Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
When ‘Carol Vivian Constable’ is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.
As a municipal government employee, I will continue to bang the table on how bloated and inefficient all tiers of government are. To be honest a lot of that is a result of unions and the fact that the number of jobs at least for OSSTF cannot shrink. Ffs we need to reduce the size of government and let the free market ramp up supply … and stop bringing in immigrants we can’t house by selling them a false dream that can’t even be achieved by young Canadians. In essence, fuck the bloated bureaucracy that is all tiers of government.
Removing the best paying jobs will destroy everyone’s economy. We are at a state where doubling down on stupidity is the only way forward. This is why I continue to hold assets. Life will cost more and more for everyone.
In Ontario we have an issues with the provincial government overriding the municipal. There's a development waiting for approval. They want to put 400 homes with one access road through an older subdivision. They say they can't add an access off the 2 lane hwy because of the MTO. The school in this town can only handle 250 kids. There's no grocery store or gas station. There's no corner store open past 8. They don't want to expand the infrastructure! They just want the houses built with no consideration. People who care like you do need to start running in elections! We need to take our country back. No more corrupt pay offs.
its the conflict of interest not the bureaucracy. Home owners don't want to pay their taxes, would much rather young people pay their taxes indirectly for them through development fees.
@@miaa7097 Bureaucracy is what the corporates love. Big business hates small business and the best way for large corporations to eliminate small business is with red tape.
Only Liberal math suggests that more taxes and fees cause reduction in prices. I can hear Trudeau now… 8 of 10 people in Burnaby are better off with the 50k increase in fees for a 1 bedroom.
These elites in tandem with the corrupt government will take this country to it's knees like the fall of Rome, My sympathy goes to anyone approaching retirement, you may have reasonable concerns over your pension and if it'll stretch to cover the rising cost of living, bad regulatory policies, bad energy and insane fiscal policies.
It's a vicious cycle. If people can't afford homes, they might delay retirement savings, but if they focus solely on saving for retirement without considering their housing situation, they might miss out on potential investment opportunities.
Financial planning and retirement strategies are crucial, especially in today's economic climate. With global economic fluctuations and uncertainties, it's essential to have a solid plan in place to protect your financial future.
You should Consider diversifying your assets to include a portfolio with a mix of stocks and stable assets. Seeking professional advice now could provide valuable insights and strategies to navigate market uncertainties and protect your investments.
No doubt being financially free and not having to worry much about housing and other expenses cannot be overemphasized, making smart plans and setting up diversified investment portfolios is quite essential.
fear a housing crash due to people buying homes above asking prices with little equity. If prices drop, affordability and potential foreclosures may arise, worsened by future layoffs and rising living costs. I want to invest more than $300k, but I'm not sure on how to mitigate risk.
Consider reallocating from real estate to other reliable investments like stock, crypto or precious metals . Severe recessions offer market buying opportunities with caution, as volatility can yield short-term trading prospects. Not financial advice, but it may be wise to invest, as cash isn't ideal in this period.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her.
Broken country, its sad. I make 4x the average salary in Vancouver and it doesn't make sense to go into 1M load for 2-3bed apartment that costs 5-6k per month, for 25y. Just crazy.
They want the housing prices to remain high! It's pretty obvious now. I heard some developers are sitting on deposits gaining interest on people's down payments and stalling the start dates. This situation is out of hand! Canadians are getting screwed super hard. I'm disgusted with the way people are thinking, the ones getting rich off the middle classes savings.
TRUTH!! Thank you Steve. Please keep talking facts and numbers about government policy. Government policy is the root of a difficult societal existence. Thank you!!
Because so many people overpaid for homes during a period when interest rates were low, I believe there will be a housing crisis because these people are in debt. If housing prices continue to fall and, for whatever reason, they can no longer afford the house and it goes into foreclosure, they will have no equity because they will not make any money if they sell. I feel that many people will be affected by this, especially given the predicted mass layoffs and fast rising living costs.
I recommend investing in shares to balance out your real estate assets. Even the toughest recessions can give wonderful purchasing opportunities if you are prudent. Furthermore, volatility can create wonderful short-term buy and sell opportunities. Although this is not financial advise, you should buy right now because money isn't king right now!
You are correct. With the help of an investing coach, I was able to diversify my 450K portfolio across markets, and I was able to create a little over $830K in net profit by using high dividend yield stocks, ETFs, and bonds.
Would you mind sharing some information on the adviser who assisted you? Since the age of 18, I've been saving for a pension through a company program. As I became more taxed, I enhanced my workplace pension with a SIPP (tax advantages). I'm now 50 and would like to aggressively grow my wealth; there are a couple cars I still want to drive and mega-vacations I still want to take.
If there's mass layoffs the economy is broken. This would trigger bigger interest rate cuts, stimulating economy and jobs, increasing house prices again. If a homeowner can weather the storm they'll come out ahead down the road
govs are the largest debtors.... when interest rates go up, the deficit immediately skyrockets without 1 penny more spent. Feds collect 400B in taxes and have 1t of debt outstanding.... when the interest rate went from 0% to 5%, guess what that balanced budget just went to a 50b deficit from increased interest payments........ and people think rates should be even higher... hilarious.
"I can't believe people aren't outraged at what's going on". There's a reason why....even in good times, but especially at this time in history, everyone is so busy trying to keep their family's head above water that no one has the time to keep up with what the government is doing. They are like kids in a high school playground, just yelling back and forth at each other never solving a thing. Its just pathetic. JT has got to go by any means possible. Thanks you for keeping us up to date on all the shady deals being made by the government. Although I'm sure this is just the tip of the iceberg.
