Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
@lowcostfresh2266 There are many financial coaches who excel in their profession, but for the time being, I employ Laurel Dell Sroufe because I adore her methods. You can make research and find out more.
I just got approved for a $420,000 mortgage that would put me at about 3300 a month on a $80,000 salary. And what's even crazier is he said I could be approved for up to half a million. Like dude, that's over 3/4 of my take-home pay! We are going into a gigantic bubble where people cannot continue to afford their monthly payments..
I hear you. I was approved for 700k no debt and I’m like WTF??? This was when rates were at 6% but there’s no way I’d take out a loan that high. How the F are ppl paying for their house???? I can only reasonably afford a loan at 350k and a 550k house with 200k down. Taxes out the wazoo! 800-1k/month. The taxes alone will kill you!
Forex/stock is the best investment anyone could get into. As it could make you rich in a blink of an eye. it's not recommendable to go into trading or investment when you don't know how it's done, Investing with a good guide is the best way to get started in the trade market. would free you from modern financial slavery.
@@Ariellasegal.😮really?? I've always wanted to invest in stocks but was always discouraged. I wanna start now, Would it be okay if I asked you to recommend a specific advisor or company that you used their services? Seems you've figured it all out.
@Kellymccormack534: I usually go with registered representatives. ''BRITTNEY ROSE COHEN" for example has the best performance history (in my opinion) and does offers 1v1 consultation to her copiers which I think is amazing. I don’t know how many traders like that are there.>
@@kqh123 Yeah, thigns starting changing quickly in the early 2000's . In the late 90's early noughts, it seemed like most people had a decent place to live with enough space and didnt have to work 14 hours a day to pay for it. But alas, the useful idiots in government took that sweet foreign money and here we are. Glad I didnt have kids...
There are like five urban areas that are most of the growth. Its a big country. The only thing I see different in the maritimes is that for once the economy is actually growing and we have more stores than Sobeys and Loblaws. I guess it depends where you live. If we lived in Waterloo still, our home could be sold for almost a million dollars versus the 330 we got just seven years ago. So I wouldn't complain too much about that.
They should have to do their “housing retreat” in a shelter in Downtown Toronto, or a park bench in Stanley Park. Maybe that would spark some more solutions.
Are they responsible for the wellbeing of the country? Are they stoking demand and twisting incentives through legislation?@@onecanadianpassportonehous9753
@@onecanadianpassportonehous9753If The government was not meddling in the market, these factors would correct themselves. The government has artificially restricted supply by slowing down development permitting and increasing costs
New construction falling off, mass retirements in the construction trades, long term forecast for no significant interest rate decreases, mortgage renewals that are too much to carry for a significant number of mortgage holders, and increasing demand for housing for new immigrants -- what a nightmare this could become.
Banks are selling mortgages. People always say it's a good option to buy at discount, but with the market turmoil and everything at stake in present economy, I'm thinking of buying stable coin to hedge against inflation, or is it all right saving over 350k ?
There are options that spread across multiple banks. I use a non-beginner broker that protest up to 3 million dollars and provide 4.58% returns on cash, it's always a good idea to consider working with an advisor for financial planning
Your just realizing this now ??? Liberal governments have ALWAYS been this way. No surprise here. They always talk about the good they are doing, yet in reality it is just that,...talk.
The problem isn't 7% mortgage rates. The problem is average home prices are triple what they should be. Unfortunately a lot of people are likely going to lose in the great housing crash of 2024
You think real estate is expensive but Vancouver and Toronto real estate has actually under performed the S&P500 and the Nasdaq as an asset. A $200k Vancouver home bought in 1983 is worth $1.5 million compounded annually at 7% over a spand of 30 years. Using a compound interest calculator Your initial investment of $200,000.00 plus your weekly investment of $0.00 at an annualized interest rate of 7% will be worth $1,522,451.01 after 30 years when compounded yearly. It gets even more crazy at 9% compounded. Looking at the S&P 500 for the years 1992 to 2021, the average stock market return for the last 30 years is 9.89% (7.31% when adjusted for inflation). Your initial investment of $200,000.00 plus your weekly investment of $0.00 at an annualized interest rate of 9% will be worth $2,653,535.69 after 30 years when compounded yearly.
@@Observer168 Houses are primarily a place to live and sometimes also an asset. When the price of housing has increased far beyond what is an affordable level then there needs to be a correction where the price falls back to a reasonable value. The market always dictates the prices sometimes the prices drop dramatically.
1. Set up Dubai corp (0-5% tax) 2. Run your remote labor through it. 3. Move to Guadalajara/Medellin/Ho Chi Minh City/Bangkok/Asuncion, etc. Canadians love to overcomplicate things and complain. Immigrants are unfortunately sold a bill of goods but it's only a matter of time before they wake up.
We have reached a watershed moment. Either change for the better occurs or we slowly slide downwards to lower living standards. We should be optimistic & fearful.
It would be great if you did a Post called Trapped in Home Part Two! I first became interested in the whole housing problems when I got a BA in Justice studies! What was mortifying was that the census tracks Hidden Homeless which looks at youth and others stuck Trapped at home past age 21. The 2014 census shows average age kids trapped at home nationally 28. How long are they trapped in parents basements in 2023 in GVD and Toronto? Trapped two exploring this issue would go viral! All the best Steve!
"I'm stuck in my parents Ferrari because I ain't interested in no swamp shack honda." That's what I hear when people say they are 'stuck' in GVD or Toronto.
Great stuff and knowledge. I'm just confused why aren't there 3 or 4 bedroom condos? Why can't builders build that to allow people to upgrade from a 1-2 bedroom condos to a larger one without moving to a townhouse, semi, and detached. Wouldn't that make it more affordable? However building has been so slow.
Simple. The condo market in Canada has been tailored for small mom & pop investors. Generic 1 bedroom condos are very easy to design, build and sell for builders. They are much more liquid than 3/4 bedroom condos. We end up with a big imbalance in the market.
There’s just not much of a market for 3-4 bedrooms. People generally want homes with backyards when their family gets bigger. Condo market has been acting like a replacement for pbr so why 1-2 bedroom is the bulk of the units made. As far as I know municipalities make the builders set aside a certain percentage for the 3+ bedroom units but in general if they could it probably would be all 1-2 bed units.
It's very true that people are trapped in their homes. To qualify at 8% is challenging. However, what is more important, in my eyes, is what first time buyer can qualify at 8% with current prices? If you remove the bottom of the pyramid, it falls apart 10/10
No private company will ever increase supply in the anticipation of price decrease. But, either home prices should go down, or disposable incomes should go up, or some combination of both, there is no other ways around to fix affordability. So, government should start building.
I appreciate the edits in the video. It does make a difference to directly see the other clips as well directly. Thanks again for another great podcast
Have listed multiple units for both myself and my parents on Facebook marketplace and 80% are international students from India, South America, Philippines and Middle East. Saw the tuition for a international student at VCC is $70,000 per year so many of these students come from wealthy families.
I would take full advantage of that to be honest. Get as much as you can out of them. You could probably put bunk beds in each room and make even more. The students are cash cows. I couldn't imagine paying 70k a year for such garbage education 😂. Some of these guys have more money than brains. The students and their families must feel like such suckers in the end. They can only blame themselves though, not your fault.
