Steve McClure has a lesson for you. The 65-year-old retired journalist and his wife, Rie, a former school teacher, own a one-bedder condo in Vancouver. She hails from Japan, and they have a place there as well. The big retirement plan was to spend half a year in each location.
“We have worked and saved hard to realize our dream of spending our retirement years in the two places we love most — Japan and Canada,” he told city councillors last week as he battled to rescue that dream.
Because Steve & squeeze spent a few days shy of six months in their YVR box, they were hit with the city’s outrageous 3%-of-assessed-value ‘empty home’ tax. The bill is $19,100. “My wife and I are collateral damage resulting from a poorly drafted clumsily enforced bylaw,” he said. “We are not rich property speculators.”
The city replied saying the condo should have been rented out for the months they were in Japan. Steve pointed out the utter nonsense of trying to find a quality, short-term tenant who won’t wreck your stuff. Or are you supposed to empty the condo unit every six months, then move everything back in when the renter is gone? Crazy. Clumsy. Banana-republic stuff. McClure and his wife are also facing $14,000 in provincial fines under the speculation and vacancy tax – another whack at people with two homes.
“This is wrong and frustrating, As I try to re-establish myself in the city I love, it’s like a kick in the teeth. I am not a libertarian anti-tax wacko. I believe in paying my fair share of tax. The emphasis should be on fair.”
Well, turns out it’s a good thing Canadians have no property rights, or the courts would be busy. Politicians have trained their sights on homeowners in the dubious belief they can force more housing supply by punishing folks who own two homes. Even in different countries.
Obviously these folks are being caught in a sticky web spun by ideologues and tax-starved governments. Their story joins those who have been taxed on empty land where housing doesn’t even exist or commercial property owners told to pay a levy on air rights where tenants could be if the building was taller.
The out-of-controlledness is rampant. Professional athletes in Ottawa are in the news this week because, as Americans, they’re banned from buying real estate in Canada to live in for a few years while under contract. Upper Canadians wanting a seasonal home in Nova Scotia are hit with a hefty 5% surtax on the property value – even though they’ll be paying property tax and hiring local trades. Anyone in the country who has to sell a house within a year of buying it will now be taxed 100% on surplus proceeds. ‘Empty house’ taxes have spread to Victoria, Toronto, Ottawa, even Hamilton while a bevy of other cities and regions contemplate them. Peel (Mississauga, Brampton, Caledon) begins next year.
Meanwhile, real estate prices are rebounding. The supply of listings is at a 10-year low. Rents have been rising relentlessly, fuelling inflation. Reality says the taxfest has failed.
But it could get worse. The federal housing minister could adopt the same program that came into effect across the US two weeks ago. This takes woke to a whole new level.
The Federal Housing Finance Agency policy demands that people with good credit and substantial downpayments pay more for their mortgages than low-income and first-time borrowers. The revenue raised will be redistributed to reduce the interest rate paid by less qualified buyers and, it says, “increase pricing support for purchase borrowers limited by income or by wealth.” Buyers with a downpayment of 20% or more will shell out the highest fees.
There’s so much wrong with this kind of Robin Hood approach (that’s also behind most of Canada’s real estate tax grab). The policy penalizes those who worked hard to get a good credit rating, or saved diligently for a large downpayment. It rewards buyers with big loans and little equity, incentivizing people who should never buy a house to wade into debt. It increases lender risk, because “income and wealth” should absolutely help determine who can borrow, and how much. And it’s bound to make houses cost more by lowering the bar for financing, creating excess demand.
We can take little comfort in American policymakers being morons, too. The political class as a whole has completely blown the real estate issue. The patchwork of taxes and policies at the federal, provincial and local levels has made housing cost more and rendered less of it available. On one hand owners are punished for where they live or how many nights they sleep in the same bed. On the other we create artificial demand and speculation with buyer incentives, real estate tax shelters and untaxed property profits.
So what happened to Steve?
Vancouver council said tough noogies. They know he’s powerless. Ya gotta pay.
About the picture: “This is a photo of my Barbet,” writes Kyle. “He occasionally steals cheese while I’m cooking. it wasn’t annoying until he recently absconded with a fresh mozzarella ball. At over $9 a ball it hurt but I was reminded not to question any tax.”
To be in contact or submit a picture of your beast – [email protected]
163 comments ↓
T2 is part of a DNA legacy that will ensure Canada gets what it richly deserves.
R.I.P. Oui !!!
No comment on the re-acceleration of inflation, when all thought it was a straight worry-free glide path back down to 2%?
They spent less than 6 months in Canada so that tax is fair. As with many other CANADA benefits, you must at least pretend that you want to remain Canadian and live there for half the year. Next time, spend a few more days in Canada if you want the perks and/or avoid penalties…or cease being a Canadian.
No comments on the inflation rate?
Why? It was stable. Yawn. – Garth
As a tax slave my mind is kept addled by Flouride and other chemicals. Bliss with passivity. I Trust the Science.
If you need a stronger dose, by all means T2 has your soma:
“Prozac is a fluoride compound (fluoxetine). Fluoxetine is 18.5% fluoride by weight.””
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Our Rulers are building tons more stalls for our housing on this Tax Farm, We will be funneled into the Oligopolies’ debt traps in this country.
Tag this #100million? Or only an Internet Consp. Theory…
https://streetsoftoronto.com/five-bold-new-districts-could-become-the-next-hot-hoods-in-toronto
The Hangar District is just one of 10 new neighbourhoods imagined in the development proposal. If the plan is completed as envisioned, by 2051 it would encompass close to 50,000 units.
…
The Orbit – a master-planned, cutting-edge community set to create a Smart City of up to 150,000 residents.
…
The plan has been updated to include fewer towers, from 11 to nine, and more park space as well as a slew of community benefits including three daycare centres. The development application includes 6,126 residential units.
The Woke-sters are ruining our cournty.
Let’s vote them out starting with Trudeau.
We don’t need virtue-signalling, just smaller government with fewer taxes…leave us alone to live our lives…
Steve.
Sell the condo for a profit.
Invest the money.
Use the cash from the investments to rent an apartment.
The 6 months you arent there is half a years rent.
Waaaaay cheaper than the “gouge and screw tax” the socialists have implemented.
Speaking of Socialists.
Former Mayor Kennedy Stewart is still looking for election campaign contributors to help pay the cost of his losing campaign….
Any takers?
https://globalnews.ca/video/9700825/former-vancouver-mayor-responds-to-unpaid-election-campaign-bill-claims/
Kennedy is busy writing a book.
He can’t be bothered with the little people owed tens of thousands of dollars in rental fees.
Steve should sell. That will increase supply in Vancouver. Meanwhile, inflation in April is 4.4%. Wonder what Tiff will do next … increase rates more?
Garth, I know you were a politico once, but my finance professor put it best oh so long ago:
“Politicians are just a bunch of losers who can’t do anything productive but win popularity contests against other losers.”
Case in point: the information you just shared.
What a real estate mess in BC. A good reason not to vote NDP in Alberta in the upcoming election.
We sadly live in the world of extreme bureaucracy where crossing the T and dotting the I is more important that common sense and basic human empathy.
The more government the less actual real service as these emplyees,as soon as they clock in forget that they are supposed to be “servants of the people” and not rulers.
Now to be fair and upsetting a whole bunch of people ,Vancouver residents in general , especially this couple deserve every bit of bad karma coming to them as they voted for these councils and the teacher was part of the most aggresive public service union.. sometimes you reap what you sow.
Let’s not forget here foe one moment that Vancouver was the first city to pioneer the empty home tax , brought to you by the looney green councils of the time supported by the “enlightened” crowd.
Of course this couple also could have chosen to “rent out ” their place on paper to family ,but insted got greedy due to capital gains exemptions at sale time (as part rental , tax would ahve had to be paid).
Sounds to me like the law worked exactly as designed , as much as I don’t agree with it.
What, no inflation talk?
Gartho- honest question here. Are we screwed? Like I don’t mean on housing- I mean everything. If this is the kind of stuff that passes for policy and legislation these days, are we not simply nearing the end times of this whole experiment with classic liberalism, which underpins both democracy and capitalism? I try not to be too alarmist most days, and I don’t want to contribute to the already too-loud culture wars and polarization, but I see stuff like this, combined with everything else that’s happened in the last 5 years, and I can’t help but wonder if it’s over. Like we’re dancing on the deck of the titanic here with respect to the entire Western, and even Global, order. We’re going downhill and picking up speed. We’re over indebted, over leveraged, over taxes, governments of all levels are broke, citizens won’t vote for austerity, and we’ve moved into this extremely socialist paradigm led by inept politicians of every stripe.
