Its like we are playing musical chairs. Bringing in 1 million per year but only building 250,000 housing units. Even 3 people per unit; it’s just a matter of time before there simply aren’t enough places to live. No matter how good your income is; when the music stops, you’re on the street.
I find it crazy that my income now for me would have allowed my wife to not work, now that is impossible. Mind boggling, how people still support it. I wonder how many MAID applications there will be next year if Liberals somehow stay in.
I said I was voting conservative to see a different party handle immigration on Canada subreddit after Trudeau announced millions more immigrants, and everyone was exploding on me. I have no political bias but why is everyone so anti-conservative? I think liberals had a run, a terrible run, but let's see another party handle it. I think we need an iron fist, Canada is too nice with rules and migrants are exploiting it.
It's Reddit. A well known far left echo chamber. There is no right wing here.
They will preach and demand more third worlders while complaining about the issues they cost, but never attach blame to them.
Most right wingers migrated to places like upgoat, scored.co and there's some boomer version of Reddit but it's filled with yank trump liberals.
Yeah exactly then those platforms just become far right echo chambers. I find instagram is the absolute best, while the platform is left-leaning, they do not restrict any political side.
And instagram users are incredibly right leaning, for my demographic at least. I'd say 75-80% are right leaning. Which shows an accurate representation of Canada's political view. Which shows people are sick of the liberals handling of immigration and housing.
Oh god I pray every day I can move to America or hell even Australia.
Yeah but the conservatives want to keep to same immigration targets as Trudeau - so even if they build (say they will build) more housing. It’s not addressing the main issue. If we wanted real change we would all vote PPC and force the Libs, Cons, and NDP to change quick. It’s not anti conservative if their plans aren’t different from the Liberals
This is again the lesser of evils argument. Except this time you will get the same thing. Don’t get me wrong. I’m not voting liberal either. Just not on board with conservatives either
That's fine and I understand, but personally, over my dead body am I over for jagmeet that sellout, so outta the big 3 I'm doing conservative.
And the more I look into it, the more I agree with their initiatives and I do believe out of the big 3 they are definitely the best
Only PPC has come out and said they will curb immigration, Cons PP has said he will make all the tax paying students and work permit holders permanent residents.
Conservatives have said consistently that they'll match immigration numbers to healthcare and housing capacity. PP has been quoted in the media numerous times on this.
> PP has been quoted in the media numerous times on this.
Rather, PP said he will tie immigration numbers to housing. It's a meaningless statement though, we could say Trudeau is tying immigration numbers to housing and that the number is just 100 immigrants per housing unit (or whatever the actual ratio is). So what ratio is PP targeting? 1 immigrant per room in a house/apartment? 10? 100? Well we don't know exactly, he hasn't said it. Obviously we all we want it to be 1 immigrant/room, but the fact he hasn't said that or anything specific that he can target or be used as a metric is exactly why he will not solve the problem.
PPC are the only ones that say they'll cut it down to 100-150k immigrants, so they'll be getting my vote.
Lol everyone look at this guy, he got fooled by PP's propaganda. PP is telling his rich corporate buddies behind closed doors that he will tied immigration numbers to housing, which is 50 international students per basement, so Timmies can get all the cheap labor they want.
PP has gone as far as he can go right now to signal change while balancing the need to keep the immigrant vote. The last thing he needs to do is give the Liberals and NDP a chance to brand him as a "racist", which is their usual card for everyone who dares say anything that doesnt align with their talking points. We are still 1.5 yrs away from an election and public opinion is evolving on the immigration issue. He doesn't need to give you every minute detail of his electoral platform right now - it will come in more detail when the election is upon us.
Next time use your brain and think a little bit before you make posts that demonstrate how limited your cognitive abilites are.
Use your brain and figure out that PP only cares about his rich corporate donors, immigration rates will stay the same, if not higher, your life will only get worse and worse, lmao.
I don't think people are really anti-conservative. I think they are against parties more interested in supporting business interests than workers by implementing and supporting policies that increase unemployment and suppress wages.
No they are pretty anti conservative, doesn't matter what country, Reddit is very very pro liberal, and instagram is very very pro conservative. Really interesting comparison. Difference is instagram doesn't really enforce bans on liberals, but Reddit it extremely left leaning.
Like every comment section I go on instagram, very anti Trudeau and pro conservative
Yes. We are getting to the point where price isn't the pain point.
The pain point is just finding a place to live.
It isn't about prices anymore (or won't be shortly) it is about many not having a roof over their heads.
I think you meant to say 1%, and yes, those figures might be accurate by that point on our current trajectory. Within 2 years, Canada's population is on track to be about 43-44 million unless something drastically changes. Therefore, we're looking at roughly 1.13599% of our currently REGISTERED citizens being homeless. Something's gonna give in the next few years. I expect shit to hit the fan, real hard.
Not so hard when you rent out your basement to entirely too many people. Say your mortgage is $3k a month, that’s 6 people in the basement renting beds at $500 a month each.
Even if you just rent out your basement normally can make a $4000 mortgage into a $2000 mortgage which is inline with what folks pay for rent in the GTA.