@@Casey-qm1nd small price to pay for being able to leave a 3rd world country. They can get a PR after graduating and finding a job here. It’s the rich that are leaving third world countries. It’s really easy to open a factory in India and become a millionaire using cheap labour. Labour cost are some of the lowest in the world. The average worker makes less than $10 per day. Many factories are moving from China to India and Vietnam so they will be the next millionaire immigrants in the next two decades. Many students will go home with English language skills and might even study business here so they can help their families expand and become international. Many Chinese business owners did the same with their Children and many went back home help run the family business.
@@Observer168 but as manufacturing heads to india like you said, they will move closer to being a developed nation. I wonder if the kids of recent immigrants will be kicking their parents for choosing canada instead of staying in India where a lot of the manufacturing is headed. I am a long term investor in the indian markets, looks promising.
@@Casey-qm1nd some stay long enough to get a Canadian passport before going home to help with the family business. The passport is used as a backup plan so they can choose to living in Canada or India. Many students are here to get an MBA. They can also setup business in Canada so they can expand their business into North America. Surrey, BC is already full of Indian businesses importing from India. There’s no real need to go back home since they can just import from their family factory and sell in North America where profits are much larger.
the government needs to place rules on extension of amortization period.. banks are literally not allowing house owners to default!! ticking time bomb!
Don’t worry, a 2008 Lehman brothers event will probably happen to a Canadian private mortgage brokerage in the next 12 months and that will cause a tsunami to Canadian banking
Student admission needs to be directly linked to housing, and the housing should be the respnsibility of the school, uni or college that's admitting these foreigners. The diploma mill needs to come to an end, and sorry to burst your bubble - We don't need immigration, we don't need infinite population growth - FINLAND is living proof, low population, low birth rate, near zero immigration = highest quality of life and citizen happiness. Even Quebec, up until recently, never had Canada levels of immigration, we had low population growth and life here was great, people could afford to live and have families, we had jobs to choose from we had a sense of community through shared vales, but since 2015 and specifically in the last 3 years, Quebec is being "Canada'd"; forced to take in too many people, our quality of life is decreasing rapidly as cost of living skyrockets. WE DO NOT NEED ENDLESS IMMIGRATION, this needs to end, only allow people who fill specific needs and keep the number under 150,000 / year.
I am glad to hear Quebec is seeing the consequences of their shitty voting decisions, now if we could now shut off all sources of energy to them they may open their eyes a bit more.
schools charge 10 Times to foreigners because thats the real Price for éducation. When a Citizen student go to school thats the gouvernement who pay the big part of fees. Anyway foreigners come to Canada because of low cost and good quality éducation.
Prices are going to skyrocket in a few years with all the immigration, supply and demand will be ridiculous. They know it's not possible in Ontario. They are allowing single family dwellings to become 3 unit dwellings and in Toronto they also are allowing laneway suites and garden suites. They will further divide the current housing supply just to absorb a portion of what is coming.
Just a correction, the vast majority of Canadian universities are not for profit institutions. Not saying they aren't at all driven by financial concerns, but they literally are not profit seeking institutions.
That’s right. But look at the salaries, benefits and pensions of those institutions. How they are distributing the “profit” They need to keep things moving in their interest.
Federal government has worst fiscal policy in the world and the BoC is just countering it with intelligent moves that wouldn’t be needed as much if proper fiscal policy was used
Started with huge budget deficit due to reckless spending. Kept interest rate artificially low for more than a decade and had encouraged speculation. When inflation emerged there are panic raising interest to doze off the inflation. Property bubble lead to stratascopheric rent.
Strong points made. Lowest residential building permits in a decade. I like one of the commenters’ points that 1 in 48 people in Canada is an international student. TD Bank having 23% of mortgage holders with amortization periods longer than 35 years. Wow. Canada is in bad shape.
It really sucks to see immigrants and students get blamed for the state of housing in Canada. Bottom line is Canada depends on an active RE market to provide jobs and GDP growth. The government needs to introduce affordable housing like Singapore, to Canadians who want it at a province with that needs labour like Alberta or Saskatchewan for their natural resource industries.
St Clair College in Windsor has absolutely exploded with foreign student populations. Double, triple volumes over last few years. Massively higher tuition fees for them. It is a monster money maker, and they do NOT care where these students live, work, or play.
So my mortgage went from $2460 a month ($568 a week) to $1100 a week in order to stay within amortization. I have a super high income so I can eat that loss. I don't think many Canadians can. not sure why there isn't a fire sell of homes.
Ohh boooh hooooo all these poor people locked in their homes what shall they do? We should all shed a big tear for the over leveraged homeowner that can’t get the 4 bedroom rather than the 3 they already have. Booooh hooo people can’t unload their condos and take on more debt. We should all start go fund me pages for these very unfortunate souls. Come on!!!
Everyone and everything has to be sacrificed on the altar of homeowner profits. Politically, no one matters except homeowners. No one has any rights except homeowners. The government is going to take everything you earn and give it to homeowners. Get used to it.
I'm seeing a LOT of listings in Surrey BC but the sellers are delusional with their asking prices. These properties are going to be sitting there for months until they adjust the price.
Yes, agreed - everyone is a prisoner in their home, whether you own or rent. Only those industry insiders, offshore capital, and mortgage free boomers can play this game of upsizing or switching residences. Your housing situation determines your quality of life and the level of anxiety these days for people is in tipping point territory. It's ruining lives or postponing them. All brought to you by this foreign policy friendly current Fed Liberal govt. Years of plausible denial of the "Vancouver Model" bleeding into all of Canada. That being said - this fall market I disagree will be anemic. If BOC will raise rates come Sept 6 - stressed extended sellers will have to swallow their hubris and a jump in inventory can cause panic knowing these rates are not coming down but again how can a housing market come down if you have no laws/mechanisms that prevent so much money laundering to keep pouring in. Random thoughts.
It's amazing how much Canada has gone downhill over the past 15 years or so... it's almost an entirely different country and general vibe. Canada was as close to a utopian country as you could get not long ago. You can't blame it all on Trudeau, but he sure hasn't been any help. Sunny ways!
Australia has had many Investigations with regards to their Immigration triad involving Immigration, Universities, and Casino's. Canada, likely due to our Monarchy ties, has always had a close under the table relationship with China for well over 100 years. I'm sure this is a recurring trend with all Commonwealth Countries. Just like Government it does make you wonder where all the money goes.
@@donm2067 could be incompetence but it's too profitable a racket. Plus most have been given non-profit status like Charities and Churches which makes it perfect for corruption.
Only those sitting in govt or close to the money printing press of the central bank. The productive working class in society needs to get rid of central banking which is destroying their future.
@@mtrest4Have you ever read financial history? Let me give you a peek, basically people are stupid and greedy, they do dumb things, currencies collapse. Rinse and repeat. Happens with or without CB
Foriegn students come in on a visa, get a job and fast track citizenship. They're coming here for high paying Canadian jobs. If it doesn't pan out they'll leave Canada. The government will need to consult with institutions to check their monetary targets. Then on the real estate front people need to be stress tested for a mortgage rate of 9% to qualify to port their mortgage. 23% of mortgages already have a greater than 35 year amortization period and owners are trapped in their homes, "debt slaves". Residential building permits are at an all time low because of affordability. What the government wants to happen is institutions build the housing and immigrants get high paying jobs. CMHC will insure the mortgage so they get the property. This is corrupt but necessary because immigrants can't normally qualify for a stress tested mortgage and they don't have enough money. Again the target is more "debt slaves"!
The Bank of Canada should have taken a longer approach to reducing inflation and housing prices. Interest reates need to be elevated for a longtime to correct housing. You don't want to force people out of their homes you just want to put some pressure on demand. I am sure they are influenced by the fact an election is coming in 2025. So they will reduce rates in late 2024.
