Writing it off

‘Rates can never go up. The economy will crash.’

How many times have you read that doomy bleating in the steerage section comments? It’s a constant refrain from the over-extended, the uber-leveraged and the hopelessly indebted. They truly believe ‘the government’ sets interest rates and the Bank of Canada will act independently from CBs around the globe – just to ensure real estate values continue to inflate. Forever.

Well, surprise. Bond yields have escalated in Canada and the US. Inflation is running hot. Employers can’t find enough workies. Covid’s still here. The supply chain is busted. The price of everything is going up. Governments are spending to excess. And, yup, all this stimulus means central banks will be tapping the brakes, with the debt market doing it in advance.

Look, it’s already started. Right on cue.

TD’s the first of the Big 6 to jack fixed-term rates. The three-year is up ten basis points and the fiver advances by thirty. Now that doesn’t sound like a whole lot. And the deplorables will yell, “But I can still borrow oodles at barely over 2%”. They’re right. The new five-year fixed-rate cost is 2.29%. Still cheapo money when the official inflation rate is 4%.

But this is an increase of 15%. And it will not be the last. In fact, as stated, it’s the first. Variable-rate loans will stay put (or even fall a few basis points as the yield curve steepens) until the BoC starts adjusting its benchmark rate. Two increases are expected in 2022, adding about a half point to the prime and VRMs. Then, as growth accelerates in a post-Covid world, the cost of money could augment about every quarter.

Eventually current mortgage rates will double. If you took out debt in 2020 or beyond, better budget for a more costly renewal. And be aware that as mortgage rates rise, the amount of principal being repaid monthly falls. The best deal today is a variable rate, still available at about a full point below the prime rate. But, of course, that will be fleeting.

The impact on house prices?

Hard to say, given the current sicko state of the market. Sales have limped, prices have spurted, inventory has shrunk and we’re on the cusp of a big increase in the CMHC ceiling – allowing high-leveraged 20x loans on properties up to $1.25 million. More proof if the market can possibly be screwed up even more by bad policies, our current leaders will find them. Combined with the FHSA, well, anything can happen.

The evidence housing is out of control is everywhere. New data shows more and more households are borrowing against equity at low rates to invest in extra real estate. Multiple-property ownership rates are soaring as an increasing amount of net worth is funneled into one asset class. REITs and other evil corporate aggregators aren’t doing this. It’s your neighbours.

This is no surprise when a homeowner can borrow $120,000 in a HELOC at prime (2.45%) to buy and 100% finance a condo for $600,000, which rents out for $2,500. The interest-only payments are fully tax-deductible. Yeah, after carrying costs, opportunity cost, property taxes, insurance and condo fees the cash flow is negative, but so what? Specuvestors do it for capital growth. And the tax system encourages it.

Is this a good thing?

The dudes running NZ don’t think so. This week they did something about it.

On Tuesday New Zealand’s pneumatic PM, Jacinda Ardern, lowered the boom on residential real estate investors with a new law that – effective Friday – disallows the deductibility of mortgage interest. It’s a big move. Unlike in Canada where measure after measure is passed to augment demand (and prices), this kind of action throws icy water on the entire market. Interest deductibility for new purchasers will be banned immediately and phased out for existing landlords over the next three years. Critics complain it will hike rents, but the deed is done.

In NZ house values have inflated 26% in a year – a little less than in Canada, but enough to freak out the Kiwis. “Tax is neither the cause nor the solution to the housing problem, but it does have an influence, and this is part of the Government’s overall response,” said the finance minister. And he’s right. When investors – who receive a tax benefit – compete with residential buyers – who don’t – injustice grows. As stated above, when money is cheap, plentiful and tax-deductible causing prices to romp, why wouldn’t people jump in?

Well, during our recent “housing crisis” federal election campaign, nobody mentioned this. Instead we’re getting a new tax shelter especially built to inflate house prices, a higher leveraged debt ceiling and the government will be paying most closing costs with an enhanced credit. Plus you can write off the loan interest on a rental condo. But you can’t deduct interest on a TFSA loan.

Maybe when Jacinda’s done down there we could borrow her?

About the picture: “This is 10 year-old Rollie,” writes Kevin. “A throwback to the days where a nouveau boutique name was best left to hairdos than dog breeds. He is a border collie/Swiss mountain dog mix. As such, he LOVES catching and retrieving frisbees (border collie) and fervently “rescuing” half buried sticks found anywhere (Swiss mountain dog). Our most loyal friend sadly but humanely euthanized on this past autumn solstice. I’d love to see this beautiful picture of him as a tribute on your blog so all the dog-lovers here can see him as he was not long ago – still in his prime. And thank you for continuing your captivating, informative and timely blog posts despite what has to be tiresome exchanges with unthankful and unpleasant individuals.”

130 comments ↓

#1 Paul on 09.30.21 at 2:45 pm

Maybe when Jacinda’s done down there we could borrow her?

Yes,Yes more taxes that’s the ticket!!

#2 Rainman on 09.30.21 at 2:49 pm

New Zealand also doesn’t allow foreigners ownership. Do we really want to follow them?

#3 baloney Sandwitch on 09.30.21 at 2:51 pm

Garth – Looks like the Globe has been reading your blog,
https://www.theglobeandmail.com/business/commentary/article-liberal-plan-to-fiddle-with-cmhc-mortgage-insurance-is-risky-for-home/

#4 zxcvbnm on 09.30.21 at 2:51 pm

“More proof if the market can possibly be screwed up even more by bad policies, our current leaders will find them.”

It’s only bad policy if you think they’re trying to make homes more affordable. I would argue that it’s good policy, they just aren’t being forthcoming with their motivation. It’s OBVIOUS that the government wants to inflate house prices. They’re not (that) stupid. They’re saying one thing and doing another. Watch what they do, not what they say.

#5 Leftover on 09.30.21 at 3:04 pm

If you still think interest rates are going to stay low forever, take a look at this graph:

https://twitter.com/RichardDias_CFA/status/1441751590352740362?s=20&mc_cid=9a63104867&mc_eid=73e15761d2

Covid is akin to WW2 when it comes to deficit financing, inflation and interest rates. We are in the equivalent of 1948, and by 1955 rates had tripled (from 1.5% to 4.5%).

Sound familiar?

#6 Ray Skunk on 09.30.21 at 3:10 pm

Sums it up in a nutshell between the two.

Leader – does what’s right for the well-being of the population, even if it makes them unpopular with some.

“Leader” – does whatever will get them the most votes/increase chances of reelection and to hell with the consequences.

Guess which we have?

#7 Don Guillermo on 09.30.21 at 3:12 pm

#176 Steven on 09.30.21 at 1:23 pm
161 Ponzius Pilatus on 09.30.21 at 11:32 am

Furthermore,
I have relatives in HongKong, who have school aged children, and elderly to look after.
None of them has a car.
I don’t even think they have a drivers licences.
And yes, they could afford cars if they wanted.
———————————————
The big difference is Hong Kong has an incredibly good public transit system whereas Vancouver…not so much.
In Hong Kong, they build skyscrapers over transit hubs so it is incredibly convenient for people to get around. Taxi is also very affordable and efficient as Hong Kong is not that big a geographical area.
In Vancouver, transit hubs are surrounded by single family homes, forcing people to make multiple transfers
by bus just to get to skytrain stations. And let’s not even talk about our taxi system
**********************************

HK is awesome. One of my favorite cities. This bridge is cool too. It’s beautiful and an engineering marvel.

The The Hong Kong–Zhuhai–Macau Bridge (HZMB) is a 55-kilometre (34 mi) bridge–tunnel system consisting of a series of three cable-stayed bridges, an undersea tunnel, and four artificial islands. It is both the longest sea crossing[5][6] and the longest open-sea fixed link in the world (Wiki).

“As of September 2021, Hong Kong has the most expensive petrol in the world at $2.56 per litre ($11.63 per gallon)”.

https://www.aljazeera.com/news/2021/9/30/infographic-how-the-price-of-petrol-has-changed-2001-2021-interactive

Ponzie, when are you putting that beautiful Q5 up for sale?

#8 IHCTD9 on 09.30.21 at 3:15 pm

Trudeau could learn a thing or ten from Jacinda.

At some point as I near retirement, I’m going to stop hoping for a crash, and start hoping things hold out. I might have to start voting Liberal to ensure my RE keeps bloating like a corpse in the sunshine.

I was hungry before I read that. – Garth

#9 Rook on 09.30.21 at 3:16 pm

Here’s a thought. Could it be the powers that be know ‘money’ will at some point be worthless, but don’t want to start the stampede? So they’re doing everything they can to encourage people to ‘invest’ in a hard asset?

I’ve been trying to figure out why, despite talking about housing affordability, every measure seems geared to increase house prices, while at the same time getting more people into that asset.

And I’m stumped.

House prices are going wild. The rate hike may help, but we’ll see, and we’ll also see if it sticks around once the market takes the inevitable hit. Yet more people than ever want to own homes. Yet they’re unaffordable. Yet those who sell are making gobs of money.

I can’t understand the rationale. Can anybody, perhaps smarter than I, shed light on why our rulers would take measures to increase housing costs, while saying they’re trying to get more people into housing?

#10 WTF on 09.30.21 at 3:16 pm

Naaa the NZ PM has too much common sense.

We canucks prefer to elect financial imbeciles who buy us off with our own money, bloat the debt/deficits and kick the can further down the road for some other sucker (oh wait, that sucker is our kids!)

NZ did a deep dive post 2007-08 financial crisis. Here were their findings:

-Poor governance and management;
-Criminal misconduct;
-Deficiencies in disclosure, advice, and investors’ understanding;
-Inadequate supervision.

No point in Canada learning from others misfortune. The hubris is epic. The leadership is absent. The electorate clueless. A toxic stew likely to have serious impacts in every facet of society for years to come.