It’s the reason I’ll vote UCP in Alberta this month. Smith is crazy, but she’s at least libertarian crazy. When given the choice between live and let die libertarianism, and complete socialism, I’ll take the former. I’d rather be in the middle, Mulroney style, but that’s not an option anymore. The left has gone so left the right has had to counter. It’s nuts. As a 40-something who has literally sacrificed my youth to get ahead and build something for the next generation of the T-Rev clan, I’m concerned about being able to keep it all, lest it be expropriated one step at a time through taxes to feed out of control public spending and redistributed to others whom have been deemed more worthy.
You’ve seen it all. Elder statesman. Politician and businessman. Polymath. Astute observer of the human condition. Student of history. Investor. Honest opinion: Are we pooched? Is liberalism dead? And what dystopian hell replaces it?
Because Steve & squeeze spent a few days shy of six months in their YVR box, they were hit with the city’s outrageous 3%-of-assessed-value ‘empty home’ tax. The bill is $19,100.
_________
I’d love to know how they got caught. I find it very hard to believe that border records would go to the city. Anyone else confused by this?
Rents have been rising relentlessly, fuelling inflation.
– Garth
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Apr 2023 inflation +4.4% year over year Apr, up +0.7% from March.
Yup, Shelter went up & it fuelled inflation (it has the highest Relative Importance at about 30% in the CPI Calcs). +0.6% Mar to Apr and +4.9% year over year Apr.
Largest Mar to Apr increase:
Gasoline +6.3% (-7.7% year over year Apr)
Largest year over year Apr increase:
Food +8.3% (+0.4% Mar to Apr)
Little changed from last months 4.3%.
So far, inflation being reigned in; though, for non-discretionary items such as Food and Shelter still on the high side.
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Canada, Real Estate Nation.
Govs Canada, TAX Real Estate Nation.
Pound of Flesh, Shylocks.
Too bad Steve and Rie didn’t have Portia to defend them.
Alternatively:
Go hence, to have more talk of these sad things.
Some shall be pardoned, and some punishèd.
For never was a story of more woe
Than this of Rie and her Steve.
Anyone in the country who has to sell a house within a year of buying it will now be taxed 100% on surplus proceeds.
_____
Garth, correct me if I’m wrong but aren’t you in favour of this specific tax? It doesn’t seem the same as the others to me, it’s to reduce speculation and flipping of housing which I thought was a good thing?
Food shrinkflation is also occuring take a look at package amounts. 500ml milk now 473ml and the price went up. I sure hope those local milk supply chains get repaired really fast…Maybe this is just transitory. Record company earnings and profits. Well except for Home Depot recently.
Seems like we’re all prisoners. Look at the amount of taxes and restrictions placed upon us compared to 50-60 years ago. Everything from mandatory seat belts to the war on drugs. I don’t need a daddy to tell me what’s in my best interest. Government has gouged our rights under the guise of the public’s best interest. Yet everything has a cost so in reality we’re paying for rights. So those that can afford the fines,taxes or levies are permitted to have more rights than those that can’t pay.
If I was a billionaire I could buy an elephant and use it like a horse going down Yonge street. I’d get fined but so what every day I’d take my elephant to run errands and I’d keep paying the fine. No big deal! Just saying we’ve been legislated into confinement and as more time passes more freedoms will be stripped from us.
If you don’t pay ,I guess they add it to your tax bill and if you don’t pay that they take your crash pad.
It makes your want to scream Freedom.
Wonder what the law is back in good old Japan
Crazy
“It rewards buyers with big loans and little equity, incentivizing people who should never buy a house to wade into debt.”
Jeez. If only we had a lesson, learned right around 15 years ago, about the dangers of letting people with no business buying real estate, buy real estate….
Don’t think ya’ll aren’t immune. They’re coming after all of us sooner or later. Things are out of control.
Faron on 05.16.23 at 1:03 pm
#135 TurnerNation on 05.16.23 at 8:40 am
in March 2020 new condo construction never was shut down
Europe’s construction activity collapses as lockdown hits builders
One of many many articles. At least do a shoulder check before you take a lying lurch across the information super highway. Jesus.
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Oops again.
TN missed this link:
https://www.cbc.ca/news/business/ontario-essential-contruction-1.5510516
Was it shutdown by Ontario sometime after June 2020? My memory fades on this dead cat.
Cheers, R
The Steve & Rie McClure story brings joy to my heart. I’ll pray for them to leave Vancouver and never come back.
That’s one of a hundred reasons why there was an earthquake of an election in Vancouver last Nov.
Elected officials now realizing that the city is run by city staff, who all full on marxists, both culturally and economically. It takes a long time to get anything done in govt. these days.
Look how hard it is to fix the homeless/drug problems, with so many levels of staff at 3 different levels of govt. working against any local officials who try.
But do get used to more taxes. Residential RE is the one source of wealth you can’t take with you when you leave.
#14 I have to agree with you the story seems fishy how did they get caught? And we are to believe if they came one day home earlier they wouldn’t have paid and they chose not to. Trying not to be a victim blamer. If the law is written so poorly anyone can get caught obviously not a well thought out law. But this doesn’t really add up.
“I am not a libertarian anti-tax wacko. I believe in paying my fair share of tax. The emphasis should be on fair”
-Steve is about to learn that the left woke crowd is happy to eat their own. Eventually it comes for everyone.
The problem with paying your “fair” share is that everyone has a different idea of “fair”…. As long as you are a have in this country, even if you worked for it, you will always be a target of never paying enough…
I reserve my sympathy for those who are homeless, struggling to pay exorbitant rents on one home and those losing shelter for any number of other reasons.
I would feel bad for this couple if the clock was turned back 20 years. But, as we are in a truly shocking housing crisis, not now.
These ‘clumsy’ laws are needed to prevent us from becoming a banana republic, not the other way around.
QUOTE:
“……Because Steve & squeeze spent a few days shy of six months in their YVR box, they were hit with the city’s outrageous 3%-of-assessed-value ‘empty home’ tax. The bill is $19,100. “My wife and I are collateral damage resulting from a poorly drafted clumsily enforced bylaw,” he said. “We are not rich property speculators.”
The city replied saying the condo should have been rented out for the months they were in Japan. Steve pointed out the utter nonsense of trying to find a quality, short-term tenant who won’t wreck your stuff. Or are you supposed to empty the condo unit every six months, then move everything back in when the renter is gone? Crazy. Clumsy. Banana-republic stuff. McClure and his wife are also facing $14,000 in provincial fines under the speculation and vacancy tax – another whack at people with two homes……”
===============================
COMMENT:
Lemonade out of lemons…
I see an opportunity for people to “rent” shirt term even if it is just a token amount. ie @ $1 month
Have some company vet good tenants…and thus bypass the onerous fines.
I am not aware of any minimum rent required…so simply submit a tenancy agreement. One and done…
N/C
Truly only the mentally unhinged would support such a draconian, backward policy.
#99 Concerned renter on 05.16.23 at 10:51 am
Brought on by their own government. Disgusting!
https://vancouversun.com/news/local-news/sunday-feature-evictions
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Where exactly is the problem?
In a carrot or stick world this is a clear example of stick policies.
Stick to the owners of rental properties, to perhaps sell them.
Landlords – you think it was going to be easy? You need to hustle, get temp renters, pay websites a cut, all that fun jazz, to maintain revenue in ever increasing ownership costs scenario means more and more will indeed throw in the towel and just sell the property.
Stick to the renters, to buy, buy, buy.
Less rental stock and higher prices means renters will be left with no choice but to buy.
More transactions. More land transfer taxes. Everybody wins, right?
Why should renters exist at all anyway? 69% ownership rate in Canada…plenty of upside.
“tax starved governments”
surely, you jest Garth.
“budgets balance themselves”
“Federal Housing Finance Agency policy demands that people with good credit and substantial downpayments pay more for their mortgages than low-income and first-time borrowers”
Is this only for new mortgage originations? Or do they go back in time?
On a side note, I didn’t see the odds but it looks like speculation is BoC will raise in July. So much for the end of rate hikes if that’s the case.
#3 – get bent… you think it’s OK to charge someone because they went on an extended holiday? Give me a break. If anything, this couple cost LESS to the government while away.
and for those who want to talk inflation, two things
1) I assume Garth doesn’t writs these each morning
2) The increase is interesting and could be meaningful, but we won’t know until a little more time passes
Blogs are fresh daily. And the inflation number is a fat nothingburger. – Garth
I dunno Garth… something doesn’t smell right. I find it hard to believe that somebody would purposely spend just a smidge over 6 months abroad unless they were trying to make their case to not be considered a Canadian tax resident. A $19k vacancy tax bill is probably less than what they are saving avoiding Canadian income taxes but enjoying Canadian services for 5.9 months of the year.