I know of multiple people who used education as a longer term immigration strategy. Take a 2-3 year college course and it’s an easy transition. Not good
Let's hope interest rates go much higher...so housing has to deleverage and idiots that purchased homes they can't afford by assuming ultra low borrow costs, lose it. Let it all crash and burn!
Hahaha. What does that achieve. So you can afford a home? Well news flash if house prices drop due to interest rates, people that don’t have a home now still won’t be able to buy because the rates are way to high and you will not qualify. It actually cannot crash because there are way to few homes to people wanting/needing. If you don’t own a home now chances are very high that you will be a lifetime renter.
@@marksmith6787 I wanna see the pain. The National doing reports on people losing their homes due to "Insane Interest rates"! LMAO BTW - Can easily afford a home...token $$ for me, unlike u
@@G_Ellis606 A poor that wants the system to fail so he can maybe get a house. And no, you can't afford a home. You can say you can on the internet, but it's obvious you're a poor lol.
1.) you either ascribe to a 'free market' system of principles or you don't.... Full Stop ! 2.) cost factors of Debt financing predicated entirely upon Monetary Policy that had ONLY one way to go being HIGHER.... should be due diligence in basic financial literacy even during speculative/FOMO driven markets. In simplest terms..... at what point under an obviously speculative/FOMO driven asset price appreciation "bubble" where Real Estate valuations tracked ever higher far beyond macro fundamentals .... did nobody Financing DEBT in order to "get in".... NOT perceive interest rates WOULD/COULD only go higher ? 3.) Canada.... is NOT an island in Monetary Policy terms, and will be/is subject to Global FX/Bond Market undulations.... as is currently affecting interest rates and will continue to do so.... lower rates are NOT on the horizon in the foreseeable.... FORGET IT ! ... it could be a decade. 4.) Make NO mistake here.... this is a Real Estate Crash in Canada....it will severe, rife with social ramifications, and extremely prolonged..... it will get FAR WORSE from here.
Banks have got govt to insure all sub prime mortgage debt they create with taxpayers as the backstop. That is what CMHC basically is. Moral hazard up the wazoo when banks make money creating junk mortgages that taxpayers are responsible for underwriting with no private insurance market to correctly price that enormous risk. All the CMHC, Sagen, Canada Guarantee mortgages should be handed back to the banks that created this garbage. Why should taxpayers be forced to underwrite junk that is certain to implode - and this is despite massive amounts of money printing and the immigration pyramid scheme which also harms the Canadian working class.
@@donm2067 Please do yourself a favor and google the term "Normalcy Bias". It may provide you valuable insights in dissemination of the now irrefutable data currently presenting. Just say'in.... you can believe whatever you want as is your perogative..... but doing so based in at the very least.... a 'defensible' position based somewhat in reality is advisable ? Unless you firmly believe a now $2.9 Trillion combined Canadian Mortgage/Consumer Debt metric(and still climbing)..... is somehow serviceable by Canada's barely $2 Trillion GDP where ~15% of THAT GDP(and growing yearly) is now reliant upon ever expanding $2.9 Trillion Mortgage/Consumer Debt ? Ever expanding "DEBT" creation is NOT a basis for an economy.... only eventual currency debasement ? Not to mention Housing Crisis are occurring everywhere Globally as well.... everywhere from USA/UK/NZ/Australia/Norway/Sweden across the EU/France/Germany.... FX/Bond Markets and Interest rates are rising everywhere.... Canada is NOT an "island" and the BoC has very little latitude for independent lowering which is now impossible versus the new "zero bound" Globally. This is a Real Estate Price CRASH in Canada.... with now ~450,000 Mortgages/Homes currently on 'accommodations' and merely extending amortizations/balances at Canada's Big 5 Banks that must unwinde.... "fixed' rates for which entirely funded on international Bond Markets. GOOD LUCK whatever you decide.... but don't do it with your head in the sand OK ?
There’s a continuum of options between “we need as many migrants as we can get” and “close the door to newcomers”. In my opinion, we need balanced approach with some guard rails in place. For instance, I would require all educational institutions to provide at least 50% of housing for international student. Businesses should be required to provide accommodation to all temporary/seasonal workers on top of the minimum wage. In order to hire foreigners employers should be required to prove that he is paying enough to afford housing in the region (market cost of accommodation is less than 30% of salary). Accommodation for refugees should be secured before bringing them to the country from around the globe. No accommodation = no permits.
I agree with your policy but would up it to 60% for both education institutions and businesses that do exactly that. With that additional 10% being opened up for local residents as well.
@@l.yannickd.1035 I am saying, that companies and universities willing to bring foreigners should be responsible for housing. In case of universities it could be 50% of housing - meaning they could get double amount of visas on amount of available housing, because some students are leaving off campus. Initially it was not about mixture of local and foreign students, but probably you are right - there are should be some policies in place to insure that some student housing also available for Canadian students.
There are so many other countries in the world that have a lower cost of living, less crime, less taxes , and more traditional values.... why not just leave Canada? 🙄
Did he specify which Canadian Bank is suffering from this 23% mortgage non-compliance? I may have missed it I had him in the background while doing my budget.
You should do videos on the restriction on land ownership on all fronts in canada and how that impacts all people in this country. The governments hold 88+% coast to coast to coast and places like BC where they hold 94%! Maybe its time to really free up the lands for canadians who live here and call this place home for rural needs and wants, to villages, towns, and municipalities to be able to grow thier land base and grow! This would exclude ecological sensitive areas of course. Thoughts? Idwads?
Most don't understand how the housing crisis happens. Beside the corrupted students immigration program mean mostly for the rich Indian family kids; aggravated rental issue. They don't contribute much to labor shortage or skillset. They are rich kids just to "buy" a permanent residency. And the corrupt sleepy Housing, Immigration and now Statistic Canada, the municipal approving housing permits, are all to blame. .Not to the ABNB rental the oppositions who has kept quiet about the issue.
Anecdotes are basically 'qualitative data', especially when you have a lot of them. The best research, beyond perhaps engineering/astrophysics, etc..., typically involves both.
I don’t see them removing it until we start to get to affordable housing values and banks having less risky loans. The stress test is really for the banks and seeing how they extended so many people’s amortization I can’t see ofsi saying it’s time to remove it.
Sean Fraser shifted from the immigration minister to that after having declared Canada needs 1.5 million+ immigrants in 3 years. This in spite of rising unemployment, declining real wages, a housing affordability problem, and a crashing economy. If the guy is being used to push through disastrous policies first on the immigration front and now as a fall guy for housing, he is dangerously incompetent.
You think real estate is expensive but Vancouver and Toronto real estate has actually under performed the S&P500 and the Nasdaq as an asset. A $200k Vancouver home bought in 1983 is worth $1.5 million compounded annually at 7% over a spand of 30 years. Using a compound interest calculator Your initial investment of $200,000.00 plus your weekly investment of $0.00 at an annualized interest rate of 7% will be worth $1,522,451.01 after 30 years when compounded yearly. It gets even more crazy at 9% compounded. Looking at the S&P 500 for the years 1992 to 2021, the average stock market return for the last 30 years is 9.89% (7.31% when adjusted for inflation). Your initial investment of $200,000.00 plus your weekly investment of $0.00 at an annualized interest rate of 9% will be worth $2,653,535.69 after 30 years when compounded yearly.
There will be a lot of houses on the market in 2024,2025. That will be when their bank tells them,they need $200,000 to qualify to renew their mortgage,which will be $1500 more than they were paying,or sell fast, or lose their home to the bank. This will end in tears.