#11 Dolce Vita on 09.30.21 at 3:19 pm

Oh Garth, what’s $16.3 Billion in Gov Canada planned program spending* to pump up the RE market?

https://i.imgur.com/YB9HWoD.png

Heck, they’ll even fix your beater appliances.

You’re such a killjoy.

————–

* Forward. For Everyone.
https://liberal.ca/wp-content/uploads/sites/292/2021/09/Forward-For-Everyone-Financial-and-Costing-Plan.pdf

DONATE (It only takes 2 minutes).
https://secure.liberal.ca/donate?utm_source=liberal.ca&utm_medium=header-bar

#12 Nonplused on 09.30.21 at 3:19 pm

I’m not sure I understand what interest Kiwis were deducting from what taxes, or whether Canadians can currently do the same thing.

Right now I think Canadians can include mortgage interest as a business expense when calculating the profit on a rental property, much as any other business would include interest expenses as an expense when doing their balance sheet. I don’t see how you get around this as it is an expense and disallowing it could make taxes payable considerably larger than net margins for many businesses.

Or is it a straight up deduction from earned income for owner occupied housing like in the US?

Whatever the case one can be pretty sure whatever the government is claiming to do, it won’t help. Market prices are not really affected by who owns what and is renting it to whom, supply and demand is the only thing that really matters. To make housing more affordable, only one thing can be done: Make it easier and cheaper for developers to build. They will literally flood the market if permitted and the money works out.

And no, higher interest rates won’t make real estate more “affordable”, except maybe for those buying cash. Prices may fall but the monthly will not.

The solution is on the supply side, and it is the only solution that will work. Let them subdivide, let them rezone, give them permits, and remove unnecessary red tape.

#13 Tripp on 09.30.21 at 3:21 pm

On September 25, Jacinda Ardern posted on Facebook, with the intent to talk about vaccination side effects and alleviate related concerns. She received over 33k replies, the vast majority about negative effects, covering the whole possible range. Considering the overwhelming response, she will have to follow-up.

Looking forward for our PM’s similar post.

#14 MD on 09.30.21 at 3:22 pm

Our economy is fully dependent on stimulus so even if rates go up buyers will find a way to inflate the prices higher as no one in Canada believes housing can ever go down including my MIL. Fed already tried to increase rates in 2018 and than REPO crisis started in 2019 so they brought the rates down again before even COVID hit. So there is only one pin that can pop this big bubble and it’s going to be inflation so we can wait and watch how that outcome turns out.

#15 Alberta Ed on 09.30.21 at 3:25 pm

I doubt NZ would take Chrystia in trade for Jacinda; maybe we could offer Socko and his entire cabinet for a flock of sheep.

#16 yvr_lurker on 09.30.21 at 3:26 pm

Maybe when Jacinda’s done down there we could borrow her
—–

And who would have thought that, given her youth and lack of experience when first elected, she would have made the right call on many key issues. In particular, although she is clearly helped by the remoteness of NZ, her decision to aim for COVID zero was a good one and allowed New Zealanders to lead a largely normal life. Super-tight restrictions at airports was key. In contrast, with T2 at the helm, flights back and forth to India were completely unabated long after the Delta virus was raging through India in the spring. Only 6–8 weeks later (long after anyone with any sense knew it was time to shut flights down from India), did T2 finally act. If he acted sooner, it is likely we would have had a few more months to vaccinate more people before Delta took hold here. Can we swap T2 for Jacinda? She seems much more competent and pragmatic.

#17 SCD on 09.30.21 at 3:27 pm

It certainly is the case that landlords in Canada can write off the interest on the mortgage, but they also have to declare and pay tax on the income in order to do so. They also pay capital gains tax on the sale of the property and do not qualify for the home owner grants that those living in their principle residences do and so pay higher municipal taxes. these factors matter.

#18 Dolce Vita on 09.30.21 at 3:30 pm

Speaking of pumping up the RE market:

“On Tuesday New Zealand’s pneumatic…”
— Garth

Double take by me on “pneumatic”. Looked it up to make sure I understood it correctly in the first place.

I did.

THAT was good.

#19 Prince Polo on 09.30.21 at 3:31 pm

Don’t forget the new “we punish success” tax that the banks are also going to have to pay (via higher mortgage rates?)

I heard a few victory laps on this week’s TI call, so let me trot out one of my own for pining about Jacinda in March!

#20 Prince Polo on 03.10.21 at 2:56 pm
I so wish Jacinda was our PM. Instead, we get Photo-op Minister (PM) Socks gleefully playing the role of lecturing dad, whilst actively setting up the destruction of thousands of families who will end up with unpayable mortgage balances. Then, he will skate off into the sunset and not have to deal with any of the consequences of his piss-poor stewardship. *slow clap*

#20 IHCTD9 on 09.30.21 at 3:35 pm

#8 IHCTD9 on 09.30.21 at 3:15 pm
Trudeau could learn a thing or ten from Jacinda.

At some point as I near retirement, I’m going to stop hoping for a crash, and start hoping things hold out. I might have to start voting Liberal to ensure my RE keeps bloating like a corpse in the sunshine.

I was hungry before I read that. – Garth
____

Sorry G, I was trying to avoid using the term “gas bag” again.

#21 ogdoad on 09.30.21 at 3:36 pm

Hey, younger, better looking and bigger balls than our current PM…why not?

#22 Nonplused on 09.30.21 at 3:37 pm

#181 IHCTD9 on 09.30.21 at 2:21 pm
#170 Shawn Allen on 09.30.21 at 12:45 pm
More Toll Roads Please

#164 IHCTD9 on 09.30.21 at 12:26 pm said:

“I can tell you this – the 401 is fast headed towards being utterly useless for recreational weekend travel.”

************************************
Government services that are easily charged for on a user-pay basis should be so charged.

Driving past Calgary this past weekend I saw major road construction. Who better than the users of those specific roads to pay for it?
________

I’d like to see a massive toll on 401 Eastbound, East of the GTA…

———————————————-

Umm… You already pay for all the roads through various levels of taxation. I don’t see the solution to government incompetence when it comes to building roads to be allowing the government to charge you to use a road you already paid for.

Toll roads are only justified in my mind when the toll is what pays for the road construction instead of taxes. But you can’t do both; use taxes to pay for the road and then add a toll. Everyone pays the taxes (in theory), but only the users who can afford the toll enjoy the benefits if you start mixing the two.

People, we have got to start thinking our off-the-cuff solutions through. You don’t have a right to price people off a public road just because you’d pay a little extra to remove their vehicles. Build your own road if you want private access.

#23 S.Bby on 09.30.21 at 3:39 pm

That was my quote and I stand by it.

It doesn’t matter if bond yields increased because the CBs can just suppress rates again by buying the debt which they will continue to do. Any substantial rate increases will demolish the debt based economy we are living in. The CBs goal is to continue to inflate because the alternative is economic disaster.

As far as housing is concerned, the Feds will continue to pump it because it’s too big a part of our economy now and they want the wealth effect to continue.

The BoC is tapering already. The Fed is about to follow. – Garth

#24 Woke up this morning... on 09.30.21 at 3:41 pm

Welcome to Thursday.

You ever hear this mantra?

“’tis better to seek forgiveness than to ask permission.”

It is spoken frequently in the corporate world for example. Bet you politicians use it on-the-regular too.

Ever give it some thought? Like what is it instructing you to do really? Psychopathic stuff, isn’t it?

Well, apparently today we Canadians seek forgiveness because permission was not granted.

But you know…not really seeking forgiveness. Not like we’ll undo what was done or do anything to make it right outside of some superficial pacifiers. Long live the Queen!

Hey, we(politicians/leaders/royals) violated your human rights to the maximum on every metric available and continue to do so – but please note, we’re sorry about it. Forgive! We cool? GREAT! …What’s next on my schedule?

Bro, check out my orange T-shirt! Brought it out special for this day for you. It’s a Joe Fresh vintage – Made in Bangladesh. Who knows – maybe it was made in that Dhaka building that stood until 2013. Hey, look at the vintage stress on it from all the washes – looks hipster cool, right? I just want to help and do my part.

By the way, hope you bought some L.TO right after that 2013 thing like many others did – what a buying opportunity it was. 3x growth plus nearly decade of dividends. Oh was that wrong to do? Forgive me?

#25 Juan Gretzky on 09.30.21 at 3:42 pm

Prong collars are in humane and potentially harmful.

#26 Dolce Vita on 09.30.21 at 3:46 pm

Criminal misconduct.

Reading the above here today, yesterday about Italia thanks to Netflix’s Vendetta: “Truth, Lies and The Mafia” (“Vendetta, guerra nell’antimafia” – in Italiano, not even close to the English title except for the word Mafia).

The one distinguishing feature about Italia’s criminal misconduct is:

Italia doesn’t hide it.

It’s in your face not subterfuged like you have in N. America and other countries.

Difference.

————

The “Mafia” (an American generic term, see below) has been pretty much hammered down in Sicilia. So much so that the Ndrangheta has profited from this. But they are now getting Gov Italia TLC like the Mafia is getting.

However, they are entrepreneurial to say the least:

https://www.rainews.it/dl/rainews/articoli/Relazione-Dia-mafia-senza-Cupola-reati-economici-baby-gang-minori-affiliati-alla-ndrangheta-f8de0df3-ab29-4222-b418-541fec5d6d38.html

The fact that RAI knows so much about them tells you Gov Italia has a watchful eye on them.

PS:

There are different “Mafia” groups in Italia:

– Cosa Nostra (Sicilian)
– Mafia in America.
– Camorra (bell)
– Ndrangheta (Calabrian)
– Sacra corona unita (Apulian)
– Stidda (Sicilian)

I told you Canadesi know nothing.

