Great interview - a truly holistic approach. Driving wealth or GDP from housing is inefficient economically no matter how you calculate and putting people into greater debt to buy a house it is also economically crippling as it leads to less disposal income to invest/spend in the economy. I'm with Paul - we need to shift our thinking on housing.
I was arguing with someone in TH-cam comments or Reddit about housing being a non-productive asset. It shocks me how so many people cannot understand that housing is an unproductive asset. Building it is productive but having existing stock increase in price faster than inflation is not.
@@dougpatterson7494For sure! It seems pretty intuitive to me...unless...are the walls doing something productive that I'm not seeing when I'm sleeping?
Anyone under 40 in the country is basically economically worse off than previous generations, what a great way to start of the younger cohort in a country to make great civilised society members that produce community and society.
Yes! This What annoys me too is that politicians are willing to call out "greedflation" of corporations but not of NIMBY homeowners. I purchased a house last October, before I turned thirty. I could have bought a new suburban home, but that would have pushed me right to the edge of what I qualified for as well as to the edge of the city. This well maintained and renovated house from the 1960's is in a good location. Being a half block from a 5 story condo/apartment building is not a bad thing nor is bring two blocks from a pub or three from a school! Two big things that helped: 1) I received a 200,000 CAD inheritance which paid about half of my purchase price. 2) I live in a city that actually allows homes to be built in reasonable numbers so homes aren't stupid expensive. The median home purchase price last October was 417K. Not "cheap" but way more attainable than many Canadian cities.
You can't really beat around the bush to solve these issues. For one, the asset values must come down. There is no way around it. This means that the "nest eggs" will be hurt by any solution. There is no affordability without reconnecting earning potential with values. That is what affordability means . Everyone talks like they can fix this problem without crushing the home owners (or banks) - they can't do it. The only question left is: how should the home owners and banks be crushed? It would be a real shame that cap gains can't be applied to primary homes. They should because it is fair. Those who gained a lot will pay. Those who gained little will pay little. Those who lost, can write it off. I am sorry, but that is almost too perfect. But, we are protecting the values for banks, and privileged classes of people who got their gains with gov policy. So, take away the privileges. Put the risk back on the banks (no mortgage insurance). It will all melt away like snow in spring. It is as gentle as it can be. We are just pretending that we can keep this going - we can not. It is over, so put a nail on that coffin and move on to a better future. Boomers will still be rich - all things being relative.
De-commodification of housing is the only way to fix our housing crisis. Housing can either be a lucrative investment, or affordable shelter, but not both.
@@rayneboone9696 Expecting taxpayers to pay for building affordable housing when land prices have exploded is extremely irresponsible. Also somehow you think that actually providing enough affordable housing via the public sector wouldn't completely collapse private sector house prices? The fact is housing built by the housing sector can be very affordable, as it was for many decades before the recent run-up at the beginning of the 2000s.
I dont know if it was just my distain for Trudeau but when I saw this group talking with Trudeau I didnt like what this guy said but he makes a lot more sense here. Maybe it was because you guys actually understand the housing market so you could ask the right questions. When he brought up property tax at the provincial or federal level it sorta makes sense. I just think it would make more sense at the provincial level. At least the money is staying within the province. I dont really want more of my money going to Quebec. As a side note. I almost think this guy will be voting for Pierre. A few things he talked about were much more aligned with Pierre than with Trudeau
This guy is a total gatekeeper, his only solutions are TAX TAX TAX more, blame evil boomers. Absolutely NO mention of stopping over-immigration (would cause a rise in wages for Cdn workers and reduce income:price ratio), no talk of cutting the size of govt and municipal red tape, getting rid of that terrible carbon tax, etc. Would bet good money that inviting this pied piper was mostly Urmi's idea, since this dude talks a good game that convinces the average low-information millennial who to be angry at.
That's my thoughts too. I mean is the goal to create more tax dollars for the government because they need it or to punish Canadian home owners for being themselves? If the latter than that says more about the negativity of the person than anything else. If the former then why not just focus on leveraging our resource industry to create more jobs and tax dollars that way.
No one talks about the bank appraisers role in the price of housing. The appraisers could have easily stopped the dramatic rise in prices, but because the real estate agent and the bank wants the deal to go through the appraiser just plays along.
When you die, your estate has to pay debts before transferring the assets to your beneficiaries. Inheritance tax should include paying towards your share of the national debt incurred during your lifetime. That societal debt has increased the value of your investments. We cannot leave the debt to the next generation of taxpayers to finance, it must in part be paid down by the generation that built their wealth on top of that debt.
