Great podcast, the fact that people are depending their retirement on the equity of their homes is pure madness. Your retirement plans have always been based on your savings and investing in the market etc. Any equity you gain is just sheer luck and should be treated as so. And this is coming from a person that has lots of equity in their houses. Houses need to drop in prices for our future generations.
45:43 House prices are supposed to fluctuate. Recession cycles are a normal part of an economy. The government needs to stop stepping in the save homeowners and kicking the can down the road to further screw over future generations.
@@SteveKarraschI'm pretty sure you know what I mean. If you lost half your income (spouse loses job, you get laid off and can only get part time, your tenant in the basement stops paying etc..) and you can no longer afford to pay your mortgage and all your other expenses... then it's an exceptionaly dangerous time to buy a house. The economy is deteriorating rapidly and house values are depreciating, leaving you with none or little equity to backstop you.
What the people who think this can go on forever dont understand is that the best and brightest minds will realize that they cant survive here and leave Canada (And it has started already). I am a software engineering manager and the amount of people that i have seen leave to go work in the U.S is crazy. People arent stupid. Once everyone gets that idea that there is no hope here its going to get really bad. Its not like Canada is intrinsically a country where people like being here for the country itself. The weather is so horrible that most people are here only here because of the idea that wealth can be made here. When that idealogiy dries up its going to be a difficult time. Why would people go to a cold country to be just as poor as they can be in their home countries. I dont know how long they can continue to kick the can but at some point its going to get really bad. And then all these same people(mostly real estate agents and investors) are going to lament how did we get here. The worst thing is when people who caused the problems with short sightedness now switch to trying to get everyone to feel sorry for them. Yes you can trick the ignorant new immigrants but it wont be an open secret forever.
no way tom just said hes passing on commissions because he doesn't know the area. if you dont care to learn it, have a team member do it. clients want do get a deal using one team for both. they want to believe the team is professional enough to get it done. this is assuming its something reasonable like 416 to 905, and not another province.
Why No One talks about- How Normal Salary(50 k ) and for couple (90-100k) How will they Enter this Market and How people buying at todays price expecting growth in their Equity and whom they gonna sell to in next 5 years?? if first time home buyers cannot enter this market how will they enter in next 5 years? todays starting house price is 800k to 1 mil and they are expecting growth and will sell this FOR 1.2-1.5M(need 20% down)....Who is going to buy??? MARKET WILL CRASH...MARKET NEEDS TO CRASH...EVERYONE CAN SEE ITS BUBLE....COST OF HOUSE IS 200-300K AND SELLING FOR 1.5 M...DOESNOT MAKE ANY SENSE..Please see all Housing market crashes from past...
This is what no one seems to be discussing! There aren't enough people making enough money to support these crazy prices, it just doesn't make sense. Mix that with the state of the economy and upcoming job losses, there's nowhere for prices to go but down in my opinion. And for everyone saying it won't crash, has everyone forgotten what prices did after 2008??
@@juliecoo.k Housing prices are a lot stickier than you think. Look at a chart of average house prices in canada. Even in 2008, even in the pandemic, even in the mini housing crash of 2022, the prices only ever dropped maybe 20-30%? And very quickly after that, the price shot back up again. There are too many vested interests by corporations, by banks and lenders, by the government, and by other fellow Canadians (your ordinary middleclass neighbors) that housing prices will never meaningfully decrease to "affordable" levels again. Not enough people want that to actually happen, so it doesnt. With post-pandemic inflation, the cost to build a lot of these houses makes their base price higher, almost 700/sqft which puts a floor on how low the house can sell for. With general inflation, the cost to hire tradespeople, buy materials, and hire employees to manage condo buildings will only keep increasing, putting further upwards inflationary pressure on the RE prices. All the people saying a housing crash needs to happen, its inevitable, its the only way to "correct" the market, are completely ignoring what's actually been happening for the last 50 years. Go back in time, every 5-10 years, and you will find people saying housing is too expensive, it will crash soon. Yes, in recent history there has been some crashes, but the prices very quickly shot back up, the prices never come close to being affordable like back in the 1980's that was enjoyed by the boomer generation.
