In merry Ontario the Ford government let it be known Friday that a few thousand acres of forever-protected-for-our grandkids greenbelt land would be ‘released’ for development.
Fifty thousand new homes. Enough to house the entire population of Saskatoon. Or Peterborough, Red Deer and Saint John combined. Naturally, the environmentalists howled. But Ford cares not. “We need homes,” he said. And homes ye shall get. The best kind – suburbs where everyone must drive a minivan to go buy a litre of milk. Where, if you get high, you can’t actually find your house. They’re all the same.
Well, this is a fine example of the only political solution in Canada at the moment to the ‘housing crisis.’ Build more. As this blog as argued, we don’t actually have too few homes. It’s just that (a) the ones we have cost too much, and (b) everybody thinks they deserve one partly because (c) this is the only way to build wealth.
Recent events have disproven what governments cling to. Sales in the GTA and Vancouver, for example, have dropped 45% year/year. Inventory is piling up. There are 95,000 condos being built in the Toronto region, of which 30,000 will be ready for occupancy in 2023. Detached home prices in 416 are down 22% because of weak demand. Mortgage originations are drying up. Brokers are envious of Uber drivers, and collecting firewood in ditches.
In short, if we had too few houses, this would not occur. And if we build a million more of them with mortgage rates at 6%, nothing will change – unless prices collapse by half. (Not happening.) To be clear, this is a market driven by demand, not supply. The largest builder in the land, Mattamy, has shuttered sales centres and reported a 65% collapse in deals. So why spend tens of billions in public funds to construct homes Mattamy would happily throw up – if they could sell them?
Illogical. It’s a sham. More houses will not reduce prices.
So what will?
Simple. Let’s halt the financialization of real estate. Properties are unaffordable because we’ve turned them into tradable securities with publicly-subsidized debt and tax-free profits. The system encourages buyers to take 20x leverage with 5% down payments. It backstops lenders making those outrageous loans with a taxpayer-funded insurance scheme to protect them from losses. We let new buyers use pre-tax money in retirement funds to buy real estate. We give them tax credits to help offset closing costs. The system allows people to sell their homes, reap substantial unearned profits in a rising market, then pocket the profit completely free of tax.
And we wonder why our kids can’t afford their own digs. It’s obvious.
Compare our system to the US, where real estate profits are taxed after a certain point. Money made flipping a house within a year is taxed as income. Profits of up to $250,000 (or half a million per couple) are allowed on longer-term ownership. Gains above that are taxable. So despite mortgage interest being (mostly) tax-deductible and 30-year rates available, American real estate is still 40% cheaper than ours. In scores of cities a budget of $300,000 will do nicely. In Toronto that buys a few parking spots.
In short, until politicians in Canada understand houses need to stop being tax-free financial assets, nothing’s gonna change. No matter how many beech trees Doug Ford bulldozes. And this brings us to Amanda, who seems like a most sensible woman (with great taste in blogs):
Thanks again for all your excellent advice, and for keeping this renter-by-choice sane. I’ve been thinking about something and hope you can shed some light as to why this wouldn’t work/hasn’t been tried.
You’ve written a lot about the primary residence capital gains exemption and how this serves as an incentive to buy real estate over other more productive asset classes. I understand that political leaders don’t want to enrage owners (or ruin their re-election) by removing this exemption despite increasing evidence that it’s a “bad policy” that serves as a drag on our national competitiveness.
Maybe I’m missing something here but why has no one suggested leveling the playing field through expanding the exemption? Rather than bestow a special status on houses, grant each person a lifetime capital gains exemption up to a set amount to be used as they see fit (could even make it revenue neutral). Rather than being a “loss” the change would actually increase financial flexibility for both owners and non-owners alike. Folks could decide how they’d like to invest based on their personal goals/needs rather than mindlessly cramming the bulk of their wealth into the “one true asset class” because of its preferential treatment.
In a country where home ownership is increasingly out of reach for the young/newcomers a change that is fair to everyone is essential to restore some semblance of financial balance. Is there a reason why this option hasn’t been looked at?
Brilliant. With such an exemption in place, we’d bestow choice on people. We’d offer renters the same advantage as owners and end the incredible discrimination now taking place. We’d incentivize people to save and invest more for their retirements, instead of chasing a one-horse strategy. We could feed more capital into the productive economy. All while likely expanding the current revenue base for government.
Mostly, we’d start to permanently squish prices. Taxing house profits the same as gains in your investment portfolio (or anything else) would be the most equitable approach. But this makes for a decent first step. It would bring equity to a system tilted towards real estate which has given us a trillion dollars in personal mortgage debt, along with million-dollar slanty semis.
Amanda for finance minister. Who’s with me?
About the picture: “I actually pulled over to get this one for ya,” writes Steve in New Westminster, BC. “I wish the light was better. It was right in the middle of town….that’s one well trained dog, waiting for his human to finish shopping. “
131 comments ↓
New taxes possible.
New exemptions, huh?
Amanda’s idea is a brilliant one. Which almost guarantees it will never get further than this blog.
I think most of the gainfully-employed-but-cannnot-afford-real-estate folks have pretty much given up on ever owning dirt, outside some sort of windfall or inheritance, and are really just hoping for a collapse (which, as we all know, is unlikely to be allowed to happen), damn the consequences to the wider economy.
I wrote out this comment yesterday:
We have quotas in Kanada. Our Rulers dazzle us with Circular logic. We need more of B because of A. We need more of A because of B!
Don’t worry I’ve sure that that “Hospital Capacity” will be increased. We pay our fair share.
.More vacant positions than working nurses at GTA hospital, internal report shows (toronto.ctvnews.ca)
.Greenbelt housing needed due to rising immigration: Premier Ford (cp24.com)
https://www.durhamregion.com/news-story/10752486-ontario-plans-to-add-1-5m-homes-in-the-next-decade-how-many-will-be-in-durham-/
Ontario plans to add 1.5M homes in the next decade, how many will be in Durham?
—–
—–
Greetings fellow Renters. After years of contempt, the likes of Ancestry.com placing a red X beside our names (the Scarlett Letter/Mark of Cain) now we have the upper hand.
Homeowners/Longs/Bagholders must now learn some new terms. Such as :
Trigger Rate.
Demand Letter
Without Prejudice
Govern yourself Accordingly
Bailiff’s letter.
Sheriff’s enforcement
Second Mortgage
Sub Prime Lending
Breaka da legs
“More houses will not reduce prices.”
Absolutely incorrect.
History proves you wrong. – Garth
Amanda for finance minister. Who’s with me?
———
Nope. Her plan is Government over-reach. No capital gains on a primary residence (unless they allow capital loses, reduction of tax based on mortgage interest, and can figure out what appreciation of housing was due to capital investment and sweat equity of the owner).
However, capital gains on secondary or tertiary houses should be taxed at a much higher level to discourage people from buying up multiple condos and simply waiting for appreciation to occur (not happening now). Those speculators can be taxed into the ground, but leave the primary residence as it is.
Then prices will never fall. Take your pick. – Garth
Amanda, Amanda, Amanda!!! Sounds a bit like a mix of the TFSA and the lifetime capital gains exemption. I like it. Let’s do it. Where is Amanda is running for MP?
