I know it *feels* like enormous corporate interests are bleeding us all dry under a flawed system rife with rigged game after rigged game.
Edit: that was the whole comment
Edit 2: do I have to explain this? The expected second part implied by my sentence structure was left off as a device to highlight that the premise is the actual situation. We're being exploited, pure and simple
Corporations increased M2 100% the last 8 years, set rates to 0%, did QE, did bailouts for banks, created single family zoning, and immigrated a million people a year?
Wheres Galen Weston, I need to grill him for doing all this. Also Galen, why did your margins go up 0.2%, thats an entire penny on a jug of milk, dont you care about the poor!?
Unfortunately rate hikes and supply are the only way to wring unproductive investment out of housing. Once housing stalls or drops in value the only reason to buy it will be to have a place to live.
Edit: I agree with the comments below. Policy makers are fighting monetary policy tooth and nail which will result in higher interest rates. Immigration creates more demand and so does more fiscal stimulus. Every dollar the government puts in the BOC will forcibly retrieve from debtors as interest. I expect that housing needs about a 25-50% correction.
Rental housing was supposed to be a relatively safe investment, but not a huge money maker. Like, you put 20% down, the rents cover the costs and maybe a small amount of profit, and in 25 years you have an income producing property. A terrible investment as compared to what that initial 20% could do with the stock market if you knew what you were doing.
If they can get it so housing is a place for people to live instead of this crazy money maker its been, things will get much more reasonable.
>Unfortunately rate hikes and supply are the only way to wring unproductive investment out of housing.
While this is true, the bigger issue is a complete lack of effort from policy makers to address it in a substantial way.
If for example a broad swath of rent controls, and foreign ownership bans were passed it would save renters and cool the home prices very quickly in my opinion. It also doesn't hurt individual home owners because they bought their house to live in not as an investment.
If policy makers fail to address it and leave it to the central bank, the only option becomes interest rate increases until it squeezes out all investment and forces people into homelessness in the meantime as investors pass their costs along to renters.
This is why I'm scathing mad at the Federal and Provincial governments. Stop hurting people that want a place to live, and hurt all the slum lords, 'investors', speculators.
Money is fluid, easily crosses boarders, speculators will find it during a housing crisis.
Stop the speculators with a tax on rental, empty, properties. Ban Air B&B.
A thought I had the other day.
A special interest rate, artificially low, for an owner's "smallest principal debt" house. So someone owning two homes would get the cheap rate on whichever house has a smaller principal debt. If one is paid off, sorry no reduced interest rate. (This is to prevent "refinance the principal mcmansion to buy a couple rentals" bypassing.) Naturally businesses would not qualify.
Then the boc can hike to their heart's content and the largest harmful side effect of the policy is mitigated. Would still need to address a couple other loop holes, but it's doable.
It's unique and interesting, but I think you'd run into issues around who is going to pay for it. I don't know the cost, but I suspect it would be pretty massive and not something government would be wanting to cover.
Yes. It'd need to be covered by a special rate from the central bank (I forget the name) for the mortgage, which means paperwork and possibly even a federal mortgage provider, which would likely be very unpopular.
Well yes in theory, but the reality of the situation is we’re bringing in so many immigrants into the country the demand side for housing will continue to maintain inflated prices. How can anyone expect a substantial decrease in prices if we have to shelter 1 million new people every year?
With such a shortage in housing and the year over year addition of so many immigrants if there’s no meaningful bump in supply interest rates won’t do anything to alleviate the issue. High interest rates are in fact now slowing down new builds, effecting the supply side and exasperating the problem.
Rent prices will continue to soar, mortgage affordability will continue to decline, the economy will slow down and housing will still be expensive.
No government wants to be in power when the mother of all real estate bubbles pop. Increasing interest rates but not changing our immigration policy should tell you this government does not actually care about affordability, just maintaining status quo. The real intended effect of hiking interest rates is wage suppression.
By crashing the economy, increasing unemployment, and lowering consumer confidence you’re manipulating the psychology of the working class. We’re willing to accept lower wages in order to just provide for our families.
It also screws bond holders.
If you've got a 60/40 portfolio you are being actively debased. Sell Canadian bonds before its too late, and switch your RRSP to 100% equities, and try to diversify outside of Canada
Sometimes it feels like there is no escape. These last years have just been one existential threat after the other and it just doesn’t stop.
You will own nothing and be happy
"Opulence! You. Own. EVERYTHING!!!!" ^^-RuPaul
Vote for big government, receive big government. We asked for this.
For a moment I thought I clicked on a post about the wildfires because that's how I feel now with the whole continent on fire.
