Great show guys!! On housing and immigration, I’ll do some research myself but since the last big wave in the late 50’s, the people coming over had not a penny to purchase and moved into the rental property of family members already here. Therefore, how can we build so much more before people arrive when we know that most immigrants today aren’t in a position to qualify for a mortgage and the few that can or purchase outright have tons of money? Universities on the other hand know exactly how many are coming over and enrolling. Therefore, universities should base their enrolment on the spaces they can provide for housing the students that need it. Our system allows people to come in and scramble until these same people are able to move forward. The affordability conversation is a whole other issue. What are we to build? For how much? Where? By whom? This is a complex issue and we need a good government and policies that aren’t so restrictive to people getting mortgages or even a rental property seeing the constraints and consequences mom and pop and bigger investors are experiencing with disastrous landlord/tenant. The biggest change has to come on how quickly builders can build by eliminating the cushy expensive bureaucratic jobs with layers and layers of charges added to the sale price of the homes/condos they’re building. Last point, every homeowner wants to be a multiple property owner. This is as old as prostitution. Bullshit that the government should do anything in this field because the more they do, the more people will leave this land (ie new capital gains rules) if our system stops upward mobility in any form - including real estate. This is why banks lend on real estate in the first place. Don’t know any banks that will give you 80% or more towards the purchase of anything else - even their own shares!! Looking forward to next week’s show!!
My buddy who works in construction in Toronto said that some of the companies are laying off Canadian workers so they can hire foreign workers at a lower rate. So I'm kind of worried about politicians who say we need to bring in more skilled trade workers, some of them are in cahoots with the big construction companies
Construction labour costs are just too high. You can only squeeze buyers so far. We’ll never get the cost of homes down if labour costs stay high. My only concern is how good is the foreign labour? Construction industry in some roles are notorious for being transient workers.
@@sharinglungs3226 well it seems like our economy is f**ked. People already don't make enough money to support themselves Wages have slumped for years yet we're laying people off and hiring from other countries because it's cheaper because it costs too much to build things.
@@sharinglungs3226 If existing labour is being replaced, as opposed to supplemented, we're not making serious progress in terms of bottlenecks and costs. This is not an acceptable use of imported labour. It's typical of Canada and your support for this kind of thing is pretty appalling.
That's correct, starting in 2023 if you flip a property it's taxed as income... I just got hit with a large tax because of this Increasing the capital gains tax inclusion rate is a terrible idea, it discourages owning assets and if you already have any it discourages selling. Essentially, most homeowners in the GTA who have owned a home for at least 5 years are going to have a huge tax bill
Investors take note! With government back in the business of building purpose built housing (via incentives and loans), condo investors will be competing for tenants - with an ever increasing inventory of these new moderately priced rentals. This will result in rental rate compression which will force down condo values. The only game in town now is investment in single detached homes. SIngle detached as a percentage of our total housing stock will fall - and fall rapidly... making them a rarer and more valuable asset. That is where the long term appreciation of RE can be found going forward.
Not only the former housing minister. Freeland and Pierre polievre have a number of investment properties to name a few.. conflict of interest ? I think so
Freeland’s properties are mostly overseas. I forget what the number was but something like close to half mps in all the parties have rental properties. Some have multiple like ndp leader Jagmeet but he puts it in his wife’s name because that’s what champagne socialists do.
@@sharinglungs3226 So instead of putting the $$ in Canada, she decided to benefit another country because she is making sure that Canada will be the land of Zombies and don't think this country is an investment grade. If the CFO is selling the shares of his own business, will you buy it ?