Important National news …
Justin Trudeau to appear on ‘Canada’s Drag Race’ spinoff series
https://www.ctvnews.ca/entertainment/justin-trudeau-to-appear-on-canada-s-drag-race-spinoff-series-1.6144161
“Trudeau beside Toronto drag queen and host Brooke Lynn Hytes in a segment where the contestants receive inspiring words”
Competing against:
Hedda Lettuce, Penny Tentiary, Sham Payne, Avery Goodlay, Freida Slaves & from Vancouver … Sharon Needles.
Anne Fetamine couldn’t make the show.
————–
When I read the news on Twitter I thought it was this …
https://www.youtube.com/shorts/EQcDuzFyrWo
Old School here.
Poor Canada. Can’t wait to see this on Europa tabloids.
You know what’s gonna happen to you Canada when you next visit Europa … ditch the Maple Leaf, use something else.
+1 for Amanda.
Good Afternoon Garth!
Absolutely- Amanda for finance minister…as long as she is not one of the #wef’s young global leaders like Trudeau, Freeland and Jagmeet are. Is her moto – “You will own nothing and be happy”?
Ford makes me want to puke – “forever protected” my a** –
This country continues to pick the low hanging fruit – beyond disgusting
And further to this, there’s actually a financial planner on YouTube that I follow who consistently talks about the TFSA and primary residence being the two only real tax shelters in Canada. He advocates investing in both, including consistently upgrading your primary residence as part of an investment strategy, and one that he does for himself.
All that being said, I think that another, and possibly the most pertinent reason that the US has substantially lower home prices is that they have a much greater supply of major cities. If you’re ambitious in Canada you basically have Toronto and Vancouver to choose from. In the US there are often multiple major city centers in a single state. More supply = lower prices.
Then prices will never fall. Take your pick. – Garth
————
Keep interest rates at a moderately high level, punish people with taxes who flip/sell multiple homes, no foreign buyers without PR status allowed in Canada (i.e. make a closed system), and keep immigration levels sustainable for housing. We need immigrants an talent for sure, but 500K per year is too much.
Vote for me?
Why is it that Canadians all seem to think the answer to every problem is to raise taxes?
If they tax my house? Then let me have my write offs!
Tax would be on the ACB, obviously. Operating costs not included. – Garth
It was sub 2% mortgages with minimal down payments plus government money printing flooding into the system which means banks had to shovel a lot of money out the door to cover overhead. And the CMHC guarantee that mortgages don’t default on banks.
No one wants to take accountability. And oh yes, financially illiterate buyers.
Taxes are not the solution.
Amanda for finance minister. Who’s with me?
But I already cancelled my Disney+ subscription.
Flawed plan. The sales price is almost always rolled over into the next purchase. If you make any gain taxable it will just keep people locked into the first house they buy forever. The only time the sales price is truly “profit ” is when people sell for the last time and end up in assisted living , a huge expense often paid for by the sale of their house, a nursing home, once again as often as not paid for by the home sale, or the long dirt nap. Taxes paid by the heirs.
Calculating the deductable expenses would become an industry in itself.
1%ers always causing the issues.
Privatizing profits. Socializing losses.
>
“We were the ones whose blood, sweat and tears financed the industrial revolution,” she said. “Are we now to face double jeopardy by having to pay the cost as a result of those greenhouse gases from the industrial revolution? That is fundamentally unfair.”
https://www.theguardian.com/environment/2022/nov/07/barbados-pm-mia-mottley-launches-blistering-attack-on-rich-nations-at-cop27-climate-talks
#4 Catalyst on 11.08.22 at 3:59 pm
—
Absolutely, you are wrong. It is not ‘more houses’, firstly it is who can own them…
—
Amanda, sorry you have to pay 54 cents tax on the dollar at some point , if you are generating something in this country… Let’s go back to drawing board… I think the blog owner also complained about this recently but no solution in the sight… Let’s replace Loblaws freezers for climate change and green energy with 50M taxpayers money…
Actually Amanda, it’s been done before in 1994 (when they had a real Liberal as PM – Jean Chrétien).
https://www.moneysense.ca/columns/ask-a-planner/understanding-the-1994-capital-gains-tax-election/
Up to $100K back then. I used what was left of mine last year. Kept a couple $1,000 for old times sake to see if CRA would remember.
They did.
I would like to see it revived and for a larger amount than $100K. About $180K in todays CAD $. Instead, I’d make it equal to the prevailing Avg. Home Price in Canada.
If you applied for it back then and did not use it, read the section
Is CRA T664 retroactive?
at the above web page.
DELETED (Anti-immigration)
Friendly advice.
If you have a developer buddy with access to geowarehouse you can actually see the newly released greenbelt lands sales history, surprisingly lots of them were sold for recently, as if someone already know this was coming, nothing like developer backroom deals
As for Amanda the bar is pretty low after the Disney+ embarrassment
I still can’t believe we elect these people, shouldn’t there be some intelligence test? And don’t tell me she is intelligent, more so educated above her level of intelligence
HOT OFF THE PRESS …
https://twitter.com/canadasdragrace/status/1590026799903567875
Ya. Now I know it’s for real.
I think he’s going for a badly needed makeover.
As 1/3 of MPs have income properties and nearly 70% of average folk own real estate, this would never fly.
How about we start teaching financial literacy in high school first? Once they calculate the negative cash flow and learn about the LTB, they’ll stuff their cash into REITs instead.
Unless prices collapse by half. (Not happening.)
So what size of correction are we going to see in Metro Vancouver?
#190 Sail Away on 11.08.22 at 3:12 pm
#9 Faron on 11.07.22 at 3:21 pm
#57 Faron on 11.07.22 at 5:16 pm
#70 Faron on 11.07.22 at 5:34 pm
#100 Faron on 11.07.22 at 7:06 pm
#101 Faron on 11.07.22 at 7:12 pm
#103 Faron on 11.07.22 at 7:21 pm
#126 Faron on 11.07.22 at 9:02 pm
#149 Faron on 11.07.22 at 11:17 pm
#151 Faron on 11.07.22 at 11:23 pm
#154 Faron on 11.08.22 at 12:52 am
#164 Faron on 11.08.22 at 10:22 am
#165 Faron on 11.08.22 at 10:45 am
#177 Faron on 11.08.22 at 12:40 pm
#179 Faron on 11.08.22 at 12:49 pm
#186 Faron on 11.08.22 at 1:50 pm
#187 Faron on 11.08.22 at 2:28 pm
——–
Back at ‘work’?
////////////
It’s a full moon, it messes with his meds
Not sure why you’re thinking prices won’t collapse by “half”; they need to do that to re-establish affordability.
Think it’s a great idea. Potentially sellable to the electorate based on social equality and building a more productive society – by some up and coming politician willing to take some risk.
Garth, you pointed out the inequity between renters and homeowners and it is even crazier when you think of wealthy folks who bought $2-3-5 million homes a decade or so ago – they made out like bandits with all that tax free gains – positioning them to live off the system for the rest of their lives without having made a commensurate contribution.
Amanda send in a letter in all the political leaders – it may just end up being a seed that grows into someones platform one day.
I like Amanda’s idea a lot. The question to ask then is really who or what is stopping the government from implementing such a win-win solution. Surely someone in government has thought of this simple solution long ago. Maybe it’s not a win-win all around. Maybe somebody’s losing out under such a policy. It hurts tax revenues, it hurts developers by driving investment dollars away and into other assets (like stocks). Maybe those who are hurt simply have so much leverage that they can prevent anybody from even uttering a single word about such a policy in Parliament. The medicine has been on the shelf all along but the nurse is not administering it. Hmm. Why?