Paul is a Canadian hero, a true activist, and a legend. I love his work. However, Paul's work and personality don't align with the purpose of this channel because FOMO Pumper and speculator Saretsky is one of the key figures here.
Cpi is not the true measure of inflation. Inflation is expansion of money supply and higher prices are the result. The rise in house prices is actually the collapse of the cad dollar vs gold, so it takes more dollars to buy the same house. Priced in gold house prices have not gone up
This is by far my favorite channel for real estate and financial information. John is my go-to Greek scholar (lol)! No BS, no generic real estate guru talking points. just smart, well-rounded assessments all around. I really appreciate how informative and in-depth this channel is. They truly deserve way more viewers and subscribers than they currently have!
That is awful logic. It is possible that older generation had better circumstances, but they did work hard and basically built their houses(either literally or buy paying to their peers voluntarily agreed price). The fact that sticker price for their homes is growing is not a reason to take it away from them, your logic is pure evil. Intent of property tax is paying for municipal services that home owner consumes now, converting it into revenue stream for federal government is even worse than tax on equity growth it is a tax on wealth itself, it is theft. Why do not younger generation learn the skills an go build houses for themselves?
A federal Land tax based on services (land lift) to fund the supply side innovation funds for density. But also an income tax / small business tax reduction is needed to offset it as well
The "older" generation paid for your education, the roads you drive on, the infrastructure you enjoy, the health care and pensions of the generation before them. It is how it works... each generation pays for the older, the younger and their own generation.
Great interview - a truly holistic approach. Driving wealth or GDP from housing is inefficient economically no matter how you calculate and putting people into greater debt to buy a house it is also economically crippling as it leads to less disposal income to invest/spend in the economy. I'm with Paul - we need to shift our thinking on housing.
I was arguing with someone in TH-cam comments or Reddit about housing being a non-productive asset. It shocks me how so many people cannot understand that housing is an unproductive asset. Building it is productive but having existing stock increase in price faster than inflation is not.
@@dougpatterson7494For sure! It seems pretty intuitive to me...unless...are the walls doing something productive that I'm not seeing when I'm sleeping?
I would imagine they mean it's being rented out therefore providing housing as a functional asset in society ?
Anyone under 40 in the country is basically economically worse off than previous generations, what a great way to start of the younger cohort in a country to make great civilised society members that produce community and society.
Yes! This
What annoys me too is that politicians are willing to call out "greedflation" of corporations but not of NIMBY homeowners. I purchased a house last October, before I turned thirty.
I could have bought a new suburban home, but that would have pushed me right to the edge of what I qualified for as well as to the edge of the city. This well maintained and renovated house from the 1960's is in a good location. Being a half block from a 5 story condo/apartment building is not a bad thing nor is bring two blocks from a pub or three from a school!
Two big things that helped:
1) I received a 200,000 CAD inheritance which paid about half of my purchase price.
2) I live in a city that actually allows homes to be built in reasonable numbers so homes aren't stupid expensive. The median home purchase price last October was 417K. Not "cheap" but way more attainable than many Canadian cities.
That was a great show today guys. Keep up the good work.
You can't really beat around the bush to solve these issues. For one, the asset values must come down. There is no way around it. This means that the "nest eggs" will be hurt by any solution. There is no affordability without reconnecting earning potential with values. That is what affordability means . Everyone talks like they can fix this problem without crushing the home owners (or banks) - they can't do it. The only question left is: how should the home owners and banks be crushed?
It would be a real shame that cap gains can't be applied to primary homes. They should because it is fair. Those who gained a lot will pay. Those who gained little will pay little. Those who lost, can write it off. I am sorry, but that is almost too perfect. But, we are protecting the values for banks, and privileged classes of people who got their gains with gov policy. So, take away the privileges. Put the risk back on the banks (no mortgage insurance). It will all melt away like snow in spring. It is as gentle as it can be. We are just pretending that we can keep this going - we can not. It is over, so put a nail on that coffin and move on to a better future. Boomers will still be rich - all things being relative.
This guy is amazing. Logical and balanced argument. Canadians need to wake up to the true cost of getting rich on real estate, a non productive asset.
De-commodification of housing is the only way to fix our housing crisis. Housing can either be a lucrative investment, or affordable shelter, but not both.
It can be both - one is private and the other public (tax payer funded). Private will never be affordable as their purpose is to make a profit.