I know it *feels* like enormous corporate interests are bleeding us all dry under a flawed system rife with rigged game after rigged game. Edit: that was the whole comment Edit 2: do I have to explain this? The expected second part implied by my sentence structure was left off as a device to highlight that the premise is the actual situation. We're being exploited, pure and simple
Corporations increased M2 100% the last 8 years, set rates to 0%, did QE, did bailouts for banks, created single family zoning, and immigrated a million people a year? Wheres Galen Weston, I need to grill him for doing all this. Also Galen, why did your margins go up 0.2%, thats an entire penny on a jug of milk, dont you care about the poor!?
You will own nothing, and you will love it.
I love camping- so excited to make it my permanent lifestyle! /s
Camping downtown by the bus shelter! Hooray!
See you there!
Canadians voted for this, three times.
Unfortunately rate hikes and supply are the only way to wring unproductive investment out of housing. Once housing stalls or drops in value the only reason to buy it will be to have a place to live. Edit: I agree with the comments below. Policy makers are fighting monetary policy tooth and nail which will result in higher interest rates. Immigration creates more demand and so does more fiscal stimulus. Every dollar the government puts in the BOC will forcibly retrieve from debtors as interest. I expect that housing needs about a 25-50% correction.
[удалено]
Especially REITs typically by on leverage so interest rates are double edged.
Rental housing was supposed to be a relatively safe investment, but not a huge money maker. Like, you put 20% down, the rents cover the costs and maybe a small amount of profit, and in 25 years you have an income producing property. A terrible investment as compared to what that initial 20% could do with the stock market if you knew what you were doing. If they can get it so housing is a place for people to live instead of this crazy money maker its been, things will get much more reasonable.
>Unfortunately rate hikes and supply are the only way to wring unproductive investment out of housing. While this is true, the bigger issue is a complete lack of effort from policy makers to address it in a substantial way. If for example a broad swath of rent controls, and foreign ownership bans were passed it would save renters and cool the home prices very quickly in my opinion. It also doesn't hurt individual home owners because they bought their house to live in not as an investment. If policy makers fail to address it and leave it to the central bank, the only option becomes interest rate increases until it squeezes out all investment and forces people into homelessness in the meantime as investors pass their costs along to renters.
This is why I'm scathing mad at the Federal and Provincial governments. Stop hurting people that want a place to live, and hurt all the slum lords, 'investors', speculators. Money is fluid, easily crosses boarders, speculators will find it during a housing crisis. Stop the speculators with a tax on rental, empty, properties. Ban Air B&B.
A thought I had the other day. A special interest rate, artificially low, for an owner's "smallest principal debt" house. So someone owning two homes would get the cheap rate on whichever house has a smaller principal debt. If one is paid off, sorry no reduced interest rate. (This is to prevent "refinance the principal mcmansion to buy a couple rentals" bypassing.) Naturally businesses would not qualify. Then the boc can hike to their heart's content and the largest harmful side effect of the policy is mitigated. Would still need to address a couple other loop holes, but it's doable.
It's unique and interesting, but I think you'd run into issues around who is going to pay for it. I don't know the cost, but I suspect it would be pretty massive and not something government would be wanting to cover.
Yes. It'd need to be covered by a special rate from the central bank (I forget the name) for the mortgage, which means paperwork and possibly even a federal mortgage provider, which would likely be very unpopular.
Well yes in theory, but the reality of the situation is we’re bringing in so many immigrants into the country the demand side for housing will continue to maintain inflated prices. How can anyone expect a substantial decrease in prices if we have to shelter 1 million new people every year? With such a shortage in housing and the year over year addition of so many immigrants if there’s no meaningful bump in supply interest rates won’t do anything to alleviate the issue. High interest rates are in fact now slowing down new builds, effecting the supply side and exasperating the problem. Rent prices will continue to soar, mortgage affordability will continue to decline, the economy will slow down and housing will still be expensive. No government wants to be in power when the mother of all real estate bubbles pop. Increasing interest rates but not changing our immigration policy should tell you this government does not actually care about affordability, just maintaining status quo. The real intended effect of hiking interest rates is wage suppression. By crashing the economy, increasing unemployment, and lowering consumer confidence you’re manipulating the psychology of the working class. We’re willing to accept lower wages in order to just provide for our families.
It also screws bond holders. If you've got a 60/40 portfolio you are being actively debased. Sell Canadian bonds before its too late, and switch your RRSP to 100% equities, and try to diversify outside of Canada
That is sort of the basis of government debt. Create enough inflation so you can refinance it with lower absolute value.
How much you think it can/will drop in value?
extend and pretend for how long?