Housing start NEEDS to be controlled like OPEC to ensure existing home owners retain their equity value. It needs to be passed into law by Trudeau to ensure he keeps his word on it.
What Justin and the Bank of Canada are trying to do, without explicitly stating it, is to keep the real estate market growth in Canada close to flat. They hope that income will catch up somewhat relative to house price multiples if they slow down real estate market growth for the next few years. They don't want the real estate market to crash, but they also don't want it to grow a lot. I don't know how it will work, but it will be interesting to watch.
I think you are right. But I don't think the government can keep it flat. That's because of the huge amount of speculators in the market that didn't buy their investments for flat growth. Those speculators want out, and as they try to offload to first time home buyers that cant afford the prices speculators want, prices will be forced down.
That's the theory however nobody wants to explain how incomes will ever get to that level and be sustainable the incomes will never ever catch up they are already over inflated and it's causing failures....examples teachers 2x what a teacher in the u.s makes and still they as taxpayers for more $$ and produce less plumbers electricians trade in general 2x what they get paid in the u.s and look at the cost it adds to the new build its breaking the bank the numbers don't work for builders anymore to be profitable and affordable...then you have the canadian government massive bloated way to many workers by 4x tax payers funded....the list goes on the reast of the taxpayers are broke from paying all these low quality workers listed above for max $$$......
@@jaymar1615 Their policy of bringing in loads of immigrants is what will keep wages from rising enough for new entrants to afford to get into the RE market. A ponzi collapses without new entrants.
Overall I agree with Steve (same generation :) and appreciate the honesty. For most people with the tax preference of primary residences and forced savings it does seem like buying real estate leads to better long term financial outcomes. I've only seen one or two people make the rent and invest the rest work, most haven't been saving or investing. Where my concern is with real estate and where is is like the stocks you mentioned is that cities and countries do drop out of favour, like Detroit, Canada in the 80s so if you have so much of your net worth in one property it can be worse than diversifying across countries and currencies. Looking forward to a change in direction from the government, and I own multiple properties in 2 provinces. Otherwise if this continues, I'm joining my friends and colleagues starting to live at least half the year in a different country. I never imagined I'd leave Canada, but now exploring options.
Buying a house isn't analogous to working out. In any way. I can get out of bed, lace up my shoes, and start working out. I can't get out of bed, have my parents or grandparents die and/or gift me a down-payment, then buy a house. Your advice is correct for 1997; not for 2024. I'll caveat this so it doesn't look like I'm being flippant--yes, if you make $111,111 pre-tax and you can qualify for a 445 square foot condo, you can buy that--live in it for 15 years to build equity--then use that equity to buy a starter detached home in Oro-Medonte when you're 40.
@@SteveKarrasch I kind of agree, but kind of disagree. You cannot wait for conditions to be perfect before you make a decision that you know has a good chance of being beneficial (or a good investment) over the long term. However, given the prices of housing, relative to peoples incomes, it's also not as simple as "just take on any risk and buy no matter what". That could work when you were younger and house prices weren't so high, and your own income was ok. But nowadays, housing price increases have vastly outpaced increases in income/wages/salary. Even if you want to buy, you wouldn't qualify for a mortgage for a place in a major city. I think the right way forward nowadays is to build wealth/equity by sacrificing life in the city. Move away to places where a house/condo isn't 400K. Buy land and build yourself if needed to keep costs low. Because trying to wait out the market, or wait until you reach your perfect financial conditions to buy an expensive DT property is also too slow and too late.
You guys should look at the Ottawa market. Lots of houses and condo for sale. And Commercial leasing. Ppl are leaving the capital and doesn't look good guys by October. I think it'd gonna crash
JT suggesting that he’s concerned about retirement plans is pretty f-ing rich for a guy that just proposed capital gains tax increases. The hypocrisy is mind bending.
Just watching what has happened to the Lumber and Mining industries in Canada explain sooo much for just material cost. Then you pair that with statistics and numbers that we are getting where 52% of all Employed workers in Canada work in one form for Government, Federal, Provincial or Municipal... It explains so much. 48% of us are trying to lift a Couch while 52% sit on it, While kicking our ankles with resources extraction/refinement/manufacturing restrictions. Then complain about the results they where party to creating.