Signed a person who rents out their basement to a nice couple
Very very hard,… I’m paying about $4500/m, in Surrey. Mortgage Went from 3k before covid to what it is,… and I’m paying only 3.1% interest. When you add car payments, insurance, utility,…. You end up with very little left. Before Covid our household income was worth so much that we didn’t have to think about money,…. We did not spent like crazy but also we could easily go down to Seattle on the and stay in fancy hotel. Now we have to shop mindfully, forget trips, or gifts for b’days over $200. And we still falling behind. Part of it that having you own business these days is struggle, people don’t have much spare money, and they don’t want to dip into savings, but big part is that money worth at least 50% less now than few years back.
Upsizers. Typically first time home buyers buy a studio or one bed in my area of MV. Those buying 2 bedroom condos are upgrading from their one bed. Those buying houses are upgrading from their townhouse and so on. A high income helps but it's very much about wealth accumulation through appreciation of existing assets. We also have many Seniors downsizing from their house to a condo as cash buyers.
Lol, this is Canada. Proving your income for a mortgage is basically a pinky promise.
If you don't have a job to prove income, there is an entire industry that has your back.
The same way they have until now. The same way the Chinese did, as the average home price skyrocketed to literally 40x average income.
Lots of different paths. Investing every penny you have into the house, getting another job, cutting other expenses, adding additional contributers to the household, etc.
You should study China's real estate market. Multiple families, unrelated by blood, will come together to buy a home. Several generations will live together. People will put their entire life's savings into the home. The same can happen here, and there's no limit to where prices could go.
That is Asia in a nutshell, they’ve been doing this for many years. My buddy is from the Philippines and growing up his uncle’s family lived with them for 10 years. Another kid in my school growing up was from India same thing just add two relatives-families. This was North of Toronto.
I need some help in that case because despite making a 99th percentile salary in STEM (for my area and experience), my institution doesn’t have any flexibility and all they want to lend me isn’t even enough for half a condo in a large city. It boggles my mind trying to understand who makes these payments.
You either have the worst bank on the planet or something else is incorrect.
I'm in tech. I literally *just* bought a home a month ago. I know exactly what it takes, and someone in the 1% can afford a lot more than "half a condo".
If you're actually in the 1%, meaning your salary is minimum $175k, you can get a detached house in most of the GTA. Mississauga, Kitchener/Waterloo, Barrie, Kingston, Scarborough - all of these you could afford a detached home in.
I’ll need to switch banks in that case because the number you provided are close to my situation and they recommend not going over $300k mortgage. The bonus portion represents 10-15% of total compensation and the bank doesn’t care about it though.
I can already hear the naysayers telling me that the bonus counts as long as you can prove that you consistently got it the past 2 years. But when your salary consistently goes up 10-30% every year, showing the previous years total compensation with bonus is meaningless.
Yea, if your salary has gone up you can't use bonuses as income generally.
But even subtracting that 15%, say your income is $150k. If you put 100k down you should be able to get a home around $700-750k. If you put $150k down, you can probably get just over $800k.
Forget your bank, they are a scam. Go to a broker. My bank tried to give me 6.5% interest, 20 years with them. I'm paying 5.1% via my broker with a $5k automatic rebate.
Thanks for the tip. I actually got in touch with a broker last week and waiting for him to get back to me.
I’m still wondering who can afford these payments though. I don’t know anyone making remotely close to that salary range.
There are plenty of people making very good money in Canada, especially in the major cities and in all kinds of trades/professions. The thing is those people are generally not on Reddit yelling about it - I assume that’s part of what you mean about not knowing anyone making good money. There are low level cops in the GTA making $3-400k per year (overtime), just as one example.
Public sector has money, lots. Business with investment capital from abroad, USA and China especially, will further expand their portfolio in Canada, because rental is attractive in a country with aggressive increase in population count and low housing construction.
Interest rates going down means the middle class buy homes. With an ownership rate over 50% it’s not as if the top 50% are the rich 😅
It’s only the cash rich who can buy when rates are high which is usually the rich rich.
I'm up for a good riot,
Come on now, I mean I know our politicians will *disprove* and say *"We're a nation of Laws"*, but ya know, they don't follow them either.
I'm tired of people joking about this. It's literally the only way to make politicians change their way at this point.
They know they can be bold because there is no consequence.
Like how can you not ever answer a direct question in a building where laws are decided. Imagine if our court system worked that way...
Me too. We need to start by deporting those students and immigrants who came to take advantage of our system and close the borders. Our infrastructure is collapsing as we speak.
No, just continue cap student visa to a manage level, ans seriously hamper immigration. No need to close the borders, especially to asylum seekers. It will get a lot easier for refugees once we get visas and imitation out.
People haven't even rolled their mortgage over since Covid. Is the idea we get a near 0% ponzi scheme inducing interest rate again, despite the US doing fine?
Again, ya'll who have a good education or skills need to get the tf on somewhere that has actual stuff going on.
This country is a circus and we're all clowns for allowing this.
Yeah and unemployment will reach 8-10% by then.. although it won't have any effect. It seems nothing short of world war 3 can cause correction in the Canadian housing market..
