Perhaps Shiny Pony wants that election out of the way before the housing boom goes bust.
Put down 5% cash and get 3% back; or, wilder yet, put down nothing at all. So when these products — and others like them — started popping up in the normally cautious Canadian financial industry, it raised alarm among policy makers in Ottawa.
The biggest issue is that housing prices are getting so high that average wage earners can’t save the 10% of the price when the balance is over $300,000 and $400,000 and even higher. Some markets are so skewed that someone earning $100,000 a year can’t afford the payments on the $1,000,000 mortgage, even if they had the $100,000 to put down.
What needs to happen are a couple of things. First. and probably the biggest for me, would be no foreign purchase of single family dwellings unless that person is going to live in residence. I would even go as far as no foreign purchase of multi-residential as income generation either. Let Canadians become slum lords, not some person who doesn’t even live in Canada. Second would be regulating the sales of homes by realtors back to the old way of doing business. You view a property, you put in an offer. None of this bullshit bidding wars. It makes listing the property in the range of the expected sale, and it allows for some back and forth if the seller and buyer want to dicker. No “put in your best bid, and make if $30,000 over asking” or even more. I bought 3 houses over the past 35 years, and there was no bidding. And the houses I sold were not bid on either. Sure, as a seller it sounds great, but now go buy something.
Two out of three of my kids are in houses they bought with their partners. I feel so fortunate that they found a way to save, and have jobs that allow them to be able to apply for a mortgage. My other kid will never own a home and will always be at the mercy of the housing market, and that market is generally terrible for low income and disabled folks. When the cost of housing is higher than the dollars that the government hands out for welfare, you have a problem. And I bet that problem is everywhere.
My take…
Ownership is a scam.
At all levels including insurance.
All scams that our governments back.
Back 50 or 60 years ago.
Your house depreciated.
Today it’s price inflated by pure speculation.
My cousin just sold his late parents plain jane 1950s 3 bedroom bungalow in a working class neighborhood in Brantford,Ontario. They had 12 offers and it sold for somewhere around 800 hundred thousand dollars……in Brantford? His father was a mechanic and his mum stayed home and raised the kids. Good luck living like that nowadays.
One has to look at the causes, not the result, to determine solutions.
And yes, I have young adult children caught in this situation.
Corrected interest rates is the solution, but, no government wants to be the cause of the next deep recession, despite the need for higher rates. Or at least until Blackie re-elects himself, then lowers the boom!
Government has tried to manipulate rules around the edges, but the only result is to make it harder for new buyers to get in the market, while existing homeowners continue to benefit. Like me.
Government is NOT the solution, they are the problem.
Bank of Canada criticizes Bank of Canada policies, news at 11.
Normalized interest rates that should have been set in place 5 years ago would have avoided the current problem. The solution, when it happens, will be far more painful, than 5 years ago.
Remember that Blackie’s reckless borrowing is another chicken that will come home to rest, at much higher rates to payback, borne by you and I, not the incompetent LIEbrals.
… it most certainly will, like magic.
Does anybody think that the idiot in charge even knows what a mortgage is and needs to be paid back?
He doesn’t care.
His daddy left him all the cash he needs.
He’s a deadbeat who grew up freeloading off the public and started again when he was elected 6 years ago.
Yup. Paying it ahead 20 years for his own children. After all, they own Canada. Just ask them.
Don’t worry, EVERYTHING ON TURTLE ISLAND IS FREEEEE! Join the Trudeau cult today! Millions of people already have!
It’s not just a Canada issue, the disease of MOAR CHEAP DEBT is infecting the US, in fact, we should really be blaming the US for this carefree blasé attitude towards debt.
It doesn’t take a dummy to realize that Canaderp just followed the US lead on this, but in Canada’s case, it IS a dummy leading it…..
Cheap debt/money printing is also fueling the overvalued stock markets, with PEs in many funds of multiple stocks, in the mid-20s and greater, where 16 is the historic “fair valued” stock.
When this merry go round stops, it will be the Apocalypse of crashes. That’s if the money printing ever stops, but it appears that is no time soon, since inflation, we are told, is non-existent, transitory, temporary, etc.
Good is bad, war is peace, and the check is in the mail.