In any case, there is an easy solution. Spend 5.9 months in Japan and 6.1 in Van and pay your Canadian taxes. Sheesh.
#108 Sail Away on 05.16.23 at 12:50 pm
#103 wishbone on 05.16.23 at 11:45 am
#19 sail away
So, rather than improving the fundamentals of his holding co., he chose to manipulate the stock price. Gosh, wonder why IEP is under investigation…?
Thanks for a glimpse of life aboard the SS Dunning-Kruger.
I mean, it will probably rip at some point and provide a nice SAGI (like D.UN recently has). And no analyst is ever 100% correct, far from it. But the Hindenburg report elucidated glaring issues that the, dominantly retail, float owners failed to glance at. Not a good sign.
Not on topic really but I’ve been thinking about how higher interest rates are making it harder for owners who have to refinance mortgages on condos, houses and some commercial real estate as well.
Those costs are being passed on to renters of same and could even be one of the many factors effecting food prices and manufactured goods, etc…
It would be mighty strange if dropping interest rates back down, reduced inflation. Very counterintuitive.
who knows the best way to ruin your credit score. Just to get the best rates lol
America isn’t the only place where, “people with good credit and substantial down-payments pay more for their mortgages than low-income and first-time borrowers”.
Canadian banks offer discounted mortgage rates on CMHC insured mortgages because they represent less risk.
Upper Canadians wanting a seasonal home in Nova Scotia are hit with a hefty 5% surtax on the property value – even though they’ll be paying property tax and hiring local trades…
…and taking up valuable housing that could be used by someone else. Honestly, I’d be inclined to tell Steve “tough” as well. You said it yourself, Garth, we won’t be able to build enough housing over the coming years, so the only option is to make better use of the stock we have. Canadians will just have to get used to the new reality–flitting about your multiple properties has become an expensive luxury. If that’s your dream and you can’t afford it, too bad.
Laughing I can’t wait for excuses and lies offered in writing on the next 2 inflation prints..
If you’re leveraged and not taking immediate action or just burying your head in the sand – you are screwed
Taxing unused “air” above a lot/building is likely the last straw for a lot of people. Just think…some bureaucrat or lawyer wrung his/her hands in glee, and created the word “bylaw”…
Wouldn’t blame Steve and Rie if they start sharpening their pitchforks. Is anarchy the only answer to the pain our governments inflict?
It’s high time we relegated Liberals and NDP (and probably Greens too) to the permanent dustbin. Hold your nose and vote for PP.
That’d be a good start. Quiz every prospective MLA and MP prior to election day…smaller governments and repealing some bylaws must be the focus. End discriminatory tax practices.
Common sense is no longer common.
If the government extends amortization and enables hundreds of thousands to retain their home and do NOT have to sell. How is this democracy and free market
Government has pulled levers like communist to control everything…whats next. T2 government is capable of anything the global elites tell him
Photo, Barbet & Kyle
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Cheaper to keep Barbet happy in Italia.
A mozzarella ball is called a Bocconcino (1 if them), Bocconcini (plural) in Italian. Bocca means mouth, cini is a word suffix implying small or smaller; thus, bocconcini means bite sized pieces.
The high priced mozzarella is made from Italian water buffalo milk, “Bufala”, feminine for buffalo.
Mozzarella di Bufala Campana Dop – Bocconcini, 500g, bocconcino size 30g or 50g
€9,40
https://www.lamozzarellaonline.com/prodotti/mozzarella-di-bufala-campana-dop-bocconcini/
Fior di Latte (cow milk) mozzarella bocconcini much cheaper, 3kg (used for pizza)
€16,50
https://www.mozzarellaperpizza.it/collections/mozzarelle/products/mozzarella-bocconcini-in-vaschetta-3-kg
Bufala mozzarella has much lower lactose than the Fior di Latte version such that the slightly lactose intolerant can eat it.
https://www.latramontina.com/differenze-mozzarella-di-bufala-mozzarella-fiordilatte/
And, the Bufala version is more yummy, tasty. You get what you pay for.
——————
Yummiest for grating on pizza, my preference:
Scamorza
from the S. of Italy. Lightly smoked cheese. Tastes awesome. Solid and not sold in water bags/containers like mozzarella is – less mucking about.
Made from either cow, buffalo or sheep (pecora) milk. Grilled by itself is great. I basically do that when making pizza.
https://it.wikipedia.org/wiki/Scamorza
Barbet in a former life must have been a pizzaiolo.
BC stands for Bring Cash. All Canadians should have the constitutional right to own property, including all First Nations residents.
3 Tom on 05.16.23 at 2:58 pm
They spent less than 6 months in Canada so that tax is fair. As with many other CANADA benefits, you must at least pretend that you want to remain Canadian and live there for half the year. Next time, spend a few more days in Canada if you want the perks and/or avoid penalties…or cease being a Canadian.
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You Sir will own nothing and be happy!
#21 Faron on 05.16.23 at 3:47 pm
#108 Sail Away on 05.16.23 at 12:50 pm
#103 wishbone on 05.16.23 at 11:45 am
#19 sail away
Icahn struck back with $1B buyback and 5% dividend that any shorts still short on Friday will have to pay.
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So, rather than improving the fundamentals of his holding co., he chose to manipulate the stock price. Gosh, wonder why IEP is under investigation…?
recent very high yield is partially a function of price drop
Thanks for a glimpse of life aboard the SS Dunning-Kruger.
I mean, it will probably rip at some point and provide a nice SAGI (like D.UN recently has). And no analyst is ever 100% correct, far from it. But the Hindenburg report elucidated glaring issues that the, dominantly retail, float owners failed to glance at. Not a good sign.
—————
Yes! The D.UN immediate +18% after purchase was unexpectedly wonderful.
Can’t wait for IEP to do similar!
I’m a busy man but will try to post the occasional update.
Regarding the empty homes tax. What is not clear is if they are tax residents of Canada. Sounds like they live in Japan and come to Canada as a seasonal home (like any person might do who lives away). They are likely to have very carefully counted their days – – and kept the days under 6 months to ensure they were not deemed tax residents. In this case – I do not feel sorry for them at all. As non-residents, they are not paying any taxes to Canada and this empty homes tax is basically crafted that it never applies to principle residences. Thus – this story is a bit one sided without all the facts but these guys are not victims – they are the intended targets . . . assuming they are non-residents.
Canadian citizens.- Garth
Upper Canadians? Bit of a throwback expression. Don’t try and hide behind any geographical reference. You’re busted, plain and simple. Why the need for a ‘seasonal’ hideout in Nova Scotia when people like Marcia live there, i.e. the small-minded type? Just stay in the GTA and go for a swim in Ol’ Blues swimming pool on weekends. I’m betting he’s got one.
This whole ‘tax your ass off’ debacle can be laid at the door of condos, specifically the big glass curtain towers that cluster in major centres like GTA and GVA. High rise condo towers are the root of all evil! They’re not going to be sustainable or eligible for retrofit in the future, have solved zero housing affordability issues, and generally have made everything more expensive. Homes became assets, and then the community planners and grifters of all persuasions jumped in with all their social engineering nonsense. Even the lazy thinking, money grubbing governmental types finally cottoned on to the opportunity to fleece condo owners.
Wasn’t it bad enough to endure common walls, noisy smelly neighbours, and AirBnB? Why couldn’t they have built developments like Seaside in Florida? (Andrés Duany and Elizabeth Plater-Zyberk.)
James White ( Author of Condoland ) refers to as the commercialization or financialization of housing. Cost of Living with Paul Haavardsrud completed a brief interview with him ( link below, only 7:38 minutes).
https://www.cbc.ca/player/play/2205724227645
#46 Sail Away on 05.16.23 at 4:18 pm
Heeeeere kitty kitty.
And the inflation number is a fat nothingburger. – Garth
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Overall, correct.
But the CPI is comprised of many discretionary purchases, e.g., Household operations, furnishings and equipment, Recreation, education and reading or Alcoholic beverages, tobacco products and recreational cannabis.
Those 3 alone comprise about 28.5% of the CPI weight. They were low and thus skew the CPI downwards.
Non-discretionary items such as food and shelter increased year over year April, respectively:
8.3%
4.9%
March to April gasoline increased by:
6.3%
Maybe a nothingburger to a MULTI-MILLIONAIRE like you but to the 6.9M Cdns that experienced food insecurity, the 2.75M Cdns living below the Poverty line in 2021:
it is NOT a nothingburger!!!
Further, add insult to accident, the after-tax median take home pay before Gov Transfers for Lone-parent families in 2021:
$46,000
or Seniors not in an economic family:
$13,200.
