Why the Canadian Government Wants More Home Owners
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- เผยแพร่เมื่อ 8 พ.ค. 2024
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Homeownership is overrated. In this video we explore the trends in homeownership, the history of housing crisis in Canada, and what the government has done to release the housing pressure over the years.
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What's the alternative? Pay rent to some landlord to cover the mortgage for their 10th property?
That's up to you to decide on what will ultimately make you happy.
@@MakeThatChange hey! Thanks for the reply. I'm an immigrant to Canada and it is important for me to buy a condo here
@@AndroidCovenant 1k$+ maintenance fees are pretty common for condos in Toronto. So, most likely you will pay quite a lot for that and for interest on your mortgage. It is not always a financially good decision.
@@curiousobserver6077 not Toronto for sure. But elsewhere in the GTA. I'll look for one with low maintenance fees.
that ship has sailed. My landlord is one of those people and now panic selling because they cant cover mortgage
Swiss resident here. Many ppl here are not tenants by choice but by necessity. In Switzerland taxes are canton dependent. Rich ppl always are trying to avoid taxation, causing real estate in cantons like Zurich or Zug absolutely unaffordable for ordinary folks. Those places are also thriving hubs for the economy, so unless sb is eager to commute 80km to work property ownership is not possible. Swiss banks require 20% down payment at least with a mortgage rate being less than 33% of the gross monthly income. This kicks out from the market majority of population in Zug, Zurich, and Geneva.
Are tenants happier than home owners? It depends. I prefer to pay my mortgage than sb else's mortgage. Rent provides roof over my head and except for that has no pros for me. Mortgage gives the same plus stability, equity and home. Obviously rent vs buy depends on several financial and non financial factors.
After paying mortgage for 20 yrs one owns the property, after paying rent for 20 yrs one owns nothing. Stability of rent does not exist and even in tenant-friendly Switzerland a lot can happen. An colleague of mine rented with wife and 2 daughters nice spacious apartment. Landlady sold the property and they got the termination notice. What they got used to no longer existed in a budget. An acquittance of mine bought apartment and left tenants termination notice. He lived with his parents to save for down payment and now he wants to live on his own.
I agree rent gives flexibility and mobility. This is very important until it is not anymore. There are stages of live when we explore and stages when we settle down. Renting and settling down does not exist together. Percentage of home ownership in Switzerland is higher in cantons with higher taxation, as those cantons are not attractive to rich ppl trying to contribute as low as possible to the society.
Thank you for your comment.
Thank you for sharing your insights.
amazing video wow really puts things into perspective!
Glad you enjoyed it
Its very informative and nice video. I was wondering if I can help you edit your video and also make highly engaging shorts out of them.
Shoot us an email with your portfolio!
I’m not convinced home ownership correlates with happiness or quality of life.
It does, however, promote financial well-being in most cases.
My parents were working class but were still able to buy my childhood home in the ‘50s for about $15K.
I don’t agree that it’s about social control and that societies are not better off as a result.
Are millennials reluctant to be bequeathed the proceeds of the sales of their boomer parents’ homes? I think not.
Agreed, it is ultimately a personal decision, and definitely not the biggest decision to make to be happy or feel accomplished.
Home ownership and a rental market plus Airbnb to access the global rental market. I would like to see millions of homes being built globally using hempcrete, bamboo, and wood to lock up carbon and stop climate change.
Agreed on the control aspect. If you're renting you're still encouraged to remain employed and productive. You can only be disincentivized if given 100% free housing, but even then, you have other things to pay for.
Imo the problem is not the homeownership but the credit based economy. If credit were not controlled by the government the market would balance itself based on the offer and demand instead of the central bank interest rate dictate the real estate prices
The bond markets move "freely", in that they take information from the Central Banks, but also economic data. Bonds move far more than the CB rate.
I wonder why I never saw your video before. You really sound and present yourself as someone who really knows your stuff. Thank you.
🙏 thank you for watching.
Very important content for Canadians and immigrants. When I moved to Canada 19 years ago, I had the opportunity to work in the housing sector. That made me question house ownership and I decided not to own a house, which is a decision I don't' regret. There a lot of articles about home ownership vs renting that can help people decide whether owing a house is the right option. I also think that owning a house gives you less flexibility of moving to other cities in with better economic prospects, which can be very important when facing a slow job market
I'm a Landlord and I totally agree with this video. Make yourselves happier by renting one of my properties for life.
