Adulting

If Ottawa’s giving kiddos down payment money (and the new FHSA will do just that), then shouldn’t government also be subsidizing rents?

Face it. The list of freebies, incentives, goodies and credits lavished on newbie homeowners is long. And growing. Free RRSP withdrawals. Closing tax credits. Grant programs. Transfer tax holidays. Green reno cash. And now tax-deductible home savings accounts. Meanwhile mortgage rates are negative (2% lower than inflation) and the PR exemption means any profit from owning residential real estate is tax-free. Real estate owners get everything but a pony! And look what that’s done to prices.

Meanwhile renters receive, well, diddly. Sure, tenants have many provincial protections from greedy LLs and were shielded from evictions during Covid. But from a financial standpoint, people without houses are abject losers. We’ve built a real estate culture in this nation which no longer fits the economic reality in which we live. When houses in urban centres cost $1 million+ and are 20% more than last year while incomes have barely budged, something has to give.

So do we continue to force more people into unrepayable and life-long debt with loans destined to become more costly in order to buy a dodgy house and have a risk-laden one-asset financial strategy, or should we level up the playing field? Huh?|

Last Tuesday Spain made a decision on just this question. Prime Minister Pedro Sánchez announced plans to give everyone between the ages of 18 and 35 free money each month for two years to offset rent. So those with incomes below about $30,000 (Cdn) per year will collect almost $400 to “have access to decent rental housing.”

The concern of the government there is that too many moisters are living with their parents for far too long, and at the same time home ownership rates, and prices, are crazy high. Like in Canada, affordability’s a bitch. Too much money is going into unproductive residential real estate. Young people are being locked out, and therefore just stay home.

In Spain, by the way, the home ownership rate is now 76.2% (in Canada it’s 68%) and the typical age for leaving home is 31. Seriously. That’s half a lifetime, longer than the Euro average and six years more than in the US (apparently in Canada we don’t compile such numbers. Too embarrassing.)

Canada is not Spain, of course. That country has chronic unemployment and economic woes. But it shares with us a housing crunch, a real estate fetish, too little supply and a desperation among young adults who find they cannot afford to buy, and now rents are also spiralling beyond reason. So, the government has proposed this lease subsidy.

Meanwhile in the frosty land of beavers and maples, did you catch the latest housing affordability stats? RBC tracks this stuff, and reports the situation’s taken the worst turn in thirty years. Despite crazy-low mortgage rates the bank says, “Canadian home buyers see affordability slipping away fast, and it will become even more strained”.

In Vancouver 63.5% of median pre-tax income is required to carry a house even when you have 20% to put down. Of course, we don’t live in pre-tax dollars, so in real-world terms it means families are spending three-quarters of their cash flow on accommodation. It’s not much better in Toronto where, despite higher earnings, it takes 60% of before-tax income to be a homeowner.

It’s not just these two delusional towns, either. It’s everywhere, save some pockets in the prairies and the Maritimes. On average across Canada over 45% of pre-tax income is needed to own, shattering the long-held standard that a roof should cost a third of your paycheque.

Well, nothing fresh here. We knew that. The post-election political response will be to make it easier for first-time buyers to increase their borrowings and have taxpayer money chipped in for down payments. Both of those measures will make houses cost more, and do nothing to swell incomes while augmenting household debt levels.

But maybe there’s another way. If government de-emphasized real estate ownership and threw some incentives into the rental market more kids might be happy as tenants while Mr. Market hammered down housing values amid less demand. Rather than pushing everyone into an over-leveraged dependency on a single asset, politicians could encourage the next gen to be financially liquid, more safely diversified and have the flexibility and mobility to pursue career opportunities.

They might even get their butts out of mom’s basement.

About the picture: “Here is Jasper, 21 pounds of pure joy and limitless energy.  Like you, he has balls and a beard sometimes,” writes David. “He arrived just as you were getting Dooced by your pal Steve Harper.  Sad, because J & I thought MPTV was awesome. 14 years later, it is impossible not to smile when I look at this dog.  Kinda like reading Greaterfool (before comments obviously). Thank you for being our MP and your tireless work at GreaterFool. Thanks
also to Ryan, Doug & Sinan for the always informative weekend posts.”

147 comments ↓

#1 crowdedelevatorfartz on 10.11.21 at 1:31 pm

“They might even get their butts out of mom’s basement.”

+++

Gerald Butts in his Mom’s basement?
If only it were true.

#2 Lawless on 10.11.21 at 1:36 pm

One benefit for renters this past year was that we were able to deduct rent from our income (and same again for this tax year) with remote work for over six months of the year.

#3 Quintilian on 10.11.21 at 1:49 pm

“[politicians] could encourage the next gen to be financially liquid, more safely diversified and have the flexibility and mobility to pursue career opportunities.”
So disappointing to read that.

Haven’t politicians done enough damage already?

Thankfully, this engineered housing bubble has a self destruction built in module, and it is only a matter of time before it is activated.

Whereas you suggestion, would invite more tinkering from a group of morally deficient parasites to interfere with people’s choices.

#4 Problematic Democray on 10.11.21 at 1:49 pm

The problem with democracy is that politicians will do things that get them votes, even if it’s not in the electorates best interest. Most voters own homes and want the value to increase. The rest of the voters want to own homes. Given this, what alternatives are there?

#5 Roial1 on 10.11.21 at 1:53 pm

Garth, I know from remarks you have made in this blog that you don’t respect Ms Freeland BUT you might get something to think about when you read this article in the Globe and Mail.

I allowed my thinking about her to be sewed by your remarks. I am now rethinking her abilities.

Please read the article.

KGB archives show how Chrystia Freeland drew the ire (and respect) of Soviet intelligence services

#6 Irish Stew on 10.11.21 at 1:55 pm

Buying a home is one thing.

Affording sky rocketing heating costs, utilities and property taxes is another discussion entirely.

#7 Roial1 on 10.11.21 at 1:57 pm

This is the web address for the above article that I spoke of.

https://www.theglobeandmail.com/world/article-kgb-archives-show-how-chrystia-freeland-drew-the-ire-and-respect-of/

#8 Joe on 10.11.21 at 1:58 pm

But don’t people still need to buy real estate to provide rental inventory to the renters? Especially if govt subsidizes that will increase demand.

#9 I’m stupid on 10.11.21 at 2:08 pm

Giving renters a subsidy won’t work Garth, it increases demand and prices for rents. Increased rents will increase costs. There are only 2 ways to bring things back in line. Higher rates or fewer incentives. It’s all about the monthlies.

#10 Alberta Ed on 10.11.21 at 2:14 pm

Didn’t Trudeau promise to build a few million new homes? And TikTok Singh, too? Maybe right after Trudeau plants those two billion trees he also promised.

#11 Prince Polo on 10.11.21 at 2:19 pm

I’m thankful for being an abject loser! When real estate price increases hit the wall, I’m sure our dear Photo-op Minister will do something diabolical like introduce multi-generational 50- or 75-yr amortizations. I will also be thankful for that too…*facepalm*

#12 alexinvestor on 10.11.21 at 2:25 pm

Once you start giving out “free” money (rent subsidies, home savings accounts), the mouths get hungrier. Rent subsidies after all disadvantage people who chose to live in their parents’ basements; so shouldn’t these people get a cut of money too ? (just as home savings accounts disadvantage renters).

The solution to high housing prices is not to let banks create credit for mortgages (see Richard Werner’s work). Mortgages strictly have to be funded by issuing bonds. The creation of credit for mortgages is what is driving our housing bubble and making our banks lazy (have you seen CIBC’s balance sheet — 75% mortgages … if housing prices ever fall, these guys are in trouble).

#13 Real Estate Be Careful on 10.11.21 at 2:25 pm

Garth, what about property taxes and electricity, utility bills. We have 2 modest size properties, 1 in Pickering and 1 in Barrie, all the property taxes, electricity, utility bills add up to $18,000 in just 2020. It was not even a cold winter and there were no property assessment values. Remember, this is just 2 of our expenses to keep these properties, it does not include insurance, maintenance, repairs, HST, GST on top of these, water bills and I bet more I don’t know off the top of my head. I am really concerned next year it will be $20,000, $21,000 or more. They are just adding 7%, 8%, 9% hikes, increases on these expenses, taxes like there is no tomorrow.

We have no mortgage and debts on both these properties and it is getting more difficult to keep them and maintain them. Utility bills, electricity bills, property taxes and now higher costs of living from food and gas is going to ruin alot of deep in debt mortgaged Canadians. This is even if we don’t see any or just small 0.25% to 0.50% mortgage rate increases. People are walking into a debt minefield thinking they are going to be okay. I see alot more divorces and family breakups coming soon.

#14 Dolce Vita on 10.11.21 at 2:26 pm

Garth, O ye of little faith:

A New Rent-to-Own Program
https://liberal.ca/our-platform/a-new-rent-to-own-program/ [short on detail]
https://liberal.ca/wp-content/uploads/sites/292/2021/09/Forward-For-Everyone-Financial-and-Costing-Plan.pdf [p. 2, long on cost]

Establishing* a Rent-to-Own program, $M
2022-23 = 125
2023-24 = 125
2024-25 = 150
2025-26 = 150

Total = $550M

*If that’s “Establishing” what’s the real thing going to cost?

—————

Forward **. For everyone.

** Into the Abyss between Scylla and Charybdis
[for the wannabe conoscenti: modern day Scilla, Calabria and Stretto di Messina, Sicilia]

#15 Danger Dan on 10.11.21 at 2:28 pm

Thanksgiving is a time for family and friends… both of which you will see much less of, if you decide to become a yuppie vagabond willing to cross the country for career opportunities.

In some ways life is long, and in other ways it’s short. You may have the time to spend a few years on a high-growth opportunity, but on the other hand, money can’t buy back precious moments you miss spending with family and friends.

I’m told that’s called opportunity cost. Every decision has one.

#16 Joe on 10.11.21 at 2:30 pm

Houses go up in value by 10% a year tax free so why shouldn’t everyone be in a house? Stock market returns 6% or less a year and is taxed. Houses are the obvious way to go.

#17 Dolce Vita on 10.11.21 at 2:32 pm

Forgot to mention:

LEFT SIDE OF MOUTH
A New Rent-to-Own Program
“Commit $1 billion in loans and grants to develop and scale up rent-to-own projects with private, not-for profit, and co-op partners.”