———————–
Decidedly Food, Shelter & recent Gasoline increases are not as you also put it:
Why? It was stable. Yawn. – Garth
Not for millions of Cdns.
Waaaaaaaaaaaaaaahhh..weep for the owners of 2 properties…wahhhhhhhhhh
So I had dinner this past weekend at my uncle’s. He owns a couple small rental properties in YVR with no mortgage, owns them free and clear. I was asking him what he thinks of the medley of taxes and rules aimed at increasing affordability. His response is that he will continue to vote for the Trudeau government because they are going above and beyond to make his properties appreciate in value. My uncle is a results-driven man, he says it doesn’t matter what the government SAYS they want to do, only the results matter. And he likes the results.
#35 Faron
Still pissing myself laughing (sorry SA, you know I love you but …):
“Thanks for a glimpse of life aboard the SS Dunning-Kruger.”
THAT was good.
F. Look it.
SA is a Carl fan, like me, and trusts him. A devotee. Unlike me, he puts his money where his mouth is.
As the recent Sports Illustrated Swimsuit cover girl says:
And that’s a good thing.
https://www.thestar.com/life/2023/05/16/a-sex-symbol-at-81-martha-stewart-sports-illustrated-cover-star-shows-its-not-only-possible-its-desirable.html
You go girl!
Six months less a few days? Would that be so that they are not deemed tax residents of Canada by the CRA? Or perhaps so that tie breaker residency rules significantly reduce their Canadian income taxes? Little sympathy if so.
Neither, of course. – Garth
Garth’s blogs should come with a health warning. My blood pressure goes up whenever I read about some of the idiotic policies by these politicians.
#22 Russ on 05.16.23 at 3:33 pm
^We cannot deconstruct Faronism.
Key tenets of Faronists include:
– “Whataboutism” (‘Drinking water on Reserves’, a perennial fav canard);
– And, Rageism.
— We shut down the world to save Grandma?! All about health?
https://www.walesonline.co.uk/news/health/covid-no-evidence-shielding-helped-26758086
It found that deaths and healthcare usage were higher among those who were shielding than the general population. The Welsh Government said that shielding was introduced on medical and scientific advice and that it will continue to review evidence from the pandemic.
The rate of coronavirus was also found to be higher among those shielding, at 5.9% compared to 5.7%, according to the study. Researchers have said that the data raises questions about whether the shielding policy worked.
#42 Dave on 05.16.23 at 4:11 pm
If the government extends amortization and enables hundreds of thousands to retain their home and do NOT have to sell. How is this democracy and free market
===================================
COMMENT:
“Hi….I’m from Gov’t and here to help you”
Danger !!!!
https://www.youtube.com/watch?v=OWwOJlOI1nU
Gov’t is simply setting up yet another(yawwnnn) “divide and conquer”.
If Provincial Gov’ts continue to override Local Gov’ts zoning powers ….and effectively make SFH zoning null and void…being a property owner will increasingly become a liability.
Steve Saretzky did a podcast about this…but he submitted that this will not be a gold mine for developers…thus by default Local Gov’ts will reap much “Higher and Best Use” property taxes…and , again…pit property owners versus renters etc.
Everyone except Gov’t and their ilk will lose ….and lose badly.
Woke progressive gov’ts are just getting started. These levies are just the tip of the iceberg on new taxes that will appear over the “roaring 20s” (yes, that is sarcasm on the last)…
What a ridiculous provincial and federal government we have! Those of us who have been responsible savers and investors are being punished by adding more penalties to owner occupied/second homes. It is encouraging division between owners/non owners/inside/outside our provinces, inside and outside of Canada etc. We are crippling Canadians by giving so many handouts and also putting restrictions on those who have a work ethic. Where is our pride in being Canadian? Are we just out for self interests? These governments need to stop being motivated by getting votes and do what is ethical!!
I wonder if there’s a market for owners like this to pay someone like me to “rent” their home. For a fraction of the penalty, you can legally call me your tenant. I’ll even change my address on the CRA website to your address for a few weeks, or whatever is necessary. Maybe I could even stay there for a weekend, like a house-sitter, except technically a tenant.
All good until I decide I like it and refuse to leave. Then it’s mine :)
So this week, my financial advisor finally stated that we are going to be going into a recession. Quite a statement from him, given his unicorns and rainbows emails and videos from the last 15 months. It’s clear that the US is in crash mode, and if you remember 2008 when the TSX dropped by 35% and took 6 years to recover, Canada was definitely not immune. It will be key to watch unemployment ratchet up. It’s only a matter of time before this RE house of cards takes a big tumble.
Admit it Garth- we seem to be drifting toward banana Republican standards. A slow decent towards dare I say anarchy? Democracy is just a fancy word used by the % 50.1 who dictate to the other % 49.9 at 5 or 10 year intervals. You said it, brother, you answered to your deputy. Would Matt Dillon take that crap from Festus over in Dodge City?
#52 Frank Cook
Bang on.
You know, I look at these recent political surveys where Poilievre ahead in the polls, many Team Red fortress Toronto ridings at risk and I just shake my head at people delighted with all this and their naivete.
At the end of the day in Canada and since time immemorial people and politics:
1. Talk with hand on heart.
2. Vote with hand on pocketbook.
Your Uncle abject example of that and he skips #1 altogether, honesty, up front … a good thing.
@#110 Better Call Saul
“That’s barely over 10% of all, by a dude who clearly has a fragile ego in need of constant attention. What’s holding back his narcisssism today? I am concerned!”
+++
A simple explanation.
I regularly post about 80% of all comments but Garth nukes the majority….
Thank Uncle Garth.
Secret is own nothing in Canada. Crash out at your kids plaxce for 6 months or couch surf at friends or relatives homes when in Canada. Own your principal residence elsewhere where homes are far cheaper. Use the system to your advantage. Don’t be a property tax donkey in Canada.
Government only functions because of the underbelly which exists known as the bureau-autocratic-acy. An entity which sustains itself, and its own interests, through unelectedly parisitically feeding off the rest, and redistributing the booty, matey! Yes, Your Honorable Sir, I’m taking a week off and indulging. Tax free. No shirt, no shoes, no problem. Cheers.
Thanks for sharing Garth. You make others in similar more aware plan accordingly.
That’s what I appreciate about you Garth. You help to inform us minions.
Idiotic. They punish the responsible but reward the over indebted by moving the goal posts by increasing amortizations. Everyone I tell this too say it’s not true. Everyone wants to live here and demand alone saved a real estate collapse.
These people should be declaring on their Vacancy/Spec Tax Forms that the Vancouver residence is their PRIMARY residence…..then they dont have to pay the tax … simple as that….they obviously did not declare their forms correctly. I mean you have to have ONE primary residence don’t you? why would it be the Japanese residence? make it the Vancouver residence … or heaven for bid just stay in the vancouver residence for 185 days out of the year …. not difficult folks
Banks did not “extend amortizations” on variable rate mortgages
Seems I have to explain this.
A variable rate mortgage with a static fixed payment must then have a variable amortization until renewal when it will reset.
As interest rates rose during the initial variable term, the amortization automatically lengthened. Simple math. The banks did NOTHING in these cases. The mortgage contracts called for nothing to happen.
Also it seems the so-called trigger rate where it is interest only and the amortization goes infinite is no trigger at all. (On this point I am not 100% but is what I been told)
It seems nothing need happen under these mortage contracts until renewal.
At that time the banks have been ordered to be lenient and may not reset the amortization to where it should be.
But it’s wrong to claim that the banks already extended amortizations on hundreds of thousands of variable rate mortgages. Interest rate increases made that happen automatically.
So there. You’re all welcome. Now chill.
Obviously you have not read a VRM contract. – Garth
How about a class action lawsuit? This is clearly psychological and financial abuse against one group.
#56 TurnerNation on 05.16.23 at 4:58 pm
#22 Russ on 05.16.23 at 3:33 pm
Wait, I was told by you, TurnerNation, that the COVID response was a global cabal synchronised by the WEF/DeeeepState/George Soros crowd. Now Russ is telling me that there were regional differences in degrees of lock down? Seems entire countries locked down their construction sectors, entire provinces in Canada too. Gosh, if I didn’t know any better, I would swear that regional responses were mediated by combining global knowledge with regional data kinda like a functioning bureaucracy otta.
Find a renter. There are plenty of great people in Canada that would rent his place for 6 months and not trash it. Instead of paying 20k in taxes he could make 12k in rent. Oh but that would take effort.
Reuters…Ex-SVB CEO says was unaware of bank’s problems when he sold stock in the months leading up to the regional lender’s collapse. lol
Zero sympathy!
What entitled nonsense, I planned to spend my retirement six months a year at Playboy Mansion. Hef died!