Steve, you did a vid a while ago stating the City of Vancouver's high charges for building a new house and ur was over a Million not including the Permits. I did not save this vid - can you provide a link so as I can save it? Thanks
They need to kick people out. Too many idiots bought things they couldn't afford because they thought it would gain in value. People need to learn the stove is hot, so fvck em.
Your argument about people being trapped in their homes makes sense when people want to move up to bigger houses (downsizing wouldn't have this problem), but shouldn't that in fact reduce demand whilst increasing supply for single-family homes? They remain stubbornly in short supply and prices very elevated... Are there other factors at play for this segment?
Anyone voting for the 3 "mainstream" parties is voting for one and the same. Even Pierre is silent on the massive immigration pyramid scheme which tells you who butters his bread.
Do Immigration Reports 1st before 700,000 new Immigration during 2000 to 2023 we are short homes. They are making homes owner pop up higher rental prices = SHAME = DROP IT TOO LATE TO FIXING 😢😢😢
There is not shortage. There are lot of homes, but people still can't afford what out there. And this is the first time in decade that people own more then one home, so there is where the shortage is. Building is not gonna solve the problem when land and material is at a all time high from greed. So build/ bring in more in people and breeding is not a solution. Funny how society can't feed/ house themselves/ have transportation but they keep breeding and buying new cell phones.
What we really need is to give homeowners more rights if a tenant stops paying rent. It's a clown world when a renter has more rights than the homeowner.
This works both ways and is hard to fine tune. In Alberta there is no legal restrictions on how much landlords can increase rents. Renovictions are the scariest.
I was born and raised in Canada. This country would not function without foreign workers/students. Canadians are unwilling to work at Tim Hortons, McDonald’s, etc. There is significant corporate pressure for the government to maintain course to preserve profits.
Artificially increasing the population through massive immigration massive temporary workers and massive foreign students suppresses wages and salaries by retarded government policies interfering with the organic Canadian Markets. Less slave workers and indentured servants created by the federal government would automatically increase wages and salaries for those positions to be filled. Basic economics 101
Additionally - no one on any podcast speaks to the boomer effect. 2024 has the largest cohort of boomer retirees in history. Boomers downsize or at least move at some point following retirement. This generally frees up cash for their adult children or grandchildren to purchase a home. As well consider the fact that the first cohort year for boomers is upon us. Boomers born in 1948- 1950 are now moving into retirement homes/condos by the thousands thereby freeing up homes for sale to first time buyers. I mean NOBODY ever mentions this demographic impact on the housing market!
bringing in technology students and then helping them immigrate to Canada is exactly what we should be doing. We should be bringing in al qualified STEM students and then helping them ( and current citizens) start tech businesses. That's how Canada can grow out of our debt crisis (and get rid of the Maoists current in government ) Rates aren't coming down any time soon, until the Government cuts spending dramatically. This is exactly what happened under Trudeau #1. (also a commie)
If they are really good students or entrepreneurs , they will move to the USA where taxes are low. Shopify founder is probably an exception. You don`t need 1 million immigrants to find jewels. Canada is merely a natural resource economy, by accepting immigrants you basically share your wealth. Some level of immigration (TFWs) for low skilled jobs may be beneficial to Canadian born citizens.
![Seungmin "그렇게, 천천히, 우리(As we are)" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/kAzmhLHePqU/mqdefault.jpg)
Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
The stock market is no different, to maintain profit, you need to have some in-depth knowledge on the market.
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
@@TomD226 Please pardon me, who guides you on the process of it all?
@lowcostfresh2266 There are many financial coaches who excel in their profession, but for the time being, I employ Laurel Dell Sroufe because I adore her methods. You can make research and find out more.
I just got approved for a $420,000 mortgage that would put me at about 3300 a month on a $80,000 salary. And what's even crazier is he said I could be approved for up to half a million. Like dude, that's over 3/4 of my take-home pay! We are going into a gigantic bubble where people cannot continue to afford their monthly payments..
I hear you. I was approved for 700k no debt and I’m like WTF??? This was when rates were at 6% but there’s no way I’d take out a loan that high. How the F are ppl paying for their house???? I can only reasonably afford a loan at 350k and a 550k house with 200k down. Taxes out the wazoo! 800-1k/month. The taxes alone will kill you!
Forex/stock is the best investment anyone could get into. As it could make you rich in a blink of an eye. it's not recommendable to go into trading or investment when you don't know how it's done,
Investing with a good guide is the best way to get started in the trade market. would free you from modern financial slavery.
@@Ariellasegal.😮really??
I've always wanted to invest in stocks but was always discouraged. I wanna start now,
Would it be okay if I asked you to recommend a specific advisor or company that you used their services? Seems you've figured it all out.
@Kellymccormack534: I usually go with registered representatives. ''BRITTNEY ROSE COHEN" for example has the best performance history (in my opinion) and does offers 1v1 consultation to her copiers which I think is amazing. I don’t know how many traders like that are there.>
You know wh@tspp right?
Note down ➪†1850..
As a college instructor, I was pushed to NOT fail foreign students.
Cash cows, and we all knew there were even bigger agendas behind the curtain.
Yes its a money grab at its finest.
Canadian school in general is easy professor😂😂😂
@ShibuyaRepublikVancouver Was that comment really necessary? You've shown great ignorance.
The university I work at would cease to exist without foreigners. And it's a university of over 20,000 students.
@@thecanadian8719
You shouldn’t be disparaging your students
Canada used to be such a nice country. Completely different place than 20 years ago. Young people have no idea what they've missed.
2003?
@@kqh123 Yeah, thigns starting changing quickly in the early 2000's . In the late 90's early noughts, it seemed like most people had a decent place to live with enough space and didnt have to work 14 hours a day to pay for it. But alas, the useful idiots in government took that sweet foreign money and here we are. Glad I didnt have kids...
Alot of the kids like mine will be fine as their parents like us that have homes, will help them get a home in the future.
@@marksmith6787and they will squander it
There are like five urban areas that are most of the growth. Its a big country. The only thing I see different in the maritimes is that for once the economy is actually growing and we have more stores than Sobeys and Loblaws. I guess it depends where you live. If we lived in Waterloo still, our home could be sold for almost a million dollars versus the 330 we got just seven years ago. So I wouldn't complain too much about that.
They should have to do their “housing retreat” in a shelter in Downtown Toronto, or a park bench in Stanley Park. Maybe that would spark some more solutions.
🎯🎯🎯
Excellent video! We need more videos like this - the Gov is to blame for everything wrong in Canada at this time. Please expose these crocks
@@onecanadianpassportonehous9753you are stuck on investors but there are lot of primary homeowner who got hit by the crooked leaders.
Are they responsible for the wellbeing of the country? Are they stoking demand and twisting incentives through legislation?@@onecanadianpassportonehous9753
@@onecanadianpassportonehous9753If The government was not meddling in the market, these factors would correct themselves. The government has artificially restricted supply by slowing down development permitting and increasing costs
@syntaxmsi Real estate costs were rocketing up during Harper too. I'm not personally a fan of Trudeau but to blame him misses the point.
All we know is Trudeau broke his affordable housing promise from 2015 that’s for sure 🙄
New construction falling off, mass retirements in the construction trades, long term forecast for no significant interest rate decreases, mortgage renewals that are too much to carry for a significant number of mortgage holders, and increasing demand for housing for new immigrants -- what a nightmare this could become.