I talked to a couple of developers about the multiplex option. It sounded like I'd end up with somewhere around 350k to 400k after I'd paid out the developer and construction costs, project management costs, etc... But... that's calculating my house at lot value only! and also not figuring on capital gains tax if they were sold and not rented out when built. So off that 350 to 400k take off what you think your house is worth above lot value if sold as is on the MLS, in my case about 200k and you're left with 150 to 200k ..if you sell them take off capital gains tax paid to the government (I'm not sure on this but maybe 75 to 100k?) and you are left with 75 to 100k. But the project takes maybe 2 years and so say you factor in that you'd be renting a place for 2 years at say 35k a year is 70k off your 75 to 100k and now you are either making nothing or maybe 25k. Now if you have rental income currently and would have been collecting that for 2 years it takes to build and be paid out from the multiplex deduct that too. If you have say a basement at 3k month is 72k, maybe even a couple of roommates or a room on air bnb, and take that off too and you'd not be making anything? Or even be less well off after 2 years??? Maybe I'm missing something in the calculations, but it didn't look like the windfall I'd thought. Also you are partnering up with strangers to do this and exposing yourself to whatever happens in the housing market in the time it takes to build + all the other things that can happen in new construction like the incredibly frustrating city of Vancouver, construction slow downs and labour shortages, things that might come up with your new to you business partners etc..
I was born in Burnaby raised lived in the municipality for 26 years I feel so failed by this completely failed by the city. The city of Burnaby absolutely hates hard working people.
Ramping up the code and bylaws is potentially just as difficult to overcome and quantify the impact on how viable the project is. Policy and zoning are significant but once you over come those obstacles you haven’t spent as much money as when you face code and bylaw challenges that crush what is left of your deal
In southern Ontario all they are building is 4 bedroom homes that are 2400 square feet on tiny lots squished together! You cant fit a wheelbarrow in between them. They have a small garage with one parking space. Theyre going for 800 000+. People from Brampton are moving over an hour away from their work. The whole demographics have changed dramatically. Look up empire homes....theyre the worst builders. My friend worked as a contractor for them and the Foundations were all poured incorrectly. The water was 2 feet high in those basements. The sewer systems aren't slopped properly. Theres was mold growing during building.
Housing affordability is a lie sold to the people by the realtors and the banks. It's true that development fees make up a chunk of the cost, but what about bank interest, realtor fees and developer profits. The biggest reason for the housing price spike in has been low interest rates and higher than manageable mortgages pushed by banks and realtors pushing their clients to bid way over asking in order to make the sale. Once a place goes for $100-$200k over asking, that sets the new expected prices in that area. When that keeps happening year over year, the result is what we see now.
When you opened the show you forgot to mention the third way to achieve affordability. Instead of shrinking the home price, you shrink the home. This is the REAL PLAN, 300-500 square foot condos.
To city fees and taxes, add BC provincial new development taxes and federal GST on new development. Inflationary home prices are 90 % due to excessive government taxes etc.
Upzoning shifts the supply curve right (by reducing the cost of apartment-zoned land), but development fees just shift the supply curve left. Net effect: no change in housing supply.
Theyre saying the same thing here in Australia - were going to build more houses, but looking at housing construction rates, were already building a lot, so I doubt its possible. We need to reduce demand on the housing market, which for us means getting rid of tax incentives and reducing immigration.
Great video, thanks Steve. The biggest question is what are we going to do about it. We can keeps venting on the comments, but how do we get the government to actually do something about it. Do you really think if another party gets elected, they will do better? I doubt it very much. This house issue started in 1990s. Since then many governments came and left but things kept getting worse. I agree we should not be looking at the government to help with the housing issues.
Higher Fees do not make an iota of difference to the end prices of housing....it's a hidden tax on the land owners that takes years to filter down to the land price and ultimately slows down the rate of new housing hitting the market.
there is saying, solution for high prices are high prices, i.e. prices will shoot up that at some point system will crash on itself and reset, for house prices cycles could be very long or too long for some but crash is unavoidable at some future point
What they are not doing is opening up more land. We have so much land in this country that the fact that we have such high real estate prices is ridiculous and shows that this is deliberately done.
What this fundamentally comes down to is that they want to collect the tax revenues from new home buyers and young people to shift property taxes off of older people who are home owners. The problem is the inherent conflict if interest that drives the voting base (typically home owners not renters / people too young to vote) and politicians that answer to them and are home owners themselves. The solution to the problem is to address or eliminate the conflict of interest (somehow). How? Well, maybe its heavy handed but the province could cap municipal development fees (probably). This would force cities to get their funding from property taxes, as they should be in a housing crisis where new supply must be built.
It’s getting pretty simple for non home owners…. Get skills, leave, and tell your boomer parents to adopt some immigrants to look after them in their old age
Singapore government built bare minimum condos with very affordable price for its citizens & families can then choose to upgrade & renovate their units if they can afford them. Their homeownership is 90+% of the population.
My home has been upzoned to Transit-Oriented Area stifling planned business growth from home-based business of 20 yrs. to all Commercial use as a Coffeehouse and cafe. Now minimum building code 8 floors. So this Character 1941 restored house will be moved by Nikl Brothers house movers rather than bull 10:22 dozed. We have gone from a 30 yr. business with locations on West Coast Express, coffee roaster and 25 employees to Zero employees. We gave up on business due to municipal challenges and the new Bill 47 Transit-Oriented Area. Unintended outcomes. Bank of Canada talks about 'productivity' and this is how a 30 yr small business gets treated. We now operate part-time with no confidence in a future opportunities here but would rather just retire. Destroying small business and real estate accomplished B.C.