Can you please talk about the advantage that real estate offers for blue collar workers that can put sweat equity into properties. It’s been overlooked as a form of investing. I invest my skills and time as a second job. I can do it at my own leisure. Then tax benefits after putting the work in. It’s something Canadian tradespeople have been doing to get ahead. Someone that’s worked hard to get ahead. Through sweat equity.
Hey, Guys. Great podcast as always, thank you! I had to disagree with Steve on his point of buying a house to become financially stable. You’ve said it yourself: don’t agree with 70% of people. Having Canadian home ownership at close to 70%, would mean you should move the opposite direction;). I’m a millennial, very financially stable. Never owned a house, and have all my current expenses paid by investments. Each and every one of my investments is an asset, with zero maintenance, fees and expenses, plus all are highly liquid. Buying a real estate would pull all my investments in as a down payment, plus it will push my monthly expenses 5x of what I currently have. So, I actually see housing as a liability, not an asset (constant repairs, maintenance fees, taxes, etc). Bigger picture: 40% of mortgage free houses in Canada are owned my boomers, coming to a retirement stage. Eventually all those houses will be listed and have to be sold in order to finance the pension planning of the owners. I agree the housing was way more affordable back in the days, and current owners got a very good set of cards dealt. However, under no circumstance am I willing to finance somebody else’s retirement, risking my own future prospects of owning a property and having a nice egg nest. Those buying real estate today are basically sacrificing their future spendings in favour of retiring generation. My true and honest believe is: you buy real estate not when you are financially stable, or when you have to move, but when it makes a long term financial plan viable. Unfortunately with current house prices, regardless of interest rate, I can’t see myself entering the market even if I had a full amount for the purchase in cash. People treat housing in Canada like a stock market, and the first rule of the stock market is to never lose money. By entering now you are guaranteed to lose , unfortunately.
@@SteveKarrasch I’m not so sure about the pride of ownership, to be honest. It’s almost like somebody sold me an overpriced old junky car, with a hefty repairs, maintenance and taxes attached. After a year, I wouldn’t be so proud, I think:)
@@SteveKarrasch another thing that actually puts me off, is like you said in the podcast: everybody is raising fees and rates. I’m the past month I have received letters from literally every business I deal with, increasing service, fees and prices by 5-10%. Not one, not some, EVERY business I deal with (including my kids tuitions and daycare).
@@dmitriguzhel9515 then you should be keenly aware of what the construction costs are going to be in 30 years in inflated dollars. Imagine all the tax free gains in your primary residence?
I understand what Steve is saying, and I think it is true for the majority of people. People have to be forced to save before they do. I didn't do it that way. I pretended I had a mortgage, and saved/invested the difference between my rent and potential mortgage. In 10-12 years I'm financially stable. So I always tell friends and family you can start a mortgage any time. Just start saving like you are paying a mortgage. But to Steve's point, nobody I know, that I told, does it.
When is Ravi coming back on? I'd love to hear what he has to say about hotel prices! We had a huge sporting event in an interior town and I have to be frank, some people backed out at the last minute after trying to secure accommodation and avoid getting gouged. Prices for a room almost doubled from last year.... the economic impact of such losses are going to accelerate and be much larger than the feel-good rental supply that Ravi is trying to force back onto the market. In fact, I'm seeing more and more mom-and-pop landlords bail on the LTR market, with most selling or moving to other types of rentals(student, furnished). #Steveforhousingminister
I see the difference is that the incomes don't allow for the same purchasing power as in the 80's.I also don't mind landlords just not major companies buying all of the investment properties making housing unaffordable for everyone because they become a monopoly and we know how that works in Canada.since covid everything has become rediculously expensive because it became an excuse for corporations to legally rip of the public.Conservatives love to complain but do nothing when they are in power.family Houses and rentals have stopped being built by every government since the 90's and this is where we are because of it.The government has to allow for different kinds of housing that are more affordable.
36:55 Steve saying to just get in, makes sense in principle, however in reality, wages are so detached from housing that it isn’t feasible for anyone not already in the market. And yes everyone making under 75k can technically pick up and move away from the perimeter of a major city but should that be the goal. To empty the major cities of all the povo’s? lol And the difference between 10 years ago and today is night and day. 10 years ago it was so easy to get in, now it’s a completely different story. I’m saying this as someone that bought 10 years ago
10 years ago I thought to myself I should buy a house. 3 months later I was in. After the 70’s/80’s inflation wages increased dramatically. This time around housing doubled in the last 5 years with almost no increase in wages. It’s effectively twice as hard to get in now than 10 years ago.