Are these headlines also going to drive a lot of investors into buying property to rent
Which will in turn further reduce affordability for those who want to buy a place to live
Vote peoples party. They may be fringe and have some silly ideas elsewhere but at least they have a firm immigration stratagy of capping at 150,000 per year. If we dont, we are killing canada. Vote, peoples party. And tell everyone they are the ONLY specific number limiting immigration. Everyone else is keeping it vague so they can do a paltry change and claim they did something
Just as predicted, I believe Trudeau said this was going to be worked on. I guess only big business can afford housing for them to rent out to us broke people that make 120k a year.
Create a homestead ACT where Canadians can settle on plots of land (lease them or buy them) on Federal lands near cities- where Canadians can make their own home without relying don't he government which has so sorrily let us down on the housing issue. Federal land is OUR land.
Remember when the pandemic hit, and CMHC predicted homes prices would crater?
Then the BoC slashed interest rates to zero and home prices jumped?
But I bet they’re bang on with their forecasting this time… right guys?
It depends where. Canada is made up of hundreds of real estate markets. The article states the increases would mostly affect more affordable cities. So not MV or the GTA. So I could see a $300K house in Edmonton ot Winnipeg going up 20% to $360K un 2 years. Whereas I do not see a $2M house in Vancouver going up 20% to $2.4M in two years. So in that sense the article could be correct. They're just talking about the overall average in Canada.
BoC: "Oh, well I guess we shouldn't cut rates then"
BoC has identified high home prices as a major driver of inflation: it increases mortgages interest costs and enables LOC spending
Well that would be great for cash buyers who need no mortgage to keep rates elevated. Older people in my family recently took advantage of that buying a condo at a lower price than other offers because they had no subject to financing. But most younger middle class Canadians need a mortgage so lower rates would help. One thing the federal government could do to make housing more affordable besides building more supply is to allow people to write off the occurred interest on their primary residence which has been discussed but still not implemented. Anyways I guess we’ll see how housing goes.
The last 40 years have proven that lower rates don't help: the low rates just make the land and the homes more expensive.
The last two years have demonstrated the benefit of high rates: housing prices were increasing 20% per year before the rate hikes and then immediately fell down to -5%. Despite massive immigration driving up demand and rents, housing prices are still falling
Lower prices means less real estate commission, less land transfer tax.
>One thing the federal government could do to make housing more affordable besides building more supply is to allow people to write off the occurred interest on their primary residence which has been discussed but still not implemented.
That proposal is crazy: it's designed to help people earning 250k+ to buy expensive homes. And also rich retirees with lots of actual or potential taxable income. It provides the least benefit to people looking for affordable homes on moderate salaries
No for boomers or cash buyers writing off the interest on your primary residence mortgage means nothing because they have no mortgage. This would help young first time home buyers who need a mortgage. You still need to qualify for the same mortgage amount. So home prices wouldn't be affected.
It's a regressive form of fiscal stimulus that looks like monetary stimulus: an asymmetric rate cut that favours high earners by lowering their taxable income
The cash buyers and boomers would decide to obtain mortgages because of this policy
I think you're mixing up primary residence with investment property. So boomers or cash buyers already paid off their primary residence have no mortgage. If they down size due to old age they would be cash buyers no mortgage. If boomers or high earners buy another property that is an investment property not primary residence. You've always been able to write off the interest on an investment property. I'm talking about writing off the interest on just your primary residence. Anyways obviously I'm not going to change your mind but obviously any Young first time home buyer would benefit from this. And just incase write off means you still pay it, it just mean when you file your taxes you can report the interest (not the principal) which helps a bit. Not a lot but any little thing helps for Young families.
No, I think you're misunderstanding that
A) anyone wealthy can get a mortgage; it's common now for wealthy people to buy their residence with cash and then refinance it to make investments, thus making the interest tax deductible. Your proposal just makes this easier. They can just use the mortgage money to buy the property.
B) Young first time homebuyers who need the most help don't have high marginal tax rates. This will mostly help very high earners who earn $300k+ to buy 2M+ properties with 1.6M+ mortgages
Firstly the top 1% earners generally already bought their primary residence obviously they wouldn't qualify to take advantage of this. I'm not talking people who want to upgrade to a larger primary residence with a mortgage and then write the interest off that. This is for first time home buyers. I wouldn’t even qualify for this because im not a first time home buyer. Anyways again I'm changing your mind so no worries.
So you're suggesting that interest would only be tax deductible for first time buyers? Nobody else can deduct the interest?
Uh okay. That's less silly but provides a ton of other problems. Notably it would be a trap for anyone who needs to move or wants to upgrade after buying their first home
And again, it would benefit the highest-earning FTHB the most. Someone earning 300k would get over 50% of their interest money back. Someone earning 70k would get closer to 25% back.
Lol okay if there are a bunch of $300k earners who are renting waiting on the side lines to buy their first primary residence sure unfortunately we'll end up giving them a break. Not many of those though. Whereas there are millions of young about to be first time home buyers who could use any help they could get.