Hate to say it but this is new liberal budget is expensive smoke and mirrors - right now about 265000 homes are built annually of which over 95% is by the private sector - in 6 years this is about 1.6 million homes -he wants 3.9 million do in next 6 years he wants to build an extra 2.3 million homes -1.15 trillion dollars of additional costs -and he thinks 10 billion of grants and 15 billion if loans will So do the numbers - at average cost of $ 500,000 per unit (which is low due to labour and building material costs inflation) that is $ 1,150 billion of additional financing to accomplish this - assuming labour and materials and land etc allows us to physically achieve this - So honestly do you truly believe a federal grants of 10 billion and 25 billion of loans will stimulate and result in 1,150 billion $of additional construction. The biggest problem is the Govt failed to do its job to monitor immigration and we suddenly have an extra 4 million people to provide housing, education, medical and jobs for . Increasing the national debt by an additional 50 Billion is smoke and mirrors of a desperate “totally clueless govt” If they really want to make a difference - kill the new spending , reallocate some funding from else where ( like they have a total tax revenue of close to 800billion al ready -and by balancing the budget the Bank of Canada can drop interest rates by 1/2 of 1 percent. Now you ask why does that matter ? -well right now federal/provincial, mortgage/consumer/corporate/debt in Canada is roughly $ 8.9 Trillion -that is like 4 times our total yearly GDP - so reducing the bank rate by 1/2 of 1% means Canadians reduce financing costs by roughly 45 billion dollars - that’s like 1100$ of lower costs for every Canadian . The province needs to wave its excessive land transfer taxes (which have no relationship of true cost just to change the registry of a home ownership, remove the city of Toronto transfer tax and get the property taxes across the city to cover the true cost of providing the services, cut the red tape at municipal levels and make municipalities zero budget development fees removing development fees as a profit centre, then get realistic in the total environmental protection issues -right now there is no common sense in protecting important species and indeed Conservation authorities add 10s of thousands of dollar costs /home because you spend years because you want to remove trees to build yet once development is built new trees will be planted - also remove requirement to have municipalities issue and do building inspections - open up this ability for private enterprise eg engineering company’s with performance bond to supervise and ensure building codes are complied with - - then of course comes reducing cmhc mortgage insurance costs for first time buyers as right now this is another profit centre for the provincial governments - Even the new tax rates on capital gains -sounds great -make the rich pay -well if govt collects another 10 billion of tax that’s 10 billion less that these tax payers have to reinvest into new development and business’s - it is increasing cost and reducing profit incentive respective to buying investment properties. I own land 1 kilometre from a Go station that despite being identified for development (when we bought it in the 1960’s ) and 4 OMB agreements supporting our development rights -remains totally tied up in municipal red tape have been trying So kill the carbon tax ( which is doing nothing re stopping climate change -listen to the govt we need to have this tax to give rebates to low income Canadians- uh duh) , get the budget balanced -reduce govt debt and get the prime rate down 2 % points which will free up 180 billion dollars of interest relief which over 6 years will make $ 1,080 of money going to banks available to finance the new $1,150 billion of financing - Anyways -guys stop talking and start analyzing -the numbers are what matters!
good topic but something is being missed. very little is being produced and very little rewarding/encouraging of those that do produce something - mostly an anger or jealousy against those that may have worked longer or more productively. this leads to a place with very high cost of everything - which lowers vs raises standard of living - but the goal seems to be to be a place for non-Canadians to move to
48:08 Highly disagree. It is completely unethical that the housing minister racking up SFHs as investments. This is akin to the referees making sports bets. They just banned a Raptors NBA player for life for doing this.
Strongly disagree on blaming investors. Obviously this particular home, bought by investor, would be built and occupied by someone else anyways. But in general by putting more money into the housing and raising prices investors definitely create incentive for more building. The only negative thing it does is shifting balance between owner occupied and rented houses, and since rent is not cheap - we are good here. If we have 100 houses and 90 families, even if all the houses are bought out by investors they will have to make rent cheap since they will be fighting for renters. If we have 90 houses and 100 families and ban investors completely - cheapest house will cost exactly the price lower 10% can't afford.
John I have to disagree with you on this. Every purpose build rental built is one less potential home for first time home buyers. As a potential FTHB, all these rentals are a slap in the face. In my humble opinion, the government seems to be willing to built rentals as rents are at all time high. Noone will own anything and they just want people to depend on government and not be able to accumulate your own wealth :(
I am a follower, but I disagree with how things are presented in this episode If you target landlords, Airbnb, REITs, everyone who is trying to get financially better Let's talk about 1- Why realtors are getting 5.6% of each transaction and it was proven in US court that they were colliding in the high prices. 2- Why we don't talk about the Municipal, provincial and federal corruption, which is so high and started to show in the media recently, the tip in the iceberg, Arrivascam and greenbelt stories still in youtube. 3- Unfair tax bias against small business vs Un-efficient government and semi government jobs salaries (Banks, pension funds, Air Canada, rail, hydro etc of government secured business), poor productivity, and you can check the GDP productivity numbers of Canada, The current socialist agenda want everyone to be a heroine addict, get a secure heroine supply and get a free housing, no accountability to our lifestyle decisions. I worked hard to get every dollar I own and I should not subsidize others party lifestyle.
Great show guys!!
On housing and immigration, I’ll do some research myself but since the last big wave in the late 50’s, the people coming over had not a penny to purchase and moved into the rental property of family members already here. Therefore, how can we build so much more before people arrive when we know that most immigrants today aren’t in a position to qualify for a mortgage and the few that can or purchase outright have tons of money?