#25 Graphics Girl on 11.08.22 at 4:42 pm
As 1/3 of MPs have income properties and nearly 70% of average folk own real estate, this would never fly.
How about we start teaching financial literacy in high school first? Once they calculate the negative cash flow and learn about the LTB, they’ll stuff their cash into REITs instead.
Wouldn’t we have to teach financial literacy to the teachers first?
The American system sounds fine to me. The recent changes that the Ontario government announced, such as, allowing 3 units on one lot will only fuel the greed by investors. The more things change, the more they stay the same.
If you’re renting now, I’m sorry but it might be for life. Best to take Garth’s advice and learn to invest in assets other than housing.
The relevant question is WHY are houses so expensive in Canada? What’s the actual root cause?
I think the story below is the actual crux of the matter, as it is very tied to human nature: a good friend of mine was looking for a house in 2006-2007. Prices were still quite reasonable back then (approximately 3x/yearly personal income, or 2x/yearly household income). He did all the right things: saved the 25K in the RSP for the HBP (and wanted to pay 20% down, or perhaps more), was having a very solid credit score, was having a stable well-paid job (professional). And ALSO – he was analyzing the market, and was prudent, as he didn’t want to lose his downpayment. Let’s call this friend Mr. X.
At the same time, I also knew Mr. Y. Now, Y also wanted to buy a house to “stop paying rent”. Y earned about 30% less than X, was barely able to pay the monthly minimum on his credit cards, had leans for cars and appliances (“buy now, pay later”…), but wanted a “big enough” home. He heard that the federal government is about to come up with a 0% down mortgage, amortized over up to 40yrs. So, without thinking too much, Y went and purchased a large home, “paying” for it much more than X would have thought was an acceptable price at the time.
Fast forward over time: X continued renting for another ten years, a period during which the prices doubled or even tripled, depending on the locale. He ended up paying 3x for a condo than Y paid for his house a decade ago. And paid rent in the meantime. Meanwhile Y still has troubles paying his credit cards, might have been occasionally late paying his property and income tax, and perhaps even his mortgage, a few times – but absurdly, Y is still more desirable to banks and other lenders, because of CHMC.
Bottom line: through its financial system, Canada has encouraged the less worthy borrowers overbid (in various ways) the prudent ones, ending up over the years with a quagmire that it’ll be virtually impossible to get out of, which has significant consequences ranging from mental health, the economy, and up to national security.
#27 Penny Henny on 11.08.22 at 4:49 pm
#190 Sail Away on 11.08.22 at 3:12 pm
#9 Faron on 11.07.22 at 3:21 pm
#57 Faron on 11.07.22 at 5:16 pm
#70 Faron on 11.07.22 at 5:34 pm
#100 Faron on 11.07.22 at 7:06 pm
#101 Faron on 11.07.22 at 7:12 pm
#103 Faron on 11.07.22 at 7:21 pm
#126 Faron on 11.07.22 at 9:02 pm
#149 Faron on 11.07.22 at 11:17 pm
#151 Faron on 11.07.22 at 11:23 pm
#154 Faron on 11.08.22 at 12:52 am
#164 Faron on 11.08.22 at 10:22 am
#165 Faron on 11.08.22 at 10:45 am
#177 Faron on 11.08.22 at 12:40 pm
#179 Faron on 11.08.22 at 12:49 pm
#186 Faron on 11.08.22 at 1:50 pm
#187 Faron on 11.08.22 at 2:28 pm
——–
Back at ‘work’?
////////////
It’s a full moon, it messes with his meds
————–
He’s just experiencing the withdrawal induced by exchanging his Twitter fentanyl for the subtler buzz of the Turner blog methadone.
No danger of od’ing, but we all have to bear the spectacle of his verbal diarrhea and emotional emesis.
#18 Greta Fool
It’s a Trade Show Greta. I would not take it too seriously.
How well have climate models projected global warming?
https://carbonbrief.org/analysis-how-well-have-climate-models-projected-global-warming/
Other nonsense like in the MSM, Social Media:
https://twitter.com/timspector/status/1590098373474160640
Where they neglect to mention that map happens if ALL THE ICE ON PLANET EARTH melted = 70m rise in sea level.
Here, create your own map, scare the Locals:
https://www.floodmap.net/
Ignore their 400m default that may have been accurate for Snowball Earth say about 50 million years ago.
DELETED
“Amanda for finance minister. Who’s with me?”
Not me. First, we already have the TFSA (thanks Garth!). Second, a primary residence is not an asset as we are currently finding out. It is an expense. It is just a roof over your head.
Measures to treat “house flipping” as income might make sense, but taxing primary residences do not. A house is a house, and no gain can be realized until you downsize or exit the market. It makes no sense to tax people on a house they are selling if their intention is to some day buy another one. Maybe for a job relocation. Maybe they need more bedrooms. Maybe they just have more money now than they did years ago. It don’t matter, they aren’t realizing a profit.
Folks, you can’t make things cheaper by taxing them and you can’t make the tax system better by making it more complicated. All you are going to do is invite Darwin’s Sickle ™ into the house.
3 Hours Left For Modern America
The unravelling begins tonight.
Putin, Iran, South Korea, China are all watching closely.
The catastrophe of the weeks ahead will be unprecedented.
PREPARE
CNN starting live election coverage, streaming.
https://edition.cnn.com/politics/live-news/midterm-election-results-livestream-voting-11-08-2022/index.html
CNN did EXIT POLLING and not looking good for the Dems.
Most important issue:
Inflation. Imagine that?
And something like +45% dissatisfied with Biden. Other poll results, all look grim for the Dems.
[“BRUTAL NUMBERS” per Lefty CNN … unspinable even by them]
See if the above translates into more votes for the Republicans.
#4 Catalyst on 11.08.22 at 3:59 pm
“More houses will not reduce prices.”
Absolutely incorrect.
History proves you wrong. – Garth
————————————————————————————————
I have never seen a over supply of anything not cause a drop in price.
Pfft this weblog is out of touch. Today’s youngers do not go outside and if they due it’s while glued to their ‘smart’ phone. The next generation will have their VR Metaverse greenbelt, for enjoyment.
— AS I NOTED HERE (whoops yelling) in May 2020, first:
#124 TurnerNation on 05.13.20 at 7:27 pm -Weeks ago I wrote here what is a likely ending for USA.
1. How to instantly kick start the economy? (Proven historical method)
2. How to deal with millions of young people out of work/school in September due to lack of money and jobs, and when the Free monthly handouts stop (else there will be civil unrest)?
Answer is two words: War Draft.
Today:
https://www.9news.com.au/national/tony-abbott-proposes-plan-for-compulsory-national-service-for-school-leavers/f65d77bc-5597-4e4c-8a35-6a7738a70202
“Former prime minister Tony Abbott has proposed a plan for all school leavers to serve a period of national service in a podcast discussing Australia’s future in an increasingly militarised world.
Speaking on a the Heartland podcast by the Institute of Public Affairs, the 65-year-old said it was time that Australia “had a conversation” about a program of compulsory service.
The former politician claimed compulsory service would help unite Australians with its government.”
#190 Sail Away on 11.08.22 at 3:12 pm
Back at ‘work’
—
Off topic, irrelevant, speculative and, if digging through comments like a stalker and copying and pasting from work, hypocritical in 14 characters. Congrats. Too bad you don’t get paid to write here.
Anyhow, you seem emotional about Elon and TSLA. It’s just investing. I hear emotion should be left out of it.