Or - make yourself happier, start a business, travel, invest in faster growing assets, and don’t fixate on real estate.
@@MakeThatChange you can still own real estate and do all those things and have money, leverage, and tax deductions by doings do. You can’t smith maneuver a house you don’t own… you can’t leverage a house to buy a business if you don’t own a house. You can’t travel and have your home rented out and use the income pay for your travel without a house.
You simply have less opportunities, capital, and legacy when being a tenant.
If anything, your message is a trap.
you're right. You can also do all those things without owning a home. None of these are mutually exclusive, it's just a question of personal preference.
@@MakeThatChange did you read the last comment? You can’t leverage, deduct, or rent something you don’t own? Do you just keep repeating yourself loud and long enough that people will believe your statements?
yes I did. There's plenty of tax deductions that are not related to owning a home. I don't need to buy a business, I can build one with 0 capital - I've done it more than once. If I did it, you can do too.
With the price of rentals it’s better to have a house in the same amount that you pay in rental fees, in renting you pay someone else mortgage and have nothing when you retire…that is if you intend to stay in the same area for a long time…if you intend to move regularly in different places or countries, better to rent…
Renting is traditionally a much lower expense than mortgage+maintenance. Smart renters will take that difference and use it wisely... investing & saving.
This is one of the best videos on youtube. Informative and engaging. More people need to be made aware of this.
Home ownership or tent city?
c) investing in businesses and stock market.
I know that so many people have backed away from the idea that owning a home is not as huge as it used to be. I still believe though that owning a home is something like living an asset for your future generation. Real estate is one of the tools that can be used for keeping and passing along generational wealth. This will not be achieved by owning only a single house that you live in though. You will have to buy multiple properties that have positive cash flow.
There are many more wealth generating( and growing faster) assets to consider - business, stock market, art…
Great video as always, keep it up!
Thanks, will do!
Great research! ❤
Thanks!
There are seasons in everyone’s life. You are lucky enough to be too young to have the fear of destabilized increased pricing of rent related to a fixed income that will not increase - Aka retirement.
Housing bought early and paid off is a stabilization of expenses in retirement or a savings bank of sorts to sell and obtain a nest egg large enough to offset inflation verses a set of ultimately decreased value of income provided by pension or social insurance. Within the system we have, buying a home is the easiest way to stabilize housing if working in this through a long time span.
The only way a plan of majority renters works is if people invest now in a socially stabilized housing scheme that they may never see the benefit of. And that is a hard sell.
great perspective.
Such an informative video! Thank you so much for all the research you did to showcase the past and present housing situation in Canada!
Loving what you guys do!
Keep it up 🙌
Glad you enjoyed it!
where’s your accent from?
Soviet Union
I've noticed in Canada people are more likely to take care of their property if they own it.
100%
Thanks Sis how we can make it better for the future because now we are f**ck
I am with you. I never bought a house in 25 years. I am smart. Buy home, get stressed and die early. That us settling. Shuttling is rent and mive wherever and whenever and also escaoe cmhc, insurance comoanies, banks and blood sucking lawyers and taxes. George Bernard said in 19th century that fools build and the wise stay in them. Thanks fir your good analysis.
What about stress your landlord can cause you? Our former landlord treated us poorly but did not try to evict us just yet because we were paying ok, new renters new rates. However, our elderly neighbour was getting harassed by that landlord to the point he would have a heartattack. Even his social worker could not help. Our neighbour had been k*lled right before we moved out. His apartment went for a lot more. If you have your own property you can garden and raise chickens - save on food.
Average income in Canada = $42,000/yr (so a couple's income = $84,000/yr). Average house price in Canada = $1,200,000+. The minimum household annual income required to buy a $1,200,000 house, assuming a 20% down payment and a 6% mortgage rate, is approximately $246,672.22 (data taken from ChatGPT). That's almost 3-TIMES what the people's incomes actually are !!!
Chstgpt data was last updated in April 2023, plus it is known to hallucinate numbers. We highly recommend to check official sources for a factual information - your average income and house price looks off.
Income: www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110023901
House price: wowa.ca/reports/canada-housing-market
Good video 👍
Glad you enjoyed it!