#27 Tripp on 09.30.21 at 3:49 pm

#16 yvr_lurker on 09.30.21 at 3:26 pm

YVR, you may wish to check this, see what her people are responding.

https://www.facebook.com/jacindaardern/posts/i-was-reading-some-research-today-on-why-some-people-have-chosen-not-to-be-vacci/10158140116102441/

#28 Woke up this morning... on 09.30.21 at 3:49 pm

DELETED (Anti-vax)

#29 Quintilian on 09.30.21 at 3:50 pm

“Maybe when Jacinda’s done down there we could borrow her?”

Not sure if that would help.
She has been trying to reign in prices for quite sometime.

Nothing has helped so far.

I think that in the end, Canada has the best approach.
Keep feeding the beast until it explodes.

The cruel joke is on the middle and upper middle class.
Not long ago one could give their adult children a million bucks which could buy a house and a small business that would set them up for life.

Now the same mil can get them a down payment on a crack house by the train tracks on the notorious Eastside, and a life long debt albatross around their necks.

Proud of you Boomers, thanks.

#30 Wrk.dover on 09.30.21 at 3:53 pm

#182 IHCTD9 on 09.30.21 at 2:47 pm
#163 Sail Away on 09.30.21 at 12:17 pm
#150 IHCTD9 on 09.30.21 at 10:29 am

Maybe a small (1200 sf or less) efficient low maintenance house on an acre with a decent shop/garage isn’t a money maker? You’d think a lot of folks would love it. Cheaper to buy and own, just what we need in Canada for old and young alike.

So far it looks like we’re in the same boat – we’d have to build it ourselves.

———-

Yep, a small well-built house. If new build, concrete ICF or similar with metal roof is super efficient and eliminates a lot of common maintenance issues:

https://www.foxblocks.com/blog/icf-tiny-house
___

I’ve always liked ICF – right to the roof! Cool, warm, quiet, efficient, strong, no screw-pops, no bugs or vermin in the walls, – and do it all yourself with a careful concrete pumper!

Add in radiant floors, big windows to the south, insulated under basement slab, windbreak to the West – and a wood stove – man that would be zero compromise low energy living!
_____________________________________

I’ve told you once, I’ll tell you twice, all you have to do is sneak that on to your 4 acres permitted as as an outbuilding at first and live happily every after tax free while your grounds keepers/assisters live in the big house at reduced rent.

All set here.

#31 S.Bby on 09.30.21 at 4:00 pm

The BoC is tapering already. The Fed is about to follow. – Garth

CBs and particularly the FED will never stop suppressing rates. It’s been going on since 2008 and it will continue in spite of their jawboning to the contrary.

#32 IHCTD9 on 09.30.21 at 4:03 pm

#22 Nonplused on 09.30.21 at 3:37 pm
#181 IHCTD9 on 09.30.21 at 2:21 pm
#170 Shawn Allen on 09.30.21 at 12:45 pm
More Toll Roads Please

#164 IHCTD9 on 09.30.21 at 12:26 pm said:

“I can tell you this – the 401 is fast headed towards being utterly useless for recreational weekend travel.”

************************************
Government services that are easily charged for on a user-pay basis should be so charged.

Driving past Calgary this past weekend I saw major road construction. Who better than the users of those specific roads to pay for it?
________

I’d like to see a massive toll on 401 Eastbound, East of the GTA…

———————————————-

Umm… You already pay for all the roads through various levels of taxation. I don’t see the solution to government incompetence when it comes to building roads to be allowing the government to charge you to use a road you already paid for.
___

Well, my foray into that topic was a joke (I live East of the GTA! ). The 407 is like what you describe. Sorta. Public built, then leased out for 99 years to private interests (at a 100%+ profit over the cost to build). It’s now a pretty expensive toll highway not far from the 401. Profit for the private owners looks to bounce between 150-200 million annually, so a good deal for them since they got 99 total years to work it.

As for the 401 there is no fix. The problem is way too big, the answer is even bigger, the cost is even bigger than that. There are just way too many folks trying to use the only 100 km/hr 2 lane highway that heads East of the GTA.

There will be more and more folks showing up every year, but no new highway for them to drive on. It’s going to get pretty entertaining eventually.

#33 S.Bby on 09.30.21 at 4:06 pm

Look at the S&P for effects of this “tapering”.

#34 alexinvestor on 09.30.21 at 4:08 pm

Buying a condo for 600k and still have negative cashflow … bulls make money, bears make money, pigs get slaughtered. If rates are going from 2% to 4%, hold cash and wait for the revaluation. Housing is overvalued, bonds are overvalued, and stocks are overvalued.

#35 crowdedelevatorfartz on 09.30.21 at 4:09 pm

@#2 rainman

“New Zealand also doesn’t allow foreigners ownership. Do we really want to follow them?”

+++
Too late.
That horse bolted from the barn over a decade ago

#36 westcdn on 09.30.21 at 4:22 pm

I am guessing at Canada will be experiencing 5 years down the road and I am making plans to preserve what I do have. I have never liked peoplekind to tell me what to do unless I ask. It is impossible to know for sure but I think certain things are baked in the cake but how people will react is completely unknown to me. I still don’t to be a burden on anyone and I will not stand to be exploited.

T2 will be running his agenda for at least three years to build back better -ha. I believe Canada will be running $100 B deficits per year under his reign until he resigns. He will bring in a new standard of boondoggle but that is not bad for everyone, just the ones who pay. For him, debt does not matter, it is only the monthly that counts.

Under MMT (modern monetary theory), inflation is controlled by raising taxes not interest rates. But higher interest rates protect the value of our currency. And Canada imports most of goods and we ship out a lot of loonies to pay for the stuff. If the value of the loonie falls against other currencies, we will be importing inflation and will suffer more taxes. Maybe AI applications will save the day but I think I will be long buried before it happens.

I do not think the holders of loonies will be buying Canadian GIC’s and bonds. They will be buying our productive assets or things that keep their value.

I envision Canada with much higher taxes and interest rates near the inflation rate. It should lead to a lower standard of living but at least we will all be in it together except for the privileged ones. At least they not hogging the bicycle lanes.

Of course I will make adjustments to my plans and stay humble among the masses. I don’t need much, my ego is not used to make me feel better and I am into the end game of my life. Somebody mentioned be wary of the ides of November – sounds like good advice to me. Here is hoping for a Santa Claus rally. I will take a good look and measure against T2’s half wit good intentions or I will just wait for a budget.

#37 Faron on 09.30.21 at 4:24 pm

#8 IHCTD9 on 09.30.21 at 3:15 pm

Trudeau could learn a thing or ten from Jacinda.

At some point as I near retirement, I’m going to stop hoping for a crash, and start hoping things hold out. I might have to start voting Liberal to ensure my RE keeps bloating like a corpse in the sunshine.

I was hungry before I read that. – Garth

LOL. Eventually the bloat finds an orifice or one is made.

#38 Ponzius Pilatus on 09.30.21 at 4:26 pm

#7 Donny G.
HK is awesome. One of my favorite cities. This bridge is cool too. It’s beautiful and an engineering marvel.

The The Hong Kong–Zhuhai–Macau Bridge (HZMB) is a 55-kilometre (34 mi) bridge–tunnel system consisting of a series of three cable-stayed bridges, an undersea tunnel, and four artificial islands. It is both the longest sea crossing[5][6] and the longest open-sea fixed link in the world (Wiki).

“As of September 2021, Hong Kong has the most expensive petrol in the world at $2.56 per litre ($11.63 per gallon)”.

https://www.aljazeera.com/news/2021/9/30/infographic-how-the-price-of-petrol-has-changed-2001-2021-interactive

Ponzie, when are you putting that beautiful Q5 up for sale?
—————
HongKong is not my cuppa tea.
Very few trees, just a concrete nightmare.
The islands are nice, though.
About 15 years ago, we were contemplating to move there.
We went over, to specifically look for jobs and housing.
Good job prospects and pay.
But the rents were outrageous for tiny apartments.
Looking back, and see how the politics are evolving there, it would have been a big mistake.
Money is not everything.
Also, it’s very hot and humid, just like many parts of Mexico.
As for the Q5, I handed it over to my son.
He needs it to impress the ladies.
I’m happily busing all over the Lower Mainland on top a DoubleDecker, enjoying the beautiful vistas.
For 52 bucks a month.

#39 Don Guillermo on 09.30.21 at 4:27 pm

#15 Alberta Ed on 09.30.21 at 3:25 pm
I doubt NZ would take Chrystia in trade for Jacinda; maybe we could offer Socko and his entire cabinet for a flock of sheep.
****************************************
Only if we get to keep Sheamlus O’Regan ;-)

#40 Repurchase Disagreement on 09.30.21 at 4:31 pm

T2 standing up today Playing the Role… If I were to take his personal concern for FN in anyway seriously (after the “thank you for your donation” event) he would get up today and apologize that his dad did not close Residential Schools and seek real Truth and Reconciliation during either of his terms, declare that the naming of Montreal’s main airport would now be Carey Price International Airport, rather than PET, and offer HALF his Trust Fund in penance for his Extreme Privilege. Other than that it’s just acting.

#41 Lee on 09.30.21 at 4:45 pm

At the rate at which rates rise we’ll all be dead by the time it impacts prices. We only have 80 years or so each you know? We’ll still be talking about rates eventually getting “back to normal soon” forever.

#42 Flop… on 09.30.21 at 4:52 pm

In the name of Truth and Reconciliation a white geezer in Vancouver started up a fund to donate today’s wage to First Nation causes.

I’m not that rich, so the best I could do is donate $125 to the Super Store for 3 bags of groceries…

M47BC

#43 Woke up this morning... on 09.30.21 at 4:53 pm

#27 Woke up this morning… on 09.30.21 at 3:49 pm

DELETED (Anti-vax)

In my defence, I’m going to say that the 4 points were factual data exactly as reported by CDC and ECDC, linking and quoting direct data.

Which makes me wonder, how can that “official” CDC and ECDC data be anti-vax?