#27 Penny Henny on 11.08.22 at 4:49 pm
Nature is my medicine…
1) We should keep the Greenbelt as it is… prices are crashing – we don’t need more sprawl. And we all know that MANY of the homes that will be built will be mega mansions.
2) We should tax home profits over $500k on a single transaction like a capital gain – 50% of your tax rate on any profit over the first $500k
3) #9 – Don – what world do you live in? it sounds terrifying.
Sure, Amanda sounds perfect for finance minister. One thing I would point out in regard to our housing situation …. When interest rates were not so low… our housing wasn’t lunatic crazy. The emergence of super low interest rates really has done us no favours
The cutting down of the Greenbelt is a result of unsustainable growth due to capitalism.
Do you think this sale which recently happened was just a coincidence with the opening of the greenbelt. I will wager any amount that the buyers are well known developers who have Doug in their pocket. That purchase is now worth 750 million if not more.
Sold
Location: Ontario Acreage:687 AcresPrice:$80,000,000.00
687 Acre Land Investment
One of the largest parcels of privately owned land in all of York Region! 687 acres located on the border of Newmarket
Across the road from completed subdivisions. the largest block of land ever assembled in the area.
land with over 2.78 sq. kms. of land!
Close to highways 400, 404 and 9.The property runs from Bathurst Street all the way to Dufferin Street, south of Miller’s Sideroad.
DELETED (Advocates violence)
“In merry Ontario the Ford government let it be known Friday that a few thousand acres of forever-protected-for-our grandkids greenbelt land would be ‘released’ for development.”
Wow! I rarely agree with environmentalists and I will never agree with man-made climate change but what Ford is doing with the Green Belt lands, in my opinion, is just criminal! Selfish leaders are now everywhere filling the vacuum with no vision.
@# 46 Under the Radar——–
That’s a Bingo!
Watch this video: “ The housing market went from bad to worse.” This is in the USA.
https://youtu.be/XjSX_9aDlog
Makes you wonder about the Canadian housing market which is way more overpriced.
Prices will collapse to 50% of peak in Feb. 22.
That is what happens to an overheated market.
Look at Durham, SFH average in Feb. was 1.625 mill, now 1 mill, going to 800 thou early next year with additional rate increases.
But that is not your full loss.
An ARM continuing to climb will keep kicking you in the head.
The lesson here is simple, don’t buy an asset class at the peak unless you enjoy filing for bankruptcy.
But be particularly vigilant when it comes to agency. Some people want the house for status, but know full well that you will be the one paying for it so they don’t care.
Learn how to say No.
Garth, and anyone else on this blog, if you want to see some great YouTube content about how Canada and the USA’s obsession with suburbia and cars contributed to ruined personal and municipal finances via horrible urban planning, check out Not Just Bikes on YouTube (this is not a paid ad…).
Here’s a great one about Toronto, given today’s blog topic.
https://www.youtube.com/watch?v=KkO-DttA9ew
Breach the Single-Family-Home-Only belt.
In stead of building on the green belt, build high-rises and other multi-family houses on the massive single-family-home-only belts that exist due to zoning. But Doug Ford is already doing something on that as well.
In theory I like Amanda’s suggestion for a lifetime limit on capital gains. However, especially when it applies to long term home owners, any such limit would have to allow for deductions of items such as mortgage interest. After all one can write off capital losses against income when investing. And what about ongoing maintenance or renovations? If an owner invest $ to upgrade a property should not that expense be included in any eventual capital gains calculation?
Improvements would form part of the adjusted cost base. Ownership costs (mortgage, property taxes, utilities, insurance would, of course, not be allowable deductions). – Garth
During the mid-1980’s Brian Mulroney’s government brought in the $100k capital gains exemption, which was repealed in the calendar year 1991 or 1992.
I do support Amanda’s idea to make home ownership more attenable for the younger generation with some sort threshold when capital gains oughta get taxed. The threshold amount is debatable.
It’s nice to know “protected land” doesn’t mean much of anything. Who needs wilderness when there’s ticky-tacky houses that need buildin’
Aren’t trees those thingies that cleanse the air and store carbon?
the old Waffle House … been there forever I think. Some things never change. And the Terminal Hotel downtown … although just a shadow of it’s former fame among railroaders.
Owning a house is now exorbitantly expensive and highly overrated. Renting is better. In fact, you don’t even have to pay when you rent in Canada. What’s not to like?
Get all the home inspections that you want, but you don’t really know what is beside the walls of houses that have been hack job renovated over the years. No recourse.
Want to change something, add a deck? Permits! Rules! More permits and rules! Good times.
Taxes, insurance, maintenance. Leave it to the broke owner, let them subsidize your life.
I wait for the American mid-term election results. I expect gridlock where the GOP gains a few seats and “control” of their house and senate. This will clear the way for US Fed Powell to do what needs to be done.
I was inspired to search out Covered Call ETN’s in the meanwhile. I found Credit Suisse Crude Oil Shares Covered Call ETN (USOI:us). I suspect this is the fellow that Soren Angst is so fond. When I see the term CFD (contract for difference) I know I am playing with derivatives which are nothing more than promises to pay. Then I notice most of their dealings are with other entities operated by Credit Swiss. Red Flags galore with USOI.
Well – “No Guts, No Glory”. I did miss an easy layup with crypto but I think they are now over. I have managed to get some decent returns from my “real” stock holdings over the last few weeks. I am looking at ino.un – a good bet? It does tick a few boxes for me.
Hi Amanda,
I’m Og. And I really like the name Amanda. Just some quick facts about myself:
-6’2″
-Hair
-Abs
-love hugs
-speak different tounges
-and really just like snuggling. . .regardless of whats going on in the world.
[email protected]
Og
DELETED (Advocates violence)
Yogism 5: “Decorum seems best up against a wall”.
DELETED (Stop this childishness. – Garth)
#34 Old Boot on 11.08.22 at 5:05 pm
#27 Penny Henny on 11.08.22 at 4:49 pm
#190 Sail Away on 11.08.22 at 3:12 pm
#9 Faron on 11.07.22 at 3:21 pm
#57 Faron on 11.07.22 at 5:16 pm
#70 Faron on 11.07.22 at 5:34 pm
#100 Faron on 11.07.22 at 7:06 pm
#101 Faron on 11.07.22 at 7:12 pm
#103 Faron on 11.07.22 at 7:21 pm
#126 Faron on 11.07.22 at 9:02 pm
#149 Faron on 11.07.22 at 11:17 pm
#151 Faron on 11.07.22 at 11:23 pm
#154 Faron on 11.08.22 at 12:52 am
#164 Faron on 11.08.22 at 10:22 am
#165 Faron on 11.08.22 at 10:45 am
#177 Faron on 11.08.22 at 12:40 pm
#179 Faron on 11.08.22 at 12:49 pm
#186 Faron on 11.08.22 at 1:50 pm
#187 Faron on 11.08.22 at 2:28 pm
——–
A pathetic cry for help.
Guess the “science” work isn’t too taxing.
Pity the rest of us tho.
Can’t understand why rents are skyrocketing if the supply is not the problem….
DELETED (Anti-immigrant)
Like I have said in the past, renting is fine if you have a very simple, compact lifestyle. But very limiting for people who do things with things.
Renting also can be a true minefield with the wrong landlord. And as long as you don’t mind having to move when the landlord changes his or her mind. Wife and I rented for the first several years. A ongoing hassle as landlords decided it was time to renovate or sell. Often seemed to happen at the worst possible time. Very stressful.