Agree 100 percent! Homes are a forced savings program that can help fund your retirement but at the same time restrict your mobility. Keep up the great work!
well summarized. thank you.
what happens when you are not physically able to work and pay rent, either due to old age or sickness? It's not true that countries have high ownership rates are poor and less stable countries, and neither is it correct to say they have less social benefits , lower property prices and higher mortgage interest rates. Look at Singapore for example, properties are not cheap at all, but their mortgage interest rate is about half of Canada's. Income tax is also not as high as Canada. And compare stability and safety in the both countries. The crime rates and all other issues in Canada speaks for itself. The government has screwed up the management of the country.
Singapore is a remarkable, though repressive country.
@@MakeThatChange Repressive? Ignorant comment. They have strict laws. Your view of freedom is deeply skewed. Go ask the hundreds of thousands of Expats including Canadians living in Singapore how they feel.
@@MakeThatChange in what way repressive? please do elaborate. I'm curious why foreigners find Singapore repressive. Because of no littering, no vandalism, no chewing gum, no guns?
Personally, I love Singapore,been there multiple times and would still like to live there for a year or two. Why repressive? Look at their laws, especially surrounding censorship, lack of right for privacy by constitution design, to say a few. If none of those are a big deal for someone personally, then this comment can be ignored.
It's called plan Smith & Wesson, 357.
Stability is an illusion. Even if you were lucky enough to have grown up in a stable household, that doesn't necessarily mean the future of housing will be stable.
If I buy a house now it won't be paid off until I'm 70 or 80. And that is only if I maintain a wage that prevents foreclosure. I could end up flushing good money down the toilet over interest payments and no hope of real security.
And cross-your-fingers hoping the valuation will be high when/if you sell it. It's silly to buy now at such inflated prices and seeing everything that's going on. Tells you something about a market if it's so faith-based, requiring people to "just believe" in order for the market to function. The fundamentals are all wrong.
Go ahead and keep renting. Just go talk to seniors that never owned and ask them how it is. That’s your future
You seem to think that real estate is the only way to use your capital and build wealth. Business and stocks arguably generate a lot more wealth ( and sometimes, faster) than real estate.
I know 😂 this NUTS… she wants people to leave under bridges while investing in ETFs 😅😅😅😅 . This such an uninformed conclusion …not to say stupid
It’s your life. You ultimately decide what’s best for you, I’m merely a random person on the internet.
@@MakeThatChange you seem to think you can read someone’s mind when you can’t. No one said that you can’t build wealth through other means. Owning a home can build a nest egg, security, sense of belonging to a community, hedge against rent inflation. The freedom of rent is moving and paying the next going rate for rent. You have to pay to live somewhere, so you might as well own it.
you're right. It's worth noting, that some seniors who never owned, that you referred to in the original comment, happily live in Mexico or Thailand. If you're refering to seniors who struggle, they don't struggle because they never owned a home, rather deeper financial and social reasons that led them to not being able to afford a home. I'm cautious of mixing up cause and effect. I am not arguing against homeownesrhip, I am highlighting there are a lot more options to choose from. Those options ideally reflect our desired lifestyle and values.
Owning a home is about stability. You need stability to build wealth. On the contrary you can also achieve the same by renting, would probably require more disciplines. There is definitely no one size fit all, really depends on your circumstances, if you are planning to get married and have kids, staying in the same area for a while probably it would be wise to invest in a home instead of renting.
Thank you for sharing your balanced pov.
Who owns all those apartments the happy Swiss are renting?
The government mainly. Very high quality council built properties. They are super lucky.
@@ExNihilo634 Not really. My cousin lives in Switzerland. She can't afford to retire there fully, it's too expensive. She bought a house in the Philippines and stays there most of the year
@@ExNihilo634 I don't understand what you mean by lucky. I never depend on handouts. I make my own luck
So, you will own nothing and be happy kind of thing? Gotcha.
Break away from social norms, think critically and make your own decisions on what will make you happy.
@@MakeThatChange then why did you also buy a house in GTA?
we answer that question in this video: th-cam.com/video/fPeqEBb1z2s/w-d-xo.html
Klaus Schwabb, my a$$ lol !
This. I don't agree with all your videos, but I agree with this 100%. Plus, kudos to you making this video inspite of being a home owner yourself!
As for me, I'll try to never get into the scam of taking a loan to buy a house. I'll keep moving from place to place and see the world from different angles. :)
That's your decision for me it's a must to buy my investment home 😂
Have you seen playgrounds in Canada? Dog poop, cat poop, cigarette butts, sometimes used syringes. Off leash dogs charging my kids! The constant stress! I had to walk my kids there because we were renting and we had no choice. I bought a house with a big backyard and im building them a playground. A house ownership is very important for families. But you dont have any kids so you wouldnt know.