@@rayneboone9696 Expecting taxpayers to pay for building affordable housing when land prices have exploded is extremely irresponsible. Also somehow you think that actually providing enough affordable housing via the public sector wouldn't completely collapse private sector house prices?
The fact is housing built by the housing sector can be very affordable, as it was for many decades before the recent run-up at the beginning of the 2000s.
I dont know if it was just my distain for Trudeau but when I saw this group talking with Trudeau I didnt like what this guy said but he makes a lot more sense here. Maybe it was because you guys actually understand the housing market so you could ask the right questions. When he brought up property tax at the provincial or federal level it sorta makes sense. I just think it would make more sense at the provincial level. At least the money is staying within the province. I dont really want more of my money going to Quebec.
As a side note. I almost think this guy will be voting for Pierre. A few things he talked about were much more aligned with Pierre than with Trudeau
This guy is a total gatekeeper, his only solutions are TAX TAX TAX more, blame evil boomers. Absolutely NO mention of stopping over-immigration (would cause a rise in wages for Cdn workers and reduce income:price ratio), no talk of cutting the size of govt and municipal red tape, getting rid of that terrible carbon tax, etc. Would bet good money that inviting this pied piper was mostly Urmi's idea, since this dude talks a good game that convinces the average low-information millennial who to be angry at.
Isn’t that the guy asking to tax primary residences ?
Thanks for sharing your perspective!
We Canadians are already over Taxed. The Canadian Government needs to cut costs and stop making life more uncomfortable.
That's my thoughts too. I mean is the goal to create more tax dollars for the government because they need it or to punish Canadian home owners for being themselves? If the latter than that says more about the negativity of the person than anything else. If the former then why not just focus on leveraging our resource industry to create more jobs and tax dollars that way.
No one talks about the bank appraisers role in the price of housing. The appraisers could have easily stopped the dramatic rise in prices, but because the real estate agent and the bank wants the deal to go through the appraiser just plays along.
Man this fella is an amazing presenter.
When you die, your estate has to pay debts before transferring the assets to your beneficiaries. Inheritance tax should include paying towards your share of the national debt incurred during your lifetime. That societal debt has increased the value of your investments. We cannot leave the debt to the next generation of taxpayers to finance, it must in part be paid down by the generation that built their wealth on top of that debt.
Paul is a Canadian hero, a true activist, and a legend. I love his work. However, Paul's work and personality don't align with the purpose of this channel because FOMO Pumper and speculator Saretsky is one of the key figures here.
I would love to see Paul on unbiased platforms rather than this speculation channel.
Could the BOC use math to help Canadians out with the cost of housing say, Canadian median house price = 4 times Canadian median household income.
Cpi is not the true measure of inflation. Inflation is expansion of money supply and higher prices are the result.
The rise in house prices is actually the collapse of the cad dollar vs gold, so it takes more dollars to buy the same house. Priced in gold house prices have not gone up
This is by far my favorite channel for real estate and financial information. John is my go-to Greek scholar (lol)! No BS, no generic real estate guru talking points. just smart, well-rounded assessments all around.
I really appreciate how informative and in-depth this channel is. They truly deserve way more viewers and subscribers than they currently have!
Public Policy professor...lol. Housing has always been a source of wealth. Paul is brilliant, but very controversial.
Great solution oriented thinking. Why do you even bother?
That is awful logic. It is possible that older generation had better circumstances, but they did work hard and basically built their houses(either literally or buy paying to their peers voluntarily agreed price). The fact that sticker price for their homes is growing is not a reason to take it away from them, your logic is pure evil. Intent of property tax is paying for municipal services that home owner consumes now, converting it into revenue stream for federal government is even worse than tax on equity growth it is a tax on wealth itself, it is theft. Why do not younger generation learn the skills an go build houses for themselves?
Don't confuse luck with skill. Diversify. Real estate is one piece. If this guy was born in Detroit, he would be broke
This guy is too smart; my brain almost exploded 🤣
Hello Urmi. Thanks for uploading this episode on podcast (CASTBOX) on the same day. Appreciate it !!
🙏🙏
A federal Land tax based on services (land lift) to fund the supply side innovation funds for density. But also an income tax / small business tax reduction is needed to offset it as well
The "older" generation paid for your education, the roads you drive on, the infrastructure you enjoy, the health care and pensions of the generation before them. It is how it works... each generation pays for the older, the younger and their own generation.
Enjoy your long term care facility.
@forklaundry what a useless response.