You can't make this stuff up as you mention. In Halifax, while there are some positive changes, still along many major bus routes they have kept height at between 8-11 meters. To put in perspective if they did a flat increase to 12 meters everyone could build to four stories rather than two-three. If they were serious about increasing density this makes more sense than doing backyard suites.
Everyone that propped up the market, pushing fomo and getting greedy also contributed to the problems we are having now, can't just keep pointing the finger in one direction, some have to be accountable for being part of the problem.
A one bedroom condo in the range of $500,000 to $600,000 😂 I'm loving this,it's pushing a lot of people out here to Edmonton Alberta,prices have shot up in the newer neighborhoods near the Airport where we are 😂 Excellent content by the way mate
I guess nobody looked at the report for Torontos unfunded liabilities? Go read page 19 and realize you are the revenue stream, it doesnt matter where you live, your municipality needs more money to fund their lavish lifestyle. If you dont know, now you know.
Massive inflation. These rate cuts are going to be minimal or could stay at roughly where they are for a long time. For as long as these government red tape and excess bureaucracy are there, lack of competitive laws & taxes, we will see a low Canadian dollar and persistently high interest rates
Burnaby - Jagmit Singh territory. ultimately ndp works similar to a crime syndicate and some get to take/steal.. and freeload.. but ultimately all end up worse off and with less freedoms
Comes at the issue from every single angle except the possibility of developers making less profit. That is, I assume, unthinkable to him? "Developers won't develop if they can't get supersize returns!!!"... So what will they do, dentistry?
People will complain when the costs get added to new units through development fees and people will complain if the costs get added thru increased property taxes. Either way people will complain. Increased sewer capacity, increased water treatment capacity, new police stations, new schools, new fire stations, infrastructure maintenance, etc... All of these costs increase when there are more people in an given area, the money has to come from somewhere.
We pay municipal gov't to stop being the problem? 50 yrs. of excess taxation, manipulation and stiffling of the free market gets us here. Now we pay the municipalities to stop?
Lets we honest the developer is not eating these costs on raw land development. They will pass it on the the builder or the selling price of the home . If the number don't work then the land will continue to be a field. Government is not going to save you or make it more affordable .
We need to make a distinction between housing affordability and ownership affordability. If we're talking about strictly housing affordability, there is another option Steve hasnt mentioned and that is social housing, i.e., more taxes, i.e., socialism. That is what im seeing more and more of all around my Vancouver neighborhood. Funny thing is, they let anyone rent these subsidized units. I know a well paid professional engineer renting one.
Pardon my ignorance, but you seem to have a lot of data on fee and tax increases, but do you have any data on developer profits? Is there any indication or data that these fees are making it unsustainable for developers? I feel like it's just conjecture on your part.
Developers are barely squeaking out a 15% profit on a good day, and they take on a lot of risk. We shouldn't have a war on developement. Let them make 15-20% profit, as long as they build build build. Bringing supply on the market is the only way prices will stabilize. If you're not business friendly, then nothing will get done. For a developer there is no point in building if the profits are only 5% or maybe a loss.
People need to wake up and realize what they are hearing is complete BS. I'm a 25 year builder retired. The actual cost to build a home is corrupt. For every 1 million of retail sales, 30% is the actual build cost while the rest is mark ups, profits, fees, GST, engineering . Does not include land or landscape and of course gouging ( which are is plenty of this). This happened because people accepted this. The only way to correct this problem is for the consumer to start rejecting these number. This will never stop until prices are rejected.
I'm hoping there will be a housing crisis so I can buy cheaply when I sell a few houses in 2025. As a backup plan, I've been thinking about purchasing stocks. What advice do you have for choosing the best buying time? On the one hand, I continue to read and see trading earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?
You're not doing anything wrong; you simply lack the expertise necessary to make money in a bad market. In these difficult circumstances, only really skilled experts who witnessed the 2008 financial crisis can expect to generate a large wage.
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
My CFA, Desiree Ruth Hoffman, is a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Thank you for this tip. I must say, Desiree appears to be quite knowledgeable. After coming across her online page, I thoroughly went through her resume, and I must say, it was quite impressive. I reached out to her, and I have booked a session with her.
@@Observer168 here's the issue with the ideal of public housing. First comes the idea, but then it never gets built nearly to the level it would need to. Next we'll do what nearly all over similar public housing initiatives did, build a ton of units in the least desirable area to save money. then the actual units themselves are crap. then we'll just massively under fund them not maintain them well. the US tried this on a massive scale and it was a disaster. There have been so many studies and books detailing why what is actually a great idea on paper just doesn't work. I have zero confidence we'd actually learn from the mistakes. there are better ways. mind you i dont think we collectively actually want to solve the actual issue of affordability so likely we'll all just keep arguing different ideas and nothing gets done.
@@RainCity3rd public housing becomes slums because the occupants are renters and don’t care about the properties. We need public housing that is sold at affordable prices just like in Singapore. I totally agree that renters will just trash the properties.
@@Observer168 , The problem with such proposal - you will be taxing predominately poor. Moreover, most of our politicians are only talking about affordability problem, in reality, they are more concerned about real estate prices going down. It is a card tower capable of burying entire economy not just someone’s political career. Nobody wants to deal with all the mess.
It is simple. Start using property tax only to fund municipal governments. Everything will fall in place. Density becomes natural result, the low income people will not be owning 2M single dwellings because they were lucky to buy them when they were 120k, and bureaucracy will shrink due to limited $ supply.