Universities on the other hand know exactly how many are coming over and enrolling. Therefore, universities should base their enrolment on the spaces they can provide for housing the students that need it.
Our system allows people to come in and scramble until these same people are able to move forward. The affordability conversation is a whole other issue. What are we to build? For how much? Where? By whom?
This is a complex issue and we need a good government and policies that aren’t so restrictive to people getting mortgages or even a rental property seeing the constraints and consequences mom and pop and bigger investors are experiencing with disastrous landlord/tenant.
The biggest change has to come on how quickly builders can build by eliminating the cushy expensive bureaucratic jobs with layers and layers of charges added to the sale price of the homes/condos they’re building.
Last point, every homeowner wants to be a multiple property owner. This is as old as prostitution. Bullshit that the government should do anything in this field because the more they do, the more people will leave this land (ie new capital gains rules) if our system stops upward mobility in any form - including real estate. This is why banks lend on real estate in the first place. Don’t know any banks that will give you 80% or more towards the purchase of anything else - even their own shares!!
Looking forward to next week’s show!!
My buddy who works in construction in Toronto said that some of the companies are laying off Canadian workers so they can hire foreign workers at a lower rate. So I'm kind of worried about politicians who say we need to bring in more skilled trade workers, some of them are in cahoots with the big construction companies
Construction labour costs are just too high. You can only squeeze buyers so far. We’ll never get the cost of homes down if labour costs stay high. My only concern is how good is the foreign labour? Construction industry in some roles are notorious for being transient workers.
@@sharinglungs3226 well it seems like our economy is f**ked. People already don't make enough money to support themselves Wages have slumped for years yet we're laying people off and hiring from other countries because it's cheaper because it costs too much to build things.
@@sharinglungs3226 If existing labour is being replaced, as opposed to supplemented, we're not making serious progress in terms of bottlenecks and costs. This is not an acceptable use of imported labour. It's typical of Canada and your support for this kind of thing is pretty appalling.
That's correct, starting in 2023 if you flip a property it's taxed as income... I just got hit with a large tax because of this
Increasing the capital gains tax inclusion rate is a terrible idea, it discourages owning assets and if you already have any it discourages selling. Essentially, most homeowners in the GTA who have owned a home for at least 5 years are going to have a huge tax bill
Investors take note! With government back in the business of building purpose built housing (via incentives and loans), condo investors will be competing for tenants - with an ever increasing inventory of these new moderately priced rentals. This will result in rental rate compression which will force down condo values. The only game in town now is investment in single detached homes. SIngle detached as a percentage of our total housing stock will fall - and fall rapidly... making them a rarer and more valuable asset. That is where the long term appreciation of RE can be found going forward.
Not only the former housing minister. Freeland and Pierre polievre have a number of investment properties to name a few.. conflict of interest ? I think so
Freeland’s properties are mostly overseas. I forget what the number was but something like close to half mps in all the parties have rental properties. Some have multiple like ndp leader Jagmeet but he puts it in his wife’s name because that’s what champagne socialists do.
@@sharinglungs3226 So instead of putting the $$ in Canada, she decided to benefit another country because she is making sure that Canada will be the land of Zombies and don't think this country is an investment grade.
If the CFO is selling the shares of his own business, will you buy it ?
John finally comes to the right side of the table talking about rich buying the houses and increasing the price
Hate to say it but this is new liberal budget is expensive smoke and mirrors - right now about 265000 homes are built annually of which over 95% is by the private sector - in 6 years this is about 1.6 million homes -he wants 3.9 million do in next 6 years he wants to build an extra 2.3 million homes -1.15 trillion dollars of additional costs -and he thinks 10 billion of grants and 15 billion if loans will
So do the numbers - at average cost of $ 500,000 per unit (which is low due to labour and building material costs inflation) that is $ 1,150 billion of additional financing to accomplish this - assuming labour and materials and land etc allows us to physically achieve this -
So honestly do you truly believe a federal grants of 10 billion and 25 billion of loans will stimulate and result in 1,150 billion $of additional construction.
The biggest problem is the Govt failed to do its job to monitor immigration and we suddenly have an extra 4 million people to provide housing, education, medical and jobs for .
Increasing the national debt by an additional 50 Billion is smoke and mirrors of a desperate “totally clueless govt”
If they really want to make a difference - kill the new spending , reallocate some funding from else where ( like they have a total tax revenue of close to 800billion al ready -and by balancing the budget the Bank of Canada can drop interest rates by 1/2 of 1 percent.