Glad you ran away from stress, congrats! Even though we don’t have kids, we have two cats and we sometimes joke that the only reason we bought a home was for our cats to have enough space to run around 🐈 only half joking though 🐈⬛
If buying a house didn't work well for you, buy two of them, which of course doesn't make sense for renters.
But you bought your own home in GTA not long ago..
yes
Отличный выпуск, спасибо! Мини-исследование получилось, очень интересно.
Спасибо! Рады что понравилось 🙌
what is mentioned in this video is so true
Better called "House Poor" than a "Debt Slave" but hey, are we that really now poor as Canadians??? We in the west lives on life line of debt. Without it, we have nothing to be proud of. Or are we???
Africa left the chat
Thats the first video I don't agree with you. Buying a hous is way smarter than renting. Stressed by the mortgage? What the difference than stressed by rent? Add to that the thought you might get evicted next year or need to pay higher rent every year.
At least when you buy you pay for your own home and increase your own equity and "worth", not someone else's.
What about paying higher property tax and maintenance costs every year, the same way as your rent going up? There are pros and cons to each option, the question is - which one will make you happier in short and long term?
@@MakeThatChange Firs at least you can eliminate the options of getting evicted by someone else wish.
And when you pay all those thing again your doing so for your own benefits, your own equity, not someone else's.
Renting is purely loosing money.
Agreed, but worth noting that buying a home you cannot afford is also losing money and health due to stress.
I don’t know if they just want to convince themselves they aren’t in trouble, but I remember their video of moving out as they simply couldn’t afford living in the city any more. Maybe it’s a way of dealing the crisis in their lives, but they clearly are an example of renters who eventually lost their housing due to the inability to pay.
Canadians are already taxed to the hilt. Home ownership is one way to relieve the tax burden via exemption from Capital gains tax.
Tax burden, in theory is proportionate to the amount and quality of incentives we receive from the government. The US had some of its biggest economical growth during the times of highest tax.
Buy a home it's a trap, I want to travel all over the world 🌎. I love this video ❤. You explain very well. Thank you for your valuable work, girls.👏
But she owns a house here in Canada 😂. Stop deceiving yourself and get yourself a home Good luck
You want to travel? So when you do sell your home, you might even gain some money. Or rent it.
It's not one or the other. In fact, most people that own homes are financially stable and are able to travel more.
As a proud Canadian citizen & black man, born in 1992, my house in the GTA area is paid off about 75 percent. I am a self-made multi-millionaire, working as a security guard, and on top of my game in my early 30's. I don't know how you 2 ladies from make that change did it, but I managed.
That’s impressive! Right on! 👏
I’m going to be buying a home when I arrive in Canada , not to flip but to pass to my children so they might live mortgage free when I am gone. My wife and I already own 2 properties abroad so hopefully my son and daughter can build on what I plan to leave them. I told my wife once my life purpose is leave a legacy for her and our children and that is what drives me and truly makes me happy.
Why does your legacy have to be with real estate? That’s apparently what everyone’s legacy is. Be unique. Stock market can outperform ran estate if properly managed. Canadian real estate is over valued and we’re getting regulations to not allow people to borrow over 4.5x their annual income.
You won’t be able to buy a house once you arrive because you won’t have your PR right away, and Canada is cutting the PRs because of our over immigration/population to housing issues. I know lots of professionals who are thinking of leaving because they cannot get their PR.
Canada mostly has plywood houses that are highly likely to require constant attention and maintenance after 10 years since construction. They poorly resist water leaks, fire, and have a mediocre soundproofing. Buying a house was a decent investment before the prices and % rates went through the roof. having a house now, especially one that is not new, is very likely to quickly turn into a money pit. As a result, you might want to think twice before making such a ‘present’ to your kids.
@@NavyMoo5e I have a stock account that I created and I manage it but I put it in my wife’s name for her alone. I don’t buy wood homes I like masonry. I also buy gold bullion. The past 48 years I have constantly upgraded my legacy road map. I never buy new cars always bank repossessed, the 2 properties abroad I purchased from people who were almost foreclosed on , I pay off the bank and give them a reasonable offer which was about 70 percent of the actual value. I hunt for bargains and that is what I will continue when I buy in Canada.
In current market conditions, it’s literally cheaper to rent than to buy. I know some people who opted to rent out rooms and basements in their homes in order to ease the burden of repaying their ‘new’ mortgages. It’s certainly a great approach except for the fact that their homes are now dormitories where they have to make do with both limited privacy and space.