The only way to get house prices down is to curb demand..If you have a surplus of cheap houses in Vancouver ,,People will come from elsewhere to buy.. .The demand needs to be curbed through interest rates. .immigration quotas...or flat economy.. pick your poison any other scheme will not work... Developers sell for highest price they can get always, never met a developer who sold a residence cheaper because he paid less for the land or materials
Thank you for sharing. Financial education is crucial today to show incredible resilience and discipline in the volatile market, masterfully balancing strategy and insight for success. This dedication to continuous learning is inspiring...managed to grow a nest egg of around 2.1BTC to a decent 15B TC in the space of a few weeks... I'm especially grateful to Linda Wilburn, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape..
The key to financial stability is having the right investment suggestions for a diverse portfolio. Many investment failures and losses happen when you invest without proper guidance.
Great show again iam a landlord iam in Ottawa been in the real estate game for 25 I’ve been able to retire because of it u have the best show keep up the great work I learn so much
STEVE, the problem is none of the three governments are going to do anything about this. You weren’t thinking the conservatives would you? That’s pretty much impossible based on their philosophy of business wins, maybe the NDP but I kind of doubt that as well.
Jesus, that's just crazy. We really need to go the way of Japan. You need to remove councils from all planning decisions. If you care about your kids staying in the city, that's what you got to do. Japan had a housing crisis in the 90s and largely fixed it.
The meme that people with long mortgages are safe is pure BS. Teh operating costs above the mortgages have literally doubled in 4 years. Taxes, Utilities, maintenance, etc. Having a 5-7 mortgage won't save them as the job losses now pile up into the recession.
You pay around $600,000 to rent over a span of 20 years and you own absolutely nothing when you retire. I feel that’s even more expensive. $2500 x 12 months x 20 years and that’s only if you can keep rent that low.
@@Observer168 You clearly have never been through a housing bear market. lol. Don't worry though you are in one now. You will learn a great deal about bubbles and crashes. It takes 5-6 years to bottom. 2026-2027 is the bottoming are as long as we don't get a Japanese 30 yr decline.
@@Observer168 At the bottom of this bear market rents will be down 50% at least as defaulted properties are bought and repriced for the debt on them. You have never been through a bear since you don't understand what I'm talking about. Since you probably own rentals you assume that $2500 bucks a month will stay that way. It won't, a massive reprice in rentals will happen. It awlays does. I'll be owning your spec rentals soon enough
@@mogulrider rents actually went up in the 2008 financial crisis so we will see… Vancouver and Toronto is fueled by rich immigrant millionaires and they have made this their home. Doubt Vancouver or Toronto will ever be affordable again. Renting is still very costly… it will keep getting more expensive as the value of money keeps going down.
is there anything in the world more frustrating that GVA RE?? other than American politics. i thought the new cap gains tax was supposed to cover all these new housing programs ..
This housing crisis, created by government policies and cheap money going back even before the current moron PM will never be solved, by this or future governments. Housing will never ever be affordable again, and I am sad about that as my own kids have no chance.
During high inflation and stagflation as today, prices are going down and incomes higher. Keep them 5 years and you are going to see real results. No more building too expensive homes to keep the prices high. So, good news. We just need patience. I know what I am talking. Follow For More.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?
When ‘Carol Vivian Constable’ is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
As a municipal government employee, I will continue to bang the table on how bloated and inefficient all tiers of government are. To be honest a lot of that is a result of unions and the fact that the number of jobs at least for OSSTF cannot shrink. Ffs we need to reduce the size of government and let the free market ramp up supply … and stop bringing in immigrants we can’t house by selling them a false dream that can’t even be achieved by young Canadians. In essence, fuck the bloated bureaucracy that is all tiers of government.
🎯
Removing the best paying jobs will destroy everyone’s economy. We are at a state where doubling down on stupidity is the only way forward. This is why I continue to hold assets. Life will cost more and more for everyone.
I like you.
Unions are here to employ only immigrants for the lowest wage possible and least benefits
In Ontario we have an issues with the provincial government overriding the municipal. There's a development waiting for approval. They want to put 400 homes with one access road through an older subdivision. They say they can't add an access off the 2 lane hwy because of the MTO. The school in this town can only handle 250 kids. There's no grocery store or gas station. There's no corner store open past 8. They don't want to expand the infrastructure! They just want the houses built with no consideration. People who care like you do need to start running in elections! We need to take our country back. No more corrupt pay offs.
Thanks for your insight Steve. The days when people look to government to fix problems are gone.
Government is the problem!
❤
Canada is drowning in bureaucracy
Underrated comment.
its the conflict of interest not the bureaucracy. Home owners don't want to pay their taxes, would much rather young people pay their taxes indirectly for them through development fees.
@@miaa7097 Bureaucracy is what the corporates love. Big business hates small business and the best way for large corporations to eliminate small business is with red tape.
and hypocrisy, as well.
This is what you call insanity. Thanks for bringing it to light Steve!
Only Liberal math suggests that more taxes and fees cause reduction in prices. I can hear Trudeau now… 8 of 10 people in Burnaby are better off with the 50k increase in fees for a 1 bedroom.
These elites in tandem with the corrupt government will take this country to it's knees like the fall of Rome, My sympathy goes to anyone approaching retirement, you may have reasonable concerns over your pension and if it'll stretch to cover the rising cost of living, bad regulatory policies, bad energy and insane fiscal policies.
It's a vicious cycle. If people can't afford homes, they might delay retirement savings, but if they focus solely on saving for retirement without considering their housing situation, they might miss out on potential investment opportunities.
Costs will continue to decline for the next several years. Reversion to the mean is in progress and of course human greed.