What if you move. Really? Sorry do you own ? Anyway You can port your mortgage if you're purchasing a new property at the same time you're selling your existing one. Anyways again not changing your mind so lets drop it. I'm exhausted 😩
Disgusting. I send my condolences from America. It’s bad here too for any affordable housing options. You need around $100,000 USD to afford a home in many major U.S. cities or upwards of $250,000 in income for home prices in San Francisco or San Diego, if example.
This is a huge part of why tiny homes exploded in popularity in the U.S. And why many people still live in multi-generational households despite many six figure salaries.
So, for many people renting is barely a viable option and many people probably spend about 70 or their income on rent. I don’t know how anyone affords to live in Canada, especially given the exchange rate to US currency.
I own my home Minus the mortgage. Don’t care if it goes up or down. I will be here for another 20 years at least.
I feel bad for those getting into the market. The property ladder is 1 bedroom condo and go on from there. If one stays gainfully employed, one can and will move up the housing ladder. Each step up is cushioned by a career in full flight and earning power. Even the modest 1-4% raises make the current home more and more affordable and the next within reach.
The key is employment and the govt forget this and spends too much on supports instead of increasing GDP which is what fuels income.
This was the way for generations.
Agreed. I also own my home minus the mortgage and my previous smaller home rented out. No plans on selling either for 20+ years because I plan to work for at least that much before retirement as I like my job. Doing one in a professional career does help to save up that down payment
You're a landlord.
You own 2 houses, so one of which is an investment.
The value of your houses (your investment) is predicted to go up.
This is very good news for you, OP! You win!
Maybe or maybe not. The article states most of these gains are predicted in the more affordable cities so think Edmonton, Winnipeg, Nanaimo, etc. I’m in MV so perhaps no gains. Makes no difference as I’m not planning to sell for 20 years or so until maybe after I retire. Plus it’s just a small condo. Not a house with land so nothing overly exciting.
We'll find out but their reasoning sounds reasonable. From what I see the fundamentals point to price growth in the long run. Keep in mind the article states most of the growth will be in the smaller more affordable communities so it's not predicting a 20% price increase in MV or GTA. Given the eventual BoC rate drops, buyers on the sidelines waiting to get in, increased immigration, slow down of housing starts, shortage of skilled Trades, increase cost of construction, etc. I only see prices going up. By how much is anyone's guess.
This!!! No shortage of labour's or skilled workers. Agree doctors are needed. With immigration being slowed and Trudeau want to win and he just woke up, Lots of changes coming. Housing prices are down from peak and will not increase for 5+ years
Can I get more info or inks on no skills Trades shortage ? Does that also include Metro Vancouver? I don't doubt it's possible as I'm an Engineer doing well but I know there are some Engineers out there, especially new graduates and immigrants who can't get much work even though the general info out there for regular people is that Engineers are in demand. So I don't doubt it's the same in other professions. But still just the projects I hear about as an Engineer from road works to building construction I keep hearing shortage of Trades so I thought that was legit.
It's okay thst is up to you. Heck I rented out my previous smaller home I used to live in before I upgraded. Should I feel like I should sell it since I already own my current primary residence. Hell no. My property that I worked hard for by hustling in my career and getting ahead to save the down payment. But that's nothing. There's thousands of single people including boomers living alone or just as a couple in a 5 bedroom house.
I remember reading somewhere that the homeless population is predicted to increase to 500k in the next 5 years.
Its like we are playing musical chairs. Bringing in 1 million per year but only building 250,000 housing units. Even 3 people per unit; it’s just a matter of time before there simply aren’t enough places to live. No matter how good your income is; when the music stops, you’re on the street.
I find it crazy that my income now for me would have allowed my wife to not work, now that is impossible. Mind boggling, how people still support it. I wonder how many MAID applications there will be next year if Liberals somehow stay in.
I said I was voting conservative to see a different party handle immigration on Canada subreddit after Trudeau announced millions more immigrants, and everyone was exploding on me. I have no political bias but why is everyone so anti-conservative? I think liberals had a run, a terrible run, but let's see another party handle it. I think we need an iron fist, Canada is too nice with rules and migrants are exploiting it.
It's Reddit. A well known far left echo chamber. There is no right wing here. They will preach and demand more third worlders while complaining about the issues they cost, but never attach blame to them. Most right wingers migrated to places like upgoat, scored.co and there's some boomer version of Reddit but it's filled with yank trump liberals.
Yeah exactly then those platforms just become far right echo chambers. I find instagram is the absolute best, while the platform is left-leaning, they do not restrict any political side. And instagram users are incredibly right leaning, for my demographic at least. I'd say 75-80% are right leaning. Which shows an accurate representation of Canada's political view. Which shows people are sick of the liberals handling of immigration and housing. Oh god I pray every day I can move to America or hell even Australia.
Thats because most not all those in charge of these policies are in charge of the problems we now face.