Perhaps the reason is the U.S. has a much broader and productive economy. Other than selling each other houses and lending each other money we probably don’t have much in terms of global economic worth.
The only exception would be natural resources but we all know how difficult it is to export that already
As a former politician, Garth, you are well aware that many government decisions are in the self interest of the politicians as opposed to the public. Better to be seen doing *something* even of that something is contrary to the desired objective. We call such self interested bat$!%t decisions *political*.\\
In nine years in Parliament I never saw a decision made by any elected person that was based on self-interest. That is not why people sacrifice to be in public life and put up with idiot beliefs like yours. They do it for Canada. – Garth
Better to own a massive bank account than a massive house.
Just a monthly service charge for it and transaction fees.
While I usually enjoy this website, the juvenile banter between Old Boot, Faron et al. is becoming increasingly tiresome.
All of you individually are (at least occasionally) thoughtful and insightful, dare I say witty. However, please give some thought as to whether you want to focus the bulk of your attention on “flaming” individuals you will never meet and have no hope in changing. If you spent one tenth of the time deciding on how best to spend and invest your emotional energy that you do on investing financial instruments it would be time well spent.
Energy flows where attention goes.
The Federal Government introduced Capital Gains taxes on farmland and buildings in 1971. Valuation day gave the cost base. After that date all gains were taxed as capital gains. At that time farmers were a significant amount of the voter base. It did not cost the Federal Government any seats as I remember. It could be done on residential properties as well today. Of course interest costs on farmland can be expensed.
No residential property owners looses any of the gains that they had already obtained. Just 25% of those gains going forward.
This did not in anyway reduce the gains in farmland prices. In most Provinces farmland prices have exceeded residential price increases.
So much for that strategy.
You nailed it today Garth—what I’ve been saying for 30 years. RE is the portfloio you can live in and it’s gains are mostly tax free. What can beat that? Even a 20-30% downturn will only be temporary even if inflation goes nuts—and it just might. Canada provides a lot of services but sure ain’t producing much. Will we ever be able to print enough to pay all these salaries.benefits/pensions?
Tax PR CG’s, but do it over 10+ years. Big time for the first 5, medium the second 5, trailing off to zero after that. Sure some folks might get nuked because of a potential job change – but it just becomes part of the decision. They would have known this going in. Maybe they’ll be a little more careful about buying. I’m at 21 years in house #1, with 5 job changes, and 1 career change between Ms. IH and I over that time. No moving required. If you don’t plan on sinking roots – rent.
In nine years in Parliament I never saw a decision made by any elected person that was based on self-interest. That is not why people sacrifice to be in public life and put up with idiot beliefs like yours. They do it for Canada. – Garth
If you think my beliefs that politicians put the interests of themselves before that of the public is idiotic, take a poll of this issue with your own readers. If/when the results come back in the majority of agreement, you can go ahead and declare the majority if your readers idiots. If it’s a minority, I’ll send you $100. PS I don’t Welch on bets.
72 Binder
Watch latest episode of 60 minutes…. and disengage.
“Let’s stop the politicization of real estate”. I like my interpretation better. I’m at least honest. 50,000 new homes? Who will win the lottery? Who will they be? Who’s riding will be padded? What special interest is ripe for a pander? This crap corruption is so obviously disgustingly infuriatingly corrupt that I’m surprised that average Canadians aren’t running the streets with knives.
Hmm, Sure start taxing housing after the boomers and older have already seen unprecedented real estate gains and have most likely cashed out by now, just to appeal to the GenY/Mills who think owning in Kits or Rosedale is a god given right; and invest in the market where most of them have the bulk of their nw further goosing returns while Gen X is left holding the bag again.
Garth, you’re not thinking about getting back into politics again are you??
#55 Mike: Actually, when Mulroney first got in he brought in a 500k capitol gains exemption. It only lasted a year & then he dropped it to, I think 200k, then 100k. I was on that like white on rice. Formed a corporation, then sold assets from my sole proprietorship to the corporation. Luckily I had enough fishing assets to max out. The Corporation then carried a Shareholders Loan to me ,myself & I. Tax free! Yippee! Imagine what a head start half a million tax free dollars in the middle of the eighties gave. Nothing like a politician or accountant helping out his friends to put a smile on your face. Or a skip in your step. Snooze you loose.
#53 Shawn on 11.08.22 at 5:55 pm
Breach the Single-Family-Home-Only belt.
In stead of building on the green belt, build high-rises and other multi-family houses on the massive single-family-home-only belts that exist due to zoning. But Doug Ford is already doing something on that as well.
===
Yes and yes.
More housing is needed in the biggest urban centers if we want to accept 500k new immigrants per year. But not in the greenbelt.
Bust the zoning bylaws, lots of new units will be built.
As this blog as argued, we don’t actually have too few homes.
With all due respect, Garth, I don’t think you’ve made that case. You’ve convincingly argued that price appreciation has been driven by excess demand, but that’s not the same thing as saying we have enough houses. How many do we have? How many do we need?
#72 Binder Dundat on 11.08.22 at 8:12 pm
While I usually enjoy this website, the juvenile banter between Old Boot, Faron et al. is becoming increasingly tiresome.
—————
Agreed, B. Try this thought experiment, though: in any of these slapfights with, at this point, over a dozen blogdogs, what is the one commonality taking the exchange to a juvenile level?
It’s the whole pig-wrestling scenario: the pig loves it, everyone else finds it annoying.
Brilliant idea Amanda, I say let’s do it.
Exactly.
The only reason for high prices is the INTENTIONAL ultra financialization of real estate through:
– artificially low rates (BOC),
– mortgage ‘insurance’ (CHMC),
– government ‘incentives’ – RRSP use for purchase of homes, homes savings plans,
– lack of loan reserves (the only country in the world where banks do not have mandatory loan reserves) as their friends at BOC will always come to the rescue when things go south – as it happened in 2009 with over 120 billions in ‘help’, more than the total capitalization of banks at the time and hey, it is not bailout!
– ultra loose incentivized loans by banks.
You don’t remember but people were called and begged to take a mortgage in 2009 when 0 down, 40 years mortgages were introduced.
The ‘system’ effectively caused house prices everywhere to skyrocket, to the tune of 7-10 times price increases in 20 years in ‘world class cities’ like Mississauga….
And worse, it rewarded debt junkies and speculators, causing many responsible people to sit on the sidelines and ‘miss’ the opportunity to own a home, as nobody in their right mind would have predicted the outcome from the worse monetary policy in history.
FOMO, bidding wars, the rise of forever renters class..
And these policies are the primarily reason for the inflation that we enjoy today and that we will enjoy in the next decade or two that is effectively wiping out the middle class.
100-150 years of savings, 50 + years of net income for the average Joe in order to afford a cardboard particles sub standard home or a glass condo with ultra small size to only start paying property taxes and maintenance after the purchase in the land of unlimited space and resources and practically no population (Canada is 1/3 of the population of Turkey and 1/5 of the population of Bangladesh).
The result of ‘give them loans and then beat them to death to pay it back’ imperial medieval policies is extremely low productivity for a place that claims to attract the brightest and smartest.
Combine that with bad weather and work your behind to pay off the mortgage’ and we have the current picture of the economy – house flipping and ‘investing’ driven consumption economy with ultra high prices, cheap labour camp where people feel rich by the fact that they live in houses others can’t afford , ignoring the fact that their kids are amongst these ‘others’.