#53 Dolce Vita on 05.16.23 at 4:56 pm
#35 Faron
Still pissing myself laughing (sorry SA, you know I love you but …):
“Thanks for a glimpse of life aboard the SS Dunning-Kruger.”
THAT was good.
F. Look it.
SA is a Carl fan, like me, and trusts him. A devotee. Unlike me, he puts his money where his mouth is.
—
Glad to bring you some levity.
No one should be investing because they are a “fan” of a cult (or any) CEO. That’s emotional investing and leads to blinkering. You are the smarter of the two here.
Aren’t pilots and flight attendants and business people always looking for a short term rental? Seems to me that if you cater to that crowd, you wouldn’t have a problem given the nature of the rules and you’d have respectable clientele that wouldn’t trash the place. Do the rules have a minimum rent you need to charge? If not then, 1$ outta do it!
;)
M55ON
#61 Macduff on 05.16.23 at 5:09 pm
So this week, my financial advisor finally stated that we are going to be going into a recession
—
Ditch your advisor.
Any financial advisor that tells you something will certainly happen should be rapidly divested from. Are there better than even odds we enter recession? Yes.
So they didn’t follow the rules? Well that’s just too bad. Sell it and rent 6 of 12 mths they are in Canada. Very simple solution. Or stay as the rules declare. If half of Canadians had 2 homes, 1 of which sat empty 6mth/year then the other half would be homeless I guess?? Sounds logical to me, Garth.
Surprised to see our hosts’ take that an a increase, albeit a small one, in inflation is a nothingburger. It seems to indicate we may be stuck at well above target. It also signals that we won’t hit 3% by summer as Tiff claimed, which would make hit batting average on forward guidance close to 0.00%.
All of the above which makes sense, how did we figure 4% Bank rates would solve for 8% inflation? That we could wind down 15 years of QE with one 10 month tightening cycle? Is it different this time?
Economy is still on a rager, wages are up, RE is roaring and gas prices about to launch for the summer. Pretty clear what has to come next, either they re-define inflation, concede on the target, or rates go up.
#47 yvrtaxdude on 05.16.23 at 4:19 pm
Regarding the empty homes tax. What is not clear is if they are tax residents of Canada. Sounds like they live in Japan and come to Canada as a seasonal home (like any person might do who lives away). They are likely to have very carefully counted their days – – and kept the days under 6 months to ensure they were not deemed tax residents. In this case – I do not feel sorry for them at all. As non-residents, they are not paying any taxes to Canada and this empty homes tax is basically crafted that it never applies to principle residences. Thus – this story is a bit one sided without all the facts but these guys are not victims – they are the intended targets . . . assuming they are non-residents.
Canadian citizens.- Garth
…….
Citizenship and residency are 2 different things.
And residents. – Garth
When we left town for more than 180 days, we would fly home somewhere in the middle of the absence for a week to recharge our health care eligibility.
A staycation in the middle of a vacation. Kind’a fun!
That should work for Steve next time.
Rules are rules. It doesn’t matter if you leave your property vacant for 6 days too long or 6 months too long. Steve should have known better. He is 65 years old. It’s harsh, but it’s how it is with everything. My son learned this recently with EI. He was laid off and was 3 hours short of meeting the requirement to get EI. He thought they would make an exception and give him a break, but Service Canada cannot make exemptions, doesn’t matter if you are 1 hour short, too bad! Whether the rules (or laws) are fair or not is another conversation to have, but we could debate many laws and rules. In this case, Steve learned his lesson and it will cost him some money and next year he will make sure he either rents out his property or lives here for 6 months. If the city council had made an exception for him, then where do they draw the line? 7 days? 8 days? 9 days? etc.
#65 Secret Sauce on 05.16.23 at 5:17 pm
Secret is own nothing in Canada. Crash out at your kids plaxce for 6 months or couch surf at friends or relatives homes when in Canada. Own your principal residence elsewhere where homes are far cheaper. Use the system to your advantage. Don’t be a property tax donkey in Canada.
————-
And this is exactly what people are doing. Sadly, people have learned that they either take advantage of the system or be taken advantage of it. Those are the only real two choices. It’s possible to get a lot of stuff from Canada, including free health care, drugs, etc. without ever contributing any real taxes. The sad solution will eventually be a two tier system, privatizing health care, etc. like other countries have. I used to be against these things but now I can’t imagine a future without two tiers, like the UK has and many other countries. People who contribute to society via taxes should have better healthcare than people who don’t. I know this statement is controversial to some, but if you are offended by it then please explain to me why? Does the UK and Germany and other countries have it wrong?
Cry me a river. Sell one of the homes. They are being extremely racist by hoarding homes when 2000 newcomers are arriving every day.
Get with the program. Canada needs immigrants desperately.
If people were concerned about inflation – then they can easily vote for conservative next election.
As, it’s fairly clear what will happen under PP – same as always
Tax breaks for wealthy, higher unemployment, lower GDP, more recessions.
All of which will help inflation.. Problem solved.
Might even get a return back to “emergency low” interest rates while we’re at it.
It’s Spelt “Extended Amortization,” But Pronounced “Investor Bailout”.
The biggest borrower being helped by the pseudo-regulatory bailout are recent investors. Low rates helped investors capture up to 90% of new housing supply, zeroing in on the most affordable homes. Low rates also helped investors outbid first-time buyers for existing home sales, becoming a larger market share. RBC, Canada’s largest bank, even called it a “systemic issue” and “sad” state of affairs that investors are replacing first-time buyers at this scale.
#52 Frank Cook on 05.16.23 at 4:48 pm
So I had dinner this past weekend at my uncle’s. He owns a couple small rental properties in YVR with no mortgage, owns them free and clear. I was asking him what he thinks of the medley of taxes and rules aimed at increasing affordability. His response is that he will continue to vote for the Trudeau government because they are going above and beyond to make his properties appreciate in value. My uncle is a results-driven man, he says it doesn’t matter what the government SAYS they want to do, only the results matter. And he likes the results.
———-
Smart guy. No PM in Canadian history has worked harder to drive housing prices and rents thru the roof, than Trudeau.
I’m considering voting for Trudeau myself. The pain needs to come on long and hard in urban Canada. They need to learn the same way Vancouver voters finally did. I’m happy to help. And hey, I own RE as well. Trudeau has doubled its value since he came to power – hard not to like.
Trudeau is utterly predictable, whatever comes out of his mouth – just expect the opposite to happen. Makes preemptive manoeuvring a lot easier.
Forgot to paste the link: https://www.merriam-webster.com/dictionary/spelt#:~:text=1%20of%202-,noun,also%20%3A%20the%20grain%20of%20spelt
Steve has an interesting problem / tax. He’ll have to figure out how to avoid it, if he still wants to continue his dream. As do several others of us.
While on a plane home from Mexico in February, I was surprised that my seatmate was doing exactly what #77 Wrk.Dover suggested. He, a Canadian citizen, resident 6.5 months of the year, was coming home in the middle of his 5.5 month “holiday” to make sure he was tax exempt and qualified for the medical he needed. Surely cheaper than the tax.
Details are important. But I feel forewarned. If we buy or even visit Mexico for 5.5 months, we’ll be coming home for a week or so, to maintain our “residency” – even when going to the cottage in the summer.
It’s crazy that the government counts how many nights you sleep in a bed. I thought T1 said, ” The government has no business in people’s bedrooms”
I have other friends who spend 5 months every summer in England at their “cottage” in the Cotswolds. They are very careful with the timing.
I’d also like to know just how Steve was caught.
Steve please inform us.
Did the neighbours rat? Are they jealous? Do they need to rent Steve’s place? Does someone want to buy it? Does a realtor want to sell it? BC needs the transfer tax for sure!
Hang on to your hats! The tax man cometh! NO he’s here!
“The policy penalizes those who worked hard to get a good credit rating, or saved diligently for a large downpayment. It rewards buyers with big loans and little equity, incentivizing people who should never buy a house to wade into debt.”
Did you realize that Obama started this and this made me realize who Obama really was. It continues and we were all cheering for Obama and now Biden.
The policy started May 1, 2023. – Garth
Flop Drops.
I used to work with a cabinet guy who used to drive in from Chilliwack each day, never heard him complain about the commute, said he didn’t mind it and he liked playing with his kids in the large, forested backyard.
Fair enough, but how far is too far?
It’s roughly 150 kilometres each way from Hope, Google Maps tells me Barrie is 110kms away from Toronto.
Brighton at 157kms along the 401 seems like a good comparison, is anyone crazy enough to commute that distance for more affordable real estate over that way.
If this house just sold in Flopville, within striking distance of downtown, it probably would have gone for something like 1.4 million, but if the kids got that 7 year real estate itch to scratch The Valley and beyond is getting cheaper by the day.
