Pasalis Heat Alert! 🔥🔥🔥John goes off on why housing is political @22:10 - Why don't we think about housing not being a business, they way we do our Canadian healthcare system 🤔
Very insightful, powerful analogy. Housing is a human need and as a society we need to do better for the next generation and the ones to come. Hard working Canadians deserve a clean safe home that they can call their own. Thanks John for your views and commentary.
Maybe one of your most important videos John. Thanks for sharing and the discussion. This challenges current housing strategies in Canada, which is good.
I know some Canadians buying properties in Texas(since you are talking about Texas right now coincidentally) and the question is why ? One thing is sure, :it's that they really don't need to buy a house in Texas. They are from Toronto (already owning several properties here). Sad, to see that so many Canadians are endlessly greedy, just for the sake of it. Those are the types of people messing up the market... Of course, those same people are probably going to say that 'foreign buyers shouldn't be allowed to buy in Canada'', while they do the same thing abroad., without any scrupulous. They are lucky the US government doesn't reciprocate and put a ban on them.
Ive said this before, a lot of people were treating housing as an asset class. For asset class price is not controlled by supply. It's controlled by interest rate and economic outlook. The last two year proves my case. High interest, poor economic outlook in Canada, investor demand for housing died. Now the economic outlook is still poor despite interest coming down, thus investor hasn't returned.
Canada needs to stop providing high leverage financing options to investors and speculators. 20% down and 80% financing was intended to allow average working Joe's in this country to be able to buy a home to raise their kids i.e. END USERS. If an investor needs to have 50% down payment and pay a premium interest rate to mortgage the rest of an investment condo,. the numbers won't pencil, to rent it out. When you eliminate leverage, real estate is an INFERIOR investment to the stock market. Leverage is what makes RE attractive and governments CAN and SHOULD control leverage for investment properties. The fear of course, is doing so will create a 20-40% downdraft in prices which is something the government doesn't want to see happen.
They don't care about financing options. Many people have a lot of money in Toronto. I don't think they buy a 3 or 4 million dollar property with a mortgage.
The answer is government subsidized rentals in retrofitted government buildings. This will cover the shelter need as a basic necessity. The mansion will remain for those who want a mansion to “feel good”
Tiny homes that need no permits, on crown land. Anyone can squat. America is using its land a lot smarter than Canada, they are spread out, we are clumped together. Canadians need to learn to become frontiersmen again.
The ever increasing availability of debt over the last 40 years has caused the value of currency to decline. Working hard and saving did not create wealth, leveraging did. Nothing goes in a straight line, but my guess is that will reverse as fumble our way through the 4th turning.
Those economists came to their conclusions based upon the fact that as the demand grew the trades would naturally grow on a supply and demand basis. We are not bringing in or training enough to come close to fill the demand needed. I highly doubt many moving to texas build houses or many of the 1m plus people that the federal government in canada let in do as well. In saying the employement market has 40% of the workforce in our government with pay and benefits that are high and generally a workload a lot less than those in the trades. I bet if we lowered that percentage and encouraged more people into trades the housing market would start changing naturally. Just something to think about, not the solution or the entire problem, just a part of it
No offense, but your analysis loses credibility when you take on a left-leaning socialist stance. Government involvement in everything-especially housing-is a problem. If the government stays out, we might go through a rough period, but eventually, the market will reach an organic equilibrium instead of relying on constant and unnecessary government manipulation.
It will shift when people in Canada accept the fact that they can't have their own place and demand will go away, and so will speculators. Years will go by with stagnant prices while wages catch up The low rates, money printing and mass immigration created this problem and housing won't reach affordability until 2030.
The government is fully manipulating housing, on every level imaginable, Through population growth, money printing, CHMC, and any number of stimulus. Yes, if the government stayed out of everything, theoretically markets will reach an organic equilibrium. The population of Canada will never vote for these policies and the government will never dissolve CMHC. Within our current framework there are other solutions then the government sponsored fictionalization of housing. If provincial and local governments built some non-market housing it would help improve affordability, this approach would be easier than completely change our financial systems .
Pasalis Heat Alert! 🔥🔥🔥John goes off on why housing is political @22:10 - Why don't we think about housing not being a business, they way we do our Canadian healthcare system 🤔
Very insightful, powerful analogy. Housing is a human need and as a society we need to do better for the next generation and the ones to come. Hard working Canadians deserve a clean safe home that they can call their own. Thanks John for your views and commentary.
Maybe one of your most important videos John. Thanks for sharing and the discussion. This challenges current housing strategies in Canada, which is good.