RIGHT SIDE OF MOUTH
Establishing a Rent-to-Own program, New Investments
$550M

or

$1.55B (Establish + Commit)

#18 Leftover on 10.11.21 at 2:35 pm

In one swoop the feds could quell demand for real estate and buttress rental housing.

Return the CMHC to its original mandate – housing for low income people (veterans in the first iteration). Get it out of the mortgage insurance market completely and stop the insanity of socializing high leverage borrowing. There are private sector players willing to do that.

The CHC. It might even win votes.

#19 macduff on 10.11.21 at 2:44 pm

Some people firmly believe that there dwelling is their retirement plan, and will use the value of their house to fund their retirement. They have an asset that grew tax free, and by selling, can then achieve that reality. On the other hand, others like myself who have rented pay tax on their non-registered savings and tax on their registered savings upon withdrawal (whose funds are also for retirement). Where is the fairness in that?

#20 Dr V on 10.11.21 at 2:44 pm

7 Roial

from the article, quoting Freeland

“…what struck me, very powerfully, was how quickly a
rotten political system could collapse….”

I do not find the article complementary. It reads more like a warning.

#21 Dirty Dan on 10.11.21 at 2:51 pm

DELETED

#22 Nonplused on 10.11.21 at 2:55 pm

“But maybe there’s another way. If government de-emphasized real estate ownership and threw some incentives into the rental market more kids might be happy as tenants while Mr. Market hammered down housing values amid less demand.”

Nope, getting the government involved in the rental market will just screw that up too.

If the government really truly thought residential real estate was too expensive and wanted to do something about it, the right course of action to follow would be to eliminate all the current buyer incentives including the CMHC. Instead they add on more incentives like the “under 40 home grant”. Distorting markets in this way is designed to increase demand, even if that was not the intent. Make the banks self-insure their mortgages and watch what happens to mortgage rates. That alone could make house prices cheaper, although I am not sure about “more affordable” for first time buyers.

Of course municipalities could do their part by relaxing zoning restrictions and making it possible to permit development.

All throwing incentives at renters is going to do is drive up rents. Great for the landlords I guess. Somebody will benefit but it won’t necessarily be who the government says it will be.

See, in a perfect world where everyone was equally smart and understood the prisoner’s dilemma, you could give renters $400 (was that per month or per year or total?) and rents would not rise because all renters would want to pocket the money and not give it to the landlords. But in practice somebody is going to fold and bid up an apartment. Then comes the deluge. Pretty soon all of the incentive is in the hands of the landlords. So we should be careful to understand who is getting the gift here. It is not the renters, because as a group they aren’t smart enough to retain it.

To the extent that this $400 of whatever tenure it is does in fact encourage junior to move his game console out mom’s basement, that also increases rental demand and thus prices.

This happens every time the government tries to protect consumers from scarcity. They make the scarce resource even more scarce and thus more expensive by creating artificial demand pressures.

Remember the California energy crisis of 2000? One of the features of that crisis was that the government “protected” consumers by limiting the amount of the insane power prices that utilities could flow through to customers. The net result of that was that in the middle of an energy shortage, nobody turned off their hot tubs. Power prices went even more ballistic and the utilities into chapter 11.

There are two groups that are extremely easy to predict. Consumers, in that they will do whatever they are incentivized to do, and governments in that whatever it is that they propose to fix they will make worse. If you can figure out how to play the middle of these to forces you can make a lot of money. That’s how JA made his first billion. He saw that California energy deregulation left the utilities with no control over their power procurement but also left consumers with no price exposure that might encourage them to reduce consumption. It was the greatest short position ever. The utilities and the consumers lost billions, but the money did not just disappear. Somebody ended up with it.

So if the government does start talking rental incentives, it might be a good time to purchase a rental. All those incentives will flow to the landlords no matter who gets the money first. Prices will go up in response to the new money. It is just how things work.

#23 Joe Wake Up on 10.11.21 at 2:55 pm

Joe, how are you going to pay just the property taxes. The fellow talking about Pickering, they have one of the highest total property tax rates in Ontario. It is currently 1.04% of the assessed value. Joe, what this means is if your $500,000 house doubles in 7.2 years, 10% compounded every year, your current property taxes will go up from $5,200 to $10,400. Joe, this is just property taxes. This is not even including the annual property tax increases from the city of Pickering known to increase 7%+ a year for decades.

Even if your house is fully paid in the future, it would likely cost you $20,000 a year in 2028 to pay for all your utilities, expenses, property taxes etc. which I will remind you is $27,000 to $30,000 a year in gross income needed to earn just to keep that property you so called think is such a great investment. Longer term within 10 years, many people with real estate are screwed.

#24 Dolce Vita on 10.11.21 at 2:56 pm

Off topic if you will let me Garth.

Bloody Fascists.

A couple of days ago in Roma “Forza Nuova” (your basic Fascist party in Italia, that got 0.26% of the popular vote last election) decides to protest the Green Pass and assault CGIL Union HQ:

https://www.adnkronos.com/no-green-pass-roma-scontri-e-violenze-assalto-a-cgil_3QsouIHGKHyH1Ou5Ep3foJ

Oddly, JARED LETO was in the neighborhood on an evening passeggiata, only to find himself caught in the middle of the “protest” and being Leto Cool he filmed it (2 vids, bottom of page):

https://www.virginradio.it/news/rock-news/1295840/jared-leto-coinvolto-negli-scontri-a-roma-si-ritrova-in-mezzo-alla-manifestazione-dei-no-green-pass-e-riprende-tutto-guarda-i-video.html

[Jared got tear-gassed – if you’re in the middle of it the Polizia do not care if you’re an Americano film star]

I think the Polizia di Roma needed Avlvs Octavivs Hirtvs and Decimvs Vlpivs Soccvs of LEGIO XXI RAPAX that night to put to good use their Sling* Throwing skills:

https://www.youtube.com/watch?v=ma7_Wx1WpRo

[For the Glory of the Empire]

* Available for purchase online from Tibet:

https://shop.amdocraft.com/index.php?route=product%2Fproduct&product_id=108&search=sling

#25 crowdedelevatorfartz on 10.11.21 at 3:00 pm

@#5 Royal One
Re Freeland
“…..you might get something to think about when you read this article in the Globe and Mail.”

+++

A “puff piece” by the Globe to prepare the voters for her ascension next year when Trudeau resigns before being punted?

Czarina Chrystia has a nice ring to it.

#26 Antonio on 10.11.21 at 3:06 pm

Dolce Vita, bloody liberals, socialists, communists, marxists, Mario Draghi ex head of European Central Bank now Italy’s Prime Minister was the architect of the negative nominal interest rates first time in Italy’s history. What a bunch of ripoff artists.

It is like me getting paid rent from my landlord to live in my apartment. Yeah, these are the people we should rely on about our lives.

#27 LuckyGuess on 10.11.21 at 3:23 pm

This blog has for too long puffed on about homeowners who should find some balance. I think they’ve received enough advice from this blog, just like they’ve received enough government handouts. More about dogs and possible investment choices would be more helpful, in a land where banks seem to be taking steps to limit what choices we will have.

#28 Flop… on 10.11.21 at 3:25 pm

Recently put this post below up that touched on how Spain Real Estate is on ice compared to other countries.

Out of 55 nations, Spain came in last after its property index actually went backwards, while others are catapulted to the moon…

M47BC

Put the sangria on ice, Spain is where to go for a property not going to the moon with Branson and Bezos…

M47BC

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

“Melbourne’s median house price has surged $175,000 in the space of a year, according to the nation’s top data boffins.

Latest figures from the Australian Bureau of Statistics show the city’s typical home piled on $491 a day in the 12 months to June 30, including a $45,000 lift to $895,000 in the final three months.

It comes as global property giant Knight Frank predicts Covid-19 restrictions could launch renewed activity in the city’s property market and help drive Australia up global standings, after it ranked seventh in the world for growth in the past financial year.

Knight Frank’s latest Global House Price Index, released yesterday, ranked Australia’s property market the world’s seventh best with a 16.4 per cent increase in the firm’s house price index.

The list was topped by a 29.2 per cent increase in Turkey, followed by a 25.9 per cent rise for New Zealand.

The USA, Slovakia, Sweden and Luxembourg also outranked Australia in the list of 55 nations. Spain was ranked last after its index slipped down by 0.9 per cent.”

#29 Bob in Hamilton on 10.11.21 at 3:31 pm

“They might even get their butts out of mom’s basement.”

Good luck with that sentiment….doubtful in this age.

The days of leaving home when you were 18 years of age has passed, just like the horse and buggy. Different generation, different mentality altogether.

#30 Bertha on 10.11.21 at 3:36 pm

How about the government stops subsidizing anything that has to do with real estate? No incentives on rent, banks to take all the risk, no RRSP into real estate and no to the new TFSA for first time buyers. I bet the prices will come down and the houses will be affordable again.

#31 Happy prairie guy on 10.11.21 at 3:38 pm

“Face it. The list of freebies, incentives, goodies and credits lavished on newbie homeowners is long. And growing. Free RRSP withdrawals. Closing tax credits. Grant programs. Transfer tax holidays. Green reno cash. And now tax-deductible home savings accounts.”

With all this gifting the feds are handing out I hope we stop hearing from mils complaining about how we boomers are enjoying the government pogey like OAS. Yes I realise that it’s tough for young people to get into real estate with the insane prices but in the 70’s we bought our first house which cost 5-6x my yearly income. Because of my careers we’ve bought and sold many times. Despite what Joe said in post #15 that houses go up 10% a year ours certainly have not and we’ve taken a loss twice. We are retired in our second choice location because we could not afford the first. To sell this house which we bought eight years ago we’d be lucky to make 10% more than we bought it for, that’s after eight not one year.

#32 Roial1 on 10.11.21 at 3:41 pm

#24 crowdedelevatorfartz on 10.11.21 at 3:00 pm

A “puff piece” by the Globe to prepare the voters for her ascension next year when Trudeau resigns before being punted?

You sir, are a ideological DOLT. Read the article Analytically or critically, as an assessment of her intelligence, not politics.

#33 Dolce Vita on 10.11.21 at 3:44 pm

#25 Antonio

€3.95/month.

Not exactly a deal breaker.

How much do you pay in Italia on your account?