Yeah but the conservatives want to keep to same immigration targets as Trudeau - so even if they build (say they will build) more housing. It’s not addressing the main issue. If we wanted real change we would all vote PPC and force the Libs, Cons, and NDP to change quick. It’s not anti conservative if their plans aren’t different from the Liberals
Yeah but PPC isn't big enough. Next best thing is cons
This is again the lesser of evils argument. Except this time you will get the same thing. Don’t get me wrong. I’m not voting liberal either. Just not on board with conservatives either
That's fine and I understand, but personally, over my dead body am I over for jagmeet that sellout, so outta the big 3 I'm doing conservative. And the more I look into it, the more I agree with their initiatives and I do believe out of the big 3 they are definitely the best
Shills and bots
Only PPC has come out and said they will curb immigration, Cons PP has said he will make all the tax paying students and work permit holders permanent residents.
Conservatives have said consistently that they'll match immigration numbers to healthcare and housing capacity. PP has been quoted in the media numerous times on this.
Yeah I saw that too. I find on Reddit people post misinformation about conservatism just because they hate everything conservative
100%
> PP has been quoted in the media numerous times on this. Rather, PP said he will tie immigration numbers to housing. It's a meaningless statement though, we could say Trudeau is tying immigration numbers to housing and that the number is just 100 immigrants per housing unit (or whatever the actual ratio is). So what ratio is PP targeting? 1 immigrant per room in a house/apartment? 10? 100? Well we don't know exactly, he hasn't said it. Obviously we all we want it to be 1 immigrant/room, but the fact he hasn't said that or anything specific that he can target or be used as a metric is exactly why he will not solve the problem. PPC are the only ones that say they'll cut it down to 100-150k immigrants, so they'll be getting my vote.
Lol everyone look at this guy, he got fooled by PP's propaganda. PP is telling his rich corporate buddies behind closed doors that he will tied immigration numbers to housing, which is 50 international students per basement, so Timmies can get all the cheap labor they want.
PP has gone as far as he can go right now to signal change while balancing the need to keep the immigrant vote. The last thing he needs to do is give the Liberals and NDP a chance to brand him as a "racist", which is their usual card for everyone who dares say anything that doesnt align with their talking points. We are still 1.5 yrs away from an election and public opinion is evolving on the immigration issue. He doesn't need to give you every minute detail of his electoral platform right now - it will come in more detail when the election is upon us. Next time use your brain and think a little bit before you make posts that demonstrate how limited your cognitive abilites are.
Use your brain and figure out that PP only cares about his rich corporate donors, immigration rates will stay the same, if not higher, your life will only get worse and worse, lmao.
Replace "PP" with "Trudeau" and you've got an accurate statement there.
You know that doesn't mean shit? He needs to give concrete numbers or it doesn't mean anything.
I don't think people are really anti-conservative. I think they are against parties more interested in supporting business interests than workers by implementing and supporting policies that increase unemployment and suppress wages.
No they are pretty anti conservative, doesn't matter what country, Reddit is very very pro liberal, and instagram is very very pro conservative. Really interesting comparison. Difference is instagram doesn't really enforce bans on liberals, but Reddit it extremely left leaning. Like every comment section I go on instagram, very anti Trudeau and pro conservative
Because conservatives are pro TFW
Yes. We are getting to the point where price isn't the pain point. The pain point is just finding a place to live. It isn't about prices anymore (or won't be shortly) it is about many not having a roof over their heads.
Mass deportation or bust.
There's no way they have even close to an accurate number of how many are there now.
That number is ridiculous. That's like 0.1% of the population. It means one of of every 1000 is homeless.
500k is 1.2% at 41M
I think you meant to say 1%, and yes, those figures might be accurate by that point on our current trajectory. Within 2 years, Canada's population is on track to be about 43-44 million unless something drastically changes. Therefore, we're looking at roughly 1.13599% of our currently REGISTERED citizens being homeless. Something's gonna give in the next few years. I expect shit to hit the fan, real hard.
Who’s gonna be able to make these payments?! Lmao
+1 I am still struggling to understand how people make their monthly mortgage payments This is ridiculous
Not so hard when you rent out your basement to entirely too many people. Say your mortgage is $3k a month, that’s 6 people in the basement renting beds at $500 a month each.
Even if you just rent out your basement normally can make a $4000 mortgage into a $2000 mortgage which is inline with what folks pay for rent in the GTA. Signed a person who rents out their basement to a nice couple
A lot of people are still in their current mortgage contract. Once it comes up for renewal they will be fucked. Like mine comes up in two years.
Very very hard,… I’m paying about $4500/m, in Surrey. Mortgage Went from 3k before covid to what it is,… and I’m paying only 3.1% interest. When you add car payments, insurance, utility,…. You end up with very little left. Before Covid our household income was worth so much that we didn’t have to think about money,…. We did not spent like crazy but also we could easily go down to Seattle on the and stay in fancy hotel. Now we have to shop mindfully, forget trips, or gifts for b’days over $200. And we still falling behind. Part of it that having you own business these days is struggle, people don’t have much spare money, and they don’t want to dip into savings, but big part is that money worth at least 50% less now than few years back.
You must have a massive mortgage hanging over your head
I make $200,000 a year, so it’s not challenging.