But it’s your house Garth.

You bet. And I’m tired of this purposeful dissemination of anti-vaccine material. If you want to avoid the shot, go ahead. But stop being an evangelical zealot about it. You are on the wrong side of the issue. – Garth

#44 TurnerNation on 09.30.21 at 4:57 pm

Science in Kanada. A friend of mine, their friend’s 20-something got one. Within an hour had to be rushed in with heart issues. It was not recorded as linked. It was said to be random. Such is the state of Science as Kanada.

———-
.Effective immediately, Ontario recommends Pfizer vaccine over Moderna for people 18-24 due to myocarditis concerns. (toronto.ctvnews.ca)

………….

This WW3 is not meant to be won. Been saying 2022-23, likely 2025 for a while now.
Until more of the global goals are rolled out. You know the ones.
Control over Feeding, Breeding and Travel/Movement

.‘Extraordinary measures’ needed to fight COVID-19 in Alberta, Saskatchewan(globalnews.ca)

………
The Long Game. Just for fun, if there was a plan to cause chaos, dismantle society and get troops – on the ground how would you begin? I dunno…work-to-rule?

.Canada’s RCMP union says it supports a Mountie’s ‘right’ to refuse vaccination (msn.com)

.TTC union does abrupt about-face on vaccination position (torontosun.com

#45 Dragonfly 58 on 09.30.21 at 5:03 pm

Hong Kong is only about 1/2 the size of Greater Vancouver and has about triple the population.
Public transit may work better in HK than Greater Van. buy I can’t imagine living in such a crush of people. The Fraser Valley is getting too crowed for me. HK is close to my vision of hell on Earth. Imagine the fresh water, sewage, garbage problems .
The Lower Mainland already has many areas with relatively poor quality well water. { Much of the Fraser Valley only has well water, not city tap water } Mainly Ag. runoff from up the Valley. Lets just stuff in way more people, that’s really going to end well.

#46 Not Fooled on 09.30.21 at 5:09 pm

Don’t worry. Our green, reconciliation-focussed, PM will be solving the the housing issue… right after he gets back from flying CFC01 out to Tofino to survey last night’s storm… er um, damage. Those waves can inflict some nasty coastal erosion. The best way to assess it is from a surfboard. Funny, his official calendar says he’s in meetings in Ottawa all day.

https://mobile.twitter.com/BryanPassifiume/status/1443630746258788352

#47 Quintilian on 09.30.21 at 5:19 pm

Bank Rates are normalized.

They will be in the range of .10 and 1.75 probably until a new monetary system is established-unlikely in my life time.

The reason why asset prices have not yet calibrated in tandem is the psychology and expectation that these low rates would eventually rise, so the lenders and RE pumpers used to fuel the mania.

It is not the low rates that are about to dissipate.

It the asset bubble prices that will crater to fit within the new economic parameters.

IHCTD9: please tell me you have a plan B. I like you; I would never wish poverty to visit you in your old age.

#48 Aldous Huxley on 09.30.21 at 5:21 pm

Nice reference. I chuckled from my grave.

#49 DD_BC on 09.30.21 at 5:25 pm

#9 Rook on 09.30.21 at 3:16 pm
Here’s a thought. Could it be the powers that be know ‘money’ will at some point be worthless

Last time I checked, money has no intrinsic value, a medium of exchange, sure. We created the idea of money, does that make it worth something. Can the idea die, and thus be worthless? Is it already dead, no longer being tied to something, has the idea run it’s course.

#50 TrueLies on 09.30.21 at 5:27 pm

DELETED (Anti-vax)nyway.

#51 Ponzius Pilatus on 09.30.21 at 5:29 pm

#26 Dolcius
Italia doesn’t hide it.

It’s in your face not subterfuged like you have in N. America and other countries.

Difference.

————

The “Mafia” (an American generic term, see below) has been pretty much hammered down in Sicilia. So much so that the Ndrangheta has profited from this. But they are now getting Gov Italia TLC like the Mafia is getting.

However, they are entrepreneurial to say the least:

https://www.rainews.it/dl/rainews/articoli/Relazione-Dia-mafia-senza-Cupola-reati-economici-baby-gang-minori-affiliati-alla-ndrangheta-f8de0df3-ab29-4222-b418-541fec5d6d38.html

The fact that RAI knows so much about them tells you Gov Italia has a watchful eye on them.

PS:

There are different “Mafia” groups in Italia:

– Cosa Nostra (Sicilian)
– Mafia in America.
– Camorra (bell)
– Ndrangheta (Calabrian)
– Sacra corona unita (Apulian)
– Stidda (Sicilian)

I told you Canadesi know nothing.
—————-
Cosa Nostra, Mafia, Wise Guys, Tutti Frutti, 
Whatever.
One thing is for sure, they are some nasty guys, and their origin is in your Bella Italia, and they are still very active there.
BTW, it’s not “superfuged” in Canadesi land.
Most people know that the Mafia is/was active in Quebeco.

#52 IHCTD9 on 09.30.21 at 5:30 pm

#37 Faron on 09.30.21 at 4:24 pm
#8 IHCTD9 on 09.30.21 at 3:15 pm

Trudeau could learn a thing or ten from Jacinda.

At some point as I near retirement, I’m going to stop hoping for a crash, and start hoping things hold out. I might have to start voting Liberal to ensure my RE keeps bloating like a corpse in the sunshine.

I was hungry before I read that. – Garth

LOL. Eventually the bloat finds an orifice or one is made.

—- —-

Kaboom!

https://www.youtube.com/watch?v=7X0hq0ug9q4

(Don’t watch that if you haven’t eaten yet…)

#53 Sail Away on 09.30.21 at 5:32 pm

#24 Woke up this morning… on 09.30.21 at 3:41 pm

…apparently today we Canadians seek forgiveness because permission was not granted.

But you know…not really seeking forgiveness. Not like we’ll undo what was done or do anything to make it right outside of some superficial pacifiers. Long live the Queen!

Hey, we(politicians/leaders/royals) violated your human rights to the maximum on every metric available and continue to do so – but please note, we’re sorry about it. Forgive! We cool? GREAT! …What’s next on my schedule?

Bro, check out my orange T-shirt! Brought it out special for this day for you. It’s a Joe Fresh vintage – Made in Bangladesh. Who knows – maybe it was made in that Dhaka building that stood until 2013. Hey, look at the vintage stress on it from all the washes – looks hipster cool, right? I just want to help and do my part.

——-

Where are you going with this?

Progress has been made. Contrast today’s actions and attitudes with those of 50 years ago.

Just treat people respectfully and equally. No point howling about events from the past.

#54 Toronto manz on 09.30.21 at 5:33 pm

You can’t get higher than 1% interest on savings these days.

#55 Dogman01 on 09.30.21 at 5:43 pm

#149 Philco on 09.30.21 at 10:29 am
#10 TurnerNation on 09.29.21 at 1:46 pm

“Some of the most thick conspiracy theories have truth to them. I think we need to pay attention now.”

Like Maslow’s hierarchy of needs, once you “level up” you have a different set of things you pay attention to. Most people are trying to get though life, some fewer are striving to achieve financial security. Most readers of this blog are the later.
A few have achieved financial security so their attention drifts to other “threats”

“People lacking money worry occasionally about being poor. People who have money obsess about losing it. It’s why rich people never smile.” – Garth Turner

I now pay attention to Inflation, potential for a currency devaluation.
The capitulation of rights and responsibilities for safety and protection.
Internationally the rise of a race based Nation State, labeled communism but essentially fascism.
The collapse of the ideals and will of the West being replaced by a post national Globalist grey goo society.
Censorship accepted, orchestrated racial division, the rise of a surveillance corporate state, a mass Media delivering propaganda.

More interesting than what is on Netflixs!

#56 Ponzius Pilatus on 09.30.21 at 5:46 pm

#49 DD_BC on 09.30.21 at 5:25 pm
#9 Rook on 09.30.21 at 3:16 pm
Here’s a thought. Could it be the powers that be know ‘money’ will at some point be worthless

Last time I checked, money has no intrinsic value, a medium of exchange, sure. We created the idea of money, does that make it worth something. Can the idea die, and thus be worthless? Is it already dead, no longer being tied to something, has the idea run it’s course.
————
Money, no intrinsic value?
Asked the rich people.
Nothing more soothing than a warm bath in a bathtub full of gold coins.
Followed by a peaceful sleep on a mattress filled with 100 dollar bills, the Americans, are prefered.

#57 IHCTD9 on 09.30.21 at 5:47 pm

#38 Ponzius Pilatus on 09.30.21 at 4:26 pm

As for the Q5, I handed it over to my son.
He needs it to impress the ladies.
———

Ponzie, the ladies don’t care about a Q5, get the dude a Mustang GT500 or a Z06. He’ll have to bat the ladies off the quarter panels when he goes to work in the morning. You can verify this on YouTube.

#58 Philco on 09.30.21 at 5:48 pm

#42 Flop… on 09.30.21 at 4:52 pm
In the name of Truth and Reconciliation a white geezer in Vancouver started up a fund to donate today’s wage to First Nation causes.
I’m not that rich, so the best I could do is donate $125 to the Super Store for 3 bags of groceries…
M47BC
————————
Is he unaware that billions of dollars that flowed their way paid by good Kanucks like me?.
Their tax exempt.
The own most of the casinos, land and have
no limit to fishing anything anytime pretty much.
Another dude I know OF was pit lamping bambies (legal for them) but selling them to white guys for $50. But not this white guy.
https://www.cbc.ca/news/canada/b-c-first-nation-can-hunt-at-night-supreme-court-1.618478
All the dudes I know have new trucks.
Another dude I know gets all his building materials shipped to his house on the
reserve land tax free then moves them elsewhere.
No offence but they sure as hell don’t need my help.