The details…
Original ask 499k
Just sold for 357k
https://www.zealty.ca/mls-R2751448/685-FORT-STREET-Hope-BC/
No interior shots, just maybe better to imagine a horror scene and be pleasantly surprised.
Hey, we only have to get the blood stain off the carpet in one room.
Maybe get one of the work from home giggy thingys.
Price of gas no a factor if you ride your bike to work, but by the time yo get there you’ll be told your shift is over and it’s time to go home.
The guy that said it was uphill both ways, was unavailable for comment at the time this post was submitted for publication…
M48BC
Great Twitter space with Elon discussing the Tesla AGM, future plans for Twitter with new CEO, working pretty much every day of the year, two major advertisers pulling ads because they were Community Noted providing context to their claims, and a bunch of other good stuff.
When asked why he says things that upset people affect the stock value, he replied:
“I’ll say what I want to say and if the consequence of that is losing money — so be it”
That’s a man I can, and do, support.
#87 Observer on 05.16.23 at 7:23 pm
It’s Spelt “Extended Amortization,” But Pronounced “Investor Bailout”.
_________
Best post of the day! If they would simply exclude investors in this bailout, there would be plenty of supply for first time buyers. What an absolute scam!!!
You gotta pay the cheese tax.
https://www.youtube.com/watch?v=L3AcyOYrnNk
#82 Wrk.dover on 05.16.23 at 7:01 pm
When we left town for more than 180 days, we would fly home somewhere in the middle of the absence for a week to recharge our health care eligibility.
A staycation in the middle of a vacation. Kind’a fun!
That should work for Steve next time.
#######
You can be out of country 7 months before jeopardizing AHS.
https://www.cbc.ca/news/business/inflation-april-1.6844703
Inflation goes back up 0.1%/month.
Bought 2.5lbs of 3.5″ nails @ $3.00/per lb. today.
Hey, millennials are right. I used to get the 50lb box for $16.00
DELETED
Have your say:
https://www.bankofcanada.ca/digitaldollar/
Ahhh yes.
All the federal politicians and provincial leaders have lined up to announce.
“Repeat violent offenders” Laws will be “toughened”.
Marco Mendicino specifically mentioned his beloved topic “Gun crimes”
Suspects arrested for a gun crime that ask for bail have a “reverse onus” to argue why they SHOULD get bail…
Is this any different than what was in place?
Okay.
However that does NOTHING for the random assaults by obviously deranged individuals with fists, knives or anything other than guns.
Everyone is fed up with repeat offenders arrested for their 50, 100, 200th time for smash and grabs being released on bail after the police book them.
Violent shoplifting is a rising crime urban centers where criminals threaten shop owners with clubs. hammers, machetes, etc.
This grand announcement will achieve nothing in the grand scope of violent, random, weaponless, assaults increasing daily….all across Canada.
Pathetic, disgusting
Vote accordingly.
I don’t know how the provincial government or metro Vancouver knew they were out of the country more than 6 months unless they told them.
No need to panic, our trusty regulators will likely end up loading weight (capital/debt) on the other side of the ownership equation.
Mortgage interest deduction against personal income and real property repair, remediation and green tax schemes/incentives, anything to create balance on the way to even higher prices.
I whole heartedly support the vacancy tax. It is not a perfect solution, but it is the only thing that works to improve vacancy rates.
How the amortizations got extended:
Variable interest rate with a static fixed payment means the amortization has to vary.
Start at 25 years if the rate increases the amortization has to increase. That’s the math of the matter. If the rates doubled the amortization is automatically way longer. Bank does nothing. It simply has to happen. Math demands it.
As to what happens at trigger point, unreliable sources tell me nothing has to happen except maybe the client is told hey you are now on negative amortization.
#105 Alois on 05.16.23 at 11:58 am
#71 Ponzius Pilatus on 05.15.23 at 11:31 pm
Only the good die young:
===============================
COMMENT:
Happy 666 th Ponzie !!!
————-
One more stupid comment, and I’ll start calling you:
Alois Schicklgruber
Rent the house for the days missing….
First world problems indeed. Pay up deadbeats!
Restaurant bankruptcies up 116%
https://globalnews.ca/video/9689483/more-canadian-restaurants-filing-for-bankruptcy
Trudeau and Freeland OWN the coming karma.
Vote accordingly
“Steve pointed out the utter nonsense of trying to find a quality, short-term tenant who won’t wreck your stuff”
Tell Steve I’ve done a quarter million in revenue operating monthly rentals on and off over 8 years and nothing larger than a glass has ever been damaged … If he needs someone to take care of it I’d do so. He’d save 30k in penalties, there would be another 20k odd additional revenue assuming he is away during the winter or much more in summer, plus a newcomer gets a place to stay in our crowded city while they get their feet under them. The councillors are right on this one IMO
LMAO if T2 wins AGAIN in the next election ……well hells bells stick a fork in this country cause it will be WELL DONE
Could be even worse. In France, the far left which is now the official opposition is toying with the idea to charge a fictional rent (loyer fictif) to people who own their place outright without a mortgage. The amount of this tax would be equal to the ongoing rent for the property at market rate. They are never short of ideas, aren’t they?
My Starlink just shipped, going to set it up on our RV, pumped about having high speed, anywhere. Not a huge Elon fan, at least of the person, but this technology is pretty awesome. A friend is getting 200mbs and running a tech business from his RV. For the 199 deal they are running now, 140 a month, and off/on seasonal options it’s a pretty skookum deal.
Will report back once setup.
Wow, it’s getting crazy. I’d pay in coins.
DELETED
It rewards buyers with big loans and little equity, incentivizing people who should never buy a house to wade into debt.
———————————————————
Isn’t that what led to the subprime mortgage crisis in the United States that blew up back in 2007?
112 Mattl on 05.16.23 at 10:16 pm
My Starlink just shipped, going to set it up on our RV, pumped about having high speed, anywhere. Not a huge Elon fan, at least of the person, but this technology is pretty awesome. A friend is getting 200mbs and running a tech business from his RV. For the 199 deal they are running now, 140 a month, and off/on seasonal options it’s a pretty skookum deal.
Will report back once setup.
———————
It’s interesting how SpaceEx is turning many people into Gypsies (sorry Roma).
And the real Roma can’t afford it.
As for myself, if I’m in an area with no reception, I use smoke signals.
Another 199 bucks saved a month.
2,400 a year after tax buys a lotta beer.
That Musked Man gets not a lousy cent from me.
DELETED
#101 Barry, you wonder how the government found out they were out of the country just over 6 months? I wouldn’t be surprised that someone in their condo development let the government know about the vacancy situation
Faron on 05.16.23 at 6:14 pm
#56 TurnerNation on 05.16.23 at 4:58 pm
#22 Russ on 05.16.23 at 3:33 pm
Wait, I was told by you, TurnerNation, that the COVID response was a global cabal synchronised by the WEF/DeeeepState/George Soros crowd. Now Russ is telling me that there were regional differences in degrees of lock down? Seems entire countries locked down their construction sectors, entire provinces in Canada too. Gosh, if I didn’t know any better, I would swear that regional responses were mediated by combining global knowledge with regional data kinda like a functioning bureaucracy otta.
=============================
Faron dear,
Put the strawman down, if you shake it too much they/it will fall apart.
Russ did not tell you anything.
The CBC article is interesting though in that it seems to position an objection to Ontario construction industry being an essential service in the spring of 2020 and appears to be advocating a lockdown of same.
B.C. construction industry situation was similar to Ontario at the time.
‘ might be an opinion vs. facts thing going on here.
Cheers, R
How has no one asked how does city council even know how many days a year people spend in their homes ? Seriously, are councillors knocking on doors checking ?
#115 Doug in London- “Isn’t that what led to the subprime mortgage crisis in the United States that blew up back in 2007? ”
Voila!!
Blogs are fresh daily. And the inflation number is a fat nothingburger. – Garth
____________________________________________
Unless the rate had gone down and then you would have said it was more proof that there won’t be a recession, yada, yada, yada.
BTW, how many of those empty house cities are run by left wingers? Keep on voting NDP, people! The left coast is a lost cause. You brought this on yourselves.
Pay up Steve-san, stop trying to game the system.
#18 I’m stupid on 05.16.23 at 3:22 pm
If I was a billionaire I could buy an elephant and use it like a horse going down Yonge street. I’d get fined but so what every day I’d take my elephant to run errands and I’d keep paying the fine. No big deal! Just saying we’ve been legislated into confinement and as more time passes more freedoms will be stripped from us.”