You would be lucky to have Draghi as your PM in Canada:

The Inside Story of How Mario Draghi Saved the Euro
“It inspired us to think of better ways,” says former U.S. Federal Reserve Chair Janet Yellen…
https://www.bloomberg.com/news/features/2018-11-27/3-words-and-3-trillion-the-inside-story-of-how-mario-draghi-saved-the-euro

“whatever it takes”

EU Italia forecast: 5% GDP & 1.4% inflation this year, 4.2% & 1.2% next year *.

https://ec.europa.eu/info/business-economy-euro/economic-performance-and-forecasts/economic-performance-country/italy/economic-forecast-italy_en

—————–

* Recall the PIIGS? Changed with Super Mario.

Shows how much you know…NIENTE.

#34 crowdedelevatorfartz on 10.11.21 at 3:45 pm

@#31 Royal Pain

“You sir, are a ideological DOLT. Read the article Analytically or critically, as an assessment of her intelligence, not politics.”

++++

My apologies.

Chrystia The Great?

#35 Nonplused on 10.11.21 at 3:46 pm

This has to be the worst cover for the government induced global coal shortage I have seen yet:

https://www.zerohedge.com/weather/geomagnetic-storm-hitting-earth-today-could-cause-power-grid-and-satellite-disruptions

I mean really? Geomagnetic storms? Just when this is also occurring:

https://www.zerohedge.com/energy/biden-again-begs-opec-ramp-oil-production

And this:

https://www.zerohedge.com/commodities/china-coal-futures-hit-record-high-mines-flood-worsening-power-shortages-hit-rust-belt

And this:

https://www.zerohedge.com/markets/gazprom-hikes-export-prices-moscow-urges-europe-fix-ties-avoid-more-gas-shortages

And this:

https://www.zerohedge.com/energy/india-faces-rolling-blackouts-coal-shortage-forces-power-plants-adopt-emergency-measures

If we get a colder than normal winter in the northern hemisphere this winter, I think we will finally stop talking about covid so much, but maybe not for “good” reasons.

Somehow or another our illustrious leaders decided it would be a good idea to shut down coal before any replacement was built. That was bound to end badly at some point and it looks like “some point” might be early 2022.

#36 Albertaguy in AB on 10.11.21 at 3:56 pm

I am going to beat Linda to the punch…

Jasper looks like a bundle of fun and just itching for someone to throw that ball for him. Looks like a bit of schnauzer mixed with some terrier maybe? We are looking for a little fella like that and would like to know where he was found.

#37 Tom on 10.11.21 at 3:56 pm

https://en.wikipedia.org/wiki/List_of_people_named_in_the_Pandora_Papers

#38 Habitt on 10.11.21 at 3:59 pm

#7 it’s called fake news

#39 Flop… on 10.11.21 at 4:00 pm

In continuing support following China’s release of The Two Micheals, I got Chinese take-out for Friday night’s dinner.

My fortune cookie had a message for me that some might see applicable for Thanksgiving.

Goods that are not shared are not goods…

M47BC

#40 Grandv!ew on 10.11.21 at 4:06 pm

Governments should not be giving the money away to renters. Rather allow the rent(or percent ) to be written
off against the income. Make it systemic and permanent. After all housing gains are tax free. By doing this they would also find out how many house owners are cheating on the taxes and not declaring rental income.

#41 wallflower on 10.11.21 at 4:15 pm

More zoning for purpose-built rental.
Re-engineer landlord tenancy acts (particularly so non-payment is easier to evict).
Revert CMHC.
No subsidy for ANY homeownership but subsidy for building purpose-built rental in any areas where a unit rent/own ratio is out of whack (which is in many urban areas across Canada).
We have not building anywhere near enough rental.
(Mom and pop condo owners, basement builders, and multi home ownership is NOT purpose-built rental because they can evict at any time.)

#42 Dave on 10.11.21 at 4:17 pm

DELETED

#43 Flop… on 10.11.21 at 4:21 pm

Here is the link to the global house price report I referred to.

Q2 2021

Canada’s 12 month growth was pegged at 16%.

That was good enough for 8th place in The Housing Olympics…

M47BC

——————————-

“Several key economies including New Zealand (25.9%), US (18.6%), Australia (16.4%), Canada (16%) and Russia (14.4%) also make it into the top ten.

In total, 18 markets registered double- digit price growth, up from 13 last quarter and seven a year ago.

Only two markets saw prices decline in the year to June 2021 – India and Spain.

This is the lowest proportion of markets registering a decline in prices since the Global House Price Index commenced in 2008.

Close to the peak?

Despite strong price growth there are signs of softening demand in some markets. In the US, mortgage applications have dipped and the share of households thinking now is a good time to buy hit a decade low of 28% in June.”

https://content.knightfrank.com/research/84/documents/en/global-house-price-index-q2-2021-8422.pdf

#44 Gen Z on 10.11.21 at 4:24 pm

Canadian real estate is good for foreign investors (including offshore tax cheats and criminals), but bad for Canadians, declared Adam Vaughan

#45 Annek on 10.11.21 at 4:30 pm

Canada is not Spain
Houses there last hundreds of years.
They are built with poured concrete and reinforced.
In Canada we would be lucky if a house lasts 100 years
Our houses are built with wood , plywood and “ sticks and stones.”
So houses should not cost as much. As well, we have unlimited land to build whereas in Spain, land is more limited.
Our houses need to be bulldozed down in a few generations, whereas in Spain they last multiple generations.
So here, the home prices reflect a Canadian mentality that houses always go and you cannot lose.
As well, what happened to the surplus of condos that were coming to market?
We’re they all sold to speculators?

#46 Faron on 10.11.21 at 4:31 pm

#99 Don Guillermo on 10.11.21 at 1:24 pm
Trying to Reason With Hurricane Season
Jimmy Buffett – A1A

https://www.nhc.noaa.gov/refresh/graphics_ep1+shtml/151445.shtml?tswind120#contents

Crap. She looks like a beast. Be safe and let us know how you fare. Your neck of the Mexican woods is staring down the barrel of ma nature’s gun… I see 105kt winds forecast.

#47 Nonno Nicola on 10.11.21 at 4:34 pm

#81 Johnathan

Must have had too much Thanksgiving wine John Boy. You are indeed correct in pointing out my geographical error. If you were to have read Sail Away’s comment I was referring to, he wrote Lake Superior was Michigan’s without out mentioning Ontario. My typo in typing Michigan instead of Superior in my response. Thanks for catching the error senor!

#48 Yukon Elvis on 10.11.21 at 4:40 pm

We also have a housing shortage. In 2019 we had 313,000 immigrants and 638,000 foreign students in Canada, not to mention our own organic population growth. They all gotta sleep somewhere. Lots of upward pressure on real estate prices and rents. Not gonna change anytime soon.

#49 Nonno Nicola on 10.11.21 at 4:41 pm

#101 Basic Economics

Gee, golly Mr.Austrian School of Economics, thanks for mistaking my intended funny comment to Dolce Vita as economic ignorance. You must be a regular at Davos with your depth in economics!

#50 Dogman01 on 10.11.21 at 4:45 pm

#24 crowdedelevatorfartz on 10.11.21 at 3:00 pm
A “puff piece” by the Globe to prepare the voters for her ascension next year when Trudeau resigns before being punted?
——————————

Totally Agree, the timing is so obvious.

After watching the US Media shamelessly touting Queen Kamala Harris you can easily draw the connection and realize our corporate media will promote the accession of “the natural governing party’s” next Hero.

The lustre has faded from the dauphin Justin so they need a new celebrity of virtue. Opposing the Russian “boogeyman” as per the media playbook.

Now if she stood up to the Chinese, that is some creds, however I suspect they are getting ready to approve Huawei.

#51 yvr_lurker on 10.11.21 at 4:50 pm

Gov’ts should not be subsidizing renters with handouts, nor should they be doing what T2 with the 40K under 40 rule. They should be putting into place severe disincentives to speculate on housing and should be normalizing interest rates.

As for the ideological one-tracker green people on YVR city council who are trying to fastrack permit parking everywhere and mobility pricing (war raged on cars), a message I sent to the retired journalist Harvey Oberfeld (who I long admired) came back with the reply:

“What I find particularly amazing is that several council members on the left think that they are supportive of working people but are continually making it
very much harder for many of them to live in the city.
Vancouver seems to be becoming a city where only the very poor, who get all kinds of subsidies and assistance, and the very rich can actually live. Working class middle income Canadians can’t possibly afford to buy a place in
Vancouver anymore and even rents are made sky high by all the demands and restrictions and costs that the city places on developers and landlords. The parking tax would’ve been a perfect example of that: the rich could easily afford it, the poor without vehicles don’t have to worry about it …but middle class people who can barely pay their rents, groceries, Hydro, ICBC,
cable/internet would be hit by a new fee, that we all know would go up exponentially every year.
How ironic that the people who represent Cope, the Green party and even the NDP are the ones making life so much more costly and difficult for their own base.
I certainly intend to bring up a lot of these ideas as the civic election gets closer.”

He is someone who gets it. For those that are interested, take a look at his blog where he still occasionaly posts:

http://harveyoberfeld.ca/blog/

On another topic, I particularly liked his critique of Jagmeet when he visited a residential school describing all the “killing…”

http://harveyoberfeld.ca/blog/page/6/

He needed to say instead, that this is a very important issue, we need to get to the bottom of it, pressure the church to release records (so as to determine cause and year of death), and to identify as many of these remains as possible so as to try to notify their families.

To use the word “killing” is akin but worse than Heidi Fry’s “the crosses are burning in Prince George as I speak” comment….

#52 Nonno Nicola on 10.11.21 at 4:52 pm

“Spain’s children leaving at 31 is half a lifetime longer than the European average.”

I am sure Dolce Vita can confirm this but in countries like Italy, especially in the rural south, four generation often live in the ancestral home and hence, never leave home. Even in cities, “mammone” are 40, 50, 60 old year men still living at home with mamma.

#53 Pete out east on 10.11.21 at 4:52 pm

Happy Prairie Guy, besides the price of house hitting you hard after selling one buying another, one of the poster’s mentioned the high to higher, insane property tax increases, utilities, expenses increasing, cost of living increasing. If in 10 years from now it costs an extra $10,000 or $15,000 a year to pay all living expenses but you have no much more financial liquid and less liquid investments, savings before and after taxes, it will be hard not going into debt or having to sell that house you wanted to stay in.

#54 Nonno Nicola on 10.11.21 at 5:04 pm

#20 Dirty Dan

With a moniker like Dirty Dan it’s no surprise he gets deleted. Funny stuff!!