#59 an investor on 09.30.21 at 6:19 pm

September was a terrible month for investors and with the contagion threat of Evergrande infecting markets around the world, we could be heading into our third Bear Market since 2018 while Trudeau and Jag dream up ways of punishing those of us who have saved our entire lives for retirement.

Meanwhile, Karen says it’s a great time to spend $1.4 million for a house in Brampton.

I was thinking about moving to Florida … I’ve decided Denmark is the place to be.

#60 SSDD on 09.30.21 at 6:35 pm

Garth, please address this, and advise!
Last year, my landlord tried raising rent, then backed off when I said increases were not allowed during the pandemic.
They just notified me that they know what the government is saying, but they still want double the prescribed increase as of January 2022.

I can’t afford to argue, as I have nowhere to go if they give me notice to vacate because they’re selling or moving in.

What do people do?

#61 Tomás de Torquemada on 09.30.21 at 6:58 pm

#9 Rook on 09.30.21 at 3:16 pm

I can’t understand the rationale. Can anybody, perhaps smarter than I, shed light on why our rulers would take measures to increase housing costs, while saying they’re trying to get more people into housing?

Simple. The goal is to promote debt. Covering the risk for the lenders/banks though mortgage ‘insurance’. So they are incentivized to lend more.

Debt means increase in money supply and your savings becoming worthless. New money is due to the lender/bank.. And new loans are not based on savings, they create ‘savings’ as people liquidate/sell assets. But it is not savings from labour.

It is basically promotion of money coming from an oligopoly of lenders at the expense of money coming from past and future labour aka ‘savings’.

It is basically politicians promoted fraud for all intends and purposes.

And the cherry on the pie is when they increase rates and taxes, cutting public benefits and placing burden on future generations.

When it gets down to the bone money printing by central banks starts that spills over and accelerates the inflation. And they start lying openly about inflation inventing artificial inflation measures.

Inflationary depression called ‘recovery’.

If economy was string it would not be debt based and rates would be double digits in current conditions.

Watch prices of food and energy, this is just the beginning.

Fraudster lie, this is their job. The whole ‘affordable housing’ narrative with houses skyrocketing is just that – a simple but giant fraud.

#62 gillian angove on 09.30.21 at 7:02 pm

Sorry for the loss of beautiful Rollie. R I P pup. If you get another dog please don’t use a extremely cruel prong collar!

#63 IHCTD9 on 09.30.21 at 7:04 pm

#47 Quintilian on 09.30.21 at 5:19 pm

It the asset bubble prices that will crater to fit within the new economic parameters.

IHCTD9: please tell me you have a plan B. I like you; I would never wish poverty to visit you in your old age.
— – – —

Plan B would be to start voting Liberal!

Seriously – if my house went to zero I’d be fine. If my B+DP got cut in half, I’d be fine. I’m not a baller, and my hobbies are simple. I’m an old-stock Canuck, born and raised, with 100% Dutch blood coursing thru my veins – that is to say I can live cheap. Real cheap. Stupid cheap. Even cheaper than those Scottish blood Canucks (amateurs).

And if worse came to worse, I’d just move in with one of the kids.

#64 Woke up this morning... on 09.30.21 at 7:07 pm

#53 Sail Away on 09.30.21 at 5:32 pm
#24 Woke up this morning… on 09.30.21 at 3:41 pm

…apparently today we Canadians seek forgiveness because permission was not granted.

But you know…not really seeking forgiveness. Not like we’ll undo what was done or do anything to make it right outside of some superficial pacifiers. Long live the Queen!

Hey, we(politicians/leaders/royals) violated your human rights to the maximum on every metric available and continue to do so – but please note, we’re sorry about it. Forgive! We cool? GREAT! …What’s next on my schedule?

Bro, check out my orange T-shirt! Brought it out special for this day for you. It’s a Joe Fresh vintage – Made in Bangladesh. Who knows – maybe it was made in that Dhaka building that stood until 2013. Hey, look at the vintage stress on it from all the washes – looks hipster cool, right? I just want to help and do my part.

——-

Where are you going with this?

Progress has been made. Contrast today’s actions and attitudes with those of 50 years ago.

Just treat people respectfully and equally. No point howling about events from the past.

——-

So do what was done to Natives of this land then claims statue of limitations has passed and forgiveness is the path forward? Won’t undo. Too bad. So sad.

Have you ever considered the Natives didn’t want to live this way? In a consumerism capitalist framework that claims to give them special treatment after taking all they had away?

Where am I going with this?

It was done to Natives of this land, and it can (and likely will be) done to others in the future. That’s where I’m going with this.

And after it is done, forgiveness will be claimed.
Won’t matter if it is given. Just like it doesn’t matter now. It’s just a PR exercise.

#65 Ponzius Pilatus on 09.30.21 at 7:27 pm

#57 IHCTD9 on 09.30.21 at 5:47 pm
#38 Ponzius Pilatus on 09.30.21 at 4:26 pm

As for the Q5, I handed it over to my son.
He needs it to impress the ladies.
———

Ponzie, the ladies don’t care about a Q5, get the dude a Mustang GT500 or a Z06. He’ll have to bat the ladies off the quarter panels when he goes to work in the morning. You can verify this on YouTube
—————-
As I said, my son is going for the “ladies”

#66 Stone on 09.30.21 at 7:30 pm

#27 Tripp on 09.30.21 at 3:49 pm
#16 yvr_lurker on 09.30.21 at 3:26 pm

YVR, you may wish to check this, see what her people are responding.

https://www.facebook.com/jacindaardern/posts/i-was-reading-some-research-today-on-why-some-people-have-chosen-not-to-be-vacci/10158140116102441/

———

Every society has its degenerate losers. New Zealand is no exception. They do not, though, represent the majority of its population.

On that note, when do they start firing the anti-vaxers in Canada now that many employer vaccination requirements are coming on line? Chop chop! Can’t have these anti-socials continue to enjoy all the benefits provided by those who rolled up their sleeves to get fully vaccinated. Out you go. Don’t let the door hit you on the way out.

#67 crossbordershopper on 09.30.21 at 7:36 pm

people have to realize that home prices are not going to go back to 300K for a house. Its simply not going to happen, you all know that. yes homes are expensive, i find most things in Canada expensive.
you should all talk about making money on this drywall business than say that they dislike the house games and that prices are high.
we cant change things, either curse the darkness or turn on the lights, go to work and turn on the lights.

#68 Philco on 09.30.21 at 7:48 pm

#55 Dogman01 on 09.30.21 at 5:43 pm
———————————–
Nice work Dog, yes their big changes happening with ever increasing speed.

“People lacking money worry occasionally about being poor. People who have money obsess about losing it. It’s why rich people never smile.” – Garth Turner

Some local guys I know have issues…
Like our gangster mayor. Gets the inside scoop on all the developing. Snatches up properties on the cheap, gets the zoning change. Gives the building the 5 gallon tune up and boom its a liquor store or whatever.
My question is how much is enough!!?
For one he’s a walking conflict of interest. He’s prolly worth…20Mil?
I just see it as greed.

I’m more than comfy, not that comfy but I’m good and its time to help others(in which I always did but more) and also enjoy more myself.
I use to work near 100 hrs a week for decades….done with that.

Hay IHCTD9 its nice out so I’m ripping out a 3phase 15HP compressor going cheap? ;-)

#69 Cow Man on 09.30.21 at 7:52 pm

IHCTD9

You may find that the 407 was not publicly funded to be built. The land was purchased by the Province and then leased to a consortium including SNC. The consortium built and paid for the highway. I should know as it went through my farm.

#70 TheDood on 09.30.21 at 8:00 pm

#1 Paul on 09.30.21 at 2:45 pm
Maybe when Jacinda’s done down there we could borrow her?
____________________________

We can trade Mr. Socks for Jacinda. We’ll throw in draft picks, cash, and future considerations. They’d probably still turn us down………

#71 KLNR on 09.30.21 at 8:08 pm

@#25 Juan Gretzky on 09.30.21 at 3:42 pm
Prong collars are in humane and potentially harmful.

telltale sign of a lazy dog owner.

#72 Tripp on 09.30.21 at 8:08 pm

#66 Stone on 09.30.21 at 7:30 pm

“ Every society has its degenerate losers. New Zealand is no exception. They do not, though, represent the majority of its population.”

——————

Stone, these are real people with real health issues. Fortunately they are not the majority, but that doesn’t mean they should be ignored. And resorting to insults to qualify them just because you have a different opinion speaks more about you than about them.

#73 gfd on 09.30.21 at 8:29 pm

#8 IHCTD9 on 09.30.21 at 3:15 pm

Reminds me of the “Swiss Army Man” 2016, comedy.
https://en.wikipedia.org/wiki/Swiss_Army_Man
HILLARIOUS!!

#74 just say no on 09.30.21 at 8:34 pm

I saw this today in the times colonist and not sure what to think? A Victoria not-for-profit initiative says Canadians have been living “rent-free” on Indigenous land for more than 150 years and it wants to change that.
Reciprocity Trusts wants to arrange payments from homeowners, business owners and renters to distribute to the First Nations whose land they live and work on.

#75 westcdn on 09.30.21 at 8:48 pm

We should watch the Kiwi experiment with mortgage interest deductibility on residential property. It seems to me to be a good idea that all residential property be treated the same. I will just wait and see what the unintended consequences are. I think I would add a generous renter’s tax credit which was only allowed if the landlord reported the income and put a lifetime cap on the amount of residence capital gain tax shelter whether you lived there or not. Bring on AI and Crypto.

#76 yvr_lurker on 09.30.21 at 8:56 pm

#27 Tripp on 09.30.21 at 3:49 pm
#16 yvr_lurker on 09.30.21 at 3:26 pm
#66 Stone

Every society has its degenerate losers. New Zealand is no exception. They do not, though, represent the majority of its population.
————-

Yup. Stone has it nailed. Even in my extended family there are two rabid anti-vaxers. Vegan and new agey to the core, and the “earth will provide” types. We have all agreed to differ, but they are not allowed in our house. Full stop.