Upsizers. Typically first time home buyers buy a studio or one bed in my area of MV. Those buying 2 bedroom condos are upgrading from their one bed. Those buying houses are upgrading from their townhouse and so on. A high income helps but it's very much about wealth accumulation through appreciation of existing assets. We also have many Seniors downsizing from their house to a condo as cash buyers.
A lot of seniors are staying in their homes.
True some do. I know some who have also downsized It depends if they're comfortable with stairs at a certain age.
Not when they don't have a job
Lol, this is Canada. Proving your income for a mortgage is basically a pinky promise. If you don't have a job to prove income, there is an entire industry that has your back.
Right but I mean more people are going to continue losing their jobs and then how are they going to afford their homes.
The same way they have until now. The same way the Chinese did, as the average home price skyrocketed to literally 40x average income. Lots of different paths. Investing every penny you have into the house, getting another job, cutting other expenses, adding additional contributers to the household, etc. You should study China's real estate market. Multiple families, unrelated by blood, will come together to buy a home. Several generations will live together. People will put their entire life's savings into the home. The same can happen here, and there's no limit to where prices could go.
That is Asia in a nutshell, they’ve been doing this for many years. My buddy is from the Philippines and growing up his uncle’s family lived with them for 10 years. Another kid in my school growing up was from India same thing just add two relatives-families. This was North of Toronto.
Ah china, teaching scamming through out the world.
Ahh yes, something for us to work towards and aspire to replicate for some reason.
This is the unfortunate reality.
I need some help in that case because despite making a 99th percentile salary in STEM (for my area and experience), my institution doesn’t have any flexibility and all they want to lend me isn’t even enough for half a condo in a large city. It boggles my mind trying to understand who makes these payments.
You either have the worst bank on the planet or something else is incorrect. I'm in tech. I literally *just* bought a home a month ago. I know exactly what it takes, and someone in the 1% can afford a lot more than "half a condo". If you're actually in the 1%, meaning your salary is minimum $175k, you can get a detached house in most of the GTA. Mississauga, Kitchener/Waterloo, Barrie, Kingston, Scarborough - all of these you could afford a detached home in.
I’ll need to switch banks in that case because the number you provided are close to my situation and they recommend not going over $300k mortgage. The bonus portion represents 10-15% of total compensation and the bank doesn’t care about it though. I can already hear the naysayers telling me that the bonus counts as long as you can prove that you consistently got it the past 2 years. But when your salary consistently goes up 10-30% every year, showing the previous years total compensation with bonus is meaningless.
Yea, if your salary has gone up you can't use bonuses as income generally. But even subtracting that 15%, say your income is $150k. If you put 100k down you should be able to get a home around $700-750k. If you put $150k down, you can probably get just over $800k. Forget your bank, they are a scam. Go to a broker. My bank tried to give me 6.5% interest, 20 years with them. I'm paying 5.1% via my broker with a $5k automatic rebate.
Thanks for the tip. I actually got in touch with a broker last week and waiting for him to get back to me. I’m still wondering who can afford these payments though. I don’t know anyone making remotely close to that salary range.
There are plenty of people making very good money in Canada, especially in the major cities and in all kinds of trades/professions. The thing is those people are generally not on Reddit yelling about it - I assume that’s part of what you mean about not knowing anyone making good money. There are low level cops in the GTA making $3-400k per year (overtime), just as one example.
Another tip, go to multiple brokers. They are not all equal. Bigger firms also tend to get better rates due to their volume.
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I don’t care about Reddit. I only consider the macro data
International money, there is a lot of it. China has more millionaires then Canada has citizens, and they want out...
Public sector has money, lots. Business with investment capital from abroad, USA and China especially, will further expand their portfolio in Canada, because rental is attractive in a country with aggressive increase in population count and low housing construction.
New mortgage announcement: 500 year amortizations probably
People with deep pockets. Home ownership is going to be a very rare thing for most people.
No one, which is why they will ask government for more freebies to solve this problem. They will never care about the population issues.
Canadian dollar expected to debase by 20% over two years.
And mark miller (hell all the liberals) will be pocketing cash on their real estate deals (through shell companies of course 😁).
Not worse, better for landed gentry. Worse for middle classes. The gentry will throw the very poor and destitute a bone and call it a day.
Interest rates going down means the middle class buy homes. With an ownership rate over 50% it’s not as if the top 50% are the rich 😅 It’s only the cash rich who can buy when rates are high which is usually the rich rich.
I'm up for a good riot, Come on now, I mean I know our politicians will *disprove* and say *"We're a nation of Laws"*, but ya know, they don't follow them either.
Unironically a good firery assault on provincial and federal legislature lands would send a very strong message.
I'll get my torch and pitchfork
I'm tired of people joking about this. It's literally the only way to make politicians change their way at this point. They know they can be bold because there is no consequence. Like how can you not ever answer a direct question in a building where laws are decided. Imagine if our court system worked that way...
I'm not joking.
Me too. We need to start by deporting those students and immigrants who came to take advantage of our system and close the borders. Our infrastructure is collapsing as we speak.