The bragging and feel and expression of superiority by the proud homeowners who can’t afford kids in order to pay the mortgage is the worse part that was helping in keeping somehow the whole idiotic game going.
So now that we are all coming to the conclusion that ‘the system’ is responsible for the mess that we are in, the trillion dollars question really is:
Who is responsible for that and what we are going to do about it?
Let’s stop repeating that it not the authorities fault and that everyone/meaning the small guy/ is responsible for their actions. That applies to a world with responsible authorities, not to the mental institution that we are living in.
The quote goes, you’re the average of your five friends.
Well, time for some of you to find better friends.
Are you struggling with high food prices? No need to fret. Chrystia Freeland says just cut your Disney+ subscription!
Unbelievable!!
In nine years in Parliament I never saw a decision made by any elected person that was based on self-interest. That is not why people sacrifice to be in public life and put up with idiot beliefs like yours. They do it for Canada. – Garth
Apparently good intentions alone do not guarantee mutually beneficial outcome and good policies, on the contrary.
As for the government – there is a bunch of unelected bureaucrats, like those at BOC who yield huge power and clearly do not have the qualifications for what they do.
And I will truly believe in the sacrifice of politicians when they all wave their government pensions and start implementing logical, responsible policies.
A lot of harm that was done in history started with good intentions.
And as for politicians self interest – did we or did we not have a prominent financial minister recently who was trying to push for pension management funds reform, while the company that he was a major shareholder in was managing such pension plans that would have directly benefitted that company?
And when that became evident, he was forced to sell his shares in that company?
Yes or No? ‘It is not that simple’ does not work.
Anyone remembering the ‘f..k the small business’, horse face multimillionaire who took on doctors and small corps using tax authorities as a tool?
Well, this is a fine example of the only political solution in Canada at the moment to the ‘housing crisis.’ Build more. As this blog as argued, we don’t actually have too few homes. It’s just that (a) the ones we have cost too much, and (b) everybody thinks they deserve one partly because (c) this is the only way to build wealth.
———————–
I tried to think of why supply and demand in housing
is not what drives price then in my hand it occurred to me. Beer……
(a) the ones we have cost too much, and (b) everybody thinks they deserve one partly because (c) this is the only way to stay sane.
Lots and lots beer but it costs to much for what it is.
If we had enough homes we wouldn’t have so many investors buying them, because the rents and the prices would grow maybe by 2-3% per year.
But what we have right now is a ton of investors who bought because “houses always go up” and aren’t selling because rents went up 20%.
And how do you think, why is this happening? Do you think if there wouldn’t be such a demand (I wonder why, could it be immigration maybe?) for a place to live, would we see such a mania for houses in Canada?
Come on! As long as the population grows, we will need a similar growth in the number of dwellings
ACB- Adjusted Cost Base – it would be difficult to keep track of and calculate fairly. Maybe I invested 200K in renovations and my neighbour only 100k. If I sell mine for 100k more, how would the ACB calculation take into account the difference in investment? I haven’t kept receipts. Also, if the amount is added to the income in the year one is selling then one will probably take a sabatical that year than see half of the proceeds go to tax.
#86 Midnight’s on 11.08.22 at 10:03 pm
The quote goes, you’re the average of your five friends.
Well, time for some of you to find better friends.
Are you struggling with high food prices? No need to fret. Chrystia Freeland says just cut your Disney+ subscription!
Unbelievable!!
At least she did not advise on eating cake, when there is no bread… sort of…
Shows the degree of total disconnect between the privileged (she acknowledged that herself) and the struggling poor and debt slaves.
Time to request from the politicians to live in rental buildings with their families, preferably in poor areas and use public transport only, while in office?
Seems like a small ask for people so dedicated to the public services as stated in today’s comments.
#89 Richard on 11.08.22 at 10:54 pm
Come on! As long as the population grows, we will need a similar growth in the number of dwellings.
Yes, at prices around 25-30 % from current. The rest is bad policies, irresponsible behavior, lack of regulations, speculation, housing mania, credit bubble, the biggest housing bubble in the history of the world.
In the most rarely populated country in the world with endless land and resources.
It takes quite some skills in order to achieve that, I have to acknowledge it.
#83 Sail Away on 11.08.22 at 9:38 pm
#72 Binder Dundat on 11.08.22 at 8:12 pm
what is the one commonality taking the exchange to a juvenile level
—
Yes, I do consider your irrelevant copypasta and questioning my work today juvenile now that you mention it. Almost as bad as Old Boot losing an argument by burping out a whataboutism, neglecting to argue any of the points at issue and then resorting to her old saw of an ad hominem attack. Very childish indeed. I didn’t know you two were in cahoots. Interesting and noted.
What a clown show the Twitter take-over is and it’s all plopping into the lap of Elon Musk.
Also, Solana down more than 90% from its high and trading at the lowest price in its short history. Meanwhile Bitcoin is perched on an elevator shaft that leads straight to $12,500. This market will be healed when all of this crap is worth a fraction of today’s “value”.
Being a rigorous-minded scientist, It warms my cockles seeing fraudulent, speculative, irrational garbage being taken to the curb. Kinda like Dr. Oz in Pennsylvania.
(note that I tend to get excited at local bottoms, but the cxns will come home to roost eventually).
#34 Old Boot on 11.08.22 at 5:05 pm
#27 Penny Henny on 11.08.22 at 4:49 pm
#190 Sail Away on 11.08.22 at 3:12 pm
He’s just experiencing the withdrawal induced by exchanging his Twitter fentanyl esis
—
Oh, you noticed I deleted my Twitter! Wanna know why? Because I’ll never give Elon Musk one thin dime if I can help it. And having you, and presumably others, skulking around there creeped me out. You’ll note that my activity fell to zero back in early July. That’s you cancelling.
You are a detestable human to use that information once again today to try to regain stature after falling on your face in our most recent exchange of “ideas”. You were called out for a whattaboutism and resorted to the tactics of a 7 year old.
Regarding addiction: for one, the fact that you were banned twice by Garth and keep clawing your way back indicates you have a problem (not to mention the very high likelihood that you currently post under numerous handles). For another: this is reinforced by the ol’ saw “it takes one to know one”. And, finally, when Garth tells you “no” by banning you and you return, that is nonconsensual engagement and creepy AF.
It’s becoming clearer by the minute that all of your “arguments” about trans people, all of your vitriol, all of your hate is simple projection.
As far as I can tell, you have no redeeming value here.
Beat it.
If you can.
But, you can’t.
Because you are addicted (too).
In nine years in Parliament I never saw a decision made by any elected person that was based on self-interest. That is not why people sacrifice to be in public life and put up with idiot beliefs like yours. They do it for Canada. – Garth
_____________________________
1st thing that comes to mind for me is Peter MacKay.
His father Elmer was a real piece of work as well.
I’m glad your blanket statement doesn’t bring up the Senate!
They are unelected. – Garth
I too vote for Amanda, no hesitation. We need great minds like this which are in very short supply at the moment.
This thinking would knock the gibberish of ¨helping the middle class and those working hard to join it¨ on its head and produce real and fair results.
Bravo Amanda!
@ #10
Les incompétents…they rule, we reap deficits, debt, broken hospitals (with abandoned souls dying in corridors), out of control tax increases, never-ending rolling strikes across the country…
But les incompétents at all political levels are ¨working hard¨ and that´s exactly what they´ll continue to do.