#55 Basic Economics Humor Me on 10.11.21 at 5:12 pm

Nonno Nicola, I did not know large socialist inflation type increases of say 100% to 1000% in bread and making your own bread were supposed to be a joke or funny. I know alot of liberals or liberals attempt at humor like to deflect or go off topic and say they were joking to confuse. Good luck with your humor when the crap hits the fan.

#56 Don Guillermo on 10.11.21 at 5:15 pm

#45 Faron on 10.11.21 at 4:31 pm
#99 Don Guillermo on 10.11.21 at 1:24 pm
Trying to Reason With Hurricane Season
Jimmy Buffett – A1A

https://www.nhc.noaa.gov/refresh/graphics_ep1+shtml/151445.shtml?tswind120#contents

Crap. She looks like a beast. Be safe and let us know how you fare. Your neck of the Mexican woods is staring down the barrel of ma nature’s gun… I see 105kt winds forecast
**************************************
Thanks. Will post more later. She looks like a doozy. We’re trying to rearrange for a couple of more days in Cabo and fly over Friday. Should know about where Pamala is taking us around noon tomorrow. Cheers!

#57 Sail Away on 10.11.21 at 5:15 pm

#46 Nonno Nicola on 10.11.21 at 4:34 pm
#81 Johnathan

Must have had too much Thanksgiving wine John Boy. You are indeed correct in pointing out my geographical error. If you were to have read Sail Away’s comment I was referring to, he wrote Lake Superior was Michigan’s without out mentioning Ontario.

———

I am also partial to British Columbia’s Pacific Ocean.

#58 Ponzius Pilatus on 10.11.21 at 5:17 pm

19 Dr V on 10.11.21 at 2:44 pm
7 Roial

from the article, quoting Freeland

“…what struck me, very powerfully, was how quickly a
rotten political system could collapse….”

I do not find the article complementary. It reads more like a warning.
——————————
A good example of how 10 people can read the same article, and can have 10 different takes on it.
The way I read it, she is a strong, intelligent, principled woman who hates Russia and by extension Communism.
That’s why I find it interesting that so many posters on this blog call her a Marxist and Communist.

#59 Nonno Nicola on 10.11.21 at 5:22 pm

#14 Danger Dan

Happy Thanksgiving Garth and Danger Dan! Good comments Danger. Now to get Dirty Dan to clean up his act.

#60 crossbordershopper on 10.11.21 at 5:28 pm

why wouldnt people just buy as many homes they can get financing for, and have even negative cash flow. When 10 years ago my east indian friend told me his math, i kinda laughed, why would anyone subsidize a renter he doesnt know for a potential who knows return years down the road. It has worked wonderfully for him though.
he has two million plus equity, i just spoke to him, i said great, but he still drives uber since he is 450 a month in negative cash flow. i said dude, come on quite, cash it in, you won, he said he cant jump off the wheel.
I was pondering his life as i ate the KFC. Happy thanksgiving.

#61 ogdoad on 10.11.21 at 5:30 pm

Happy Thanks Giving!

Og

#62 Nonno Nicola on 10.11.21 at 5:30 pm

#54 Basic Economics Humour Me

You must be a psychic in addition to being an economic genius. You assume I am a liberal and will have economic hardships when the crap hits the fan. Spare me your puerile economic lessons cowboy.

#63 Ponzius Pilatus on 10.11.21 at 5:31 pm

#51 Nonno Nicola on 10.11.21 at 4:52 pm
“Spain’s children leaving at 31 is half a lifetime longer than the European average.”

I am sure Dolce Vita can confirm this but in countries like Italy, especially in the rural south, four generation often live in the ancestral home and hence, never leave home. Even in cities, “mammone” are 40, 50, 60 old year men still living at home with mamma.
———————
Got me chuckling.
Dolce an expert on everything Italian?
I have been living in Canada for about 40 years now.
Still really don’t get “culture”.
The few things he knows is what he reads in the papers.
As for old Italian men still living in the basement I’m sure there are some retired Canadian expats living in basements somewhere in North Italia.

#64 crowdedelevatorfartz on 10.11.21 at 6:01 pm

@#49 Dogman One
“The lustre has faded from the dauphin Justin so they need a new celebrity of virtue. Opposing the Russian “boogeyman” as per the media playbook.”

+++

True.
A fascinating dilemma that could only be resolved by the secret Royal edicts of the Bilderberg intelligentsia.

If we look at Chrystia’s impressive creds as a vertically challenged persona with a Napoleonic Complex….

It all becomes clear.

Empress Chrystia, the Sun Goddess, shall reign benevolently with her superior intellect for a very long time… or until the inevitable Canadian debt crisis demands her fiscal head.

I’m just wondering who will be her second?
She performed excellently when Trudeau was the Son King
Mr Champagne?
Walking faithfully behind her, nodding in agreement at everything she , as the supreme leadership, demands…?

#65 Wrk.dover on 10.11.21 at 6:05 pm

#72 Do we have all the facts on 10.11.21 at 8:25 am
One aspect of the recent increase in the value of homes is a corresponding increase in the number of older homeowners who are filing for divorce. Between 2010 and 2020 the number of Canadian citizens 65 years of age or older who reported their status as divorced increased 350,000 persons to 630,000 persons (80%). Since February 2020 the number of citizens 65+ filing for divorce has substantially increased.
________________________________

Perhaps the people are entering into the over 65 bracket already divorced for years/decades.

That would explain the massive jump in divorced wrinklies.

#66 Cheese on 10.11.21 at 6:17 pm

I’m 40, live with family, and gross $36/yr. I will never own a home, and probably never have a family as a result of barely being able to afford to sustain even one person.

As one of the dirty plebs, I can say that it will not end well for our politicians in time, anger is building.

#67 Wrk.dover on 10.11.21 at 6:17 pm

Faron; a favor please.

How does the 2010-2020 climate of Digby NS compare with that of the Garden City, St Catherines Ont back in 1960-1970? Which was the one better for truck farming?

I’m also wondering which CDN reporting area within 200 miles of the US border, has experienced the greatest climate change over the past 40 or 50 years. Or which ever similar parameters you have quick data for.

Thanks for giving!

#68 Sail Away on 10.11.21 at 6:29 pm

#27 Flop… on 10.11.21 at 3:25 pm

Put the sangria on ice, Spain is where to go for a property not going to the moon with Branson and Bezos…

———

Branson and Bezos aren’t going to the moon. Elon’s SpaceX got that contract:

https://www.nytimes.com/2021/04/16/science/spacex-moon-nasa.html

https://www.hindustantimes.com/science/did-richard-branson-really-fly-into-space-neil-degrasse-tyson-weighs-in-101626411110372.html

#69 Host on 10.11.21 at 6:30 pm

“But from a financial standpoint, people without houses are abject losers.”

That kind of hurt Garth, but it came through loud and clear during the thanksgiving dinner I hosted, where the talk was all about how, and what, to buy and sell in real estate to make money, in my RENTED house.

#70 VladTor on 10.11.21 at 6:42 pm

Garth, Dorothy – HAPPY Thanksgiving !

Garth, today is good opportunity to tell you again – “Thank you very much for this blog and everyday efforts to keep us informed about housing and finance in Canada”

HAPPY Thanksgiving for all readers !

#71 Sean on 10.11.21 at 6:44 pm

A double whammy for renters is that landlords (of whole-building rentals) don’t get any of the gifts/incentives that PR buyers do, don’t get a low interest rates, and pay tax on capital gains. And they often suffer from the market restrictions that are meant to benefit renters. This discourages purpose-build rentals, reduces vacancy rates, discourages maintenance of rental properties, and pushes up rents.

#72 How to give renters a leg up on 10.11.21 at 6:55 pm

‘Governments should not be giving the money away to renters. Rather allow the rent(or percent ) to be written
off against the income. Make it systemic and permanent. After all housing gains are tax free. By doing this they would also find out how many house owners are cheating on the taxes and not declaring rental income.’

This is BRILLIANT! How do we get this done?

#73 Paul on 10.11.21 at 6:58 pm

#6 Irish Stew on 10.11.21 at 1:55 pm
Buying a home is one thing.

Affording sky rocketing heating costs, utilities and property taxes is another discussion entirely.
————————————————————————————————
If you rent a house or Condo, Most of the time the tenant
pays the heat,hydro, water, plus content insurance.Property tax if possible will be factored in as well.

#74 Flop… on 10.11.21 at 7:06 pm

#49 Dogman01 on 10.11.21 at 4:45 pm

Regarding Freeland.

“Now if she stood up to the Chinese, that is some creds, however I suspect they are getting ready to approve Huawei.”

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

2 days ago from your Southern Cousins…

M47BC

————————————————-

Huawei waves goodbye: Why The Chinese Tech Giant Is Pulling Out of Australia.

Australia: Huawei “is pulling out of Australia, closing research labs, ending partnerships, and retrenching hundreds of employees among fresh claims it poses a national security risk.”- Daily Telegraph Australia.

#75 Andrei on 10.11.21 at 7:25 pm

There is one logical flaw in Garth’s argument: for the kids to be renters, there should be an owner (maybe an individual or a company) that rents out the property. We need to increase the supply of both rentals and owner occupied housing to alleviate the shortage.

#76 Trojan House on 10.11.21 at 7:31 pm

DELETED

#77 Dr V on 10.11.21 at 7:34 pm

57 ponzie – the G&M wont let me load the article again without pay, but there were several snippets that would make me wary of having her lead the country – esp the one where the KGB said she would make a good spy. Neither can I recall any info that would qualify her to be Minster of Finance. Maybe a job at CSIS.

Re 62 – I recall a brief TV journalism piece (60 minutes?) on Italy’s “Big babies” or grown men still living with parents. Kinda funny. While Momma does the cookin’ and cleanin’, Jr. has all the duds and style to look cool at the cafe.

#78 Okay Whatever on 10.11.21 at 7:37 pm

Nonno Niccola, what happened, it is not a joke anymore. Stick to being funny with funny topics. I hear everyday people like the poster Cheese ho work mainly full time or 35 hours a week making $16 maybe $17, $18 an hour which is $36,000 gross a year.

Much higher inflation and consumption taxes, services like transportation, gas, food etc. are making people really poorer now. Just like the energy poverty comment. Italy and Europe is a cesspool of Liberalism and socialism and you post in your comments to lining their current liberal, socialist policies.