What I like about Jacinda from reading wikipedia is that, although she is a progressive with an admirable aim to reduce child poverty, she is pragmatic about how many immigrants NZ can absorb each year with the infrastructure they have. She has advocated for a 20-30K reduction in the numbers. Wish we would have leaders in Canada (other than crazy max), preferably the progressive ones, who are willing to discuss in a pragmatic way this key issue. With T2 it is the more the merrier. Congestion in major cities, pressure on housing everywhere and services… too much, too fast in my view….

Want a reduced economy and higher taxes? Then target newcomers. – Garth

#77 AK on 09.30.21 at 9:02 pm

“‘Rates can never go up. The economy will crash.’”

Well, one never knows.

Czech Republic raised rates by +75 bps
Mexico raised rates by +25 bps

I wonder who will be next?

#78 Salutations Sally on 09.30.21 at 9:08 pm

RIP Rollie, your shiny coat and calm eyes tell me you had a good life.

#79 Surf and Reconciliation on 09.30.21 at 9:16 pm

Hey … it’s a holiday… let’s go to tofino…and burn a bunch of fuel as well…..

Who are the clowns that voted for him…. such a hypocritical joke.

#80 Barb on 09.30.21 at 9:29 pm

Condolences on the loss of dear Rollie.

#81 cuke and tomato picker on 09.30.21 at 9:29 pm

Our prime minister did his duty today he phoned and talked to former residential school students and then had a wonderful day at TOFINO with his wonderful family.

#82 yvr_lurker on 09.30.21 at 9:36 pm

#76. Want a reduced economy and higher taxes? Then target newcomers. – Garth
—–

One viewpoint (and there are many similar are)

https://www.theguardian.com/world/2021/may/17/new-zealand-to-cut-low-skill-immigration-and-refocus-on-wealthy

Infrastructure has to catch up with immigration numbers… (something for Canada to consider in its major cities). Housing stock, congestion, will not keep up with the levels that T2 proposes.

Businesses who benefit on recruiting overseas people willing to work for sub-minimum wages are problematic.

Most importantly, however, is that in this country we can’t even debate a sustainable immigration level without being called a xenophobic racist. It seems like they don’t have this label in NZ thrown out to stifle any debate, and even a “progressive” is on board with asking the hard questions.
Housing

#83 Stone on 09.30.21 at 9:40 pm

#72 Tripp on 09.30.21 at 8:08 pm
#66 Stone on 09.30.21 at 7:30 pm

“ Every society has its degenerate losers. New Zealand is no exception. They do not, though, represent the majority of its population.”

——————

Stone, these are real people with real health issues. Fortunately they are not the majority, but that doesn’t mean they should be ignored. And resorting to insults to qualify them just because you have a different opinion speaks more about you than about them.

———

Sorry but no. I’ve seen enough of these degenerates both on the tele as well as in person. They need to get vaccinated or be shunned. Right now, they are the ones causing us not to be able to resume our normal lives. I do empathize with those frw who have an allergic reaction to the vaccine or have some legitimate medical issue arising from the vaccination which is taken into consideration. For the rest who don’t have that for a reason, sorry but the buck stops now. Out with them. Don’t need to mix with them. They can do as they wish but not in the society I live and congregate in. That’s only available to the vaccinated and the very few with a legitimate exemption.

And yes, the rest are almost all selfish degenerate losers. Their health issue is mental, not physical. And they should seek treatment. That’s for them to take the necessary steps. Not me nor the rest of society that has done their part to try to get back to normalcy.

#84 Stone on 09.30.21 at 9:47 pm

#76 yvr_lurker on 09.30.21 at 8:56 pm
#27 Tripp on 09.30.21 at 3:49 pm
#16 yvr_lurker on 09.30.21 at 3:26 pm
#66 Stone

Every society has its degenerate losers. New Zealand is no exception. They do not, though, represent the majority of its population.
————-

Yup. Stone has it nailed. Even in my extended family there are two rabid anti-vaxers. Vegan and new agey to the core, and the “earth will provide” types. We have all agreed to differ, but they are not allowed in our house. Full stop.

What I like about Jacinda from reading wikipedia is that, although she is a progressive with an admirable aim to reduce child poverty, she is pragmatic about how many immigrants NZ can absorb each year with the infrastructure they have. She has advocated for a 20-30K reduction in the numbers. Wish we would have leaders in Canada (other than crazy max), preferably the progressive ones, who are willing to discuss in a pragmatic way this key issue. With T2 it is the more the merrier. Congestion in major cities, pressure on housing everywhere and services… too much, too fast in my view….

Want a reduced economy and higher taxes? Then target newcomers. – Garth

———

I have no issues with immigration. I have issues with the unvaccinated who don’t fall into the category of having a legitimate exemption from being vaccinated. Let’s keep a laser focus here on the current problem.

#85 Kothar on 09.30.21 at 9:58 pm

Went to Bank of NZ their central bank. I render on display was $1million NZ in $50 notes. All had holes in them to make not spendable, but was cool to see a big cube of cash.

#86 IHCTD9 on 09.30.21 at 10:04 pm

#69 Cow Man on 09.30.21 at 7:52 pm
IHCTD9

You may find that the 407 was not publicly funded to be built. The land was purchased by the Province and then leased to a consortium including SNC. The consortium built and paid for the highway. I should know as it went through my farm.
—- —

Sweet! I always thought tax dollars paid for the bloody thing. I guess that means in less than 99 years, the Ontario government gets a free highway!

#87 facts on 09.30.21 at 10:12 pm

Recommended literature:

Province of Saskatchewan, MINISTER’S ORDER,
received Sep 13 2021 Clerk of the Executive Council.

Section 18 and 18.1 of The Emergency Planning Act.

#88 Sunburned canuck on 09.30.21 at 10:15 pm

Not sure why everyone is freaking out.
The MASTER of the UNIVERSE (BIDEN) has this under control and figured out.
If you are not a believer of Biden, get OFF this site!
All is glorious under his program.

#89 cramar on 09.30.21 at 10:19 pm

Just catching up on blog posts and yesterday’s was a doozie! It took me 15min to figure out that Monthly Cost of Ownership vs Renting chart. You can tell that chart done by economist Will Dunning, is either designed to obfuscate reality or it was an inept attempt by someone who is not trained in displaying information that is clear and understandable. As a former technical communicator, I would have displayed two side-by-side columns (with the ownership one having two sub-columns for 25 & 30 year ams.) Then the comparison could be made in a clear and rapid fashion. Also as Garth mentioned there is zero mention of investing the down-payment in a compounded 7% fashion. There is another fault that was not mentioned by Garth.

IF some couple can afford the real cost of owning, which includes the Principle repayment, then if renting they CAN afford to dump the difference of $704/month (for 25 year am.) into their investment accounts. Added to the $857/month from the invested downpayment, this almost $19k/yr (compounded at 7%) will have serious impact on increasing the renters’ net worth over time.

#90 re con cili a tion on 09.30.21 at 10:34 pm

reconciliation (noun)

1. the restoration of friendly relations.

2. the action of making one view or belief compatible with another.

For someone for whom this is a second language, I have to tell you, this appears as a trivial choice of word for what is apparently happening in Canada.

Start with the breakdown….word has “CON” “CILI” (silly – sounding) in it. Unfortunate.

Definition indicates that use of this word means the relationship between the conquerors and conquered is understandably not that of friends in the first place.

In what to me today appears as a country-sized residential school, the conquered are required to subject to the laws of the conquerors, are told to use money with pictures of their conquerors on them, and follow their conqueror’s laws and rules and use the conqueror’s language if they want to be heard. Fascinating.

And after being subjected to this, are we really adjusting our view in any way as the second part of the definition notes?

Oh sure, we’re letting the Natives speak, have some mic time, but then what? Nothingburgers! …as some on here say. Their land is still no longer theirs. They still don’t have water. Industry often poisons their water up river. Their way of life is no longer recognized as relevant by their capitalist masters. We see them on the news and we say “that’s nice” and then we move on indifferent living on their land.

Are we really making our view compatible with Native views? Or are we seeing them as generally irrelevant, and paying them lip service while going about our business and doing things EXACTLY what Canada has done?

Prime Minister takes a vacation day off on the actual day – today, Thursday. Lovely touch.

Actions speak oh so much louder than words.

The closer I look, the more hypocrisy I see in all of it. “Oh that’s nice. Now, back in your place.” Let’s at least start by admitting this. Seems like a silly con to me.

#91 EG on 09.30.21 at 10:37 pm

Cathy Wood , sees the next big risk . Deflation . And , thinks no one is ready for it . Interesting recording at YouTube . Scary and exciting at the same time . I don’t think I’ve seen anything like that in my lifetime . Stranded assets ? Falling prices ? Automation ? AI ?

#92 Matt Imhoff on 09.30.21 at 11:10 pm

12.5x if at $1.25 million.
5% on first $500k, 10% on the remainder

#93 cuke and tomato picker on 09.30.21 at 11:11 pm

Our prime minister can not win if he showed up in
Kamloops B.C. they would have said he is overshadowing
OUR DAY.

#94 Don Guillermo on 09.30.21 at 11:36 pm

#42 Flop… on 09.30.21 at 4:52 pm
In the name of Truth and Reconciliation a white geezer in Vancouver started up a fund to donate today’s wage to First Nation causes.

I’m not that rich, so the best I could do is donate $125 to the Super Store for 3 bags of groceries…

M47BC
***************************
My experience this afternoon. At my favorite craft pub patio with friends. Wonderful young lady serving us and all good. Walked into the washroom and on the way overheard her in tears talking to a friend on how she’s ashamed to be white. This is very sad. On a positive note, went back home and the news was reporting our Prince Clown surfing in Tofino. Private jet and orange wet suit I’m sure.