Well explained and argued...I detest the economist's utopian deceptions. I don't want my home's price to fall too much.
Greed will ruin us all
I really appreciate the perspectives you both bring. Thank you.
I know some Canadians buying properties in Texas(since you are talking about Texas right now coincidentally) and the question is why ? One thing is sure, :it's that they really don't need to buy a house in Texas. They are from Toronto (already owning several properties here). Sad, to see that so many Canadians are endlessly greedy, just for the sake of it. Those are the types of people messing up the market... Of course, those same people are probably going to say that 'foreign buyers shouldn't be allowed to buy in Canada'', while they do the same thing abroad., without any scrupulous. They are lucky the US government doesn't reciprocate and put a ban on them.
Meanwhile GTA RE agents markets Calgary homes to GTA investors to screw up Calgary's housing market. Horrible
Should put the blame on the banks that are funding all that leverage and debt. If any of the rent or air bnb stops those people go under super quick.
Great episode 👏
Ive said this before, a lot of people were treating housing as an asset class. For asset class price is not controlled by supply. It's controlled by interest rate and economic outlook. The last two year proves my case. High interest, poor economic outlook in Canada, investor demand for housing died. Now the economic outlook is still poor despite interest coming down, thus investor hasn't returned.
Love this
You’re not getting a PhD if you keep attacking the ivory towers, lol
Canada needs to stop providing high leverage financing options to investors and speculators. 20% down and 80% financing was intended to allow average working Joe's in this country to be able to buy a home to raise their kids i.e. END USERS. If an investor needs to have 50% down payment and pay a premium interest rate to mortgage the rest of an investment condo,. the numbers won't pencil, to rent it out. When you eliminate leverage, real estate is an INFERIOR investment to the stock market. Leverage is what makes RE attractive and governments CAN and SHOULD control leverage for investment properties. The fear of course, is doing so will create a 20-40% downdraft in prices which is something the government doesn't want to see happen.
They don't care about financing options. Many people have a lot of money in Toronto. I don't think they buy a 3 or 4 million dollar property with a mortgage.
A shelter doesn’t have to be a 5000 SF mansion with a covered swimming pool and a tennis court 😅
The answer is government subsidized rentals in retrofitted government buildings. This will cover the shelter need as a basic necessity. The mansion will remain for those who want a mansion to “feel good”
Tiny homes that need no permits, on crown land. Anyone can squat. America is using its land a lot smarter than Canada, they are spread out, we are clumped together. Canadians need to learn to become frontiersmen again.
Can we plz audit all politicians 🙏
The ever increasing availability of debt over the last 40 years has caused the value of currency to decline. Working hard and saving did not create wealth, leveraging did. Nothing goes in a straight line, but my guess is that will reverse as fumble our way through the 4th turning.
Let this man cook
Those economists came to their conclusions based upon the fact that as the demand grew the trades would naturally grow on a supply and demand basis. We are not bringing in or training enough to come close to fill the demand needed. I highly doubt many moving to texas build houses or many of the 1m plus people that the federal government in canada let in do as well.
In saying the employement market has 40% of the workforce in our government with pay and benefits that are high and generally a workload a lot less than those in the trades. I bet if we lowered that percentage and encouraged more people into trades the housing market would start changing naturally.
Just something to think about, not the solution or the entire problem, just a part of it
2 properties max per SIN number. Get a job landlords.
Really stupid comment!!!
Ridiculous....
No offense, but your analysis loses credibility when you take on a left-leaning socialist stance. Government involvement in everything-especially housing-is a problem. If the government stays out, we might go through a rough period, but eventually, the market will reach an organic equilibrium instead of relying on constant and unnecessary government manipulation.
Are you a baby? Do you wanna give up your healthcare in favour of an American style insurance model? Do you think socialism is when "gov't do thing"?
It will shift when people in Canada accept the fact that they can't have their own place and demand will go away, and so will speculators.
Years will go by with stagnant prices while wages catch up
The low rates, money printing and mass immigration created this problem and housing won't reach affordability until 2030.
The government is fully manipulating housing, on every level imaginable, Through population growth, money printing, CHMC, and any number of stimulus. Yes, if the government stayed out of everything, theoretically markets will reach an organic equilibrium. The population of Canada will never vote for these policies and the government will never dissolve CMHC. Within our current framework there are other solutions then the government sponsored fictionalization of housing. If provincial and local governments built some non-market housing it would help improve affordability, this approach would be easier than completely change our financial systems .