Couldn’t agree more, the thing people fail to realize is the capital that gets tied up and the risk associated with it. They just think you’re evil and make nothing but money on these poor people renting your house. If it’s so easy to buy investment property’s and make nothing but money, then why don’t these tools crying about them get one of their own?
Former Bank of Canada Governor David Dodge said the increase in spending in the federal government’s new budget will make the central bank’s battle against rising prices more difficult.
“It — along with the provincial budgets — is really not very helpful to the Bank of Canada in terms of dealing with inflation,” Dodge said Thursday in an interview on BNN Bloomberg Television. “That’s unfortunate.”
“It’s these young voters that are going to be saddled with the debt going forward,” he said.
Credit rating firm DBRS Morningstar said the spending boost may be “counterproductive” as the Bank of Canada tries to bring inflation back to its two per cent target.
Couldn’t agree more, the thing people fail to realize is the capital that gets tied up and the risk associated with it. They just think you’re evil and make nothing but money on these poor people renting your house. If it’s so easy to buy investment property’s and make nothing but money, then why don’t these tools crying about them get one of their own?
Good to see some understanding of what others have to deal with in this world. Really top notch empathy.
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Couldn’t agree more, the thing people fail to realize is the capital that gets tied up and the risk associated with it. They just think you’re evil and make nothing but money on these poor people renting your house. If it’s so easy to buy investment property’s and make nothing but money, then why don’t these tools crying about them get one of their own?
Admittedly, many people break even on a rental property as they are mortgaged to the hilt; however, the supposed return is on the increase in the value of the property on sale.
Which is truly a ####ty way to run the housing market. Viewing homes as an investment is what has led to this issue in the first place. Zoning is restricted and new starts are culled because people are worried about the amount of money tied into a property.
Look at all the chuds in BC who cried foul when they restricted short-term rentals. Like somehow we are supposed to care about their investment?
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Everyone realizes that we wouldn't be having all these housing problems if the Liberals wouldn't have blown the system apart with their immigration policies?
People have been buying homes & second homes as investments for years. Homes have always appreciated in value for the most part, and therefore it is automatically an investment.
I have no problem going after private equity, foreign investors, AirBNB owners, etc when it comes to their role in the market, but I fail to understand how going after individual home owners is a solution worth anything.
While at the same time not doing anything about the real problem, immigration.
Everyone realizes that we wouldn't be having all these housing problems if the Liberals wouldn't have blown the system apart with their immigration policies?
People have been buying homes & second homes as investments for years. Homes have always appreciated in value for the most part, and therefore it is automatically an investment.
I have no problem going after private equity, foreign investors, AirBNB owners, etc when it comes to their role in the market, but I fail to understand how going after individual home owners is a solution worth anything.
While at the same time not doing anything about the real problem, immigration.
No everyone doesn't realize that. Housing prices took off during the pandemic (May/June 2020) when Canada only had 280,000 in permanent immigration. It accelerated in 2021 with even lower immigration. House prices have declined overall in the last 2 years where immigration has doubled.
In May 2020 the average home was $539,000 and started a steep climb peaking at $836,000 in Feb 2022.
Annual immigration during that time was under 300,000. Immigration started increasing in 2021/2022 just as the prices peaked and has continued at its high level while housing prices fall.
There is no correlation between immigration and housing pricing. Now, I'll say if you are looking at cost of renting, there may be a correlation there, but I was only looked at housing prices.
If you look at when the prices started jumping, (May/June 2020), that coincides with the Feds dropping the overnight rate from 1.75 to 0.25 in March of 2020. When did the rates go up again? March 2022, as housing prices peaked the month before, interest rates cooled them off.
Interest rates plus the excess cash available to many people during the pandemic, coupled with a bear stock market and confidence in the Canadian housing market were much more to blame for what happened. Here is an article from the NP in 2021 calling out the housing affordability crisis without a single mention of immigration.
So it seems like investment in the market, spurred on by excess cash and affordable interest rates drove the problem, not immigration policies.
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^You are correct...if talking specifically of housing price.
Housing prices was clearly a huge problem way before the recent immigration spike. Immigration wasn't on radar yet in 2022, it was runaway inflation as a result of historically low borrowing rates that caused a buying frenzy. As you showed the average has dropped overall in the past 2 years due to housing prices in Toronto and Vancouver now that interest rates have normalized. Now of course, if we include interest rates, the cost of borrowing in 2024 is significantly higher than the peak in Feb 2022.
The same cannot be said for rent. Extreme immigration levels and a spike in interest rates is largely why Canada has seen an insane jump YOY
A new report says the average asking price for a rental unit in Canada was $2,193 per month in February, marking a 10.5% jump year-over-year and the fastest annual growth since September 2023.
Canada also has the lowest vacancy rate seen since 1988, which can only be attributed to supply / demand as a result of immigration.
In most major markets across Canada, strong rental demand outpaced supply for the second year in a row, resulting in less available purpose-built rental apartments and lower affordability in Canada’s primary rental market, according to the latest Rental Market Report (RMR) released by Canada Mortgage and Housing Corporation (CMHC).
As a result, the national vacancy rate for Canada’s primary rental market reached a new low of 1.5% in 2023, the lowest recorded rate since 1988, when CMHC began recording a national vacancy rate.
I would equate the housing crisis as encompassing rentals as well (as shown here), as such Azure's statement is at least partially accurate.
There's no point in simplifying the issue. The rate of arrival for working aged immigrants also vastly outpaced job creation, resulting in a suppression of wage increases, which in turn put pressure on housing, as income did not raise at the same rate as rental cost.
I don't think that there is any way to spin the unprepared for immigration rate as a good thing, at this point. It was poorly executed.
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Good explanation of the capital gains tax and what it means when your parents die and you inherit their property. Primary residence exemptions still exist, so you won't be paying capital gains on it.