#79 crowdedelevatorfartz on 10.11.21 at 7:39 pm

@#57 Ponzie’s Political Ponderings

“The way I read it, she is a strong, intelligent, principled woman who hates Russia and by extension Communism”

++++

Sorry.
I still read it as a “political puff piece” to wave about in a National newspaper and see if the voters are interested.
It has Mr. Butts slimy machinations all over it.

“she acted like a spy….the KGB were watching her…. She gave them the slip…. her Ukrainian language skills were so good the KGB were immediately suspicious….”

Eventually refused entry to the Ukraine because she had literature in her luggage promoting elections and free speech…. as she entered a Communist country.

1989.
Crazy times.
When she was 21 and full of idealistic notions …like 1,000,000 other university students out to save the world.
A polyglot with political opinions.
Like Greta Thunberg only more educated and much older.

But it does set the stage for a run at higher office….doesn’t it?

What the hell, she’s the right gender and hasn’t annoyed the First nations lately.

She should give it a shot…before the economy crashes .

#80 Love_The_Cottage on 10.11.21 at 7:46 pm

#73 Andrei on 10.11.21 at 7:25 pm
We need to increase the supply of both rentals and owner occupied housing to alleviate the shortage.
___________
Seems logical to you and me but for some reason not to others.

#81 crowdedelevatorfartz on 10.11.21 at 7:53 pm

My my my.

China’s supreme Leader Chairman Xi insists China is “peaceful” and won’t invade the “runaway province” of Taiwan.

https://www.reuters.com/world/asia-pacific/china-says-it-carried-out-beach-landing-drills-province-opposite-taiwan-2021-10-11/

Some one might want to tell the “wolf warrior” generals in China that.

#82 Winning on 10.11.21 at 7:58 pm

Host, I am not a loser. I have no debt, zip, no big $800,000 house mortgage, no credit card debts, no payday loans, no car loans. I rent 850 square foot apartment.

I am 37 years old and have a made sure I maximized my RRSP, TFSA. I am proud of my $500,000 portfolio generates $2,000 a month dividends, interest is more than my monthly rent and keeps growing. I only contributed $240,000 over the years and $16,000 a year on average since 2005. I all did this working at a starting wage of $14 an hour and now making $25 an hour full time.

Now I am on track to saving $27,000 a year and by 50, I will be a on track with $2 million and $100,000 in annual dividends, interest coming in.

#83 Nonno Nicola on 10.11.21 at 8:12 pm

#76 Okay Whatever

And your solution to what ails the world is? Please give me a brief economic solution to the mess we are in per favor. As to making bread, my late mother made bread her whole life. My parents lived through the depression making bread, growing and preserving their own food.

#84 Vanreal on 10.11.21 at 8:18 pm

Cheese, why blame politicians for a situation of your own making.

#85 TalkingPie on 10.11.21 at 8:29 pm

#65 Cheese on 10.11.21 at 6:17 pm
I’m 40, live with family, and gross $36/yr. I will never own a home, and probably never have a family as a result of barely being able to afford to sustain even one person.
********************************************

I hate to be that elitist guy, and I’m also confused to be that elitist guy, as I essentially serve drinks for a living at 38 years old.

If at 40 you’re making $17/hr (based on a normal 40 hour work week), you’re either lacking in ambition, basic human ability, or any semblance of luck whatsoever.

I was making that much in 2008 (during the financial crisis) newly-hired in an entry-level clerical position at 24 that required only high school.

During Covid when I was laid off from the company I’d been working at for 13 years, I started off at Canada Post as a letter carrier at $21/hr. When I was lacking in hours there, I went and worked at a bike shop – an industry notorious for low profit margins – and worked as the service manager for $23/hr. I maybe could have negotiated a higher pay, but since I knew I was only staying until I was recalled to my old job, I wanted to keep good faith with my employer, so I accepted his first offer.

I don’t live in the GTA or Vancouver, but an hour outside of the second largest city in the country, where $450k still gets you a decent house on a half acre or more.

If making more money and owning a home are your ambitions, you really need to be complaining less and making more positive changes in your life.

#86 Nonno Nicola on 10.11.21 at 8:43 pm

#79 Fartzy

Yes, Xi wants a peaceful reunion with Taiwan. The fighter Jets and battleships off the coast of Taiwan are friendly olive branches being offered to the good people of Taiwan…

#87 Nonno Nicola on 10.11.21 at 8:45 pm

#80 Winning

Congrats on your financial success! I love your Chatlie Sheen moniker as well!

#88 Nonno Nicola on 10.11.21 at 8:57 pm

#83 Talking Pie

Wise words of advice to Cheese mon ami! La belle province does still have some reasonable real estate prices.

#89 Dogman01 on 10.11.21 at 9:02 pm

Canadians reporting each other and maligning each other about vaccine and mask infringements..

Yet nothing condemning the Chinese Communist Government for wilfully covering this thing up, likely creating it and allowing it to spread globally under cover of a campaign of lies.

They knew about this virus likely in summer 2019

https://nationalpost.com/news/world/covid-19-was-rife-in-china-months-before-alert-sounded-report-says

Let the World never forget that Xi Jinping knew asymptomatic, infected Chinese citizens were going to spread this virus throughout the World.

#90 Ponzius Pilatus on 10.11.21 at 9:16 pm

#77 Dr V on 10.11.21 at 7:34 pm
57 ponzie – the G&M wont let me load the article again without pay, but there were several snippets that would make me wary of having her lead the country – esp the one where the KGB said she would make a good spy. Neither can I recall any info that would qualify her to be Minster of Finance. Maybe a job at CSIS.
—————–
I’m an accountant, and when I hired staff in’the past, I had 3 criteria:
Accounting background
Problem solving
Communication skills.
Accountants are dime a dozen, but ones with criterium 2 and 3 are not easy to find.
I always say it’s easy to come up with the numbers, but explaining what they mean and recommending solutions is another story.

#91 mike from mtl on 10.11.21 at 9:25 pm

#89 Dogman01 on 10.11.21 at 9:02 pm
…Yet nothing condemning the Chinese Communist Government for wilfully covering this thing up, likely creating it and allowing it to spread globally under cover of a campaign of lies…
////////////////////////////////////////////////////////////

We know.. this is true lived events, ‘it’ was widespread early 2020 but dismissed as simply the flu. No doubt I had ‘it’ in Jan ’20, pretty miserable stuff.

The official narrative and real world are two different things in hindsight.

Trying to get CCP and NIH to admit the truth is like coercing your dog to sing.

#92 fishman on 10.11.21 at 9:28 pm

If you don’t have big equity R/E or a portfolio or family money very long odds on buying dirt. What we need to start building are Khrushyovkas’. We could name them Lil potatoshyovkas. We’ll do them “tilt up” style All(reinforced concrete)like the commercial buildings out in the valley. Pour a slab on top of the bogs & peat moss. Then build your walls, on the slab. Tilt them up. Hold in place with roof beams.
Or “cinder block” on slab with(engineered reinforced concrete) beams & pillars.
BIPOC or 2SLGBTQQ1+ or just a white male hetero with no spare money. “A home is a Right, not a privilege” Scurrying in the chilly early evening Canadian fall. To their very own Lil potatoshyovkas walk ups. Shopping bags in hand. Soviet style. Smell of Thanksgiving turkey & sage dressing from the hundreds of open windows.

#93 crowdedelevatorfartz on 10.11.21 at 9:34 pm

@#90 Ponzies’ pal!
“Accountants are dime a dozen, but ones with criterium 2 and 3 are not easy to find.”

+++

I have criterium 2 and 3 and I can count……. is that enough?
Willing to take the plunge and hire me Ponzie?
I’ll sell my part ownership of my company.
Take a massive cut in pay/bonuses and dividends.
Get a lobotomy.
And sit quietly in the corner drooling waiting for a pat on the head.

#94 IHCTD9 on 10.11.21 at 9:36 pm

#80 Winning on 10.11.21 at 7:58 pm
Host, I am not a loser. I have no debt, zip, no big $800,000 house mortgage, no credit card debts, no payday loans, no car loans. I rent 850 square foot apartment.

I am 37 years old and have a made sure I maximized my RRSP, TFSA. I am proud of my $500,000 portfolio generates $2,000 a month dividends, interest is more than my monthly rent and keeps growing. I only contributed $240,000 over the years and $16,000 a year on average since 2005. I all did this working at a starting wage of $14 an hour and now making $25 an hour full time.

Now I am on track to saving $27,000 a year and by 50, I will be a on track with $2 million and $100,000 in annual dividends, interest coming in.
————

This is the way to go in the new Canada.

RE from here on in has to be a fools game. 20 years worth of gains, rates as low as they can go, the most RE friendly PM in Canada’s history, and the most house pumping fiscal policy to have ever existed.

The gravy bowl has been drained – all that’s left is more fiscal policy. Will the RE market live on fresh doses of buyer empowerment for the long term? How much revenue will go up in smoke on the altar of home ownership?

#95 crowdedelevatorfartz on 10.11.21 at 9:37 pm

To hell with a shortage of chips affecting major industries.

The world wide shortage of commodities is beginning to bite…

An elderly man at the local Safeway asked if they had any Pumpkin pies left….
Sorry.
All out.

The beginning of the end.

#96 Doug t on 10.11.21 at 9:49 pm

#85 talking pie

Not everyone needs or wants to strive for what society deems you should at certain points in a life – it’s not a competition, live a decent life, care for others, don’t trouble yourself with what others say or expect and try to be happy and thankful

#97 Ponzius Pilatus on 10.11.21 at 9:52 pm

#89 Dog

Let the World never forget that Xi Jinping knew asymptomatic, infected Chinese citizens were going to spread this virus throughout the World.
—————-
Well, that is a very strong accusation.
I think you’d better have more than a FP article to back it up.

#98 Nonno Nicola on 10.11.21 at 10:10 pm

#IHCTD9

Your last paragraph with questions sounds like the opening of the 1960s Batman show.:)

#99 Nomad Geezer on 10.11.21 at 10:19 pm

Leaving BC we arrived back in NS this morning. Glad to be back. ETF Bank dividends helped finance our move.

#100 Bronze Bullet on 10.11.21 at 10:21 pm

This is what happens when banks run the show and own the government.

Every single government measure is to boost house prices, while talking about ‘improving affordability’.

Every single government measure is to ‘insure’, i.e. take the risk off the lenders.