Financial planning and retirement strategies are crucial, especially in today's economic climate. With global economic fluctuations and uncertainties, it's essential to have a solid plan in place to protect your financial future.
You should Consider diversifying your assets to include a portfolio with a mix of stocks and stable assets. Seeking professional advice now could provide valuable insights and strategies to navigate market uncertainties and protect your investments.
No doubt being financially free and not having to worry much about housing and other expenses cannot be overemphasized, making smart plans and setting up diversified investment portfolios is quite essential.
The greed knows no bounds.
fear a housing crash due to people buying homes above asking prices with little equity. If prices drop, affordability and potential foreclosures may arise, worsened by future layoffs and rising living costs. I want to invest more than $300k, but I'm not sure on how to mitigate risk.
Consider reallocating from real estate to other reliable investments like stock, crypto or precious metals . Severe recessions offer market buying opportunities with caution, as volatility can yield short-term trading prospects. Not financial advice, but it may be wise to invest, as cash isn't ideal in this period.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
nice! once you hit a big milestone, the next comes easier.. who is your advisor please, if you don't mind me asking?
Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her.
Broken country, its sad. I make 4x the average salary in Vancouver and it doesn't make sense to go into 1M load for 2-3bed apartment that costs 5-6k per month, for 25y. Just crazy.
They want the housing prices to remain high! It's pretty obvious now. I heard some developers are sitting on deposits gaining interest on people's down payments and stalling the start dates. This situation is out of hand! Canadians are getting screwed super hard. I'm disgusted with the way people are thinking, the ones getting rich off the middle classes savings.
TRUTH!! Thank you Steve. Please keep talking facts and numbers about government policy. Government policy is the root of a difficult societal existence. Thank you!!
Cities are bankrupt . Leave them and Canada as fast as you can
Good Job Steve by breaking it down for common people. Appreciate your insights.
amazing...great update Steve
Because so many people overpaid for homes during a period when interest rates were low, I believe there will be a housing crisis because these people are in debt. If housing prices continue to fall and, for whatever reason, they can no longer afford the house and it goes into foreclosure, they will have no equity because they will not make any money if they sell. I feel that many people will be affected by this, especially given the predicted mass layoffs and fast rising living costs.
I recommend investing in shares to balance out your real estate assets. Even the toughest recessions can give wonderful purchasing opportunities if you are prudent. Furthermore, volatility can create wonderful short-term buy and sell opportunities. Although this is not financial advise, you should buy right now because money isn't king right now!
You are correct. With the help of an investing coach, I was able to diversify my 450K portfolio across markets, and I was able to create a little over $830K in net profit by using high dividend yield stocks, ETFs, and bonds.
Would you mind sharing some information on the adviser who assisted you? Since the age of 18, I've been saving for a pension through a company program. As I became more taxed, I enhanced my workplace pension with a SIPP (tax advantages). I'm now 50 and would like to aggressively grow my wealth; there are a couple cars I still want to drive and mega-vacations I still want to take.
Her name is Sharon Ann Meny can't divulge much. Most likely, the internet should have her basic info, you can research if you like
If there's mass layoffs the economy is broken. This would trigger bigger interest rate cuts, stimulating economy and jobs, increasing house prices again. If a homeowner can weather the storm they'll come out ahead down the road
Steve’s Saturday morning episodes.
👊🏼
👊🏼
Governments at all levels in Canada have a spending problem.
You mean a wasting problem
govs are the largest debtors.... when interest rates go up, the deficit immediately skyrockets without 1 penny more spent. Feds collect 400B in taxes and have 1t of debt outstanding.... when the interest rate went from 0% to 5%, guess what that balanced budget just went to a 50b deficit from increased interest payments........ and people think rates should be even higher... hilarious.
"I can't believe people aren't outraged at what's going on".
There's a reason why....even in good times, but especially at this time in history, everyone is so busy trying to keep their family's head above water that no one has the time to keep up with what the government is doing. They are like kids in a high school playground, just yelling back and forth at each other never solving a thing. Its just pathetic. JT has got to go by any means possible.
Thanks you for keeping us up to date on all the shady deals being made by the government. Although I'm sure this is just the tip of the iceberg.
People aren’t outraged because most own homes and it helps their investment go up.
Love these Steve! Thanks
No one is going to build with all these additional fees.
Which will make current housing stock even more expensive
Come to Burnaby and see that for yourself! They are building everywhere!
I talked to a couple of developers about the multiplex option. It sounded like I'd end up with somewhere around 350k to 400k after I'd paid out the developer and construction costs, project management costs, etc... But... that's calculating my house at lot value only! and also not figuring on capital gains tax if they were sold and not rented out when built. So off that 350 to 400k take off what you think your house is worth above lot value if sold as is on the MLS, in my case about 200k and you're left with 150 to 200k ..if you sell them take off capital gains tax paid to the government (I'm not sure on this but maybe 75 to 100k?) and you are left with 75 to 100k. But the project takes maybe 2 years and so say you factor in that you'd be renting a place for 2 years at say 35k a year is 70k off your 75 to 100k and now you are either making nothing or maybe 25k. Now if you have rental income currently and would have been collecting that for 2 years it takes to build and be paid out from the multiplex deduct that too. If you have say a basement at 3k month is 72k, maybe even a couple of roommates or a room on air bnb, and take that off too and you'd not be making anything? Or even be less well off after 2 years??? Maybe I'm missing something in the calculations, but it didn't look like the windfall I'd thought. Also you are partnering up with strangers to do this and exposing yourself to whatever happens in the housing market in the time it takes to build + all the other things that can happen in new construction like the incredibly frustrating city of Vancouver, construction slow downs and labour shortages, things that might come up with your new to you business partners etc..
