bit of an understatement, don’t you think? It was dirt cheap, for both owners and renters, and remained that way for a good 10-15 years so it’s not like you only had a short window to get in.

#187 Ballingsford on 08.25.21 at 11:45 am

Impossible to build a million or more home in 3 years. Manpower and land not available, but the money is I guess.

#188 Life is unfair on 08.25.21 at 11:51 am

People whining about how hard their generation has it while ‘working’ from home is pretty funny

#189 Sinking the Ship on 08.25.21 at 11:54 am

Biden admin touting the large number of emergency evacuations as a sign of success also claim the Titanic was a success due to the number of lifeboats launched

#190 leebow on 08.25.21 at 12:00 pm

#176 Wrk.dover

So, you throw away 80 grand…
~~~~~

Why did you decide that the purpose of depositing into this new house-TFSA is to buy a house? Think total family wealth. It’s just another account to compound interest tax-free.

When everything else is maxed out, such new opportunities give investors silent and solemn moments of appreciation. It’s not very frequent when money just falls into your hands with no effort whatsoever on your part.

#191 Ottawan on 08.25.21 at 12:02 pm

Moving from a $5000 to $10000 credit sounds like a lot, but at 15% base tax rate, it’s only going from $750 to $1500 cash back at tax time. Covers the lawyer’s fees and that’s about it.

#192 IHCTD9 on 08.25.21 at 12:06 pm

#153 NSNG on 08.24.21 at 10:33 pm
This is more proof that the government has always been at war with GenX.
——-

Actually, Gen X (and the eldest of Mils) are the last generation in Canada to have been able to get a good life underway by virtue of coming of age in the “old” Canada.

We had reasonable costs on necessities, decent politicians at the helm, and a job market not completely stuffed into a handful of metros or overflowing with educated newcomers. Wages were pretty low, but the COL was even lower, netting a good result.

All my peers own a paid for SFD, and none had to be a Doctor to do so. Many have some kind of pension, and some degree of savings. A couple own more than 1 house or have a 7 figure portfolio well into the making. Again, no Law degrees required. No degree at all in fact, for most of them.

The “new” Canada arrived in 2020 with a fresh new Trillion dollar debt, and a thoroughly destroyed RE affordability crisis nationwide. Trudeau’s proposed housing policy is set to pound values up even higher, and he will add 1.2 million new immigrants into the mix over the next few years – most of which will land in just two places, the GTA, and GVRD.

Gen X were the last to have had a good shot at prosperity in Canada. The Millennials suffered through the transitions of globalization, several economic shocks, and some of the dumbest fiscal and monetary policies ever put to paper. Some did alright, but many did not. Gen Z is now in a totally new post-Trudeau reality where I wonder if the dream of home ownership might be discarded altogether. They’ll have their hands full paying their school debt, inflated COL, and ever rising taxes. How’re they going to shoulder a 7 figure mortgage on top?

#193 KLNR on 08.25.21 at 12:16 pm

@#187 Life is unfair on 08.25.21 at 11:51 am
People whining about how hard their generation has it while ‘working’ from home is pretty funny

amusing how parts of every gen think they got the short end of the stick.

#194 IHCTD9 on 08.25.21 at 12:27 pm

#177 Quintilian on 08.25.21 at 10:14 am

But, now that they have actually acknowledged the problem they created, they have a tiger by the tail.

Sooner or later, they will have to let it go, and that tiger will be very angry.
————

A poster here by the name of “Nostradamus” offered the perfect proverb for the situation our politicians face right now.

“He who rides the Tiger, dares not dismount”

At this point, if our leaders try to actually fix the problem, they’ll get shredded. They rode this beast way too long – so we’re heading for the only fix that’s left – some kind of uncontrolled meltdown.

#195 Linley on 08.25.21 at 3:48 pm

Okay so who the heck should we vote for? I am at a loss…