The banks love it. Profits are record. No risk whatsoever.

Hard to resist taking those profits handed out to you and be modest.

The result is an economy in the toilet as everyone jumps to ‘investment’ in non-productive assets.

Huge inflation that is lied about that destroys pensions and savers.

Outright insult to savers with inflation approaching double digits while rates are at zero and the incompetent idiots at BoC keep pumping ‘liquidity into the system’ which for al intends and purposes destroys the deposits.

The real estate cartel and the incompetent, irresponsible, fee based media just adds fuel to the fire.

As a result there is no real economy, necessities are becoming super expensive, wages are stagnant, the young generation is becoming debt slaves and life practically unlivable.

I had to kick myself when I saw the house prices in f…. ng Hamilton, a place where I won’t live even if they pay me to.

The cherry in the cake is the creation of a class society with haves and have nots but most importantly, the complete shutdown and exclusion of the have nots with no hope of ‘making it’ to the haves class no matter what they do.

Democracy in the 21st century.

#101 Faron on 10.11.21 at 10:45 pm

#67 Wrk.dover on 10.11.21 at 6:17 pm
Faron; a favor please.

? Which was the one better for truck farming

I can do that. What is truck farming or for what climate is truck farming the most suitable?

#102 Ponnaps on 10.11.21 at 11:01 pm

its crazy how landlords, who are essentially running a business , are allowed to qualify for mortgages and even more crazily at retails rates? shouldnt they only be allowed business loans like all other businesses? govt can easily plug this very obvious loophole thereby freeing up some much needed inventory from freeloading landlords..

#103 TalkingPie on 10.11.21 at 11:04 pm

#96 Doug t on 10.11.21 at 9:49 pm
#85 talking pie

Not everyone needs or wants to strive for what society deems you should at certain points in a life – it’s not a competition, live a decent life, care for others, don’t trouble yourself with what others say or expect and try to be happy and thankful
********************************************

You’ll notice that my advice was qualified by an “if” statement. One has to assume that if the poster was satisfied with his situation he wouldn’t be belly-aching online about not being able to afford a house or reproduction.

My life is hardly conventional or winning by conventional standards, and I’m ok with that. My own brother probably earns three times what I do, but I wouldn’t want his life. I get it. But I’m not whining about anger, not being able to leave my family’s house, or not being able to afford real estate.

It’s fine if someone doesn’t want those things, but those who don’t want it, don’t complain about not having it. And those who do want it should find a way to achieve that goal. It’s doable, but you might have to make some changes, including where within this giant country you choose to live.

#104 Adam on 10.11.21 at 11:17 pm

This is so long overdue to be fixed. Spread it far and wide:

https://www.reddit.com/r/PersonalFinanceCanada/comments/q64lqd/people_are_committing_mortgage_fraud_make_money/?utm_source=share&utm_medium=ios_app&utm_name=iossmf

#105 Jane24 on 10.11.21 at 11:22 pm

Garth I don’t think you should use Spain as a RE comparison for Canada. Living in England as we do we have lots of friends with Spanish holiday homes and go there most years. I can guarantee you that $350,000 Cdn gets you a 3 bed detached with a private pool near a beach. Spanish RE is cheap. Spanish kids live at home till they marry for the same reason that Italian kids do – it is just the way that families work there.

#106 Faron on 10.11.21 at 11:23 pm

#67 Wrk.dover on 10.11.21 at 6:17 pm

I’m also wondering which CDN reporting area within 200 miles of the US border, has experienced the greatest climate change over the past 40 or 50 years. Or which ever similar parameters you have quick data for.

I’ll give an initial answer, but would like more information because there are a lot of parameters to track. i.e. temperature (daily min or daily max, seasonal or annual or monthly). Or a derivation of temperature like growing degree days or cooling degree days etc. Precipitation has the same questions. And then there are other questions like wind, humidity, cloud cover, solar radiation etc. etc. :-)

Here’s a general answer. For temperature and precipitation, the best reference data set is a collection of data called the Adjusted Homogenized Canadian Climate Dataset. The data are corrected for things like station moves, urban heat islands or encroaching vegetation that can all cause non-climatic variability in the data. For precipitation, changes in wind affect how effectively a rain gauge can do its job.

Looking at annual temperature trends, the largest changes within ~200mi of the border have been in southern Alberta and Saskatchewan where temperature has warmed by about 2.3C from 1948 to 2016. South-central BC has had similar warming. Away from the border northern Yukon and NW NWT have seen increases of about 3C.

When looking at the changes by season, the greatest change varies. In winter, the prairies (AB,SK) win out with the largest change with values above 4C. Lowest rates of change are on the coasts in winter. Warming is fastest in the arctic and the prairies are exposed to arctic air outbreaks to a greater extent and with less mitigation from sub-tropical air than points east. In spring, the story is about the same, but with weaker warming in southern AB,SK. Changes in summer are much smaller with the largest warming having occurred in south central BC/okanagan. Fall has the smallest trend with slight warming in southwest SK and Ont just east of Thunder Bay.

For precipitation, There has been an increase in precipitation across most of southern Canada of 10-15%. largest changes appear in southern SK. In winter, the biggest change is profound drying in southern AB where some areas have seen a 30% to 50% decline. In spring, SE BC has seen a trend to wetter conditions up to 30% more precipitation over the 1948 to 2016 period. In summer, south-central SK has seen precipitation increases of about 20%. In fall, western Ont takes the cake with precipitation increase of 20%-40%.

I’ve summarized this from:

https://www.nrcan.gc.ca/sites/www.nrcan.gc.ca/files/energy/Climate-change/pdf/CCCR-Chapter4-TemperatureAndPrecipitationAcrossCanada.pdf

The authors are global experts in Canada’s climate.

The general increase in precipitation is what is expected. Thermodynamics tells us that for every degree of warming, the air can hold ~7.5% more water. Assuming the ability for the water to be wrung out of the atmosphere doesn’t decline, this means a ~2.5-3C warming corresponds to something like 19% – 23% more rainfall. This effect bears out in extreme precipitation events, but applied when looking at long term change despite mitigating factors.

I’ll look up the data for those two towns and get back to you.

#107 Faron on 10.11.21 at 11:41 pm

#56 Don Guillermo on 10.11.21 at 5:15 pm

#45 Faron on 10.11.21 at 4:31 pm
#99 Don Guillermo on 10.11.21 at 1:24 pm

Thanks. Will post more later. She looks like a doozy. We’re trying to rearrange for a couple of more days in Cabo and fly over Friday. Should know about where Pamala is taking us around noon tomorrow. Cheers!

Good news is that the models all are showing good agreement on the track meaning that Cabo should remain safe. Forecast intensity is a bit less now, but there are still some unknowns and a couple of days before landfall. Hurricanes in this area have been known to deepen rapidly and unexpectedly. Given the light situation in the Atlantic, maybe NOAA can spare a Hurricane Hunter flight to gather data.

She looks to be a fairly fast mover, so that should help keep rain totals down, hopefully. I think that’s typically the bigger problem with central American storms because of the greater topography than the eastern US. Sounds nerve wracking, but at least you are out of harms way.

#108 SoggyShorts on 10.12.21 at 12:06 am

#96 Doug t on 10.11.21 at 9:49 pm
#85 talking pie
Not everyone needs or wants to strive for what society deems you should at certain points in a life – it’s not a competition, live a decent life, care for others, don’t trouble yourself with what others say or expect and try to be happy and thankful

************************
But you can’t have it both ways.
#66 Cheese on 10.11.21 at 6:17 pm is choosing to make less money than a McDonald’s worker (I just drove past one yesterday offering $17.50 to start) and yet Cheese seems annoyed that they can’t afford a house.

After 20 years in the workforce if you aren’t making more then you have clearly made some other pretty major life choices and might not have a strong case for complaining about the outcome.

#109 I don’t believe a word of it on 10.12.21 at 12:28 am

“ government could de-emphasize real estate”. Surely you jest? There’s no way. Now that Trudeau has killed resource, mining, finance and energy what’s left except home equity financing on over leveraged inflated houses? Without our credit/debt economy there would be nothing to tax ergo: zero revenue. And, who’s going to replace the nations fleet of cars when Trudeaus vision of 100% EV comes into law in 2030? We’ll all need to shoulder a lot more debt to support that and the $1000 per ton Carbon Taxes. Seriously, Canada has become an economic joke. There will be a point when even the immigrant 52 Seats in the GTA will no longer vote to push immigration into Canada. They’ll be urging their cousins to look elsewhere because of the high tax and energy poverty and low wages.

Spain: was far richer and equitable before getting suckered into the Euro.

#110 Squire on 10.12.21 at 12:30 am

#66 Cheese on 10.11.21 at 6:17 pm
I’m 40, live with family, and gross $36/yr. I will never own a home, and probably never have a family as a result of barely being able to afford to sustain even one person.

As one of the dirty plebs, I can say that it will not end well for our politicians in time, anger is building.

———————————————————
Two words buddy, work harder

#111 Cang Zu on 10.12.21 at 1:05 am

#86 Non. Xi also wants a friendly take over of the South China Sea and all adjoining Asian countries. After all didn’t various war lords, mariners, emperors envoys etc over the past few thousand years all touch down somewhere and claim those lands for China?

Xi thinks it’s time to bring it all back into the no sun of the motherland. Even Europe, Iran and Turkey belong to China according to Poo Bear Xis nutty world domination design. The west coast of North America is also claimed in the same dodgy Commie Uber Alles-Scheme.

Just yesterday Xi announced the grant of the Yellow Sea into a Eco-zone under his green thumb administration . Problem there: China doesn’t own the Yellow Sea either, it borders North and South Korea. They might have something to say.

Communist Party zealots seized China from the Republic in the same way as the Taliban have stolen the lives of Afghans. Taiwan has the motivation to defend itself, and will. Trudeau might admire a communist dictatorship, because he’s clueless about life under communist domination, but if you ask someone who’s escaped communism, they disagree.

#112 Chase my Face on 10.12.21 at 2:04 am

Revolutionary Math needed to understand why Energy Poverty will lead to Energy Starvation to Energy Revolution.

http://www.bnnbloomberg.ca/maxed-out-48-of-canadians-within-200-of-insolvency-survey-says-1.1247336

In populated markets like Germany and Ontario heating costs are projected to rise hundreds of dollars a month. Low income and seniors are already deep into Energy Starvation with Middle Class falling into Energy Poverty due to soaring cost of heat and home energy costs.