——-
Don’t forget to get some snowshoes and hi Viz red nail polish for that pesky pachyderm in the slippery blizzard winter months. In the summer he can hide in a cherry tree.
Ah Steve you poor old guy. I bet you voted Liberal or NDP your whole life hey?
I don’t think it is right what our banana guavament is doing to you but you know what they say…
Elections have consequences my dude.
No doubt it will get worse over the coming years as the VAST majority of Canadians vote for the NDP/Liberal coalition in the next election.
Simple solution to a simple problem, Steve: Stay in the place for six months.
Vancouver announced that it will consider returning millions in taxes to developers and will allow them to sell the condos to anyone without restriction. I guess it’s only immoral if a guy like Steve owns one and declares ownership so he can find a homeless crack addict to rent to. Foreign investors declare themselves a commercial entity that pays no tax ?
Is Steve being penalized because he’s not of a multi family culture and can’t preserve the sanctity of home when a member returns to the homeland to tend the farm? Shouldn’t those same multi family travelers have to rent out the bedroom they vacate?
What of the land registry in the “homeland” where a property shows ownership where 80% of the people share the same surname… just not in BC. Are all those people we see traveling home for seasonal duties declare that status? Will Steve and others like him declare in the future? This situation is a glaring rip off of honest people and should be rectified or is every “Steve” in Canada now a prisoner to a greedy bureaucracy?
According to the CRA, you’re a resident for tax purposes if you own a home in Canada. So avoiding income tax doesn’t seem to be the reason they spent less than 6 months here.
As for:
people with good credit and substantial downpayments pay more for their mortgages than low-income and first-time borrowers
FFS! When will governments stop punishing those of us who are financially responsible/disciplined?!
They always said real estate always goes up but they forgot about all the taxes on real estate, property that keeps going up and up and up. You made this point in this topic today.
Tough luck, Stevey-boy. Desperate times call for desperate measures. He’ll get his ~$20k back when he sells tax free. Some rules make less sense than others, but you still gotta play by ‘em.
I would never rent out a place as the freeloaders need to rent from a big landlord, property company. I am tired of being a sucker trashed landlord for those that do not pay and the law protects them. Need a place to rent good luck finding more places to rent as less people will rent out as these socialist policies continue to make things worse.
Too blobby. Yes I do hope Pierre will someday be our glorious prime minister. However I hope it will not happen until we are ravaged by a recession. This may make us ready/willing to adopt true and good conservative policies
The onslaught of taxes, carbon and property and fees of all kinds along with the massive borrowing and spending by govt is all part of their radical agenda. Goal is to make life so intolerable and expensive that existing middle/upper middle class are forced to sell and leave or go bankrupt with the properties/land taken over for high density housing to accommodate the massive influx of coming migrants into large cities then eventually to small cities and towns. They plan to 2X/3X our population with a large portion coming by late 30s. They need them to work the factories as war with China is coming soon and they need them to be soldiers for us.
I’m all for immigration but this plan is a radical out of control plan to completely overwhelm our country on purpose. The woke ideology is a core part of preparing us for this. The plan calls for the collapse of Africa late 23 onward and it has been initiated with Sudan already. They will cut off food/grain supply to Africa late this year /early next and millions upon millions will leave to europe/uk /USA and Canada
I strongly support immigration and am born to 1st generation immigrants
But our immigration policy has been weaponized by governments
It’s not right for those coming in re housing / cost of living and not right for us here already
We need better leaders.
No one wants to admit price reductions are necessary.
>>>
In Canada, the national vacancy rate of office towers just hit an all-time high, and in New York, there are enough empty offices to fill 26 Empire State Buildings.
The commercial property puzzle: Real estate investors refuse to write down assets despite public market pain.
https://www.theglobeandmail.com/business/article-investing-commercial-real-estate-valuations/
Why? It was stable. Yawn. – Garth
How is a re-acceleration stable? Stable unless you own a home (+28.5%), rent one (+6.3), put gas in your car (+6.3%)or eat (+9.1%)…lol…Ok Garth…Whatever.
#29 Classical Liberal Millennial
Truly only the mentally unhinged would support such a draconian, backward policy.
———————————————————————————————————
Well, the numbers are with them.
You just described 100% of governments at every level, plus more than 50% of the whacko population.
We live in the age of insanity and absurdity.
By the way, couldn’t that genius double property owning power couple figure out a way to skirt those stupid tax laws?
Like, come home a few days earlier, at the very least, or get some friends to “rent” their Vancouver house for a month?
Seems like a pretty simple work around.
Eff the NDP.
@#120 Hungus
” Seriously, are councillors knocking on doors checking ?”
+++
4o years ago a friend of mine was home doing paperwork for his small business in Vancouver.
It was mid day, mid week.
His doorbell rang. His dog started barking.
It took him about 30-60 seconds to get to the door.
A man in a city By-Law uniform was walking down the steps back to the sidewalk.
“Can I help you”?
“No no. Just checking for dog licenses….”
Seems the city would send the By-Law guys around to ring door bells. If a dog barked and there was no license for that address….you got a letter in the mail…….
Soooo.
The Liberal govt’s new “Tough on Crime” announcement comes as their polling numbers continue to sink.
https://vancouver.citynews.ca/2023/05/16/bc-bail-reform/
A political knee jerk reaction to a very serious problem.
They are going to make it harder for “violent criminals to get bail”
One would assume.
This will mean the jails and prisons will be getting filled up?
Anyone heard of any new jails or prisons being built in the last 5 years?
Anyone? Anywhere in Canada?
Banks love and promote real estate…..without real estate they can’t create more counterfeit money…. #Usury $DebtSlavery
Home Depot is the canary in the coal mine.
And this is how its done in a democratic country where sorry often equals to I do not care
#89 Observer on 05.16.23 at 7:43 pm
Forgot to paste the link: https://www.merriam-webster.com/dictionary/spelt#:~:text=1%20of%202-,noun,also%20%3A%20the%20grain%20of%20spelt
^^^^^^^^^^^^^^^^^
Still not the right link. Here it is: https://betterdwelling.com/canadian-real-estate-prices-propped-up-by-longer-repayment-bank-regulator/
I agree with this approach. Taxing is a necessary component of a functioning society.
#99 B from Q on 05.16.23 at 8:45 pm
Have your say:
https://www.bankofcanada.ca/digitaldollar/
>>>
I think EVERYONE here should take this survey. This survey, through nature of questions asked is very enlightening. Your eyes will be open I believe.
Personally, after taking this survey, I think this digital dollar currency is coming 100%. A roadmap for introduction of this Digital Dollar is set with a launch date on the schedule. There is a matter of marketing it now.
I think the logical roadmap is as follows:
-Introduction of digital dollar, parallel to current cash based dollar, and of course at parity.
-Three to Five year circulation of both currencies to ease concerns and speed adoption.
-Withdrawal of cash based CAD following this period.
…at that point all transactions are trackable, traceable, controlled. Even your precious metals cannot be sold for cash at that point, and will need to funnel back into the digital dollar tracked/traced domain. Same with any and every asset, including crypto – it will not be able to remain untraceable at time of conversion to Canadian digital dollar.
Not that the option to live off-grid or enjoy anonymity is important. However, certainly having the option is always better than not having it, and the key features are clearly loss of anonymity.
A very expensive lesson on the consequences of the vacant homes tax. Shocking amount of vitriol in blog comments directed towards the couple. The envy flag is flying. Funny how all those folks overlooked the fact said couple worked hard to achieve their retirement goals. No, said couple are to be castigated, blamed & suspected of being tax dodgers, suspected of not being Canadian, considered entitled, are the root cause of homelessness in others due to owning a property they don’t occupy 12 months of the year etc. Wow, just wow.
So here is what puzzles me. The empty homes tax is considered to be ‘the answer’ to homelessness & even better, a way of punishing those whose success stirs envy in the hearts of others. Given the vacancy rate of commercial buildings, should there not be an ’empty office space’ tax? Why isn’t there a public demand that those millions of feet of empty office space not be used to ‘end homelessness’ & provide living quarters for the masses? Most are in those much desired downtown central city locations to boot. How is it o.k. to ‘allow’ said buildings to sit empty for literal years at a time but penalize residents who don’t occupy a house for at least six months of the year?
Another thing I wonder. What if the result of these empty home taxes & penalties renders the owner homeless? Maybe that is the goal? We can’t own/rent shelter, let’s make sure those who have it join us in our misery? Serves them right, let them suffer too! That will teach them!
Well you got that part right the govs are absolute morrons.
None of them have 2 residences!? Ya right.
Not going to war against this crap makes the voters idiots for allowing it.
Avg rent in my hometown for a 2 bedroom just hit 3700$. Good god. Imagine earning 20$ an hour and trying to pay that.