A lot of people are leaving major cities and moving into towns like mine making the demand/prices here way higher. And it’s not like I can move to a cheaper area, this WAS the most affordable place to buy a home years ago. Not anymore.
Steve, you’re so wrong it’s almost funny. Buying a house incurs massive costs and ongoing expenses. It’s completely irresponsible to do so if you’re not able to support it financially. Stocks on the other hand cost basically nothing to buy or maintain. Oh and unlike your house, stocks are actually up in value this year and are up nearly 100% over the past 5 years.
Great show guys alot of good points Especially the point why didnt anyone buy in Calgary when rates were down at 2% no one They all tried to get ot Toronto and Vancouver. That was their chance and you cant blame them.
If you want house prices not to fall but actually become affordable you need actual wage gain. Which can only happen if the productivity per capita increases, which Carolyne Rogers said is not the case. You know that already.
In fact the BoC needs to commit to doing whatever it takes to ensure housing prices remain elevated so exiting homeowners don’t lose their shirts. A yield curve control to ensure this should be the new mandate vs a 2 percent inflation target
Older condos have larger square footage therefore liveable and you can update the unit yourself as its much better then shoe box faux luxury lipstick on big new units
I agree with Steve. I bought my first place and really had to grind to make it work. But that drove so many future decisions that paid off huge. Looking back, it was the best decision I've ever made.
@@SteveKarrasch There are a lot of us in the same boat because of this very first step. Thanks a Million(or two) for preaching this advice. #paidforretirement
I agreed with Steve. “Buy and wait”instead of “wait and buy”. It has never been easy, event I bought my first property 10 years ago. It was extremely difficult. I have to sell my car and saved up every single penny in order to put down deposit. After I bought, every pay Chq has gone after paying house bills. So many times I wanted to give up. But, that was best decision I made.
Ten years ago was a very different time. It's like someone in Florida saying you should buy a house in 2007 because in 1997 they bought a house and it was the best dicision they ever made. People bought here in Canada in 2021 and 2022 and now realize it was the worst decision they ever made.
Happy Sunday! Best day of the week 🎉
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TTSS = Canada’s #1 Real Estate Podcast
The Condo King and The Clayton Specialist. Wow what a team!!! I do agree it is #1
Easily the best gay real estate show on TH-cam.
@@mgdubya27 I'm now concerned about what add-ons the Condo King may be considering for his next listing.
Happy Pride Month!
Great podcast, the fact that people are depending their retirement on the equity of their homes is pure madness. Your retirement plans have always been based on your savings and investing in the market etc. Any equity you gain is just sheer luck and should be treated as so. And this is coming from a person that has lots of equity in their houses. Houses need to drop in prices for our future generations.
45:43 House prices are supposed to fluctuate. Recession cycles are a normal part of an economy. The government needs to stop stepping in the save homeowners and kicking the can down the road to further screw over future generations.
That impossible cuz you can get 60 year amortization here. So stop thinking about that crap
If you cant afford your mortgage payment with only half your income its a dangerous time to buy a house!
Banks will only lend based on 39% of your income.
@@SteveKarraschI'm pretty sure you know what I mean. If you lost half your income (spouse loses job, you get laid off and can only get part time, your tenant in the basement stops paying etc..) and you can no longer afford to pay your mortgage and all your other expenses... then it's an exceptionaly dangerous time to buy a house. The economy is deteriorating rapidly and house values are depreciating, leaving you with none or little equity to backstop you.