Le pauvre Canada.
In this country, the stuff that gets done now is the easy stuff. You know, the stuff that you can do from home whilst feeding your face, checking your personal emails and playing with the family pet.
The whole COVID and lack of manpower excuse is beyond old. Pay people properly, stop wasting taxpayer money and ground yourselves in the human element of governing, The current modus operandum is a total $h!t$how.
I don’t see any point in changing laws or rules unless we can enforce the ones we have now. Whatever changes need to be made let’s not let it depend on folks being honest and law abiding.
#95 Faron on 11.09.22 at 4:21 am
#34 Old Boot on 11.08.22 at 5:05 pm
#27 Penny Henny on 11.08.22 at 4:49 pm
#190 Sail Away on 11.08.22 at 3:12 pm
He’s just experiencing the withdrawal induced by exchanging his Twitter fentanyl esis
—
Oh, you noticed I deleted my Twitter! Wanna know why? Because I’ll never give Elon Musk one thin dime if I can help it. And having you, and presumably others, skulking around there creeped me out. You’ll note that my activity fell to zero back in early July. That’s you cancelling.
You are a detestable human to use that information once again today to try to regain stature after falling on your face in our most recent exchange of “ideas”. You were called out for a whattaboutism and resorted to the tactics of a 7 year old.
Regarding addiction: for one, the fact that you were banned twice by Garth and keep clawing your way back indicates you have a problem (not to mention the very high likelihood that you currently post under numerous handles). For another: this is reinforced by the ol’ saw “it takes one to know one”. And, finally, when Garth tells you “no” by banning you and you return, that is nonconsensual engagement and creepy AF.
It’s becoming clearer by the minute that all of your “arguments” about trans people, all of your vitriol, all of your hate is simple projection.
As far as I can tell, you have no redeeming value here.
Beat it.
If you can.
But, you can’t.
Because you are addicted (too).
——————-
Get help. Seriously.
Amanda said it all and said it well!!
#90 Dan on 11.09.22 at 12:06 am
ACB- Adjusted Cost Base – it would be difficult to keep track of and calculate fairly. Maybe I invested 200K in renovations and my neighbour only 100k. If I sell mine for 100k more, how would the ACB calculation take into account the difference in investment? I haven’t kept receipts. Also, if the amount is added to the income in the year one is selling then one will probably take a sabatical that year than see half of the proceeds go to tax.
——————————————————————
Oh I’m sure it wouldn’t be a perfect system (especially with our current government implementing it, who can’t seem to figure out how to do anything efficiently)
However, seems unusual that you would do any large renovations/work without a receipt and documentation. Oh wait..NOBODY gives receipts. It’s a cash industry. Nobody will work on the books. So, if we all start needing receipts for our expensive house renovations, maybe the crooks will stop getting away with their pure cash businesses.
I demanded a receipt from our dry waller (he was good) who did a week long job for us this summer. He fumbled around and then kind of awkwardly started writing on a blank piece of paper. “Is this how you do it?”
Does he claim anything on your taxes? How does that work when you drive an Escalade and own a detached home? Not sure but everyone does it. For BIG jobs. It’s criminal.
Gee.
The Republican “red wave” failed to materialize???
What up wit dat?.
Possibly tens of thousands of angry female Republican voters stayed away or voted Dem?
Gotta love the US Supreme Court and they’re “gasoline on a anti abortion fire ” ruling….
Great post. Thank you Mr Turner and Amanda.
The sure fired best way, is to organize, in the existing party structure, and force smaller less intrusive Government. Limit their over reach and punitive overall funding requirements, of said Government, and start to keep and regain control of the Agenda. We never really pushed for Oil and Gas, limits on our Number one export. That was another fraternities idea,.. Harper commented on how other nations/interest groups, were trying to sell the Idea, Canada, should take the blow, and “One for the Team” and curtail, our industry. A decision to move in that direction, should have involved at minimum a Referendum. It would be a lot easier, to take back control, than to consider so many unconventional methodologies. It starts in the Neighborhood, then onto the Community centers, could be fun, and inclusive, and effective. It is Apathy, and Nimbyism, Poor Personal Planning, etc., that permits North Americans, to end up with Trump’s, Biden’s, and Trudeau’s. Imagine cancelling KXL, then begging SA, Venezuela, Iran, to make up the shortfall. Time to reduce the ranks, of the Government we seem, to inflict on ourselves. Past studies, have also, shown, Social Societal advancements, are more positive, when the general Members of Society are experiencing Positive Economic conditions. It is easy to say, and I am not that critical of Trudeau, et al, it was a Pandemic, and we made, it… so that is OK, but there is such a lack of basic Business acumen, in the Public Sector, exacerbated by the Public Employee Unions, that I really believe, maybe Canadians, should by Law, have to vote. Like Oz.
the high price of houses WAS caused by speculation / investment. NOW the high price of houses is caused by high material and labor costs. It doesn’t matter how high interest rates go, that’s unlikely to change. Land will drop in value, but not enough to offset the cost to build which is over $300 a square foot (detached). The future for the average family is living in a 400 square foot microcondo that costs 400k+, renting said condo for 3k+ a month, living in a boarding house, or being homeless.
NP Snippet ( inflation, higher interest rates, supply chain woes, and now this..sheesh)
“….there is anecdotal evidence that knowledge workers in Toronto are less interested in work than they once were, fuelling a “disengagement crisis,” according to recruiter Robert Walters Canada.
Close to half, or 45 per cent, of desk workers in Canada’s biggest city say they are disengaged from their jobs, a recent poll by the agency notes. Recession worries are one reason why people are pulling back from work. But staffers also say they are less engaged because their workplace has become “unrecognizable” over the past 12 months, thanks to high employee quit rates, fewer people at the office and less opportunities for socializing with colleagues.
The recruitment company points the finger squarely at home working for the disappointing showing. “The hybrid-working world and subsequent decline in office attendance is having a detrimental impact on employee engagement,” Martin Fox, managing director of Robert Walters Canada, says in a news release.”
#73 Cow Man on 11.08.22 at 8:16 pm
The Federal Government introduced Capital Gains taxes on farmland and buildings in 1971. Valuation day gave the cost base. After that date all gains were taxed as capital gains. At that time farmers were a significant amount of the voter base. It did not cost the Federal Government any seats as I remember. It could be done on residential properties as well today. Of course interest costs on farmland can be expensed.
No residential property owners looses any of the gains that they had already obtained. Just 25% of those gains going forward.
This did not in anyway reduce the gains in farmland prices. In most Provinces farmland prices have exceeded residential price increases.
So much for that strategy
————————————————————————————————
If you think the market is tight for houses?
Slap a capital gains tax there are 1000’s of owners can’t pay or won’t now just stay or hold on to rentals
Expected results on Pro Abortion ballots in democratic States. The ballot passed.
Interesting results in several Anti abortion ballots in Republican states. The ballot failed.
Seems even some Republican voters want Choice.
In nine years in Parliament I never saw a decision made by any elected person that was based on self-interest. – Garth
I think you forgot the most important self interest of all: Electoralism and opportunism. Especially in Canada where everybody is expected to follow the party line or else… For politicians to walk all over their own convictions is extremely common.
So run. – Garth
Re: #4 Catalyst on 11.08.22 at 3:59 pm
Unlike in America more homes in Ontario and British Columbia will drive the average home price substantially higher and I mean much, much higher. Once the real estate market turns back upwards all of those new homes will be snapped up in mere minutes by speculators driving home prices into orbit. I’ll take all side bets against me.