Sorry Flop, don’t think we could call an old native an Aboriginal Geezer. Hope the white geezers and your money went somewhere productive. Not sure what’s happening to our world. Happy T&R everyone! This has been the best Truth and Reconciliation Day ever!

#95 BillyBob on 09.30.21 at 11:39 pm

#51 Ponzius Pilatus on 09.30.21 at 5:29 pm

One thing is for sure, they are some nasty guys, and their origin is in your Bella Italia, and they are still very active there.
BTW, it’s not “superfuged” in Canadesi land.
Most people know that the Mafia is/was active in Quebeco.

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

I think he was referring to the type of corruption that doesn’t show up in stats, like WE and the money paid to Trudeau’s mother or his bullying of his own AG and so on.

Because the drooling masses just shrug and vote to let it continue. Long as they get theirs who cares.

But I guess that’s better than overt corruption, amirite? Cause pretending it doesn’t happen should help. (Some would say that socialism itself is the definition of corruption, but that’s a separate thesis.)

Anyway, if Google Sez, then something must be true, so sayeth our own resident KKK*.

* Kooky Klimatologist Klown

#96 PastThePeak on 09.30.21 at 11:41 pm

DELETED

#97 Cici on 09.30.21 at 11:45 pm

Rollie’s a beaute Kevin. So sorry for your loss.

#98 Matsebula on 10.01.21 at 12:08 am

Garth, leave her there. Aus and NZ have gone to the birds. We just need to give T2 some more rope to prove how badly he can screw up Canada, and then we’ll go blue to fix it for a bit. Unless we misdiagnose it, in which case we’ll go orange and make it worse. Augggh. Now I feel even worse than when I started….

#99 Canadian Moose on 10.01.21 at 12:12 am

RIP Rollie, it pups like you and Garths insight that keep me coming back. Nothing else.

Thoughts from the Hinterland!

#100 Faron on 10.01.21 at 1:17 am

#52 IHCTD9 on 09.30.21 at 5:30 pm

#37 Faron on 09.30.21 at 4:24 pm
#8 IHCTD9 on 09.30.21 at 3:15 pm

I was hungry before I read that. – Garth

LOL. Eventually the bloat finds an orifice or one is made.

—- —-

Kaboom!

https://www.youtube.com/watch?v=7X0hq0ug9q4

(Don’t watch that if you haven’t eaten yet…)

Wow! Good thing the door was shut on that mobile!

Exploding/exploded whales — an urban legend that’s actually true. In Oregon the orifice was made with dynamite:

https://www.youtube.com/watch?v=ax7kENH-A7s

Fun fact, this is the town that Kesey’s Sometimes a Great Notion was set in.

#101 Garth's Son Drake on 10.01.21 at 2:01 am

$200 oil coming.

Central banks will kick it into high gear if that materializes.

20,000 futures contracts says $100 oil is just around the corner.

#102 short horses on 10.01.21 at 2:53 am

Deep down I’m an accelerationist and I’m gritting my teeth in anticipation of the hundred year mortgages.

#103 Jay (Not that one) on 10.01.21 at 8:12 am

It occurs to me that there’s a giant blinking warning light in front of us all right now.

If they tax home sales, they’re going to be playing both sides.

This year, prices have gone up at least 5% on average. That doesn’t mean everyone is 5% richer, it means that if they got a 5% raise (not bloody likely) they stayed exactly the same.

Then if you sell your house that’s worth 5% more, you get taxed on what really isn’t a change in the value of your home.

In the meantime, the bank of canada is printing money, the government spent more in debt alone than they spent period last year and are on track to spend 50% as much debt as they spent period 2 years ago, increasing inflation more.

Think about the injustice here. Let’s look at a hypothetical situation where you live in a house for 10 years. Let’s say that you have 5% inflation throughout that time (I know, ‘transitory’ but for the use of our example let’s say they never turn off the spigot). With no actual increase in the value of your home relative to the ability to buy anything else, you will sell the same house for 1.6 times what you purchased it for.

The Liberals look at that .6 increase and go “Hey! We can tax that! Look at all the money you made!” when in reality you didn’t make a dime, you just kept the buying power you had when you started.

In general, it’s really sneaky. Tax an increase in the cost of something between buying and selling, then introduce policies that intentionally increase the cost of everything. The people are no better off, but the government gets a free pound of flesh.

#104 Jay (Not that one) on 10.01.21 at 8:13 am

(and yes, I’m aware that it applies to all assets. The only reason I single out housing is it’s most people’s largest investment and they’re talking about changing that tax policy)

#105 UCC on 10.01.21 at 8:19 am

#65 Ponzius Pilatus on 09.30.21 at 7:27 pm
#57 IHCTD9 on 09.30.21 at 5:47 pm
#38 Ponzius Pilatus on 09.30.21 at 4:26 pm

As for the Q5, I handed it over to my son.
He needs it to impress the ladies.
———

Ponzie, the ladies don’t care about a Q5, get the dude a Mustang GT500 or a Z06. He’ll have to bat the ladies off the quarter panels when he goes to work in the morning. You can verify this on YouTube
—————-
As I said, my son is going for the “ladies”

Ponzie, nothing says more “sexy lady” than long legs in stelitto heels getting out of a McLearn 720s. Come on, you can do it for your son!

#106 IHCTD9 on 10.01.21 at 8:22 am

#100 Faron on 10.01.21 at 1:17 am
#52 IHCTD9 on 09.30.21 at 5:30 pm

#37 Faron on 09.30.21 at 4:24 pm
#8 IHCTD9 on 09.30.21 at 3:15 pm

I was hungry before I read that. – Garth

LOL. Eventually the bloat finds an orifice or one is made.

—- —-

Kaboom!

https://www.youtube.com/watch?v=7X0hq0ug9q4

(Don’t watch that if you haven’t eaten yet…)

Wow! Good thing the door was shut on that mobile!

Exploding/exploded whales — an urban legend that’s actually true. In Oregon the orifice was made with dynamite:

https://www.youtube.com/watch?v=ax7kENH-A7s

Fun fact, this is the town that Kesey’s Sometimes a Great Notion was set in.
———-

File that one under “seemed like a good idea at the time”

Buddy getting his brand new car destroyed by a huge whale chunk – and finding out the dealership’s slogan was “Get a whale of a deal!” – just priceless lol!

#107 crowdedelevatorfartz on 10.01.21 at 8:23 am

@#85 Kothar
“Went to Bank of NZ their central bank. I render on display was $1million NZ in $50 notes. ”

+++++

In the 1970’s Canada had a lottery called Superlotto.
The grand prize was $1,000,000.

The promotion for the lottery was a travelling “show”.
$1,000,000 in gold.
Gold ingots, ounces, wafers, coins all behind a bullet proof glass display and surrounded by armed guard.
It would show up in various Malls all over Canada for the public to see.
A brilliant pr idea.

I remember going to see it as a teenager and thinking that 1 million dollars in gold….was a pretty small pile. It would have fit in a wheel barrel.

#108 crowdedelevatorfartz on 10.01.21 at 8:28 am

@#94 Don G
“At my favorite craft pub patio with friends. Wonderful young lady serving us and all good. Walked into the washroom and on the way overheard her in tears talking to a friend on how she’s ashamed to be white. This is very sad.”

+++
Not sad. Pathetic.
Reverse racism koolaid that the brainwashed sheeple have been forced to drink and drink and drink.

Our self loathing knows no bounds while our fearless leader washes away his sins on National Truth and Reconciliation Day with seawater ….surfing.

https://www.timescolonist.com/news/local/trudeau-spends-national-truth-and-reconciliation-day-in-tofino-1.24361361

The hypocrisy of that arrogant twit knows no bounds.

#109 Dharma Bum on 10.01.21 at 8:33 am

#8 IHCTD9

I might have to start voting Liberal to ensure my RE keeps bloating like a corpse in the sunshine.
———————————————————————————–

Hahaha! That reminded me of one of my all time favourite movie scenes!

https://www.youtube.com/watch?v=RMFyoBf0CWI

CLASSIC!

#110 Dharma Bum on 10.01.21 at 8:43 am

#26 Dulchee

The one distinguishing feature about Italia’s criminal misconduct is:

Italia doesn’t hide it.

It’s in your face not subterfuged like you have in N. America and other countries.
——————————————————————————–

Everything I know about Italy, I learned here:

https://www.youtube.com/watch?v=5GcC9kduhO4

#111 Paterfamilias on 10.01.21 at 8:43 am

# 103. Yep.

#112 facts on 10.01.21 at 9:02 am

I have issues with the unvaccinated who don’t fall into the category of having a legitimate exemption from being vaccinated. Let’s keep a laser focus here on the current problem.

Let’s keep a laser focus on the current problem, how Canada – as many other countries – have introduced measures of profound dictatorship.

#113 Blue Jays on 10.01.21 at 9:08 am

I must be the only one that that sees these land recognition markers as labeling what was stolen, and not to be returned to the rightful owners.

The land you’re standing on used to belong to the people from whom it was taken by application of laws from foreign lands in a language that was not their own. Enjoy the game!

https://toronto.citynews.ca/video/2021/09/30/blue-jays-honour-truth-and-reconciliation-day/

“Lindsay Dunn speaks to the artists who wrote the land acknowledgment at the Rogers Centre and the artist who made history singing the anthem in Anishinaabemowin.”

#114 TurnerNation on 10.01.21 at 9:12 am

War on Small Business. I had 20 min conversation with a small (3 employees – food) business owner I’ve known for a few years. One more Economic Lockdown and they are done. Already borrowed max CEBA.
Is this the plan or what?

Rumors of AB lockdown. Anyway this is set to run until 2025. Into the Blockchain you go.