What the people who think this can go on forever dont understand is that the best and brightest minds will realize that they cant survive here and leave Canada (And it has started already). I am a software engineering manager and the amount of people that i have seen leave to go work in the U.S is crazy. People arent stupid. Once everyone gets that idea that there is no hope here its going to get really bad. Its not like Canada is intrinsically a country where people like being here for the country itself. The weather is so horrible that most people are here only here because of the idea that wealth can be made here. When that idealogiy dries up its going to be a difficult time. Why would people go to a cold country to be just as poor as they can be in their home countries. I dont know how long they can continue to kick the can but at some point its going to get really bad. And then all these same people(mostly real estate agents and investors) are going to lament how did we get here. The worst thing is when people who caused the problems with short sightedness now switch to trying to get everyone to feel sorry for them. Yes you can trick the ignorant new immigrants but it wont be an open secret forever.
no way tom just said hes passing on commissions because he doesn't know the area. if you dont care to learn it, have a team member do it. clients want do get a deal using one team for both. they want to believe the team is professional enough to get it done. this is assuming its something reasonable like 416 to 905, and not another province.
Why No One talks about- How Normal Salary(50 k ) and for couple (90-100k) How will they Enter this Market and How people buying at todays price expecting growth in their Equity and whom they gonna sell to in next 5 years?? if first time home buyers cannot enter this market how will they enter in next 5 years? todays starting house price is 800k to 1 mil and they are expecting growth and will sell this FOR 1.2-1.5M(need 20% down)....Who is going to buy??? MARKET WILL CRASH...MARKET NEEDS TO CRASH...EVERYONE CAN SEE ITS BUBLE....COST OF HOUSE IS 200-300K AND SELLING FOR 1.5 M...DOESNOT MAKE ANY SENSE..Please see all Housing market crashes from past...
Your absolutely correct
This is what no one seems to be discussing! There aren't enough people making enough money to support these crazy prices, it just doesn't make sense. Mix that with the state of the economy and upcoming job losses, there's nowhere for prices to go but down in my opinion. And for everyone saying it won't crash, has everyone forgotten what prices did after 2008??
I’m a electrician I do work for lots of new comers to canada a lot of their mortgages got salt and pepper 😂
@@juliecoo.k Housing prices are a lot stickier than you think. Look at a chart of average house prices in canada. Even in 2008, even in the pandemic, even in the mini housing crash of 2022, the prices only ever dropped maybe 20-30%? And very quickly after that, the price shot back up again. There are too many vested interests by corporations, by banks and lenders, by the government, and by other fellow Canadians (your ordinary middleclass neighbors) that housing prices will never meaningfully decrease to "affordable" levels again. Not enough people want that to actually happen, so it doesnt.
With post-pandemic inflation, the cost to build a lot of these houses makes their base price higher, almost 700/sqft which puts a floor on how low the house can sell for. With general inflation, the cost to hire tradespeople, buy materials, and hire employees to manage condo buildings will only keep increasing, putting further upwards inflationary pressure on the RE prices.
All the people saying a housing crash needs to happen, its inevitable, its the only way to "correct" the market, are completely ignoring what's actually been happening for the last 50 years. Go back in time, every 5-10 years, and you will find people saying housing is too expensive, it will crash soon. Yes, in recent history there has been some crashes, but the prices very quickly shot back up, the prices never come close to being affordable like back in the 1980's that was enjoyed by the boomer generation.
Who cares if people invested in housing and made the wrong choice for retirement income. It's a chance you take and sometimes you loose
Housing start NEEDS to be controlled like OPEC to ensure existing home owners retain their equity value. It needs to be passed into law by Trudeau to ensure he keeps his word on it.
What Justin and the Bank of Canada are trying to do, without explicitly stating it, is to keep the real estate market growth in Canada close to flat. They hope that income will catch up somewhat relative to house price multiples if they slow down real estate market growth for the next few years. They don't want the real estate market to crash, but they also don't want it to grow a lot. I don't know how it will work, but it will be interesting to watch.
I think you are right. But I don't think the government can keep it flat. That's because of the huge amount of speculators in the market that didn't buy their investments for flat growth. Those speculators want out, and as they try to offload to first time home buyers that cant afford the prices speculators want, prices will be forced down.
That’s true especially people paying 100k to 200k over asking some places.
They want to maintain until the boomers start dying off.
That's the theory however nobody wants to explain how incomes will ever get to that level and be sustainable the incomes will never ever catch up they are already over inflated and it's causing failures....examples teachers 2x what a teacher in the u.s makes and still they as taxpayers for more $$ and produce less plumbers electricians trade in general 2x what they get paid in the u.s and look at the cost it adds to the new build its breaking the bank the numbers don't work for builders anymore to be profitable and affordable...then you have the canadian government massive bloated way to many workers by 4x tax payers funded....the list goes on the reast of the taxpayers are broke from paying all these low quality workers listed above for max $$$......