Now you ask why does that matter ? -well right now federal/provincial, mortgage/consumer/corporate/debt in Canada is roughly $ 8.9 Trillion -that is like 4 times our total yearly GDP - so reducing the bank rate by 1/2 of 1% means Canadians reduce financing costs by roughly 45 billion dollars - that’s like 1100$ of lower costs for every Canadian .
The province needs to wave its excessive land transfer taxes (which have no relationship of true cost just to change the registry of a home ownership, remove the city of Toronto transfer tax and get the property taxes across the city to cover the true cost of providing the services, cut the red tape at municipal levels and make municipalities zero budget development fees removing development fees as a profit centre, then get realistic in the total environmental protection issues -right now there is no common sense in protecting important species and indeed Conservation authorities add 10s of thousands of dollar costs /home because you spend years because you want to remove trees to build yet once development is built new trees will be planted - also remove requirement to have municipalities issue and do building inspections - open up this ability for private enterprise eg engineering company’s with performance bond to supervise and ensure building codes are complied with - - then of course comes reducing cmhc mortgage insurance costs for first time buyers as right now this is another profit centre for the provincial governments -
Even the new tax rates on capital gains -sounds great -make the rich pay -well if govt collects another 10 billion of tax that’s 10 billion less that these tax payers have to reinvest into new development and business’s - it is increasing cost and reducing profit incentive respective to buying investment properties.
I own land 1 kilometre from a Go station that despite being identified for development (when we bought it in the 1960’s ) and 4 OMB agreements supporting our development rights -remains totally tied up in municipal red tape have been trying
So kill the carbon tax ( which is doing nothing re stopping climate change -listen to the govt we need to have this tax to give rebates to low income Canadians- uh duh) , get the budget balanced -reduce govt debt and get the prime rate down 2 % points which will free up 180 billion dollars of interest relief which over 6 years will make $ 1,080 of money going to banks available to finance the new $1,150 billion of financing -
Anyways -guys stop talking and start analyzing -the numbers are what matters!
good topic but something is being missed. very little is being produced and very little rewarding/encouraging of those that do produce something - mostly an anger or jealousy against those that may have worked longer or more productively. this leads to a place with very high cost of everything - which lowers vs raises standard of living - but the goal seems to be to be a place for non-Canadians to move to
48:08 Highly disagree. It is completely unethical that the housing minister racking up SFHs as investments. This is akin to the referees making sports bets. They just banned a Raptors NBA player for life for doing this.
John, you're the man! Great at your job; spreading knowledge/info; getting a phd. Intellectually honest and has integrity/great values.
I don't know if you should laugh or cry. give me some halal kebab
Great breakdown and analysis, really appreciate the point about generational fairness.
Total nonsense. No workers, high prices for products...etc. Promises, promises.
Strongly disagree on blaming investors. Obviously this particular home, bought by investor, would be built and occupied by someone else anyways. But in general by putting more money into the housing and raising prices investors definitely create incentive for more building. The only negative thing it does is shifting balance between owner occupied and rented houses, and since rent is not cheap - we are good here. If we have 100 houses and 90 families, even if all the houses are bought out by investors they will have to make rent cheap since they will be fighting for renters. If we have 90 houses and 100 families and ban investors completely - cheapest house will cost exactly the price lower 10% can't afford.
John I have to disagree with you on this. Every purpose build rental built is one less potential home for first time home buyers. As a potential FTHB, all these rentals are a slap in the face. In my humble opinion, the government seems to be willing to built rentals as rents are at all time high. Noone will own anything and they just want people to depend on government and not be able to accumulate your own wealth :(
1/3 of our country rents and they also need a home. We can't just build homes for the 2/3 who want to own their own home
Where’s Steve? How else are we to glean what to think without his neoliberal platitudes?!
I am a follower, but I disagree with how things are presented in this episode
If you target landlords, Airbnb, REITs, everyone who is trying to get financially better
Let's talk about
1- Why realtors are getting 5.6% of each transaction and it was proven in US court that they were colliding in the high prices.
2- Why we don't talk about the Municipal, provincial and federal corruption, which is so high and started to show in the media recently, the tip in the iceberg, Arrivascam and greenbelt stories still in youtube.
3- Unfair tax bias against small business vs Un-efficient government and semi government jobs salaries (Banks, pension funds, Air Canada, rail, hydro etc of government secured business), poor productivity, and you can check the GDP productivity numbers of Canada,
The current socialist agenda want everyone to be a heroine addict, get a secure heroine supply and get a free housing, no accountability to our lifestyle decisions.
I worked hard to get every dollar I own and I should not subsidize others party lifestyle.