Now it’s forecast that many major markets will go dark for lack of energy and cash. Question: if it’s acknowledged that the wacko energy collapse of a windmill fantasy brought on by the likes of the Butts and Merkels in Ontario and Germany will cost poor consumers into $thousands a month to heat, are the same consumers going to die in peace or rage in the streets this year?

#113 Fake Commie on 10.12.21 at 2:33 am

DELETED

#114 JMM on 10.12.21 at 3:57 am

Amazon will allow many employees to work remotely, indefinitely
https://www.seattletimes.com/business/amazon/amazon-will-allow-many-employees-to-work-remotely-indefinitely/

They didn’t get the “buy pants” memo, Garth, please send it.

I’d be a pity if some company in Canada loses talent because they are forcing people to work on a computer on this desk instead of that desk. It’d really be.

#115 under the radar on 10.12.21 at 5:20 am

71 – don’t get me started. We own purpose built rental .
Check out the City’s mandated vital service disruption plan which is mandatory for owners of 10 or more units. We will soon be exiting purpose built rentals, for much greener pastures.

#116 Wrk.dover on 10.12.21 at 7:21 am

#101 Faron on 10.11.21 at 10:45 pm
#67 Wrk.dover on 10.11.21 at 6:17 pm
Faron; a favor please.

? Which was the one better for truck farming

I can do that. What is truck farming or for what climate is truck farming the most suitable?
_____________________________
I should have said mixed truck farming. My take on that is, a truck load of this-a truck load of that. Small mixed cropping of veggies.

The biased answer I am looking for, is that Digby has vastly improved with winters now suitable for peach buds (no winter kill) and warmer longer summers while the Ontario fruit bowl has become too hot or dry.

Where we once had trouble producing ripe tomatoes by October from ten week old spring transplants, 40 years on we get ripe tomatoes in September from volunteers that appear out of the compost after it is tilled in just before planting time.

Your answer to the other question was not what I expected so I am glad to have it. I know it would have taken me much more effort than you needed to put into coming up with the answer as it is within your forte.

Thanks again.

#117 Steven Rowlandson on 10.12.21 at 7:47 am

My average weekly pay building stairs for a small business this year is $115 so far or some where between 5 and 6 grand for the year to date. How much of that is needed to buy a home fit to live in? Canada’s real estate market is out of touch with reality or Canada’s employers are.

#118 Phylis on 10.12.21 at 8:02 am

#104 Adam on 10.11.21 at 11:17 pm
This is so long overdue to be fixed. Spread it far and wide:

https://www.reddit.com/r/PersonalFinanceCanada/comments/q64lqd/people_are_committing_mortgage_fraud_make_money/?utm_source=share&utm_medium=ios_app&utm_name=iossmf

Xxxxxxx

Looks like someone doesn’t want it to spread. Reddit edit, “Sorry, this post has been removed by the moderators of r/PersonalFinanceCanada.”

#119 Nonno Nicola on 10.12.21 at 8:04 am

#111 Cang Zu

Thank you for your insightful comments on China. They concur with those of high profile Chinese dissidents I have listened to.

#120 Nonno Nicola on 10.12.21 at 8:09 am

#127 Steven Rowlandson

Well it depends on where you live Steve. If you live in the GTA you will need about 200 times your stated income so far this year.

#121 crowdedelevatorfartz on 10.12.21 at 8:14 am

@#117 Stevie R
“How much of that is needed to buy a home fit to live in? ”

+++

Does the home have stairs?
Or an elevator?

#122 crowdedelevatorfartz on 10.12.21 at 8:19 am

@#112 Face Chase
“if it’s acknowledged that the wacko energy collapse of a windmill fantasy brought on by the likes of the Butts and Merkels in Ontario and Germany will cost poor consumers into $thousands a month to heat, are the same consumers going to die in peace or rage in the streets this year?”

++++

Nah.
They’ll stay busy and warm shoveling all the snow we’re about to get hit with…

#123 crowdedelevatorfartz on 10.12.21 at 8:24 am

Will the ca ca hit the fan this week?
Or next?

https://www.reuters.com/world/china/looming-evergrande-bond-coupon-payments-intensify-contagion-fears-2021-10-12/

#124 the Jaguar on 10.12.21 at 8:27 am

Snippets in today’s National Post. “The divide.” It’s all very, very true. If you want to understand this great province, continue reading…….

From Colby Cash: ( about the Alberta Influence on BC)

“But Peace River South MLA Mike Bernier sought to provide himself some cover in an unjust way, blaming “Alberta influence” on the region for low vaccination rates. Now, from my battered chair in the capital of Alberta, this strikes me as a hell of a thing to say. If you study vaccination rates in the Alberta regions you will detect a strong south-north gradient. In both provinces, the cities and towns of the resource-extracting north have been slow to take a life-saving preventive medication, even when paid $100 to do it.
Alberta’s major cities, like those of B.C., have high vaccination rates and correspondingly low case counts. At this point in the fourth wave, Alberta’s intensive care units are being flooded with severe COVID cases from the boreal hinterland, delaying health care and surgeries for Edmontonians and Calgarians who were quicker to get poked.
This isn’t, frankly, a failure of public health. It’s not as though trucks full of vaccine doses kept breaking down on the way to Fort St. John, B.C., or Grande Prairie, Alta. It’s a failure of political communications, or even sociological insight. The consequences were less drastic in B.C., only because B.C.’S north is less populated than Alberta’s — and not, despite what you may have read on Twitter, because B.C. is run by benign and wise philosopher-kings and Alberta by demented monsters.” ++++

From Kelly McParland: (about the Fed Conservatives needing to break up with Alberta)

“Perhaps it’s time for the Conservative party to part ways with Alberta. Sit down on the couch, engage in a frank discussion about the relationship, and agree that it’s no longer working out the way both parties had hoped.
If Conservatives want to broaden their support and make sure it lasts longer than an election or two, they’re going to have to risk losing some Western voters in order to do it. They have to decide who they are and what they stand for as a party, then they have to develop policies that appeal to conservative-minded urban voters without frightening them off with babble about the right to own guns and refuse vaccinations.

Liberals once dominated Quebec to the same degree Conservatives dominate the West. Then the Bloc came along to gobble up ridings and cut them down to size. They adapted and survived. Conservatives must do the same, and it may be that events are opening the way to do just that.”

Stay safe, Don G/

#125 crowdedelevatorfartz on 10.12.21 at 8:33 am

The Canadian Liberal appeasement policy towards a Communist dictatorship continues….to our county’s embarrassment….

https://theprovince.com/news/canada/canadas-ambassador-to-beijing-urges-businesses-to-seize-opportunities-in-a-rising-china

Has the ink even dried on the Spavor and Kovrig release documents yet?

#126 TurnerNation on 10.12.21 at 9:01 am

You guys enjoying the Reset? As you stand 6-6-6 feet apart, muzzled? 20 months later. This is *Permanent*
Congrats you passed the Training, and the Compliance stages. Q1 2020-2021.

Next up wipe out the middle class, get them onto UBI.
The daily CHAOS continues. For Your Health Comrade!!

.Four unions file grievances over city of Ottawa’s mandatory COVID-19 vaccination policy for employees (ottawa.ctvnews.ca)

.To avoid ‘complete chaos,’ lawyer to challenge Quebec vaccine mandate for health-care workers in court (montreal.ctvnews.ca)

——–
——–
Lol what.

Aspirin lowers risk of COVID: New findings support preliminary Israeli trial
The treatment reduced the risk of reaching mechanical ventilation by 44%. ICU admissions were lower by 43%, and an overall in-hospital mortality saw a 47% decrease.
By JERUSALEM POST STAFF OCTOBER 6, 2021 13:51
Over-the-counter aspirin could protect the lungs of COVID-19 patients and minimize the need for mechanical ventilation, according to new research at the George Washington University.

https://www.jpost.com/health-and-wellness/aspirin-lowers-risk-of-covid-new-findings-support-preliminary-israeli-trial-681127

#127 Dharma Bum on 10.12.21 at 9:06 am

If you cannot afford a home in Canada, the government does not care about you. Why would they help you?

The government is using those that cannot afford houses.

They are baiting them into the market by providing sneaky incentives to sucker these dupes into pickling themselves in lifelong debt to buy a house which will ultimately jack up the price of houses which will benefit the 68% of people who already own homes.

Those are the people that the government is helping. Can’t anyone see that this is a classic Ponzi scheme? The most recent participants are the ones who get burned, while those that got in early are rewarded by skimming the free money off the backs of the new entrants.

The government is simply feeding this scam.

The young continue to line the pockets of the old.

Never thought I’d be better off old. Being young today is hazardous to your health. Especially your financial health.

#128 Adam on 10.12.21 at 9:24 am

The most recent Reddit post has been removed without explanation. Just went googling and found one from earlier this year:

https://www.reddit.com/r/canadahousing/comments/mj22ml/mortgage_fraud_the_real_issue_behind_canadas_hot/

I’m so stupid, all this time I thought house prices were going up because people were stupid, turns out they’re going up because people are criminal. Makes a lot more sense.

How about a blog to address this Garth?

I’m definitely not saying all brokers are criminals. Realistically, it only takes a very small number to start the ball rolling and once it’s picked up enough steam, the money is so big that it entices more brokers and buyers to do it, maybe “just this once” even. And here we are. Probably a 50% gain in rural NS house prices in the last year.

When is this madness going to end?

#129 Common Sense on 10.12.21 at 9:33 am

It is going to take something extreme to turn the housing ship around. RE is built on the foundation of first time buyers and they grew up witnessing everyone around them winning the RE game. Naturally they want in too, further bolstered by a government and industry that promotes and supports their RE world view, and policies and incentives designed to spur demand.

The economics and fundamentals tell you to run away, but the demand is based on emotion. Everyone has emotions… logic and critical thinking not so much.

Don’t know how this will end, or when, so no sense worrying about it.

#130 SunShowers on 10.12.21 at 9:33 am

“Too much money is going into unproductive residential real estate.”

In what world is money going to residential rents “more productive” than money going to residential real estate?

#131 Ponzius Pilatus on 10.12.21 at 10:46 am

#81 crowdedelevatorfartz on 10.11.21 at 7:53 pm
My my my.