#115 millmech on 10.01.21 at 9:32 am

#108 CEF
here is the full article on his trip to Tofino.
/www.thebeaverton.com/2021/09/pm-spends-truth-and-reconciliation-day-pondering-ongoing-genocide-of-indigenous-peoples-while-getting-in-one-last-summer-swim/

#116 RyYYZ on 10.01.21 at 10:09 am

#108 crowdedelevatorfartz on 10.01.21 at 8:28 am
Our self loathing knows no bounds while our fearless leader washes away his sins on National Truth and Reconciliation Day with seawater ….surfing.
==================================
Oh, but his staff tells us that he spent several hours on the phone with residential school “survivors”.

#117 Francesca on 10.01.21 at 10:13 am

Bam, 0.30% point increase in 5 year TD mortgage rate. A $800,000 mortgage in GTA means $2,400 or $200 a month extra interest payment on your mortgage monthly.

Probably 2, 3, 4, 5 more in 2022 to 2023. Imagine your mortgage renewing in 18 months, 2 years and every few months $200, $200, $200, $200, $200. Wow, an extra $1,000 a month just in mortgage interest payments.

Like Garth said, big increases in property assessments next year, increasing property taxes, heating, electricity, water, garbage, home, condo,insurance bills, repairs, fees, then your other increasing living expenses like gas, food, car insurance, repairs, and other expenses car payments, credit card debt payments. You are pretty soon looking at bills every month increasing by the thousands. I am glad I am not a homeowner.

I will stick with my $1,800 a month rental and my $925,000 in RRSPs, TFSA’s, GICs, OSBs and my $3,800 a month CPP, OAS, 30 year fixed term certain annuity payments from my settlement. Real estate is in for a real bruising.

#118 Healthcare EMERGENCY on 10.01.21 at 10:20 am

News everywhere about Alberta and ICU hospital/health care collapse.

“AHS is only able to keep pace with admissions because so many people are dying. On Wednesday, there were 263 patience with Covid-19 in Alberta’s ICUs, with 27 new admissions.”

Alberta ICU capacity apparently is 373 ICU beds.

https://www.albertahealthservices.ca/br/page17593.aspx

Alberta population 4,400,000

1 ICU bed per 11,796 people?

I don’t know if this is an acceptable number, I’m not an expert.

I do know that in 2015 Canada’s Population was 35.7 million and study linked below noted 3170 ICU beds across the country. That meant…

1 ICU bed per 11,261 people – slightly better than AB today.

https://ccforum.biomedcentral.com/track/pdf/10.1186/s13054-015-0852-6.pdf

Is the system simply not scaling with population growth?
Are the politicians underfunding it so it can collapse so we can have the lovely US style insurance system take over?

#119 facts on 10.01.21 at 10:24 am

#103 Jay (Not that one)
Exactly.
They are playing everyone against everyone: investment income earners against real estate gain earners and everyone else against both.

The same neo-Marxist intersectional class-warfare template as played at all the other issues, from race to medical choice.

It works, just by looking at this blog.

#120 Shawn Allen on 10.01.21 at 10:41 am

1970’s lotteries

Crowdedelevatorfartz just above noted:

“In the 1970’s Canada had a lottery called Superlotto.
The grand prize was $1,000,000.

The promotion for the lottery was a travelling “show”.
$1,000,000 in gold.”

***********************
Yes indeed and I believe the first lotteries were to pay for the 1976 Olympics in Montreal.

Before that I believe lottery tickets were basically illegal in Canada but people would still buy the Irish Sweepstakes.

I don’t remember the gold show.

It is clear that a million left in gold would be worth a fraction of the same million put into rental houses or stocks or a B&D portfolio. Let’s say 1974 which was roughly when those Super lotos first came out. Gold would have outperformed greatly for a half dozen or so years but then been left in the dust.

Putting money into rental property however would also have been a ton of work. B&D was the way to go unless you you had the skills and became a full-time landlord and made a business of it. Quite doable with a $million in circa 1974.

#121 Ponzius Pilatus on 10.01.21 at 10:53 am

Bum, Ihtc
Is this now becoming the “Look what I found on YOUTUBE” blog?

#122 Don Guillermo on 10.01.21 at 11:09 am

#81 cuke and tomato picker on 09.30.21 at 9:29 pm
Our prime minister did his duty today he phoned and talked to former residential school students and then had a wonderful day at TOFINO with his wonderful family.
*****************************************
You’re right cukes. I’m sure he had his bar staff do 1 min of silence when his jet flew over Kamloops.

#123 Faron on 10.01.21 at 11:13 am

#106 IHCTD9 on 10.01.21 at 8:22 am
#100 Faron on 10.01.21 at 1:17 am
#52 IHCTD9 on 09.30.21 at 5:30 pm
#37 Faron on 09.30.21 at 4:24 pm
#8 IHCTD9 on 09.30.21 at 3:15 pm

File that one under “seemed like a good idea at the time”

Buddy getting his brand new car destroyed by a huge whale chunk – and finding out the dealership’s slogan was “Get a whale of a deal!” – just priceless lol!

The Oregon coast is quite a place. The hipster Portland effect fades FAST once you get south of Lincoln City. You’d love it. I think the crap weather and relative remoteness attract a certain type. The sand dunes in Florence and points south are an ATVers dream. Bring your tactical desert-storm colourway though. I plan to retire in a town with a species of cedar named after it.

Thing about putrifying sea creatures is both the smell and the tenacity of said smell. Walking on the beach in Sooke once I saw a massive chiton that had washed up on the beach. I picked it up, caught a whiff and tossed it, but couldn’t get the stink out of my skin for days.

#124 the Jaguar on 10.01.21 at 11:16 am

Inconvenient truths. The ones that make people squirm a little, but remain hard evidence surrounding us. Like the fact that many newcomers to Canada value real estate above other investments.

Rental properties. Not just one or two. Big numbers, held in personal name, holding companies, kids names. Just how hard do you think it is to get your kid to obtain an insured (5% down) mortgage with a declaration that it will be their own home sweet home and then immediately rent it out? Which cities do those newcomers tend to settle in? If you answered Winnipeg you just failed the exam.

Supply squeeze, fraud, price escalation to the point of unaffordable housing, all enabled by the wilful blindness of our elected officials. Let’s throw in massive money laundering, too.

In case you’re tempted to say ” Someone needs to do something about it”, don’t waste your breath. It’s a runaway train for which there is no political will to attempt derailment.

This sickening insatiable need for more. For bigger. Acquire, covet, spend, all on the conveyer belt of greed. It’s going to sink all of us like quicksand.
Maybe not if one is nimble, keeps a modest footprint and holds tight to values that really matter. Faith, Hope, Charity. People may disappoint, but those three things won’t ever let you down.
Amen.

#125 Faron on 10.01.21 at 11:22 am

You may notice some slipperiness in equities today. All-time-low in dealer gamma positioning. Last four times that level was approached was March 4th, March 25th, May 12th and September 20th and 21st of this year. Nothing is ever certain, but worth checking to see what happened after those days.

#126 Philco on 10.01.21 at 11:54 am

Good news on Covid.
https://apnews.com/article/merck-says-experimental-covid-pill-cuts-worst-effects-a9a2245fdcee324f6bbd776a0fffcc60

#127 Philco on 10.01.21 at 12:03 pm

#103 Jay (Not that one) on 10.01.21 at 8:12 am
————————————–
Yes ironically they pushed inflation and prices now they would like to tax it.
As they say “The Gov giveith and the Gov Takeith away”
My respect for the government on a 1-10 scale is a ZERO.

#128 Philco on 10.01.21 at 12:31 pm

Its simple…..anytime there is success in a market your government attacks it.
You take all the risk. You buy a house years ago…stuck your neck our with high int rates or what have you.
Years later and you had no idea then that it would appreciate in a big way….They now want their fair share.
Makes sense eh?
These guys couldn’t run a bubble gum machine.

#129 Alina on 10.01.21 at 4:54 pm

Francesca going by 0.30% at a time increases in interest rates, Garth’s 5% mortgage rate in the next few years, 2025 I believe, that $800,000 mortgage payer in GTA that you cited is going to see 2.71% point rise in mortgage rates.

This is roughly 9 increases of 0.30% point increases in mortgage rates at $200 a month that is $1,800 a month. This is insane. In order for most Canadians to earn $1,800 a month net of income taxes they have to earn $2,600 to $2,800 a month. Like you cited, in a few years everybody’s taxes, expenses goes up and that is probably another $500 to $1,000 a month more just there. Where are people going to earn another $40,000 to $45,000 a year per household in gross income in the next 3 to 3.5 years.

This is if it real estate prices don’t fall or just go up with lower historical returns 4% to 5% a year continue. When real estate falls, it will be real bad and log term lasting.

#130 Jane on 10.01.21 at 5:35 pm

Every Quarter I buy a $5,000 GIC with shopping around various financial institutions in Canada. I have been doing this for the last 30 years.

I make sure I first put the most in my RRSP and then my TFSA since 2009, this was not an option before. My RRSP GIC and TFSA GIC for each institution is compounded, tax deferred and tax free respectively. The other GIC on top of the RRSP GIC, TFSA GIC maximized contributions per year for each financial institutions are annual interest paid out option.

I will never own a house as it costs too much to maintain, repair, insure, mortgage, pay taxes and be responsible for. I know homeowners are saving alot of interest on their mortgages now with these low interest rates but they are not looking at all the costs, taxes, hassles, future tax liabilities, risk etc.

My RRSP, TFSA, GIC may not make more than the 2.5% to 3.5% spread currently among all my different maturity dates but I have averaged 4.7% over the last 30 years since interest rates were much higher since 1991 to 2009. However I am at least not on the hook for a whole host of big problems real estate and mortgage debt, other related and side debt brings. I turn 60 next week and the worse that can happen is with all my RRSP, TFSA, GIC investments, I have 30 years of living expenses from my principal without counting the interest on it.