I was born in Burnaby raised lived in the municipality for 26 years I feel so failed by this completely failed by the city. The city of Burnaby absolutely hates hard working people.
Killing it Steve! Thanks for your smart insight!! 👍😃
When you just give the money right to the cities it doesnt stop them from raising taxes pay them for homes built is smarter
Great Job!!! Thank you... :-)
Thanks for your analysis you’re bang on right
Ramping up the code and bylaws is potentially just as difficult to overcome and quantify the impact on how viable the project is. Policy and zoning are significant but once you over come those obstacles you haven’t spent as much money as when you face code and bylaw challenges that crush what is left of your deal
Step code is coming for everyone, the fact you need an energy consultant is BS
So why are these taxes going up. What is the justification the cities are using or is it a nimby strategy to keep density down
Steve throws down the gloves at 10:30. 😊
In southern Ontario all they are building is 4 bedroom homes that are 2400 square feet on tiny lots squished together! You cant fit a wheelbarrow in between them. They have a small garage with one parking space. Theyre going for 800 000+. People from Brampton are moving over an hour away from their work. The whole demographics have changed dramatically. Look up empire homes....theyre the worst builders. My friend worked as a contractor for them and the Foundations were all poured incorrectly. The water was 2 feet high in those basements. The sewer systems aren't slopped properly. Theres was mold growing during building.
I've been saying this kind of stuff for years.
It's like buying a used 96 cavalier for the price of a new Lambo
Housing affordability is a lie sold to the people by the realtors and the banks. It's true that development fees make up a chunk of the cost, but what about bank interest, realtor fees and developer profits. The biggest reason for the housing price spike in has been low interest rates and higher than manageable mortgages pushed by banks and realtors pushing their clients to bid way over asking in order to make the sale. Once a place goes for $100-$200k over asking, that sets the new expected prices in that area. When that keeps happening year over year, the result is what we see now.
When you opened the show you forgot to mention the third way to achieve affordability. Instead of shrinking the home price, you shrink the home. This is the REAL PLAN, 300-500 square foot condos.
You’re right.
For $550,000
To city fees and taxes, add BC provincial new development taxes and federal GST on new development. Inflationary home prices are 90 % due to excessive government taxes etc.
very insightful
Politicians are not fooling anyone who has a brain and is paying attention!!!😂
Great points wish more people knew what development cost charges were. I think they’d be a lot more anger out there.
Upzoning shifts the supply curve right (by reducing the cost of apartment-zoned land), but development fees just shift the supply curve left. Net effect: no change in housing supply.
Theyre saying the same thing here in Australia - were going to build more houses, but looking at housing construction rates, were already building a lot, so I doubt its possible. We need to reduce demand on the housing market, which for us means getting rid of tax incentives and reducing immigration.
Great video, thanks Steve. The biggest question is what are we going to do about it. We can keeps venting on the comments, but how do we get the government to actually do something about it. Do you really think if another party gets elected, they will do better? I doubt it very much. This house issue started in 1990s. Since then many governments came and left but things kept getting worse. I agree we should not be looking at the government to help with the housing issues.
Is that snow on the tree outside the window???
Higher Fees do not make an iota of difference to the end prices of housing....it's a hidden tax on the land owners that takes years to filter down to the land price and ultimately slows down the rate of new housing hitting the market.
there is saying, solution for high prices are high prices, i.e. prices will shoot up that at some point system will crash on itself and reset, for house prices cycles could be very long or too long for some but crash is unavoidable at some future point
What they are not doing is opening up more land. We have so much land in this country that the fact that we have such high real estate prices is ridiculous and shows that this is deliberately done.
Amazing statement, ❤️ reveals the sad reality.
The problem with socialism is that you eventually run out of other people's money.
Margaret Thatcher
Government just prints more but reduces it’s value
@@Observer168 uncontrolled printing has dire consequences…
@@mr.b5583that’s pretty obvious, it could last for a few more hundred years so why should I care? We won’t be around when that happens.
@@Observer168 i hope you are right!
What this fundamentally comes down to is that they want to collect the tax revenues from new home buyers and young people to shift property taxes off of older people who are home owners.
The problem is the inherent conflict if interest that drives the voting base (typically home owners not renters / people too young to vote) and politicians that answer to them and are home owners themselves.
The solution to the problem is to address or eliminate the conflict of interest (somehow). How? Well, maybe its heavy handed but the province could cap municipal development fees (probably). This would force cities to get their funding from property taxes, as they should be in a housing crisis where new supply must be built.
Why is their snow on your trees?
Great job Steve. How about commercial buildings? How are sales looking in Vancouver and lower mainland?
It’s getting pretty simple for non home owners…. Get skills, leave, and tell your boomer parents to adopt some immigrants to look after them in their old age
Singapore government built bare minimum condos with very affordable price for its citizens & families can then choose to upgrade & renovate their units if they can afford them. Their homeownership is 90+% of the population.
The low house inventory storey is a big scam designed to fool you. Come on....
My home has been upzoned to Transit-Oriented Area stifling planned business growth from home-based business of 20 yrs. to all Commercial use as a Coffeehouse and cafe. Now minimum building code 8 floors. So this Character 1941 restored house will be moved by Nikl Brothers house movers rather than bull 10:22 dozed. We have gone from a 30 yr. business with locations on West Coast Express, coffee roaster and 25 employees to Zero employees. We gave up on business due to municipal challenges and the new Bill 47 Transit-Oriented Area.