@@jaymar1615 Their policy of bringing in loads of immigrants is what will keep wages from rising enough for new entrants to afford to get into the RE market. A ponzi collapses without new entrants.
I always thought people saved money through out their working lives for retirement income..
Overall I agree with Steve (same generation :) and appreciate the honesty. For most people with the tax preference of primary residences and forced savings it does seem like buying real estate leads to better long term financial outcomes. I've only seen one or two people make the rent and invest the rest work, most haven't been saving or investing. Where my concern is with real estate and where is is like the stocks you mentioned is that cities and countries do drop out of favour, like Detroit, Canada in the 80s so if you have so much of your net worth in one property it can be worse than diversifying across countries and currencies. Looking forward to a change in direction from the government, and I own multiple properties in 2 provinces. Otherwise if this continues, I'm joining my friends and colleagues starting to live at least half the year in a different country. I never imagined I'd leave Canada, but now exploring options.
They cant do much.. bankers need ro be held responsibke for devastating canada knowingly as well.. you might get a pension.. wont be worth a dime
Buying a house isn't analogous to working out. In any way. I can get out of bed, lace up my shoes, and start working out. I can't get out of bed, have my parents or grandparents die and/or gift me a down-payment, then buy a house. Your advice is correct for 1997; not for 2024. I'll caveat this so it doesn't look like I'm being flippant--yes, if you make $111,111 pre-tax and you can qualify for a 445 square foot condo, you can buy that--live in it for 15 years to build equity--then use that equity to buy a starter detached home in Oro-Medonte when you're 40.
If it's to be, it's up to me. - Brian Tracy
@@SteveKarrasch I kind of agree, but kind of disagree.
You cannot wait for conditions to be perfect before you make a decision that you know has a good chance of being beneficial (or a good investment) over the long term. However, given the prices of housing, relative to peoples incomes, it's also not as simple as "just take on any risk and buy no matter what". That could work when you were younger and house prices weren't so high, and your own income was ok. But nowadays, housing price increases have vastly outpaced increases in income/wages/salary. Even if you want to buy, you wouldn't qualify for a mortgage for a place in a major city.
I think the right way forward nowadays is to build wealth/equity by sacrificing life in the city. Move away to places where a house/condo isn't 400K. Buy land and build yourself if needed to keep costs low. Because trying to wait out the market, or wait until you reach your perfect financial conditions to buy an expensive DT property is also too slow and too late.
You guys should look at the Ottawa market. Lots of houses and condo for sale. And Commercial leasing. Ppl are leaving the capital and doesn't look good guys by October. I think it'd gonna crash
JT suggesting that he’s concerned about retirement plans is pretty f-ing rich for a guy that just proposed capital gains tax increases. The hypocrisy is mind bending.
🤯
Just watching what has happened to the Lumber and Mining industries in Canada explain sooo much for just material cost. Then you pair that with statistics and numbers that we are getting where 52% of all Employed workers in Canada work in one form for Government, Federal, Provincial or Municipal... It explains so much. 48% of us are trying to lift a Couch while 52% sit on it, While kicking our ankles with resources extraction/refinement/manufacturing restrictions. Then complain about the results they where party to creating.
Get off my couch.
Can you please talk about the advantage that real estate offers for blue collar workers that can put sweat equity into properties. It’s been overlooked as a form of investing. I invest my skills and time as a second job. I can do it at my own leisure. Then tax benefits after putting the work in. It’s something Canadian tradespeople have been doing to get ahead. Someone that’s worked hard to get ahead. Through sweat equity.
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Hey, Guys.
Great podcast as always, thank you!
I had to disagree with Steve on his point of buying a house to become financially stable. You’ve said it yourself: don’t agree with 70% of people. Having Canadian home ownership at close to 70%, would mean you should move the opposite direction;).
I’m a millennial, very financially stable. Never owned a house, and have all my current expenses paid by investments.