China’s supreme Leader Chairman Xi insists China is “peaceful” and won’t invade the “runaway province” of Taiwan.

https://www.reuters.com/world/asia-pacific/china-says-it-carried-out-beach-landing-drills-province-opposite-taiwan-2021-10-11/

Some one might want to tell the “wolf warrior” generals in China that.
——————————————
If you want peace, prepare for war!

#132 Ponzius Pilatus on 10.12.21 at 11:14 am

#125 crowdedelevatorfartz on 10.12.21 at 8:33 am
The Canadian Liberal appeasement policy towards a Communist dictatorship continues….to our county’s embarrassment….

https://theprovince.com/news/canada/canadas-ambassador-to-beijing-urges-businesses-to-seize-opportunities-in-a-rising-china

Has the ink even dried on the Spavor and Kovrig release documents yet?
——————-
Lots of countries, especially Germany are heavily engaged in China.
But what do they and the Canadian Ambassador to China know?
Not saying that it could not go sideways.
But to ignore the potential market of a rising super power is not good advise, IMHO.
As an exporting nation, we need China more, than they need us.

#133 Dragonfly 58 on 10.12.21 at 11:17 am

Hi Adam, I can assure you that the grow op income stream had a very noticeable effect on Lower Mainland house and property prices . Starting about 15 – 18 years ago and peaking just before legalization. Out here in Vancouver’s Fraser Valley many mortgages were paid by grow op income. And thus began the bump up of prices in Vancouver’s suburbs. The Asian $ were largely spent in Richmond, Vancouver’s West side and Burnaby. The grow op cash fueled price rises in the suburbs . Almost 0 risk, In my immediate area alone there was at least 6 grow op’s operating. Never saw a single one raided. Low to O risk , very high profit’s. Sad really for those Canadians trying to stick to the straight and narrow. Against odds like that, honesty is a sure looser.

#134 Dr V on 10.12.21 at 11:25 am

130 sunshine – please try homelessness for a few months then get back to us.

#135 TurnerNation on 10.12.21 at 11:28 am

Control over our Travel & Tourism Economy. Yes. A main goal of the New System – since March 20202.
Travel will soon be for the rich and elites. Carbon taxes will also be another nail.

.Southwest Airlines Pilots Association Seeks Preliminary Injunctive Relief Against Southwest Airlines for Vaccine Mandate (storage.courtlistener.com)

.Iceland stops use of Moderna’s Covid vaccine for all ages over heart inflammation concerns
(www.rt.com)

.Thailand to reopen for some vaccinated visitors on 1 November (bbc.co.uk)


— From the “But the Hospital Capacity guys!” Department.

-People estimate $24 Billion was spent on Covid testing in USA alone.
https://ourworldindata.org/grapher/full-list-total-tests-for-covid-19

.Unvaccinated Quebec nurses’ licenses to be suspended Friday, says Order of Nurses(montreal.ctvnews.ca)

….
— Children must never again know normalcy in this New System. CHAOS for the working parents. As expected.

.Toronto high school to move to remote learning due to COVID-19 outbreak (nationalpost.com)
“Toronto Public Health has ordered a west-end high school to move to fully remote learning due to an outbreak of COVID-19.
The public health agency says this is its first whole-school dismissal of the academic year.”

#136 Nonplused on 10.12.21 at 11:33 am

#102 Ponnaps on 10.11.21 at 11:01 pm
its crazy how landlords, who are essentially running a business , are allowed to qualify for mortgages and even more crazily at retails rates? shouldnt they only be allowed business loans like all other businesses? govt can easily plug this very obvious loophole thereby freeing up some much needed inventory from freeloading landlords..

—————————————

Where did you get the idea that landlords can get mortgages at “retail rates” (I assume you mean CMHC primary residence type mortgages). They cannot. Your “very obvious” loophole does not exist.

Somehow forcing landlords out of the market will not free up one single unit of any sort for occupation, because what landlords do is rent their properties out. The units are occupied. Someone lives there.

Instead, forcing landlords out of the market is not just likely but almost certain to result in less units available for occupation in the future. Nobody will build rental units anymore. That means less housing. Substantially less.

Instead what you are envisioning is that somehow there is a large market of people who would rather own the bottom half basement of the 4-plex they live in than rent it. The reality is that few of them want to be co-owners of some sort of 4-plex condo with the other occupants. They need the landlord to keep the peace.

People, please stop confusing whatever words pop into your head with the facts on the ground.

#137 Don Guillermo on 10.12.21 at 11:34 am

#124 the Jaguar on 10.12.21 at 8:27 am
Snippets in today’s National Post. “The divide.” It’s all very, very true. If you want to understand this great province, continue reading…….

From Colby Cash: ( about the Alberta Influence on BC)

“But Peace River South MLA Mike Bernier sought to provide himself some cover in an unjust way, blaming “Alberta influence” on the region for low vaccination rates. Now, from my battered chair in the capital of Alberta, this strikes me as a hell of a thing to say. If you study vaccination rates in the Alberta regions you will detect a strong south-north gradient. In both provinces, the cities and towns of the resource-extracting north have been slow to take a life-saving preventive medication, even when paid $100 to do it.
Alberta’s major cities, like those of B.C., have high vaccination rates and correspondingly low case counts. At this point in the fourth wave, Alberta’s intensive care units are being flooded with severe COVID cases from the boreal hinterland, delaying health care and surgeries for Edmontonians and Calgarians who were quicker to get poked.
This isn’t, frankly, a failure of public health. It’s not as though trucks full of vaccine doses kept breaking down on the way to Fort St. John, B.C., or Grande Prairie, Alta. It’s a failure of political communications, or even sociological insight. The consequences were less drastic in B.C., only because B.C.’S north is less populated than Alberta’s — and not, despite what you may have read on Twitter, because B.C. is run by benign and wise philosopher-kings and Alberta by demented monsters.” ++++

From Kelly McParland: (about the Fed Conservatives needing to break up with Alberta)

“Perhaps it’s time for the Conservative party to part ways with Alberta. Sit down on the couch, engage in a frank discussion about the relationship, and agree that it’s no longer working out the way both parties had hoped.
If Conservatives want to broaden their support and make sure it lasts longer than an election or two, they’re going to have to risk losing some Western voters in order to do it. They have to decide who they are and what they stand for as a party, then they have to develop policies that appeal to conservative-minded urban voters without frightening them off with babble about the right to own guns and refuse vaccinations.

Liberals once dominated Quebec to the same degree Conservatives dominate the West. Then the Bloc came along to gobble up ridings and cut them down to size. They adapted and survived. Conservatives must do the same, and it may be that events are opening the way to do just that.”

Stay safe, Don G
**************************************
Jag, thanks for those articles. Great perspective.

And thanks again. We are very safe. We are staying put in Cabo until Friday. As Faron pointed out, this seems to be a fast moving storm so hopefully the heavy rains move through Mazatlán quickly and damage is minimal. Currently in Cabo it’s cloudy with light rain and no wind. I don’t expect any problems here. Saludos.

#138 doing my best on 10.12.21 at 12:13 pm

I agree somwhat with you TalkingPie, I am in a similar situation as Cheese where I making not that much higher of a wage. I am making $17.75 an hour and work 44 hours a week 50 weeks a year. It is $40,600 gross and I help pay for 33% of all the rent, food, all expenses of the household as I take care of my parents.

I try to save as much as I can and use RRSPs, TFSAs to their maximum and income tax refunds wisely. I am much younger, 27, I have been doing this for 5 years now. I would say owing a house is a possibility down the road but I am satisfied for now my accomplishment of achieving my $95,000 in my RRSP, TFSA.

#139 Shortymac on 10.12.21 at 12:18 pm

Honestly, given the amount of landlords who are not reporting rental income, the government needs to step in and give renters a nice write off, in exchange for listing their landlord’s name.

#140 G on 10.12.21 at 12:22 pm

Another promising drug to help save lives. Hopefully the clinical study ends up showing it is effective.

Drug to calm cytokine storm: Life-saving Russian discovery could be key to stopping body’s ‘suicide attack’ in severe Covid cases Oct 12, 2021
https://www.rt.com/russia/537205-new-covid-drug-cytokine-storm/

#141 Investx on 10.12.21 at 1:26 pm

No worries, house affordability will improve soon as rate increases are around the corner. Right? LOL.

#142 Joey on 10.12.21 at 1:39 pm

The kids are being stuck in the basement by the BC property tax deferral.
55 or older during the current year
A surviving spouse of any age
A person with disabilities.
All elegible to defer BC resident property tax at a rate of point five percent interest.
How does this not reduce the amount of homes on the market instead of letting market forces increase the inventory of homes. Elders are living beyond their means as they sit in the overpriced and under taxed Lower Mainland homes and are shutting out the market to young families.

#143 Graham on 10.12.21 at 1:44 pm

Shortymac, be careful about this as they might just start charging GST, HST on your monthly rent and then the landlord will have to really keep all records, registere for sure. They should be doing this already but good luck to them when they get caught. Your rent say $1,800 a month* 13%= $234 a month more in taxes and the way things are going, 15% GST/HST would meaning higher taxes $270 a month.

I am surprised they are not already charging HST/GST on monthly rents. They charge GST/HST when you rent other things from tools to cars. They charge GST/HST on mutual fund fees and other services fees.

#144 yvr_lurker on 10.12.21 at 3:15 pm

#142 Joey
How does this not reduce the amount of homes on the market instead of letting market forces increase the inventory of homes. Elders are living beyond their means as they sit in the overpriced and under taxed Lower Mainland homes and are shutting out the market to young families.

——

I completely agree that property taxes should not be deferred in this way (with the uber-low interest rate applied). This is a benefit only for seniors and should be clawed back, as it would increase the turn-over in the market.

#145 Anton on 10.12.21 at 3:19 pm

Joey, don’t forget about the reverse mortgages they are all getting and not paying interest until they die or move out. The big balloon payment they have to pay interest, principal could be 100% more or double their loan balance as interest compounds at 5% to 6% a year. In 12 to 14.5 years $500,000 reverse mortgage loan balance becomes $1,000,000. Yikes!

#146 Vanreal on 10.12.21 at 9:52 pm

Shawn Allen, what rock have you been living under. Young people are getting sick with COVID. Some of them very sick and some of them dying or suffering with long term symptoms. Yes they are wearing masks for the good of all including themselves.

#147 Okay Covider on 10.13.21 at 10:35 am

Vanreal, you know how many young people are getting sick, dying of many other diseases. Trying not to over do it too much.