Unintended outcomes.
Bank of Canada talks about 'productivity' and this is how a 30 yr small business gets treated.
We now operate part-time with no confidence in a future opportunities here but would rather just retire. Destroying small business and real estate accomplished B.C.
This would make a great Monty Python skit
So it’s better to sell a condo now to take a profit or wait until rates drop more ?
I’m wondering who’s going to pay for the high prices of all these condos.
What’s happening is crazy!
Is that snow outside your window on the tree?
Dont forget the Land Trasfer Tax when you buy also!
The simple way is to put capital gain tax for primary residence house as well as deduction on tax for loss on primary residence house.
As a trades person, (the builders real bank) we can’t afford to finance anymore projects in this rate environment
$50K in new charges overnight, eh. Why not $500K 😂
Development charges are criminal
"the problem is government" Exactly!
Well said
You can't make this stuff up as you mention. In Halifax, while there are some positive changes, still along many major bus routes they have kept height at between 8-11 meters. To put in perspective if they did a flat increase to 12 meters everyone could build to four stories rather than two-three. If they were serious about increasing density this makes more sense than doing backyard suites.
Everyone that propped up the market, pushing fomo and getting greedy also contributed to the problems we are having now, can't just keep pointing the finger in one direction, some have to be accountable for being part of the problem.
A one bedroom condo in the range of $500,000 to $600,000 😂 I'm loving this,it's pushing a lot of people out here to Edmonton Alberta,prices have shot up in the newer neighborhoods near the Airport where we are 😂
Excellent content by the way mate
Careful what you wish for - high prices have many knock on effects. Toronto has become pretty much unlivable.
I have no idea what you said, I was too distracted by your furry chair. Vegas needs it back.
I'm joking, I'll see at your next event in Van. Hollywood Theatre?
I guess nobody looked at the report for Torontos unfunded liabilities? Go read page 19 and realize you are the revenue stream, it doesnt matter where you live, your municipality needs more money to fund their lavish lifestyle.
If you dont know, now you know.
Massive inflation. These rate cuts are going to be minimal or could stay at roughly where they are for a long time. For as long as these government red tape and excess bureaucracy are there, lack of competitive laws & taxes, we will see a low Canadian dollar and persistently high interest rates
Burnaby - Jagmit Singh territory. ultimately ndp works similar to a crime syndicate and some get to take/steal.. and freeload.. but ultimately all end up worse off and with less freedoms
Comes at the issue from every single angle except the possibility of developers making less profit. That is, I assume, unthinkable to him?
"Developers won't develop if they can't get supersize returns!!!"... So what will they do, dentistry?
Have to keep those prices up no matter what, right?
People will complain when the costs get added to new units through development fees and people will complain if the costs get added thru increased property taxes. Either way people will complain.
Increased sewer capacity, increased water treatment capacity, new police stations, new schools, new fire stations, infrastructure maintenance, etc... All of these costs increase when there are more people in an given area, the money has to come from somewhere.
We pay municipal gov't to stop being the problem? 50 yrs. of excess taxation, manipulation and stiffling of the free market gets us here. Now we pay the municipalities to stop?
Lets we honest the developer is not eating these costs on raw land development. They will pass it on the the builder or the selling price of the home . If the number don't work then the land will continue to be a field. Government is not going to save you or make it more affordable .
This segment should be titled - "Its all a lie!" - 10:35 Vancouver and Toronto.
We need to make a distinction between housing affordability and ownership affordability. If we're talking about strictly housing affordability, there is another option Steve hasnt mentioned and that is social housing, i.e., more taxes, i.e., socialism. That is what im seeing more and more of all around my Vancouver neighborhood. Funny thing is, they let anyone rent these subsidized units. I know a well paid professional engineer renting one.
Pardon my ignorance, but you seem to have a lot of data on fee and tax increases, but do you have any data on developer profits? Is there any indication or data that these fees are making it unsustainable for developers? I feel like it's just conjecture on your part.
Developers are barely squeaking out a 15% profit on a good day, and they take on a lot of risk. We shouldn't have a war on developement. Let them make 15-20% profit, as long as they build build build. Bringing supply on the market is the only way prices will stabilize. If you're not business friendly, then nothing will get done. For a developer there is no point in building if the profits are only 5% or maybe a loss.
People need to wake up and realize what they are hearing is complete BS. I'm a 25 year builder retired. The actual cost to build a home is corrupt. For every 1 million of retail sales, 30% is the actual build cost while the rest is mark ups, profits, fees, GST, engineering . Does not include land or landscape and of course gouging ( which are is plenty of this). This happened because people accepted this. The only way to correct this problem is for the consumer to start rejecting these number. This will never stop until prices are rejected.
I'm hoping there will be a housing crisis so I can buy cheaply when I sell a few houses in 2025. As a backup plan, I've been thinking about purchasing stocks. What advice do you have for choosing the best buying time? On the one hand, I continue to read and see trading earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?
Investing in real estate and stocks might be a wise choice, particularly if you have a sound trading plan that can get you through profitable days.
You're not doing anything wrong; you simply lack the expertise necessary to make money in a bad market. In these difficult circumstances, only really skilled experts who witnessed the 2008 financial crisis can expect to generate a large wage.
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
My CFA, Desiree Ruth Hoffman, is a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Thank you for this tip. I must say, Desiree appears to be quite knowledgeable. After coming across her online page, I thoroughly went through her resume, and I must say, it was quite impressive. I reached out to her, and I have booked a session with her.
What is an alternative?
Realistically, you can raise property taxes for current owners.
Home owners are more active voters.