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I'm still trying to get my head around the implications of the capital gains tax changes, definitely not a tax expert. I work for an employee-owned firm and my shares are a fairly significant part of my retirement savings. I think with this change (presuming it isn't overturned after the next election) rather than selling all my shares at once when I retire I would be better off selling them over time so my capital gain doesn't exceed $250k in any year?
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^You are correct...if talking specifically of housing price.
Housing prices was clearly a huge problem way before the recent immigration spike. Immigration wasn't on radar yet in 2022, it was runaway inflation as a result of historically low borrowing rates that caused a buying frenzy. As you showed the average has dropped overall in the past 2 years due to housing prices in Toronto and Vancouver now that interest rates have normalized. Now of course, if we include interest rates, the cost of borrowing in 2024 is significantly higher than the peak in Feb 2022.
The same cannot be said for rent. Extreme immigration levels and a spike in interest rates is largely why Canada has seen an insane jump YOY
I would equate the housing crisis as encompassing rentals as well (as shown here), as such Azure's statement is at least partially accurate.
And I did point out that I was not considering rentals which I have no doubt is affected by immigration, but Azure's post was pretty pointed at cost of purchasing and how people have been buying and selling houses for years and the "real problem" was immigration.
I think Harry Lime just made a good point about simplifying. The cost of home purchases is caused more by interest rates and excess cash than immigration. Rental pricing probably has a large correlation to immigration (as I stated I didn't go into that), but also has the component of increased housing purchasing costs being passed along to renters. Its all part of a very complex interconnected system.
So yeah the points "we wouldn't be having all these housing problems if the Liberals wouldn't have blown the system apart with their immigration policies" and "the real problem, immigration" are not true and oversimplifies the housing market to one untrue soundbite.
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I'm still trying to get my head around the implications of the capital gains tax changes, definitely not a tax expert. I work for an employee-owned firm and my shares are a fairly significant part of my retirement savings. I think with this change (presuming it isn't overturned after the next election) rather than selling all my shares at once when I retire I would be better off selling them over time so my capital gain doesn't exceed $250k in any year?
Not a tax expert
This is correct but it isn’t really changed from before this change. You would have been unlikely to want to sell more than 250k per year before the tax change because of how much that would increase your marginal tax rate you were paying on gains and to avoid OAS clawbacks. You likely wouldn’t want to have an income higher than the top of the 20.5% bracket or even the 15% bracket.
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I'm still trying to get my head around the implications of the capital gains tax changes, definitely not a tax expert. I work for an employee-owned firm and my shares are a fairly significant part of my retirement savings. I think with this change (presuming it isn't overturned after the next election) rather than selling all my shares at once when I retire I would be better off selling them over time so my capital gain doesn't exceed $250k in any year?
I think the target is really investment properties, as you can't sell off a portion of your gain each year to keep it under $250,000.
The 0.13% number they're claiming it will effect is in any given year, because obviously the people with investment properties won't sell every year.
But the % of people who will at some point be hit by the increase, in the year they finally do sell or pass away will be much higher.
Particularly with the amount of equity wealth boomers hold right now and will be transferring generationally to their inheritances, that's the $ Trudeau wants his hands on.
I think the target is really investment properties, as you can't sell off a portion of your gain each year to keep it under $250,000.
The 0.13% number they're claiming it will effect is in any given year, because obviously the people with investment properties won't sell every year.
But the % of people who will at some point be hit by the increase, in the year they finally do sell or pass away will be much higher.
Particularly with the amount of equity wealth boomers hold right now and will be transferring generationally to their inheritances, that's the $ Trudeau wants his hands on.
And I did point out that I was not considering rentals which I have no doubt is affected by immigration, but Azure's post was pretty pointed at cost of purchasing and how people have been buying and selling houses for years and the "real problem" was immigration.
I think Harry Lime just made a good point about simplifying. The cost of home purchases is caused more by interest rates and excess cash than immigration. Rental pricing probably has a large correlation to immigration (as I stated I didn't go into that), but also has the component of increased housing purchasing costs being passed along to renters. Its all part of a very complex interconnected system.
Do you (and others) think that the price of housing is driven up by the cost to rent, or is the cost to rent driven up by higher housing prices? Sort of a chicken or egg question.
And I did point out that I was not considering rentals which I have no doubt is affected by immigration, but Azure's post was pretty pointed at cost of purchasing and how people have been buying and selling houses for years and the "real problem" was immigration.
I think Harry Lime just made a good point about simplifying. The cost of home purchases is caused more by interest rates and excess cash than immigration. Rental pricing probably has a large correlation to immigration (as I stated I didn't go into that), but also has the component of increased housing purchasing costs being passed along to renters. Its all part of a very complex interconnected system.
So yeah the points "we wouldn't be having all these housing problems if the Liberals wouldn't have blown the system apart with their immigration policies" and "the real problem, immigration" are not true and oversimplifies the housing market to one untrue soundbite.
I agree with you on recent immigration. They're not driving the housing market and generally not coming here wealthy.
They effect rental and there's correlated impact on housing pricing, but it's not a main driver.
We did have a wealth class immigration program in Canada until 2014 which allowed a fast track to PR by investing over $800,000 with the government for 5 year IIRC.
There was tons of wealthy immigrants that came over from mostly Hong Kong and China under this program and bought up tons of Vancouver and Toronto.
I think the effects of that program are still heavily impacting our market; what a bad idea that was.
Then came foreign buyer bans which don't even effect these buyers, because they have PR or citizenship and bags of wealth made in different countries.
IMO, that program was the nail in the coffin for housing affordability.
That was pretty light., can't I take a little shot at him?
You've gone much harder after the politicians you don't like; I'm sure you can handle that tiny jab.