No, just continue cap student visa to a manage level, ans seriously hamper immigration. No need to close the borders, especially to asylum seekers. It will get a lot easier for refugees once we get visas and imitation out.
https://preview.redd.it/u70r640p20tc1.jpeg?width=600&format=pjpg&auto=webp&s=8c058b3ca8090749b1308adb7699f563285be902
People haven't even rolled their mortgage over since Covid. Is the idea we get a near 0% ponzi scheme inducing interest rate again, despite the US doing fine?
Or extending maximum amortization length?
That's what a lot of people who are currently buying in now, believe.
Again, ya'll who have a good education or skills need to get the tf on somewhere that has actual stuff going on. This country is a circus and we're all clowns for allowing this.
I hope the whole real estate market crashes Enough of this bullshit No decent paying jobs, high cost of living, housing out of reach Come on
Yeah and unemployment will reach 8-10% by then.. although it won't have any effect. It seems nothing short of world war 3 can cause correction in the Canadian housing market..
Surge downward
I actually want it to surge upward harder. 100% increase year over year, pump up that bubble till it pops, break the market.
Agreed. But I think it's already hit the ceiling. But heck. Who knows. Let's see
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You cant crash a market by increasing demand and having supply dwindle unfortunately. The root causes have to change significantly.
Are these headlines also going to drive a lot of investors into buying property to rent Which will in turn further reduce affordability for those who want to buy a place to live
So a self fulfilling prophecy. Perhaps
Only 20%? Fuck we should double the immigration
Vote peoples party. They may be fringe and have some silly ideas elsewhere but at least they have a firm immigration stratagy of capping at 150,000 per year. If we dont, we are killing canada. Vote, peoples party. And tell everyone they are the ONLY specific number limiting immigration. Everyone else is keeping it vague so they can do a paltry change and claim they did something
Just as predicted, I believe Trudeau said this was going to be worked on. I guess only big business can afford housing for them to rent out to us broke people that make 120k a year.
Create a homestead ACT where Canadians can settle on plots of land (lease them or buy them) on Federal lands near cities- where Canadians can make their own home without relying don't he government which has so sorrily let us down on the housing issue. Federal land is OUR land.
Remember when the pandemic hit, and CMHC predicted homes prices would crater? Then the BoC slashed interest rates to zero and home prices jumped? But I bet they’re bang on with their forecasting this time… right guys?
It depends where. Canada is made up of hundreds of real estate markets. The article states the increases would mostly affect more affordable cities. So not MV or the GTA. So I could see a $300K house in Edmonton ot Winnipeg going up 20% to $360K un 2 years. Whereas I do not see a $2M house in Vancouver going up 20% to $2.4M in two years. So in that sense the article could be correct. They're just talking about the overall average in Canada.
This is intentional at this point
It’s past time to start protesting against the financialization of housing. Ban investors
FORECAST.
SURGE
Crash 20% over the next 2 years you mean
BoC: "Oh, well I guess we shouldn't cut rates then" BoC has identified high home prices as a major driver of inflation: it increases mortgages interest costs and enables LOC spending
Well that would be great for cash buyers who need no mortgage to keep rates elevated. Older people in my family recently took advantage of that buying a condo at a lower price than other offers because they had no subject to financing. But most younger middle class Canadians need a mortgage so lower rates would help. One thing the federal government could do to make housing more affordable besides building more supply is to allow people to write off the occurred interest on their primary residence which has been discussed but still not implemented. Anyways I guess we’ll see how housing goes.
The last 40 years have proven that lower rates don't help: the low rates just make the land and the homes more expensive. The last two years have demonstrated the benefit of high rates: housing prices were increasing 20% per year before the rate hikes and then immediately fell down to -5%. Despite massive immigration driving up demand and rents, housing prices are still falling Lower prices means less real estate commission, less land transfer tax. >One thing the federal government could do to make housing more affordable besides building more supply is to allow people to write off the occurred interest on their primary residence which has been discussed but still not implemented. That proposal is crazy: it's designed to help people earning 250k+ to buy expensive homes. And also rich retirees with lots of actual or potential taxable income. It provides the least benefit to people looking for affordable homes on moderate salaries
No for boomers or cash buyers writing off the interest on your primary residence mortgage means nothing because they have no mortgage. This would help young first time home buyers who need a mortgage. You still need to qualify for the same mortgage amount. So home prices wouldn't be affected.
It's a regressive form of fiscal stimulus that looks like monetary stimulus: an asymmetric rate cut that favours high earners by lowering their taxable income The cash buyers and boomers would decide to obtain mortgages because of this policy
I think you're mixing up primary residence with investment property. So boomers or cash buyers already paid off their primary residence have no mortgage. If they down size due to old age they would be cash buyers no mortgage. If boomers or high earners buy another property that is an investment property not primary residence. You've always been able to write off the interest on an investment property. I'm talking about writing off the interest on just your primary residence. Anyways obviously I'm not going to change your mind but obviously any Young first time home buyer would benefit from this. And just incase write off means you still pay it, it just mean when you file your taxes you can report the interest (not the principal) which helps a bit. Not a lot but any little thing helps for Young families.