Banks are selling mortgages. People always say it's a good option to buy at discount, but with the market turmoil and everything at stake in present economy, I'm thinking of buying stable coin to hedge against inflation, or is it all right saving over 350k ?
There are options that spread across multiple banks. I use a non-beginner broker that protest up to 3 million dollars and provide 4.58% returns on cash, it's always a good idea to consider working with an advisor for financial planning
When a little needed to be done, the government did nothing. Now that a lot needs to be done, they are only starting to do a little. They're too slow.
as usual 😁
Your just realizing this now ??? Liberal governments have ALWAYS been this way. No surprise here. They always talk about the good they are doing, yet in reality it is just that,...talk.
are they to slow or operating at the exact speed they want to?
@@commieburner9159 slower than they should be for the job they are being paid to do 🤷
You’re wrong, they’re still doing nothing
Love how you unpack and explain these things, quite educational. Thanks
The problem isn't 7% mortgage rates.
The problem is average home prices are triple what they should be.
Unfortunately a lot of people are likely going to lose in the great housing crash of 2024
You think real estate is expensive but Vancouver and Toronto real estate has actually under performed the S&P500 and the Nasdaq as an asset. A $200k Vancouver home bought in 1983 is worth $1.5 million compounded annually at 7% over a spand of 30 years.
Using a compound interest calculator
Your initial investment of $200,000.00 plus your weekly investment of $0.00 at an annualized interest rate of 7% will be worth $1,522,451.01 after 30 years when compounded yearly.
It gets even more crazy at 9% compounded. Looking at the S&P 500 for the years 1992 to 2021, the average stock market return for the last 30 years is 9.89% (7.31% when adjusted for inflation).
Your initial investment of $200,000.00 plus your weekly investment of $0.00 at an annualized interest rate of 9% will be worth $2,653,535.69 after 30 years when compounded yearly.
@@Observer168 Houses are primarily a place to live and sometimes also an asset. When the price of housing has increased far beyond what is an affordable level then there needs to be a correction where the price falls back to a reasonable value. The market always dictates the prices sometimes the prices drop dramatically.
1 in 48 people in Canada are international students in 2023. That is an astonishing number.
1. Set up Dubai corp (0-5% tax)
2. Run your remote labor through it.
3. Move to Guadalajara/Medellin/Ho Chi Minh City/Bangkok/Asuncion, etc.
Canadians love to overcomplicate things and complain. Immigrants are unfortunately sold a bill of goods but it's only a matter of time before they wake up.
Finally a smart post! Thumbs up !!!!!!!!!
I’m 55 yrs old and have never felt this concerned about the Canadian economy and our way of life. I honestly feel we are beyond repair…hope I’m wrong
Hope you didn't vote for the liberals or ndp. If so, you created the problems.
I’m 58 and feel same… I can see how it even can be fixed within my lifetime, if ever so much damage has been done
I’m 52 and I left 15 years ago to the US. Best move I ever made.
We have reached a watershed moment. Either change for the better occurs or we slowly slide downwards to lower living standards. We should be optimistic & fearful.
Blame Justin Trudeau
It would be great if you did a Post called Trapped in Home Part Two! I first became interested in the whole housing problems when I got a BA in Justice studies! What was mortifying was that the census tracks Hidden Homeless which looks at youth and others stuck Trapped at home past age 21. The 2014 census shows average age kids trapped at home nationally 28. How long are they trapped in parents basements in 2023 in GVD and Toronto? Trapped two exploring this issue would go viral! All the best Steve!
"I'm stuck in my parents Ferrari because I ain't interested in no swamp shack honda." That's what I hear when people say they are 'stuck' in GVD or Toronto.
very sad for whats happened here i feel for all the young people unable to start families or even house themselves really tragic
Great stuff and knowledge.
I'm just confused why aren't there 3 or 4 bedroom condos? Why can't builders build that to allow people to upgrade from a 1-2 bedroom condos to a larger one without moving to a townhouse, semi, and detached. Wouldn't that make it more affordable? However building has been so slow.
Good point. I'm sure there's a market for it.
Simple. The condo market in Canada has been tailored for small mom & pop investors. Generic 1 bedroom condos are very easy to design, build and sell for builders. They are much more liquid than 3/4 bedroom condos. We end up with a big imbalance in the market.
There’s just not much of a market for 3-4 bedrooms. People generally want homes with backyards when their family gets bigger. Condo market has been acting like a replacement for pbr so why 1-2 bedroom is the bulk of the units made. As far as I know municipalities make the builders set aside a certain percentage for the 3+ bedroom units but in general if they could it probably would be all 1-2 bed units.
@@sharinglungs3226 What people want and what people can afford are two different things
Studio and 1 bedroom apartments are much more profitable. Hong Kong and Tokyo are now selling micro apartments under 300 sqft
It's very true that people are trapped in their homes. To qualify at 8% is challenging. However, what is more important, in my eyes, is what first time buyer can qualify at 8% with current prices? If you remove the bottom of the pyramid, it falls apart 10/10
It's common knowledge that the majority of first time buyers are getting financial help from the bank of mom and dad
not a whole lot of them will
Oh no! I want to upgrade my home / 'move up', but I don't qualify. Trapped! 1st world problem.
No private company will ever increase supply in the anticipation of price decrease.
But, either home prices should go down, or disposable incomes should go up, or some combination of both, there is no other ways around to fix affordability. So, government should start building.
I appreciate the edits in the video. It does make a difference to directly see the other clips as well directly. Thanks again for another great podcast
I'm surprised that it's taken realtors this long to figure it out! WOW!
the world does not need these gatekeeper leeches
Have listed multiple units for both myself and my parents on Facebook marketplace and 80% are international students from India, South America, Philippines and Middle East.
Saw the tuition for a international student at VCC is $70,000 per year so many of these students come from wealthy families.
Or they take on vast debt. CBC did an expose on international students.
Brampton is sending home 5 suicides a month back to India.
I would take full advantage of that to be honest. Get as much as you can out of them. You could probably put bunk beds in each room and make even more. The students are cash cows. I couldn't imagine paying 70k a year for such garbage education 😂. Some of these guys have more money than brains. The students and their families must feel like such suckers in the end. They can only blame themselves though, not your fault.
@@Casey-qm1nd small price to pay for being able to leave a 3rd world country. They can get a PR after graduating and finding a job here. It’s the rich that are leaving third world countries.
It’s really easy to open a factory in India and become a millionaire using cheap labour. Labour cost are some of the lowest in the world. The average worker makes less than $10 per day. Many factories are moving from China to India and Vietnam so they will be the next millionaire immigrants in the next two decades.
Many students will go home with English language skills and might even study business here so they can help their families expand and become international. Many Chinese business owners did the same with their Children and many went back home help run the family business.
@@Observer168 but as manufacturing heads to india like you said, they will move closer to being a developed nation. I wonder if the kids of recent immigrants will be kicking their parents for choosing canada instead of staying in India where a lot of the manufacturing is headed. I am a long term investor in the indian markets, looks promising.
@@Casey-qm1nd some stay long enough to get a Canadian passport before going home to help with the family business. The passport is used as a backup plan so they can choose to living in Canada or India. Many students are here to get an MBA. They can also setup business in Canada so they can expand their business into North America.
Surrey, BC is already full of Indian businesses importing from India. There’s no real need to go back home since they can just import from their family factory and sell in North America where profits are much larger.
The peace of mind coming from the 30-year fixed in the U.S. is obvious these days.
Wish we had that option in Canada.
I believe we can get one for up to 7 or 10 years, but the interest rate for those, IMO are 😬😲
the government needs to place rules on extension of amortization period.. banks are literally not allowing house owners to default!! ticking time bomb!
