[Admiral Beez]

Totally agreed. I don't follow the logic of the decision to think that 55% is anywhere near sufficient...

With the shutdown and move to WFH I've dramatically cut back my household spending. No clothing purchases, almost zero restaurants or takeout meals, no shows or movies. Instead I'm loading up the RSPs and building a war chest for revenge travel in 2022. 55% would be a stretch, but I think I could run this household with a 40% drop in income. I think I'm not alone there.

 

[Admiral Beez]

Next, you can't say "supply is tight", and then bring in 400k immigrants a year, while not substantially increasing spending on public housing. Go look at forums full of Millennials. There's a lot of anger and it's driving a ton of xenophobia. If we have a supply crunch, why are we allowing any foreigners to own homes?

And for that matter, if we have a supply shortage, why is the government not cracking down on investors, particularly those resorting to HELOC leveraging to invest in real estate?

Dunno if you've seen the Adam Vaughan interview making the rounds. But that is increasingly coming across as, "Let them eat cake.". He basically told Steve Paikin that the government wouldn't allow a 10% drop in home prices after a 25% YOY gain.

One look at any forum full of under-35s and you'll see how palpable the anger is on this file.

Are you suggesting some sort of means test before you can own property, and if "society" doesn't consider your purpose just that it be prohibited?

As an immigrant myself, I don't get this country's obsession with stripping the developing world of its young adults. With the economy moving away from blue collar, semi and low skilled work, with jobs like warehousing, trucking, restaurants, etc. moving towards automation or labour reduction what are we expecting these newcomers to do? And forget about population decline, it's happening regardless, globally, so the world is going to have to settle with this reality.

If I was a millennial there's no way I would stay in the GTA. This is a huge country, and if you look at job boards there are jobs in the hinterland. Our immigrant forefathers had to leave their families and origins to find property elsewhere, but the idea of leaving our parent's home in our 20s is anathema to many for some reason.

 

[Richard White]

Plenty they could do.

For one, how about tracking capital into the country so that Canadian real estate isn't being used to launder money.

Next, you can't say "supply is tight", and then bring in 400k immigrants a year, while not substantially increasing spending on public housing. Go look at forums full of Millennials. There's a lot of anger and it's driving a ton of xenophobia. If we have a supply crunch, why are we allowing any foreigners to own homes?

And for that matter, if we have a supply shortage, why is the government not cracking down on investors, particularly those resorting to HELOC leveraging to invest in real estate?

Dunno if you've seen the Adam Vaughan interview making the rounds. But that is increasingly coming across as, "Let them eat cake.". He basically told Steve Paikin that the government wouldn't allow a 10% drop in home prices after a 25% YOY gain.

One look at any forum full of under-35s and you'll see how palpable the anger is on this file.

I am 33 and livid about the housing market. I want to buy a house and have all but given up hope thanks to insane prices and foreign investment. There are publications in Asia advertising Toronto Real Estate and bidding wars to boot.

I did the math and given the prices in Toronto, a down payment of between 15% - 20% is required. I don't think anyone my age has over 100K for a down payment in Toronto and still be able to survive.

 

[kEiThZ]

If I was a millennial there's no way I would stay in the GTA. This is a huge country, and if you look at job boards there are jobs in the hinterland.

Go check the news. This bubble has gone national. Young people are getting priced out from Halifax to Medicine Hat. And the vast majority of the price appreciation has happened since 2015. You should especially read the stories on rural homes going for hundreds of thousands over asking, within a 1.5-2 hr drive of any major metro.

 

[Richard White]

Go check the news. This bubble has gone national. Young people are getting priced out from Halifax to Medicine Hat. And the vast majority of the price appreciation has happened since 2015. You should especially read the stories on rural homes going for hundreds of thousands over asking, within a 1.5-2 hr drive of any major metro.

I have a friend who lives in Bedford, NS and just sold his house. He could not believe how crazy the housing market is there right now. He just paid 800 grand for a property there with multiple offers.

He sold his previous house over asking and for a lot more than he paid for it 20 years ago. Apparently people from across Canada and Asia are looking to buy there now.

 

[kEiThZ]

I am 33 and livid about the housing market. I want to buy a house and have all but given up hope thanks to insane prices and foreign investment. There are publications in Asia advertising Toronto Real Estate and bidding wars to boot.

I did the math and given the prices in Toronto, a down payment of between 15% - 20% is required. I don't think anyone my age has over 100K for a down payment in Toronto and still be able to survive.

The good news is that since the bubble went national there are under 45s struggling all over the country too!

Misery loves company and all that.

May not be 2021. But I think this is the issue that will take down the federal Liberals eventually.

Not that I agree with it, but I do see more young people starting to support Doug Ford simply because he's willing to pave over the Greenbelt to open up more supply. I don't think a lot of Boomers and Gen X actually understand what is brewing in the younger age groups.

 

[kEiThZ]

For those who haven't seen it.

 

[Admiral Beez]

Go check the news. This bubble has gone national. Young people are getting priced out from Halifax to Medicine Hat. And the vast majority of the price appreciation has happened since 2015. You should especially read the stories on rural homes going for hundreds of thousands over asking, within a 1.5-2 hr drive of any major metro.

My friend is a doctor in Germany, and he rents. Nearly everyone in Germany rents, paying to corporations that own much of the housing. Perhaps that's our future, longterm, lifetime rental.

Most Germans don’t buy their homes, they rent. Here’s why

It’s just a fact. Many Germans can’t be bothered to buy a house.

qz.com

Switzerland has the lowest home ownership rate in W Europe.