My rent was going to $2000 a month for a 2 bedroom box in Victoria. I am retired. I bought a house in SK, I wish someone would have told me about the water and uneven floors, but it’s good. The people are so very nice that everyone waves when you drive by another person in a car. In Victoria people would post, look at this idiot waving at me, is s/he mentally challenged or a threat, should I call the Police.
I liked the years I lived in Sask. .gov was another story, but the neighbors were pretty friendly. They didn’t lock their doors in Saskatoon back then and a lot of the older sections had no STOP signs. I used to drive with one of those dashboard hand wavers then. Everyone waved back, with smiles. I lived in BC a few years. Talk about stiff necks, just like Ontario. Dour and sour. They hate Albertan’s, especially spending our time and money in BC and they will tell you to your face about it. We see them at the COSTCO’s in Alberta, even in Calgary…..no PST. I got two words for them. As for Vancouver, well they beat Ontario for condescending snobbery. Victoria is worse.
Most of the B. C. people I grew up with in Fort St. John felt themselves politically closer to Edmonton than Vancouver. But that was more than 40 years ago.
As far as B. C.ers openly resenting Albertans, I can confirm that. When I moved to Vancouver to start grad studies at UBC after quitting my job in Calgary, most Lotuslanders I dealt with didn’t hesitate to remind me that they thought I was a redneck hillbilly or a country hick. They would have preferred that I go back to the Dogpatch I came from and not further contaminate their paradise with my existence.
Sad for you , but as a B.C.er I have never looked down at other Canadians , of course being only 5’8 .when the market crashes and my homes value follows I will still be able to trade for a house of equal value , less taxes and fees of course .
I ran a business in BC once upon a time, hired the locals who weren’t growing/peddling dope, bought and hired everything locally. Not all BCers were the the kind I dealt with daily, especially others in business in BC. We were kindred spirits, “in business”. I was not any sort of competition to them. .Gov was a different story though and the usual loud mouth riff raff were the most vocal objectors to “Alllllberrrrrrdah” operating a business they frequented …..the only hotel/bar in town. I’d guess you’d get that anywhere “foreigners”, from another Province are found to be “stealing jobs” from the locals. Got that from a bunch of INCO dudes in Red Lake Ontario once, asking me why some guy from oily old “Allllberrrdah” was doing working hard rock gold exploration in NW Ontario. I told them I was born and raised in Tronna, schooled in Kabec. Did I need a license to work here?
What’s wrong with the water? Or do you have water in your basement? Aren’t problems with a house required by law to be disclosed by the previous owner?
In not too distant future, there will be a referendum for the purpose of BC becoming part of communist China.
Taiwan is going to become a side issue.
The Indos may raise their fists to the Chinese though will give up.
You can’t say that the Chinese are not idustrious.
I’ve seen multiple listings hanging on the market and getting priced down over the last 2 months in and around my area… looks like at certain price points the market is already starting to slow down…
What’s going on right now reminds me of the board game Poleconomy.
Never not had a game of that end because the government went bankrupt.
We will get a repeat of the 2008 market crash, I mean correction. History has a habit of repeating itself. No shortage of dummies and immoral politicians taking advantage of them.
I don’t know what the big fuss or concerns are. When the Great Reset is done “You will own nothing and you will be happy”. Well; those that survive the jab, the 4th wave, the impending world wide manufactured food shortage & the impending New World Order global warming/drought/flood/earthquake & fire plandemic. Trudeau has already announced he has pissed away our money on “boosters” through until the end of 2024.
We are missing the ploy.
Under Emperor Justine,all Can Aid I Unns will become millionaires,thanks to Dear Leader we are all so much richer..
Count those freshly printed pieces of paper..
So the 2012 election campaign will tell all the Gullible’s how much richer they have become.
The East will reelect the Liberals in an overwhelming majority..
then ,when the discover ,math is hard you know,that being a millionaire when a loaf of bread,or a house costs billions,means you are poor..
Really poor.
But we know that already..
However graduates of Public Education and Institutes of Higher Learning,are so well educated,they believe debt makes them richer..
Told you public education was working.
Exactly as designed.
For a kleptocracy must have stupid and innumeric citizens.