Each and every one of my investments is an asset, with zero maintenance, fees and expenses, plus all are highly liquid.
Buying a real estate would pull all my investments in as a down payment, plus it will push my monthly expenses 5x of what I currently have. So, I actually see housing as a liability, not an asset (constant repairs, maintenance fees, taxes, etc).
Bigger picture: 40% of mortgage free houses in Canada are owned my boomers, coming to a retirement stage. Eventually all those houses will be listed and have to be sold in order to finance the pension planning of the owners.
I agree the housing was way more affordable back in the days, and current owners got a very good set of cards dealt. However, under no circumstance am I willing to finance somebody else’s retirement, risking my own future prospects of owning a property and having a nice egg nest.
Those buying real estate today are basically sacrificing their future spendings in favour of retiring generation.
My true and honest believe is: you buy real estate not when you are financially stable, or when you have to move, but when it makes a long term financial plan viable. Unfortunately with current house prices, regardless of interest rate, I can’t see myself entering the market even if I had a full amount for the purchase in cash.
People treat housing in Canada like a stock market, and the first rule of the stock market is to never lose money. By entering now you are guaranteed to lose , unfortunately.
You forgot about pride of ownership. You will regret not buying in 30 years. Thanks for watching!
@@SteveKarrasch I’m not so sure about the pride of ownership, to be honest. It’s almost like somebody sold me an overpriced old junky car, with a hefty repairs, maintenance and taxes attached. After a year, I wouldn’t be so proud, I think:)
@@SteveKarrasch I actually have to add: I work in trades, so I know first hand about the expenses on housing;)
@@SteveKarrasch another thing that actually puts me off, is like you said in the podcast: everybody is raising fees and rates. I’m the past month I have received letters from literally every business I deal with, increasing service, fees and prices by 5-10%. Not one, not some, EVERY business I deal with (including my kids tuitions and daycare).
@@dmitriguzhel9515 then you should be keenly aware of what the construction costs are going to be in 30 years in inflated dollars. Imagine all the tax free gains in your primary residence?
I understand what Steve is saying, and I think it is true for the majority of people. People have to be forced to save before they do.
I didn't do it that way. I pretended I had a mortgage, and saved/invested the difference between my rent and potential mortgage. In 10-12 years I'm financially stable. So I always tell friends and family you can start a mortgage any time. Just start saving like you are paying a mortgage. But to Steve's point, nobody I know, that I told, does it.
That's it.
When is Ravi coming back on? I'd love to hear what he has to say about hotel prices! We had a huge sporting event in an interior town and I have to be frank, some people backed out at the last minute after trying to secure accommodation and avoid getting gouged. Prices for a room almost doubled from last year.... the economic impact of such losses are going to accelerate and be much larger than the feel-good rental supply that Ravi is trying to force back onto the market. In fact, I'm seeing more and more mom-and-pop landlords bail on the LTR market, with most selling or moving to other types of rentals(student, furnished).
#Steveforhousingminister
I'm coming for your job Ravi!
always good hearing you two chat
I see the difference is that the incomes don't allow for the same purchasing power as in the 80's.I also don't mind landlords just not major companies buying all of the investment properties making housing unaffordable for everyone because they become a monopoly and we know how that works in Canada.since covid everything has become rediculously expensive because it became an excuse for corporations to legally rip of the public.Conservatives love to complain but do nothing when they are in power.family Houses and rentals have stopped being built by every government since the 90's and this is where we are because of it.The government has to allow for different kinds of housing that are more affordable.
Great conversation as always and I love Steve's rants 😂
So you're the one.
I'll try to rant less next week.
Tom, tired Condos do not expire they wind-up...😉(15 minute mark)
36:55 Steve saying to just get in, makes sense in principle, however in reality, wages are so detached from housing that it isn’t feasible for anyone not already in the market. And yes everyone making under 75k can technically pick up and move away from the perimeter of a major city but should that be the goal. To empty the major cities of all the povo’s? lol
And the difference between 10 years ago and today is night and day. 10 years ago it was so easy to get in, now it’s a completely different story. I’m saying this as someone that bought 10 years ago
Everyone said the same thing 10 years ago too.
10 years ago I thought to myself I should buy a house. 3 months later I was in.
