Canada’s very own 2008!

Great Reset It's Probably Nothing 19 Comments

Ron Butler is a Toronto mortgage broker who has been in the business for over twenty years, and he’s got some disturbing predictions for the real estate market in Canada in this interview on the Lead-Lag Report. He notes that traditionally Canadians wanting to move upmarket would sell their current house and use the proceeds to buy a nicer one. Not so in our current real estate bubble.

“Now we keep [our existing home] because the prices have gone up so much that we’re going to assume that they’re going to keep going up for eternity, so we’re going to leverage our own existing home, take the money out as a down payment on the new, bigger house and we’re going to rent out the old, smaller house which has come to be referred to as house hoarding here.”

“[For people that took out a HELOC to facilitate this process] …we suspect that by the end of this year,…they will find that their minimum payment will increase by 150% so their ability to service some of these debts is going to come under severe strain.”

 

19 Replies to “Canada’s very own 2008!”

  2. I was surprised 2008 never happened. A nice correction would be good. But higher interest rates aren’t the only driver.

  4. I take a certain pleasure in the tears of folk who said “I follow the rules, so I’ll be fine!”, as they looked down and sneered at folk who opted out years ago.
    Well, now the rules have changed, but I’m sure the Karens have not.
    The same can be said about gun control, and all the aholes whining about illegal guns. Well, now your Ruger Ranch Rifle is illegal, placing you in exactly the same boat as the people you so snidely referred to as “criminals”. Well, now you’re a criminal, and I hope you turn yourself in, just like you’d have happily ratted out “illegal” gun owners and dealers in the past. I’m talking to you, Orange Julius and NeoCon.

  5. The housing Mad People will gladly accept their evil digital controlling you and all of your future generations money forever on….

    They already offered their souls for safety…

    And signed off on them becoming GMO People who no longer have any rights…

    Because some evil people created the MRNA GENE THERAPY patents…

    They now own you…

    You signed the Covid 19 contract…

    Your man made now…

    You replaced your God given DNA for the evil man made variety…

    Good Luck with that…

  6. the empty hair is already prepared to tax the capital gains on your house . should be great taxing the GTA, legislation may not require a sale but an imputed value .

    1. And it will work as a wealth tax, say 1% (for now), of the sum of all your houses’ assessed values. Payable each year.

      Or it could be a capital gains type situation. When house values go up, you’ll have to pay a tax.

      When housing prices drop, you won’t be able to claim a loss against other income or gains.

      1. seems like another bureaucracy about to happen in soviet clusterfukastan, Justine will be excempt for his two tax payer funded houses. ever wonder why the second house where golddigger and spawn live is never mentioned.

        1. Don’t forget the government house at Harrington lake where Justin’s mother resides.

          And Justin still uses 24 Sussex. His kids swim there, and all Justin’s meals are cooked at 24 Sussex and trucked to Rideau Cottage.

      2. So yet another property tax, this time payable to the federal government instead of the municipality…

  8. Pretty bullish on the long term for real estate. The next two years could be a buying opportunity like no other in history. If we see a 50% drop it’ll be time to buy some condos to rent out.

    1. Your .gov’s permission will be needed and due to your very own carbon footprint you will be declined…

    2. I agree, in the context of Morontario all problems are self inflicted and supply related. For as long as artificial constraints on city growth (aka as greenbelt) continue to exist there will be no major correction, only temporary minor ones… and of course people will be increasingly priced out of properties the generation of their parents could afford. All according to plan. But that means you need to watch the market and don’t even look for a 50% drop. If you get 20 or 30 it will be time to invest IMHO.

      You cannot maintain insanely high levels of immigration combined with an artificial limit to cost expansion without experiencing a drastic increase in the cots of living and a drop in the standard of living. But that makes real-estate a soling long term investment. Just one that more and more Canadians can no longer afford.

  11. “…which has come to be referred to as house hoarding here…”

    FOAD, thank you.

    Every time some dickhead calls investors “hoarders” or “speculators” you know you’re dealing with a commie who is full of focal matter, right there.

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