@#128 gregonomic
“FFS! When will governments stop punishing those of us who are financially responsible/disciplined?!”
+++
When the “equality for everyone” socialists have pried the last penny out of your cold, dead hand……
#119 Russ on 05.17.23 at 12:34 am
Faron on 05.16.23 at 6:14 pm
#56 TurnerNation on 05.16.23 at 4:58 pm
#22 Russ on 05.16.23 at 3:33 pm
Wait, I was told by you, TurnerNation, that the COVID
…
Russ did not tell you anything.
—
You, Russ, have a problem comprehending parentheticals.
There’s no straw man here (I don’t think you know what one is TBH). TurnerNation informed us that no construction was shut down for COVID. It was dead simple to show that there were construction shutdowns. Because of his blanket statement my only burden was to show that there was any shutdown anywhere. Even in Ontario there were restrictions on what projects could be worked.
This is one of the conspiracy wackos tactics. Make broad, umbrella statements and then dig through the haystack to find the one needle of an instance where it is kinda true. Then amplify. Repeat ad nauseum.
#145 Linda. Spot on. Well put. Thanks
“In addition to the real estate holdings of Liberal cabinet ministers — notably including Prime Minister Justin Trudeau, Deputy Prime Minister Chrystia Freeland, Housing Minister Ahmed Hussen and cabinet ministers David Lametti and Francois-Philippe Champagne — 38 percent of the MPs in all parties are real estate financiers or landlords.”
— Douglas Todd, Vancouver Sun
No wonder they extended amortization!!!
Absolutely nothing to do with it. The comments to this post are disturbing. – Garth
public long lines – to private demand
A leading NHS consultant psychiatrist has met me in person and concluded I don’t have ADHD – attention deficit hyperactivity disorder. Yet, after shorter assessments online, three private clinics have told me I do – and offered me powerful medication.
https://www.bbc.com/news/health-65534449
# 145 Linda “Given the vacancy rate of commercial buildings, should there not be an ’empty office space’ tax?”
I live in Calgary and I think there should be. Well maybe not on the large buildings but at least on these empty low rises. The city is littered with empty abandoned commercial properties. Talk to any realtor and they will tell you the guy who owns that is out east and he is just holding this for his grand kids . Story varies very little. I believe some of these guys even get tax breaks when sitting empty. There are buildings going on 20 years abandoned. Calgary doesn’t need an empty apartment tax but it needs to either tax these people to rent these lots or sell them to someone else. There is economic harm being done by these people.
Mortgages were not extended by any action instead they automatically extended. Huge difference.
Still bad but not nefarious. Chill and wait for renewal and see how it goes.
You seem to miss then key issue: a deferral of listings by people who bought what they could not afford without the amortization extention. Therefore, market and price bouyancy in the teeth of less affordability. – Garth
Someone has to tell T2 that all problems do not solve themselves particularly when you are the one creating them. I bought a coffee cup today with the motto “I can and will”.
Maybe Canada will get kicked out of the G7 club because of our growing irreverence. I don’t know why T2 is at the meeting as no one listens to him. You need entertainment at these meetings, call T2.
I am angered about the EV battery factories. Stellantis can walk and do better elsewhere. The TP’s of Canada end up with a hole. From what I glean, Stellantis will walk free given Government grants.
I look at Switzerland democracy and think why not with Alberta? There is a world of difference. The biggest one being we are not surrounded by large numbers. I like their idea of plebiscites and independence. One of my nieces worked there as a nanny. It was not fun.
There is book smarts and street smarts. On main street, it is winners and losers. I find corp executives tend to divide operations into profit or cost
centres. Woe to these who are perceived as cost. It is no small wonder that public servants feel underappreciated. But then, in many ways they earn it. My life would not end if government was smaller.
I shake my head at minds who think they are important (I am going to pay). Pandemic lockdowns will go down in history as stupid (see Sweden). As much as I despise Carbon Tax and GST, I admit they are good policy. I would rather take less government largess but that is me. Better economic productivity would solve problems like inflation. I don’t like entitled attitudes either.
I listen. There is no shortage of self-promoting experts in today’s world. I can easily find an echo chamber. That is not what I seek. I still get a kick of Elon calling a Thai cave rescuer a “pedo” and throwing weights through the side windows of his cyber truck. The man is impulsive yet gets things done. The Spacex heavy will be a success.
I don’t know what to make of markets. Commodities are deflating and the CPI inflating. Then there is the mystery of RE. Huh? Even the big short guy is buying regional banks known as credit unions in Canada. Things don’t look rational to me. I will stick to building dry powder and kicking international ETF tires.
#144 Theory of Everything on 05.17.23 at 9:13 am
Took the survey. Cripes, it’s long. Cripes is it useless. Pro tip: don’t put propaganda in a survey if you want reliable data.
Anyhow, I couldn’t care less about a digital dollar, for me. I have never owned a tinfoil hat. Everything I do is already traceable and, excepting when Old Boot or BillyBob digs through my digital life, I don’t much care. In fact, if it cuts out fees to banks, then I’m more in favour.
Overall though I’m opposed based on grounds of equity and useability. Until I see a believable proposal where this thing can be used by a person living in a tent on Pandora or even LoserVille, I’m opposed. Until it’s made clear to me that this thing works when infra is wiped in the Cascadia megathrust earthquake, I’m opposed. Until it’s made clear to me that it’s truly unhackable, I’m out.
Do not rush to worsen your credit score in the hope of getting a better mortgage rate.
https://www.fhfa.gov/Media/PublicAffairs/Pages/Statement-from-FHFA-Director-Sandra-Thompson-on-Mortgage-Pricing.aspx
The recent changes give a perk – lower rates – to borrowers with low income, while hiking fees on others. Not without controversy, but not as dumb as rewarding poor credit scores with better rates.
You still benefit if your credit score is good. You just won’t benefit as much as you did before.
As for Steve McClure’s situation .. fortunately, all Vancouver homeowners are completely honest people. None of them will bypass the new rule by signing a fake mortgage agreement with a friend who doesn’t need housing at all.
Maybe, that friend would spend a few nights at the property, so that if the city ever bothers to investigate, the friend will know the location of kitchen and bathroom. But why speculate, noone is going for that kind of scheme.
Perry Mason here…
Re: Steve’s issue?
Simply remove toilets etc…or sabotage them aka make it “UNsafe” health wise….then another bureaucracy gets involved ….which is always fun.
Thus….. can’t rent the unit.
N/C
#154 Shawn on 05.17.23 at 12:16 pm–Mortgages were not extended by any action instead they automatically extended. Huge difference.Still bad but not nefarious. Chill and wait for renewal and see how it goes.—
(You seem to miss then key issue: a deferral of listings by people who bought what they could not afford without the amortization extention. Therefore, market and price bouyancy in the teeth of less affordability. – Garth) +++
See how it goes?… Not according to this:
Proposed Guideline on Existing Consumer Mortgage Loans in Exceptional Circumstances :
“FRFIs that offer mortgage relief measures that would result in an extended amortization period should do so on a temporary basis, with consideration for the consumer’s ability to restore the amortization to the original period.
In the event that an extended amortization is the appropriate mortgage relief measure, FCAC expects FRFIs to develop a plan with consumers to restore amortization to the original period within a reasonable time frame. The plan should include an assessment and communication of the potential long-term negative financial implications on the consumer.”
Translation of Baffelgab : “Due to the myopic approach undertaken by all who are a party to the current pickle we find ourselves in with housing/real estate, we are putting the Banks (FRFI’s) on immediate notice that we are passing this hot potato to them. Get it figured out asap, and make it go away, please.”
It would have been cheaper to fly back to Canada for one week and stay in the unit, just to keep it below the threshold.
Then they could truly say… up yours, yer not getting any tax from us.
The point is that this is an arbitrary, clumsy, ‘envy’ tax we should all be questioning. – Garth
I don’t think anyone in Gov. is actually trying to destroy the Canadian middle class. But it sure feels like it at times.
A two tier society is slowly but surely evolving, haves and have nots. An awful lot these days has to do with when you were born and who your parents were.
Not the Canada I knew when I was growing up in the 1960’s and early 70’s. Those things could matter at that time, but not nearly to the degree that seems to be the case today.
I’d say the country is done. Why? Everything but a working man’s pay is too expensive, is illegal or nearly so or is a privilege for the rich. It reminds me of the 13th episode of Sharpe’s Rifles which is in post Napoleonic War Britain after Napoleon was exiled to the island of Elba.
Only the nobility and rich had property and the workers were essentially beggars or working for next to nothing if they had work. Crime was rampant. The police and army were essentially the same and had no qualms about attacking and killing there own people.
Local oligarchs were in bed with government. Sound familiar?
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