They should have never had the mortgage deferral either, let the chumps go bust.
Don’t worry, a 2008 Lehman brothers event will probably happen to a Canadian private mortgage brokerage in the next 12 months and that will cause a tsunami to Canadian banking
@@jmela1370 we can only hope
Student admission needs to be directly linked to housing, and the housing should be the respnsibility of the school, uni or college that's admitting these foreigners.
The diploma mill needs to come to an end, and sorry to burst your bubble - We don't need immigration, we don't need infinite population growth - FINLAND is living proof, low population, low birth rate, near zero immigration = highest quality of life and citizen happiness.
Even Quebec, up until recently, never had Canada levels of immigration, we had low population growth and life here was great, people could afford to live and have families, we had jobs to choose from we had a sense of community through shared vales, but since 2015 and specifically in the last 3 years, Quebec is being "Canada'd"; forced to take in too many people, our quality of life is decreasing rapidly as cost of living skyrockets.
WE DO NOT NEED ENDLESS IMMIGRATION, this needs to end, only allow people who fill specific needs and keep the number under 150,000 / year.
The schools should bear some responsibility. I heard they charge something like 10x to foreign students so they definitely are profiting
I am glad to hear Quebec is seeing the consequences of their shitty voting decisions, now if we could now shut off all sources of energy to them they may open their eyes a bit more.
schools charge 10 Times to foreigners because thats the real Price for éducation. When a Citizen student go to school thats the gouvernement who pay the big part of fees. Anyway foreigners come to Canada because of low cost and good quality éducation.
Require schools to build dedicated apartments for international students, to not interfere with existing stock.
Quebec? LOL!!!!
Go where your money and you are treated best. It's not Canada.
Yeah if you have money and don’t live here than yes. But for Canadians, the social welfare system is intoxicating.
Going to a third world country might sound cool if you’re single but would a a terrible place to raise a family.
@@Observer168why? This place is going to be a third world country in short order anyway.
Prices are going to skyrocket in a few years with all the immigration, supply and demand will be ridiculous. They know it's not possible in Ontario. They are allowing single family dwellings to become 3 unit dwellings and in Toronto they also are allowing laneway suites and garden suites. They will further divide the current housing supply just to absorb a portion of what is coming.
Wrong
Canadas consumer dept to GDP is 113% Canadians are broke
I have been following you from your last few videos, and I have to compliment that you are a wise man. Keep it up sir!
Thanks for the support
Just a correction, the vast majority of Canadian universities are not for profit institutions. Not saying they aren't at all driven by financial concerns, but they literally are not profit seeking institutions.
That’s right. But look at the salaries, benefits and pensions of those institutions. How they are distributing the “profit”
They need to keep things moving in their interest.
The real problem is the BOC (Bank of Criminals) ability to affect both the present loans and the past loans interest rates.
But ultimately was influenced by the liebrals
Federal government has worst fiscal policy in the world and the BoC is just countering it with intelligent moves that wouldn’t be needed as much if proper fiscal policy was used
Started with huge budget deficit due to reckless spending. Kept interest rate artificially low for more than a decade and had encouraged speculation. When inflation emerged there are panic raising interest to doze off the inflation. Property bubble lead to stratascopheric rent.
Strong points made. Lowest residential building permits in a decade. I like one of the commenters’ points that 1 in 48 people in Canada is an international student. TD Bank having 23% of mortgage holders with amortization periods longer than 35 years. Wow. Canada is in bad shape.
Love your podcast. Well researched. BUT TURN THE VOLUME UP 30%. Im at my max and cant hear you.
That may explain wby so many banks are offering "welcome bonuses" for opening accounts and depositing money /direct oay check deposits
It really sucks to see immigrants and students get blamed for the state of housing in Canada. Bottom line is Canada depends on an active RE market to provide jobs and GDP growth. The government needs to introduce affordable housing like Singapore, to Canadians who want it at a province with that needs labour like Alberta or Saskatchewan for their natural resource industries.
St Clair College in Windsor has absolutely exploded with foreign student populations. Double, triple volumes over last few years. Massively higher tuition fees for them. It is a monster money maker, and they do NOT care where these students live, work, or play.
They all do that, all no name colleges that operate in strip malls are full of international students.
So my mortgage went from $2460 a month ($568 a week) to $1100 a week in order to stay within amortization.
I have a super high income so I can eat that loss. I don't think many Canadians can. not sure why there isn't a fire sell of homes.
Because the banks won't allow it
they will cuz someone will be paying for the homes anyway, whether it goes up or down in prices.
They're hiding everything
It’s funny “not so funny” how we never hear about this in the mainstream media. We are in a much much worse situation than anyone thinks.
Cool news! But you miss one thing. Which bank?
Ohh boooh hooooo all these poor people locked in their homes what shall they do? We should all shed a big tear for the over leveraged homeowner that can’t get the 4 bedroom rather than the 3 they already have. Booooh hooo people can’t unload their condos and take on more debt. We should all start go fund me pages for these very unfortunate souls. Come on!!!
Everyone and everything has to be sacrificed on the altar of homeowner profits. Politically, no one matters except homeowners. No one has any rights except homeowners. The government is going to take everything you earn and give it to homeowners. Get used to it.
More new home builds are what's needed, period. Let's not confuse things Steve.
thats only gona address housing, less immigration is needed.
Its not just about housing, we dont have enough doctors, schools, roads, and so on
New subscriber. Great presentation
I'm seeing a LOT of listings in Surrey BC but the sellers are delusional with their asking prices. These properties are going to be sitting there for months until they adjust the price.
i think sitting for a few months is normal. correct me if wrong. the last few years have just been strange.
@@roseoverdose6451 Definitely.
Those sellers are trying to make as much as they can to cover their own mortgage they can no longer afford.
Try to bring cost of everything down first.
The market will tune in the sellers.
The market will tune in the buyers.
It just takes time.
HOUSING IS NOT AN INDUSTRY
Yes, agreed - everyone is a prisoner in their home, whether you own or rent. Only those industry insiders, offshore capital, and mortgage free boomers can play this game of upsizing or switching residences. Your housing situation determines your quality of life and the level of anxiety these days for people is in tipping point territory. It's ruining lives or postponing them. All brought to you by this foreign policy friendly current Fed Liberal govt. Years of plausible denial of the "Vancouver Model" bleeding into all of Canada. That being said - this fall market I disagree will be anemic. If BOC will raise rates come Sept 6 - stressed extended sellers will have to swallow their hubris and a jump in inventory can cause panic knowing these rates are not coming down but again how can a housing market come down if you have no laws/mechanisms that prevent so much money laundering to keep pouring in. Random thoughts.
It's amazing how much Canada has gone downhill over the past 15 years or so... it's almost an entirely different country and general vibe. Canada was as close to a utopian country as you could get not long ago. You can't blame it all on Trudeau, but he sure hasn't been any help. Sunny ways!
? Like 8years. It’s 💯 Trudope and his liebral cronies
What I get from this, stagflation.
Canada missed the big US housing "correction" of 2008. It looks like Canadians will soon become acquainted with the term "underwater".
Australia has had many Investigations with regards to their Immigration triad involving Immigration, Universities, and Casino's. Canada, likely due to our Monarchy ties, has always had a close under the table relationship with China for well over 100 years. I'm sure this is a recurring trend with all Commonwealth Countries.
Just like Government it does make you wonder where all the money goes.
I don't wonder, I know it's pissed away.