Raise GST to 7% and use that to build public housing
@@Observer168 here's the issue with the ideal of public housing. First comes the idea, but then it never gets built nearly to the level it would need to. Next we'll do what nearly all over similar public housing initiatives did, build a ton of units in the least desirable area to save money. then the actual units themselves are crap. then we'll just massively under fund them not maintain them well. the US tried this on a massive scale and it was a disaster. There have been so many studies and books detailing why what is actually a great idea on paper just doesn't work. I have zero confidence we'd actually learn from the mistakes. there are better ways. mind you i dont think we collectively actually want to solve the actual issue of affordability so likely we'll all just keep arguing different ideas and nothing gets done.
@@RainCity3rd public housing becomes slums because the occupants are renters and don’t care about the properties. We need public housing that is sold at affordable prices just like in Singapore. I totally agree that renters will just trash the properties.
@@RainCity3rd , all this problems are solvable. Singapore and Vienna have solved them.
@@Observer168 , The problem with such proposal - you will be taxing predominately poor.
Moreover, most of our politicians are only talking about affordability problem, in reality, they are more concerned about real estate prices going down. It is a card tower capable of burying entire economy not just someone’s political career. Nobody wants to deal with all the mess.
It is simple. Start using property tax only to fund municipal governments. Everything will fall in place. Density becomes natural result, the low income people will not be owning 2M single dwellings because they were lucky to buy them when they were 120k, and bureaucracy will shrink due to limited $ supply.
After 24 years bubble, will they finally let it crash. Meanwhile, i would get out of TO and Van if you want to survive.
no one sells. no one buys. end the concept of buying houses
Steve cooked them on this one
The only way to get house prices down is to curb demand..If you have a surplus of cheap houses in Vancouver ,,People will come from elsewhere to buy..
.The demand needs to be curbed through interest rates. .immigration quotas...or flat economy.. pick your poison any other scheme will not work...
Developers sell for highest price they can get always, never met a developer who sold a residence cheaper because he paid less for the land or materials
Thank you for sharing. Financial education is crucial today to show incredible resilience and discipline in the volatile market, masterfully balancing strategy and insight for success. This dedication to continuous learning is inspiring...managed to grow a nest egg of around 2.1BTC to a decent 15B TC in the space of a few weeks... I'm especially grateful to Linda Wilburn, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape..
Linda Wilburn program is widely available online..
I appreciate the professionalism and dedication of the team behind Linda’s trade signal service.
Trading with an expert is the best strategy for beginners and busy investor s who have little or no time to monitor their trades.
The key to financial stability is having the right investment suggestions for a diverse portfolio. Many investment failures and losses happen when you invest without proper guidance.
It was quite challenging to understand the different trends on my own until i found out about Wilburn. Trading made easy.
Great show again iam a landlord iam in Ottawa been in the real estate game for 25 I’ve been able to retire because of it u have the best show keep up the great work I learn so much
The laws are written to give the results they want.
And Steve, you forgot the third option for dropping Canadian housing price, that is .... a great Recession/Depression. And it is coming to Canada!
STEVE, the problem is none of the three governments are going to do anything about this. You weren’t thinking the conservatives would you? That’s pretty much impossible based on their philosophy of business wins, maybe the NDP but I kind of doubt that as well.
Yeah he said that years ago we are going to build lies
Vote CONSERATIVE for a better CANADA
Vote for whoever makes house prices higher - im sure baby boomers will be voting liberals
Jesus, that's just crazy. We really need to go the way of Japan. You need to remove councils from all planning decisions. If you care about your kids staying in the city, that's what you got to do.
Japan had a housing crisis in the 90s and largely fixed it.
The meme that people with long mortgages are safe is pure BS. Teh operating costs above the mortgages have literally doubled in 4 years. Taxes, Utilities, maintenance, etc. Having a 5-7 mortgage won't save them as the job losses now pile up into the recession.
You pay around $600,000 to rent over a span of 20 years and you own absolutely nothing when you retire. I feel that’s even more expensive.
$2500 x 12 months x 20 years and that’s only if you can keep rent that low.
@@Observer168 You clearly have never been through a housing bear market. lol.
Don't worry though you are in one now. You will learn a great deal about bubbles and crashes. It takes 5-6 years to bottom. 2026-2027 is the bottoming are as long as we don't get a Japanese 30 yr decline.
@@mogulriderwell you”re paying rent in a bull or bear market anyway unless you live in your parents basement.
@@Observer168 At the bottom of this bear market rents will be down 50% at least as defaulted properties are bought and repriced for the debt on them. You have never been through a bear since you don't understand what I'm talking about. Since you probably own rentals you assume that $2500 bucks a month will stay that way. It won't, a massive reprice in rentals will happen. It awlays does.
I'll be owning your spec rentals soon enough
@@mogulrider rents actually went up in the 2008 financial crisis so we will see… Vancouver and Toronto is fueled by rich immigrant millionaires and they have made this their home. Doubt Vancouver or Toronto will ever be affordable again. Renting is still very costly… it will keep getting more expensive as the value of money keeps going down.
is there anything in the world more frustrating that GVA RE?? other than American politics.
i thought the new cap gains tax was supposed to cover all these new housing programs ..
This housing crisis, created by government policies and cheap money going back even before the current moron PM will never be solved, by this or future governments. Housing will never ever be affordable again, and I am sad about that as my own kids have no chance.
During high inflation and stagflation as today, prices are going down and incomes higher. Keep them 5 years and you are going to see real results. No more building too expensive homes to keep the prices high. So, good news. We just need patience. I know what I am talking. Follow For More.