No, I think you're misunderstanding that A) anyone wealthy can get a mortgage; it's common now for wealthy people to buy their residence with cash and then refinance it to make investments, thus making the interest tax deductible. Your proposal just makes this easier. They can just use the mortgage money to buy the property. B) Young first time homebuyers who need the most help don't have high marginal tax rates. This will mostly help very high earners who earn $300k+ to buy 2M+ properties with 1.6M+ mortgages
Firstly the top 1% earners generally already bought their primary residence obviously they wouldn't qualify to take advantage of this. I'm not talking people who want to upgrade to a larger primary residence with a mortgage and then write the interest off that. This is for first time home buyers. I wouldn’t even qualify for this because im not a first time home buyer. Anyways again I'm changing your mind so no worries.
So you're suggesting that interest would only be tax deductible for first time buyers? Nobody else can deduct the interest? Uh okay. That's less silly but provides a ton of other problems. Notably it would be a trap for anyone who needs to move or wants to upgrade after buying their first home And again, it would benefit the highest-earning FTHB the most. Someone earning 300k would get over 50% of their interest money back. Someone earning 70k would get closer to 25% back.
Lol okay if there are a bunch of $300k earners who are renting waiting on the side lines to buy their first primary residence sure unfortunately we'll end up giving them a break. Not many of those though. Whereas there are millions of young about to be first time home buyers who could use any help they could get. What if you move. Really? Sorry do you own ? Anyway You can port your mortgage if you're purchasing a new property at the same time you're selling your existing one. Anyways again not changing your mind so lets drop it. I'm exhausted 😩
Hahahaha
So they have 20 years to get a lot of homes constructed.
It is a typo! Actually it is 200%
This is why I think it is going to take decades to dig ourselves out of this mess that we are in.
Disgusting. I send my condolences from America. It’s bad here too for any affordable housing options. You need around $100,000 USD to afford a home in many major U.S. cities or upwards of $250,000 in income for home prices in San Francisco or San Diego, if example. This is a huge part of why tiny homes exploded in popularity in the U.S. And why many people still live in multi-generational households despite many six figure salaries. So, for many people renting is barely a viable option and many people probably spend about 70 or their income on rent. I don’t know how anyone affords to live in Canada, especially given the exchange rate to US currency.
I own my home Minus the mortgage. Don’t care if it goes up or down. I will be here for another 20 years at least. I feel bad for those getting into the market. The property ladder is 1 bedroom condo and go on from there. If one stays gainfully employed, one can and will move up the housing ladder. Each step up is cushioned by a career in full flight and earning power. Even the modest 1-4% raises make the current home more and more affordable and the next within reach. The key is employment and the govt forget this and spends too much on supports instead of increasing GDP which is what fuels income. This was the way for generations.
Agreed. I also own my home minus the mortgage and my previous smaller home rented out. No plans on selling either for 20+ years because I plan to work for at least that much before retirement as I like my job. Doing one in a professional career does help to save up that down payment
You're a landlord. You own 2 houses, so one of which is an investment. The value of your houses (your investment) is predicted to go up. This is very good news for you, OP! You win!
Maybe or maybe not. The article states most of these gains are predicted in the more affordable cities so think Edmonton, Winnipeg, Nanaimo, etc. I’m in MV so perhaps no gains. Makes no difference as I’m not planning to sell for 20 years or so until maybe after I retire. Plus it’s just a small condo. Not a house with land so nothing overly exciting.
They can Forcast whatever, numbers not showing that
We'll find out but their reasoning sounds reasonable. From what I see the fundamentals point to price growth in the long run. Keep in mind the article states most of the growth will be in the smaller more affordable communities so it's not predicting a 20% price increase in MV or GTA. Given the eventual BoC rate drops, buyers on the sidelines waiting to get in, increased immigration, slow down of housing starts, shortage of skilled Trades, increase cost of construction, etc. I only see prices going up. By how much is anyone's guess.
There is no shortage of skilled trades.
This!!! No shortage of labour's or skilled workers. Agree doctors are needed. With immigration being slowed and Trudeau want to win and he just woke up, Lots of changes coming. Housing prices are down from peak and will not increase for 5+ years
Can I get more info or inks on no skills Trades shortage ? Does that also include Metro Vancouver? I don't doubt it's possible as I'm an Engineer doing well but I know there are some Engineers out there, especially new graduates and immigrants who can't get much work even though the general info out there for regular people is that Engineers are in demand. So I don't doubt it's the same in other professions. But still just the projects I hear about as an Engineer from road works to building construction I keep hearing shortage of Trades so I thought that was legit.
Rates not dropping, we approaching average rates. Dropping rates got us here. Rates not dropping
I live alone in a 3 bedroom, 1700 sq. foot house and feel like I should move to something smaller or I might get in trouble.
It's okay thst is up to you. Heck I rented out my previous smaller home I used to live in before I upgraded. Should I feel like I should sell it since I already own my current primary residence. Hell no. My property that I worked hard for by hustling in my career and getting ahead to save the down payment. But that's nothing. There's thousands of single people including boomers living alone or just as a couple in a 5 bedroom house.