@@donm2067 could be incompetence but it's too profitable a racket. Plus most have been given non-profit status like Charities and Churches which makes it perfect for corruption.
Trudeau must GO!!!!!!!!!!!!!!!!!!!!!!!!
Eventually the music stops. Now, who can survive the the long pause and the silence?
Only those sitting in govt or close to the money printing press of the central bank.
The productive working class in society needs to get rid of central banking which is destroying their future.
@@mtrest4Have you ever read financial history?
Let me give you a peek, basically people are stupid and greedy, they do dumb things, currencies collapse.
Rinse and repeat. Happens with or without CB
Foriegn students come in on a visa, get a job and fast track citizenship. They're coming here for high paying Canadian jobs. If it doesn't pan out they'll leave Canada. The government will need to consult with institutions to check their monetary targets. Then on the real estate front people need to be stress tested for a mortgage rate of 9% to qualify to port their mortgage. 23% of mortgages already have a greater than 35 year amortization period and owners are trapped in their homes, "debt slaves". Residential building permits are at an all time low because of affordability. What the government wants to happen is institutions build the housing and immigrants get high paying jobs. CMHC will insure the mortgage so they get the property. This is corrupt but necessary because immigrants can't normally qualify for a stress tested mortgage and they don't have enough money. Again the target is more "debt slaves"!
How many of your clients are going to lose their houses who should never have been encouraged to buy
The Bank of Canada should have taken a longer approach to reducing inflation and housing prices. Interest reates need to be elevated for a longtime to correct housing. You don't want to force people out of their homes you just want to put some pressure on demand. I am sure they are influenced by the fact an election is coming in 2025. So they will reduce rates in late 2024.
They can't if the federal reserve doesn't lower interest rate
The BOC is independent from the federal government.
BOC takes its orders from the IMF and BIS.
I know of multiple people who used education as a longer term immigration strategy. Take a 2-3 year college course and it’s an easy transition. Not good
Let's hope interest rates go much higher...so housing has to deleverage and idiots that purchased homes they can't afford by assuming ultra low borrow costs, lose it. Let it all crash and burn!
Hahaha. What does that achieve. So you can afford a home? Well news flash if house prices drop due to interest rates, people that don’t have a home now still won’t be able to buy because the rates are way to high and you will not qualify. It actually cannot crash because there are way to few homes to people wanting/needing. If you don’t own a home now chances are very high that you will be a lifetime renter.
Yeap. They're absolutely delusional.
@@marksmith6787 I wanna see the pain. The National doing reports on people losing their homes due to "Insane Interest rates"! LMAO BTW - Can easily afford a home...token $$ for me, unlike u
@@G_Ellis606 A poor that wants the system to fail so he can maybe get a house. And no, you can't afford a home. You can say you can on the internet, but it's obvious you're a poor lol.
@@G_Ellis606 I own a home bud with 700000 equity. I am not concerned.
Lol yes folks TD bank was the RUclips ad upon clicking this video 😂
My town has only AirBNB rentals available. 200$ a night for a 1 bed
All that booze in the background were gifts from the wedding. 😂
1.) you either ascribe to a 'free market' system of principles or you don't.... Full Stop !
2.) cost factors of Debt financing predicated entirely upon Monetary Policy that had ONLY one way to go being HIGHER.... should be due diligence in basic financial literacy even during speculative/FOMO driven markets.
In simplest terms.....
at what point under an obviously speculative/FOMO driven asset price appreciation "bubble" where Real Estate valuations tracked ever higher far beyond macro fundamentals .... did nobody Financing DEBT in order to "get in".... NOT perceive interest rates WOULD/COULD only go higher ?
3.) Canada.... is NOT an island in Monetary Policy terms, and will be/is subject to Global FX/Bond Market undulations.... as is currently affecting interest rates and will continue to do so.... lower rates are NOT on the horizon in the foreseeable.... FORGET IT ! ... it could be a decade.
4.) Make NO mistake here....
this is a Real Estate Crash in Canada....it will severe, rife with social ramifications, and extremely prolonged..... it will get FAR WORSE from here.
Banks have got govt to insure all sub prime mortgage debt they create with taxpayers as the backstop. That is what CMHC basically is.
Moral hazard up the wazoo when banks make money creating junk mortgages that taxpayers are responsible for underwriting with no private insurance market to correctly price that enormous risk.
All the CMHC, Sagen, Canada Guarantee mortgages should be handed back to the banks that created this garbage.
Why should taxpayers be forced to underwrite junk that is certain to implode - and this is despite massive amounts of money printing and the immigration pyramid scheme which also harms the Canadian working class.
Impossible
@@donm2067
Please do yourself a favor and google the term "Normalcy Bias".
It may provide you valuable insights in dissemination of the now irrefutable data currently presenting.
Just say'in.... you can believe whatever you want as is your perogative..... but doing so based in at the very least.... a 'defensible' position based somewhat in reality is advisable ?
Unless you firmly believe a now $2.9 Trillion combined Canadian Mortgage/Consumer Debt metric(and still climbing)..... is somehow serviceable by Canada's barely $2 Trillion GDP where ~15% of THAT GDP(and growing yearly) is now reliant upon ever expanding $2.9 Trillion Mortgage/Consumer Debt ?
Ever expanding "DEBT" creation is NOT a basis for an economy.... only eventual currency debasement ?
Not to mention Housing Crisis are occurring everywhere Globally as well.... everywhere from USA/UK/NZ/Australia/Norway/Sweden across the EU/France/Germany.... FX/Bond Markets and Interest rates are rising everywhere.... Canada is NOT an "island" and the BoC has very little latitude for independent lowering which is now impossible versus the new "zero bound" Globally.
This is a Real Estate Price CRASH in Canada.... with now ~450,000 Mortgages/Homes currently on 'accommodations' and merely extending amortizations/balances at Canada's Big 5 Banks that must unwinde.... "fixed' rates for which entirely funded on international Bond Markets.
GOOD LUCK whatever you decide.... but don't do it with your head in the sand OK ?
There’s a continuum of options between “we need as many migrants as we can get” and “close the door to newcomers”. In my opinion, we need balanced approach with some guard rails in place. For instance, I would require all educational institutions to provide at least 50% of housing for international student. Businesses should be required to provide accommodation to all temporary/seasonal workers on top of the minimum wage. In order to hire foreigners employers should be required to prove that he is paying enough to afford housing in the region (market cost of accommodation is less than 30% of salary). Accommodation for refugees should be secured before bringing them to the country from around the globe. No accommodation = no permits.
I agree with your policy but would up it to 60% for both education institutions and businesses that do exactly that. With that additional 10% being opened up for local residents as well.
@@l.yannickd.1035 I am saying, that companies and universities willing to bring foreigners should be responsible for housing. In case of universities it could be 50% of housing - meaning they could get double amount of visas on amount of available housing, because some students are leaving off campus. Initially it was not about mixture of local and foreign students, but probably you are right - there are should be some policies in place to insure that some student housing also available for Canadian students.
There are so many other countries in the world that have a lower cost of living, less crime, less taxes , and more traditional values.... why not just leave Canada? 🙄
Many people are leaving.
Did he specify which Canadian Bank is suffering from this 23% mortgage non-compliance? I may have missed it I had him in the background while doing my budget.
TD
@@patrickjayne8849 thanks you the real mvp
Holy ###t!! A Trudeau cabinet minister who actually ANSWERED a question?? And a star rose in the East!