Re: #71 Bankers Knowledge on 11.08.22 at 7:52 pm
The problem with that is you end up paying a lot more in income tax every year.
#109 Crowdedelevatorfartz on 11.09.22 at 8:46 am
Expected results on Pro Abortion ballots in democratic States. The ballot passed.
Interesting results in several Anti abortion ballots in Republican states. The ballot failed.
Seems even some Republican voters want Choice.
—————
It’s likely a majority of repubs are in favour of time- and situation- dependent choice.
The question is now properly being decided at the state level where it belongs. The US is built on checks and balances and, especially, restricting overreach by the feds.
Senate;
They are unelected. – Garth
________________________
Point taken. Sorry to have wasted your time on that.
#113 Sail Away on 11.09.22 at 10:36 am
The question is now properly being decided at the state level where it belongs.
^^^^^^^^^^^^^^
Nah bro. Individual states should not be able to decide whether or not to abrogate women’s rights.
Maybe it’s just me but I’m not sure that luring international students into paying exorbitant tuition to diploma mills for the privilege of filling low-wage jobs in a manner that suppresses local wages, is sound basis for our economy.
https://www.theglobeandmail.com/business/article-tfw-program-canada-low-wages/
Houses today have literally become fully loaded Cadillacs. My wife and I are currently building our retirement home and the amount of choices is mind blowing. I had no idea you could spend $6k on a tub and 2k on taps. The building industry is a fashion show. One bathroom per bedroom, granite countertops or an entire wall with windows sucking heat out of the house because it looks fashionable. A long shot from the Calgary bungalow I grew up in with 1 bathroom, single paned glass windows. In the strata we are building in people are spending 100k on their outside decks. Houses could be built substantially cheaper if they were Corolla’s not Cadillac’s.
109 Crowdedelevatorfartz on 11.09.22 at 8:46 am
Expected results on Pro Abortion ballots in democratic States. The ballot passed.
Interesting results in several Anti abortion ballots in Republican states. The ballot failed.
Seems even some Republican voters want Choice.
——————————
Of course, because even church going Reps are no saints.
Just ask Herschel Walker.
Note: Just allegations so far.
#90 ‘Dan’ – you make a good point about how the adjusted cost base might be calculated. Besides the issue of providing proof of expenditures, there is also that little issue with how ‘the government’ via the CCRA would view house improvements as a deductible. Say one replaces/updates a kitchen. One might choose to go all out, with granite countertops, state of the art appliances & custom built cabinetry. However, what the government would allow as a deductible would be how much that self same kitchen would cost using basic box or Ikea cabinetry, ditto for flooring, countertop or appliances – always supposing appliances would be an allowable deductible, which seems unlikely. Plus there could well be a requirement to justify the improvement in the first place – before & after photos, inspection reports proving the previous setup was not to code etc. One might be able to push the envelope if the building in question was located in an upscale neighborhood – obviously the ‘need’ to put in the fancy granite could be argued for if all the adjacent houses had such finishes as a standard. Ditto for exterior finishes.
Doug Ford is for the developers.
Always was.
It’s called corruption.
Surprised?
I bet he spends all the graft on food.
He’s expanding faster than the universe.
See that head?
OOOoooooofahhhh!!!
Personally, I like clear majorities, one way or the other.
Coalitions are ok, too.
Again, the States are in a wishy-washy situation, with nothing being done until the Presidential election two years from now.
The glasses clinking that you heard last night, were the lawyers celebrating another prosperous two years ahead for them.
115 Observer on 11.09.22 at 11:12 am
#113 Sail Away on 11.09.22 at 10:36 am
The question is now properly being decided at the state level where it belongs.
^^^^^^^^^^^^^^
Nah bro. Individual states should not be able to decide whether or not to abrogate women’s rights.
————————
It’s pretty obvious that the Constitution needs a rewrite.
One that takes into account changing moral values and the fact that World has become a global village.
Were little local fiefdoms are no longer relevant.
Albertans, take heed.
Oh no Garth! Now the Globe And Mail are racist. How can we expect foreign corporations like McDonslds and Canadians icons like Tim Hortons to increase profits forever without the wonderful TFW program created by our wonderful politicians and lawmakers.
How Canada became a hotbed for low-wage foreign labour
https://www.theglobeandmail.com/business/article-tfw-program-canada-low-wages/
Let’s shut down the fake news media.
TFWs are not immigrants. – Garth
Looks like Crystia Freeland cancelling her Disney+ subscription is having an effect!
LOL!
https://www.investing.com/equities/disney
#123 Bo Duke on 11.09.22 at 12:13 pm
Oh no Garth! Now the Globe And Mail are racist. How can we expect foreign corporations like McDonslds and Canadians icons like Tim Hortons to increase profits forever without the wonderful TFW program created by our wonderful politicians and lawmakers.
How Canada became a hotbed for low-wage foreign labour
https://www.theglobeandmail.com/business/article-tfw-program-canada-low-wages/
Let’s shut down the fake news media.
TFWs are not immigrants. – Garth
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NoTFWs aren’t immigrants but they, and international students, are at the head of line for permanent resident status.
We have created a pipeline for precarious, low-paid, temporary labour that simply funnels the unwary into precarious, permanent, low-paid labour. Just with student loans to pay off and useless ‘credentials’.
The explosion of international students clearly starts in 2015, and is just TFW program by another name.
Kudos on your suggestion Amanda. It is certainly better than what we have now. However, I do prefer the option of introducing graduated CG taxes on primary residences….. eg tax on 100% of gain if sold within first x years… and reducing towards 0% the longer held. Just seems like a less complicated way to approach the problem.
#122 Ponzius Pilatus on 11.09.22 at 11:58 am
115 Observer on 11.09.22 at 11:12 am
#113 Sail Away on 11.09.22 at 10:36 am
The question is now properly being decided at the state level where it belongs.
^^^^^^^^^^^^^^
Nah bro. Individual states should not be able to decide whether or not to abrogate women’s rights.
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It’s pretty obvious that the Constitution needs a rewrite.
One that takes into account changing moral values and the fact that World has become a global village.
Were little local fiefdoms are no longer relevant.
Albertans, take heed.
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I agree with Observer. Ponzius too although he has to throw in an insult for some reason.
Abortion (with limits) is a human right and should be decided at the national level and human rights should be encouraged globally.
Temporary Foreign Workers should absolutely have a path to citizenship after several years or certainly five years in Canada.
My concern about TFW is not their impact on the wages of Canadians but the fact that we should not exploit these people. If Canada takes advantage of them for cheap labour they should get a path to citizenship in my view.
Young adults who come to Canada as TFW are mostly hard working and intelligent and decent people. We can use more people like that.
Luxury resorts for Trudeau’s crew at COP27?
https://www.youtube.com/watch?v=TWNqjSvMiTs
So where are the jet setting climate hypocrites staying?
What is wrong with people. Tax the sale of your principle residence? You realize you pay your mortgage, repairs, upkeep, property taxes with AFTER TAX dollars. People are crazy if you agree to this.
But all house profits are untaxed. And occupancy costs are equivalent to rent (also paid in after-tax dollars). Homeowners are getting a massive free ride compared to renters. Beware. – Garth
The markets are pretty excited today over a very moderate (and one-month) downturn in inflation. The greater fools rush in, me thinks.