If you follow Maslows ladder as your guide. It’s amazing what you can accomplish.
I will keep my house you can rent all your life if you want but your making some else money it's that easy .this sounds like you will own nothing and you will be happy
Nice try WEF Stan
what's that
Home ownership is an important part of the definition of a Canadian tax resident. The total cost of real estate in Canada is not just the inflated price, but also the cost of taxation.
But you bought your own home😂
One doesn’t cancel the other
@@MakeThatChange but it would indicate that you think it's better to own than not to in spite of the video. And it is. Renting gets you a roof over your head. Owning gets you that plus equity plus ability to customize your living space as you want plus no concern for eviction. Finally, pride in ownership is a real thing.
I agree, but also not necessarily. We’ve shared our reasoning to buying a home in another video. It was circumstantial for us and not focused on “own vs rental” narrative at all. Personally, I still think most of us would be better off investing in stock markets or business, than buying a home.
You will own nothing and be happy?
You will own stuff and be happy?
@@cesarandrade1987yes owning a home will make me happy
In today's market housing and rent as become unaffordable for the majority of young Canadians. Being a landlord and making renters pay the mortgage, taxes and utilities have given me a good revenue stream and retired in my early 50's. If you can afford rent go and buy a rental property to make a tenant pay for your dwelling and live rent free yourself
It is a false correlation. People in Russia live less than Canadians because they drink and smoke more, do less sport and participate in wars, not because they own homes.
You’re absolutely right, that’s not the correlation that’s drawn in this video. Causality is more complex than any one correlation.
Co-op housing is the best.
Giving most my paycheck renting a 500 square foot condo made by investors with unfunctional layouts sounds much more appealing than owning something i can change. Silly me for being so ignorant. What people need is choice. In this current climate people don't have that.
People always have a choice, but it is often easier to give up and assume no choice available.
And thats why we need as much if not more appartment build than house!
Justin T is worse PM
worse than...?
@@MakeThatChange PLEASE MAKE MORE VIDEO IMMIGRATION SCAM. SAVE CANADA
thank you for the suggestion, we will consider your input.
@@MakeThatChange
Thanks for your hard work
There are so many issues home crisis , immigration crisis , unlimited international students and refugees
First to comment
🙌
I am not taking information from a couple of weirdos.
Then start by not clicking on our weirdo thumbnails.
Fantastic and well said!! Home buying is demoralizing for our generation. We pay our dues and live by the rules and we still get screwed over. I don’t want handouts. Why be the good little citizen and fit into the banks' and government's mold when you can live life in a way that you really want. Capitalism has messed the world up. I don't advocate for communism but i do advocate for a kinder economy where everyone shares in the benefits. The more power we give to these oligopolies, the less power the 99% have. Thanks for your insights.
well said!
There are no dues or rules.
Home ownership is ownership of the mind…
Say more
@@MakeThatChange I can’t…
You single
Are you getting paid by the World Economic Forum to do videos like this? #tinfoilhat
you think too highly of us.
@@MakeThatChange why would you discourage home ownership. Ever.
Comparing lifespan to other countries is asinine simply with the foods they eat and the poisonous food like products North Americans eat. It’s not comparing apples to apples. Show us data in Canada that tenants outlive homeowners.
Owning a home promotes family stability.
The chances of your kids owning a home is more then twice the likelihood if their parents own a home.
Bring a tenant, freedom of movement, no roots, no community, no stability, no equity, no leverage of asset, no long term upside.
Having no responsibilities other the rent doesn’t really exemplify commitment.
We're not discouraging home ownership at all, if you'd watched the video till the end you'd know that. We're merely sharing a POV and encouraging making decisions that feel right, whether or not that includes owning a home.
@@MakeThatChange you basically made a statement and the justify by saying but at the end. Pretty lame. Disingenuous.
If that’s true, make a video promoting home ownership and then say at the end you should rent, but you should do what you feel is right.
I look at it as being able to hold more than one truth in our heads at the same time. I'm glad it struck a strong reaction though, I'd assume you're heavily tied to the real estate space, so I get that. Our previous video about homeownership in fact passes a similar message to the one you've just requested, so you can check that one out. Do stay tuned for more home ownership content, we've got some DIY renovation content coming up.
Out of touch
Un pays sans âme, la malédiction du massacre des Amérindiens