After the 70’s/80’s inflation wages increased dramatically. This time around housing doubled in the last 5 years with almost no increase in wages. It’s effectively twice as hard to get in now than 10 years ago.
@@CanadianSonFr
A lot of people are leaving major cities and moving into towns like mine making the demand/prices here way higher. And it’s not like I can move to a cheaper area, this WAS the most affordable place to buy a home years ago. Not anymore.
Steve, you’re so wrong it’s almost funny. Buying a house incurs massive costs and ongoing expenses. It’s completely irresponsible to do so if you’re not able to support it financially. Stocks on the other hand cost basically nothing to buy or maintain. Oh and unlike your house, stocks are actually up in value this year and are up nearly 100% over the past 5 years.
The Loonie Hour is more of a personal finance podcast than real estate.
Great show guys alot of good points
Especially the point why didnt anyone buy in Calgary when rates were down at 2% no one
They all tried to get ot Toronto and Vancouver.
That was their chance and you cant blame them.
"You can always blame everyone other than yourself". - TH-cam Commenters
In other words productivity needs to skyrocket😂😂
Is hosting a weekly podcast productive? Asking for a friend.
Most productive real estate podcast in Canada.
Real estate and realtors are not producers ! You suck money out of the productivity pool
Please explain how productive you are.
If you want house prices not to fall but actually become affordable you need actual wage gain. Which can only happen if the productivity per capita increases, which Carolyne Rogers said is not the case. You know that already.
Steve's a great guest, you should have him on more! 😏
Totally agree.
@@SteveKarrasch I'm not sold yet.
😂
I can't find the Wired Apple Earbud link? Love to buy those, I go through 3 or 4 pairs a year
amzn.to/45ehpvb
How about one month's rent as a free giveaway...
Only if it’s under rent control.
Tom and Steve throwing heat out of the gate. Canadian podcast wars have begun. I'll mediate /referee
No need. We win.
Nonsense @37 minutes in. Plenty of people are financially stable and renters by choice.
Not plenty.
Sounds like realtor bias to me ;)
Time to listen to the real Canadian real estate show, ahahaha
This is the Canadian Real Estate Show.
What time do they post now?
Needs to retain value but isn't going to....
@SteveKarrasch what happened after you clicked to contact the realtor whos face showed on your listing?
yes, we do like to hear the ending to these stories
They got my contact info.
Area specialists lol. Is Robbie Johal your Ray Finkle.
Ah, zee German speaks. Hail to zee German!
Vee vill buy belOw ouwa means. Shpend less.
In fact the BoC needs to commit to doing whatever it takes to ensure housing prices remain elevated so exiting homeowners don’t lose their shirts. A yield curve control to ensure this should be the new mandate vs a 2 percent inflation target
Only smart thing Justin ever said
“The budget will balance itself”?
Older condos have larger square footage therefore liveable and you can update the unit yourself as its much better then shoe box faux luxury lipstick on big new units
@@HardKnocks-pi7pc You will enjoy the video I'm posting next week on this topic.
Lipstick on pig not big
Why don't you name the 'particular region' and culture and provide more details of the negotiation?
Good morning! Best guest of the year.
I agree with Steve. I bought my first place and really had to grind to make it work. But that drove so many future decisions that paid off huge. Looking back, it was the best decision I've ever made.
Exactly.
@@SteveKarrasch There are a lot of us in the same boat because of this very first step. Thanks a Million(or two) for preaching this advice. #paidforretirement
I agreed with Steve. “Buy and wait”instead of “wait and buy”. It has never been easy, event I bought my first property 10 years ago. It was extremely difficult. I have to sell my car and saved up every single penny in order to put down deposit. After I bought, every pay Chq has gone after paying house bills. So many times I wanted to give up. But, that was best decision I made.
Ten years ago was a very different time. It's like someone in Florida saying you should buy a house in 2007 because in 1997 they bought a house and it was the best dicision they ever made. People bought here in Canada in 2021 and 2022 and now realize it was the worst decision they ever made.
@@Jo-mf2vuaffordability sure? But labor and jobs where at a horrible place to future plan
@@Jo-mf2vuI bought in 2021 and 2022 again, am still doing ok and still feel the best decision I made because I’m not selling in 10 years at least.