Why Do the Swiss Rent? - The Journal of Real Estate Finance and Economics

At less than 34%, Switzerland has the lowest home ownership rate in Western Europe. This may seem odd given the economic strength of the country. We use household survey data for five Swiss cantons to explore some possible reasons for this. We estimate a tenure choice equation that allows us to...

link.springer.com

We'll need to first crack the Canadian ideal that one is personally and financially successful if they own a home, especially when one doesn't own it, the bank does. One fix is to improve pensions in this country, so that people aren't so worried and thus trying to get into the housing game as their one source of building future equity. Back in the 1980s I could invest with a GIC for over 15%, perhaps bring government savings bonds back with good interest. Next we need to fix rental rules in Canada, for starters, make a hard separation between rental and personal housing, so that the landlord can't evict you to bring in their family member, plus rules to protect landlords from bad tenants. Every landlord should be forced to create a corporation to run their properties, no more mom and pop, informal rentals where both the landlord and the tenants can abuse the system.

 

[afransen]

Are you suggesting some sort of means test before you can own property, and if "society" doesn't consider your purpose just that it be prohibited?

As an immigrant myself, I don't get this country's obsession with stripping the developing world of its young adults. With the economy moving away from blue collar, semi and low skilled work, with jobs like warehousing, trucking, restaurants, etc. moving towards automation or labour reduction what are we expecting these newcomers to do? And forget about population decline, it's happening regardless, globally, so the world is going to have to settle with this reality.

If I was a millennial there's no way I would stay in the GTA. This is a huge country, and if you look at job boards there are jobs in the hinterland. Our immigrant forefathers had to leave their families and origins to find property elsewhere, but the idea of leaving our parent's home in our 20s is anathema to many for some reason.

As an immigrant, I think you would appreciate that your home country doesn't own you, and you should have reasonable opportunities to move elsewhere to improve your living situation.

 

[APTA-2048]

Not that I agree with it, but I do see more young people starting to support Doug Ford simply because he's willing to pave over the Greenbelt to open up more supply.

This is laughable to me because I know literally no one who says that. We’re not stupid. And with how much he’s screwed over young people during the pandemic, I don’t see many people my age flocking to him.

 

[Northern Light]

I'm filing this story here as a 'National' story; though the subject is the BC Provincial Budget, dropped today.

I think this interesting..........its got some really progressive stuff in it................

Social Assistance rates will rise by $175 per month to $935 for a single person. Wholly inadequate, of course, but much less ridiculous than the Ontario rate of $733.

Their disability rates will rise to $1,358.42 per month compared with $1169 in Ontario.

They're also boosting support of low-income seniors by $50 per month (GIS top-up)

Mimicking Toronto in offering free transit for those under 12 (province wide)

And boosting spending on Childcare.

B.C. boosts welfare rates, makes transit free for kids in 2021 budget | Globalnews.ca

B.C. is also doubling the senior's supplement, a provincial top-up to the federal Old Age Security benefit for low-income seniors, raising it by $50 per person per month.

globalnews.ca

 

[Videodrome]

https://twitter.com/x/status/1384985647388168195

Leader approvals.

 

[afransen]

I can't take Singh seriously. He sounds like a university bro and gives me a deeply unserious impression.

 

[Admiral Beez]

Go check the news. This bubble has gone national. Young people are getting priced out from Halifax to Medicine Hat. And the vast majority of the price appreciation has happened since 2015. You should especially read the stories on rural homes going for hundreds of thousands over asking, within a 1.5-2 hr drive of any major metro.

There's still plenty of affordable SFH outside the GTA. Here's Kingston and the surrounding area for example, filter set at 2+ bedrooms, 2+ bathrooms with a garage, max price $500k. For under $350k you can get this pretty house. This seems affordable for anyone making about $40 to 50k a year in the Kingston area.

This is what I mean, you need to get out of the GTA and find those cheaper areas. In the 1990s there we cheaper, sketch areas of Toronto for young couples starting out - for example we bought my Cabbagetown semi for just under $300k when our combined household income was about $60k. That sort of house price to income ratio still exists, you just need to go further afield - and the jobs are there. Here are 186 jobs in Kingston paying at least $30/hr ($58k a year).

If Trudeau can do anything to help real estate affordability he can work with Queens Park to build more jobs outside of the GTA. In addition to building supportive, permanent housing for those using shelters in Toronto.

 

[afransen]

Prime Minister Trudeau announces increased climate ambition

During today’s Leaders Summit on Climate, Prime Minister Justin Trudeau, announced that Canada will enhance our emissions reduction target under the Paris Agreement – known as a Nationally Determined Contribution (NDC) – by 40-45% below 2005 levels, by 2030. As a signatory to the Paris...

pm.gc.ca

A 40-45% reduction in carbon emissions seems impossible by 2030. I have no idea how they plan on getting there that fast.

Fully eliminating all emissions from Oil/Gas and Transport industries would barely get us there. And that seems inconceivable. The other industries, I can't speculate on.

Fully electrifying passenger vehicles barely gets us to 10-15% of the required amount. Unless I am misunderstood the statement, and it's not 40-45% of emissions levels, it seems silly to make such an announcement without a clear plan of how it will be achieved.

(source: https://www.canada.ca/en/environment-climate-change/services/environmental-indicators/greenhouse-gas-emissions.html)

Even the strong incentive presented by a rapidly escalating carbon tax won't shift investment decisions that quickly. A lot of the capital stock has a longer life than 10 years.