You should do videos on the restriction on land ownership on all fronts in canada and how that impacts all people in this country. The governments hold 88+% coast to coast to coast and places like BC where they hold 94%! Maybe its time to really free up the lands for canadians who live here and call this place home for rural needs and wants, to villages, towns, and municipalities to be able to grow thier land base and grow! This would exclude ecological sensitive areas of course. Thoughts? Idwads?
Most don't understand how the housing crisis happens. Beside the corrupted students immigration program mean mostly for the rich Indian family kids; aggravated rental issue. They don't contribute much to labor shortage or skillset. They are rich kids just to "buy" a permanent residency. And the corrupt sleepy Housing, Immigration and now Statistic Canada, the municipal approving housing permits, are all to blame. .Not to the ABNB rental the oppositions who has kept quiet about the issue.
How can we screw this up so bad when we have so much of everything 🙄
Anecdotes are basically 'qualitative data', especially when you have a lot of them. The best research, beyond perhaps engineering/astrophysics, etc..., typically involves both.
So housing prices are going to keep going up?😢
Steve what do you think are the odds they get rid of the stress test or put a cap on it at say 6% ?
I don’t see them removing it until we start to get to affordable housing values and banks having less risky loans. The stress test is really for the banks and seeing how they extended so many people’s amortization I can’t see ofsi saying it’s time to remove it.
Unlikely
@@onecanadianpassportonehous9753anyone who says they know where interest rates are going is full of it
They gave Sean Fraser the job as a way to deflect blame when shit really hits the fan lol holy christ we're screwed
Sean Fraser shifted from the immigration minister to that after having declared Canada needs 1.5 million+ immigrants in 3 years. This in spite of rising unemployment, declining real wages, a housing affordability problem, and a crashing economy.
If the guy is being used to push through disastrous policies first on the immigration front and now as a fall guy for housing, he is dangerously incompetent.
A million or so new immigrants a year might just be burning more fuel = CO2,
The Great Canadian Housing Casino
You think real estate is expensive but Vancouver and Toronto real estate has actually under performed the S&P500 and the Nasdaq as an asset. A $200k Vancouver home bought in 1983 is worth $1.5 million compounded annually at 7% over a spand of 30 years.
Using a compound interest calculator
Your initial investment of $200,000.00 plus your weekly investment of $0.00 at an annualized interest rate of 7% will be worth $1,522,451.01 after 30 years when compounded yearly.
It gets even more crazy at 9% compounded. Looking at the S&P 500 for the years 1992 to 2021, the average stock market return for the last 30 years is 9.89% (7.31% when adjusted for inflation).
Your initial investment of $200,000.00 plus your weekly investment of $0.00 at an annualized interest rate of 9% will be worth $2,653,535.69 after 30 years when compounded yearly.
Continuing hiking of interest in 2024 cannot be ruled out said a longtime fed member past friday to tame the surging food inflation in usa.
There will be a lot of houses on the market in 2024,2025. That will be when their bank tells them,they need $200,000 to qualify to renew their mortgage,which will be $1500 more than they were paying,or sell fast, or lose their home to the bank. This will end in tears.
It’ll be the worst in 26 and 27
Steve, you did a vid a while ago stating the City of Vancouver's high charges for building a new house and ur was over a Million not including the Permits. I did not save this vid - can you provide a link so as I can save it? Thanks
Tax the foreign
2023- “BOC locked poeple in Houses”
Assuming rates stay high for long
2024- “BOC kicks people out of houses on renewal”
They need to kick people out.
Too many idiots bought things they couldn't afford because they thought it would gain in value.
People need to learn the stove is hot, so fvck em.
Your argument about people being trapped in their homes makes sense when people want to move up to bigger houses (downsizing wouldn't have this problem), but shouldn't that in fact reduce demand whilst increasing supply for single-family homes? They remain stubbornly in short supply and prices very elevated... Are there other factors at play for this segment?
Be kind, rent-out a bedroom to an Indian/Pakistani/Nigerian “student” or two.
Welcome to great reset. Vote Liberal and NDP next election and see where your hard earned wealth goes 😂
Anyone voting for the 3 "mainstream" parties is voting for one and the same.
Even Pierre is silent on the massive immigration pyramid scheme which tells you who butters his bread.
Last time I was here you said they were gonna lower rates
Expect rates to keep rising and rising for years and stay high for years
Steve's one of the few real estate agents who knows his s***
ppl r *not* stuck in their homes. nothing is stopping these ppl from selling and *then using the capital of the sale to purchase a different property*
Do Immigration Reports 1st before 700,000 new Immigration during 2000 to 2023 we are short homes. They are making homes owner pop up higher rental prices = SHAME = DROP IT TOO LATE TO FIXING 😢😢😢
Politicians have done NOTHING about this problem for DECADES. They NEVER actually solve any problem. Welcome to Canada.
1.2 million PLUS 900k international students. What a gong show.
There is not shortage. There are lot of homes, but people still can't afford what out there. And this is the first time in decade that people own more then one home, so there is where the shortage is. Building is not gonna solve the problem when land and material is at a all time high from greed. So build/ bring in more in people and breeding is not a solution. Funny how society can't feed/ house themselves/ have transportation but they keep breeding and buying new cell phones.
What we really need is to give homeowners more rights if a tenant stops paying rent. It's a clown world when a renter has more rights than the homeowner.
Most landlords are predatory; most renters are not.
@@Ayestoseawtf. Are you renting from 100 people or are you just spewing Facebook nonsense.
This works both ways and is hard to fine tune. In Alberta there is no legal restrictions on how much landlords can increase rents. Renovictions are the scariest.
@@Ayestosea Not most although some for sure - Many fake renovictions in Canada
WE DON'T NEED MORE LANDLORDS. WE NEED MORE HOMES ON THE MARKET. FUCK LANDLORDS.
I was born and raised in Canada. This country would not function without foreign workers/students.
Canadians are unwilling to work at Tim Hortons, McDonald’s, etc.
There is significant corporate pressure for the government to maintain course to preserve profits.
Artificially increasing the population through massive immigration massive temporary workers and massive foreign students suppresses wages and salaries by retarded government policies interfering with the organic Canadian Markets.
Less slave workers and indentured servants created by the federal government would automatically increase wages and salaries for those positions to be filled. Basic economics 101
Drubk that bottle of veuve steve. .. melting in the sun....
Will they kill the stress test in 2024?
Additionally - no one on any podcast speaks to the boomer effect. 2024 has the largest cohort of boomer retirees in history. Boomers downsize or at least move at some point following retirement. This generally frees up cash for their adult children or grandchildren to purchase a home. As well consider the fact that the first cohort year for boomers is upon us. Boomers born in 1948- 1950 are now moving into retirement homes/condos by the thousands thereby freeing up homes for sale to first time buyers. I mean NOBODY ever mentions this demographic impact on the housing market!
Welcome to Trudeau’s Canada.
bringing in technology students and then helping them immigrate to Canada is exactly what we should be doing. We should be bringing in al qualified STEM students and then helping them ( and current citizens) start tech businesses.
That's how Canada can grow out of our debt crisis (and get rid of the Maoists current in government )
Rates aren't coming down any time soon, until the Government cuts spending dramatically. This is exactly what happened under Trudeau #1. (also a commie)
If they are really good students or entrepreneurs , they will move to the USA where taxes are low. Shopify founder is probably an exception. You don`t need 1 million immigrants to find jewels. Canada is merely a natural resource economy, by accepting immigrants you basically share your wealth. Some level of immigration (TFWs) for low skilled jobs may be beneficial to Canadian born citizens.
They are lending more money to people who can't pay back their loans. 😂😂😂 (negative am)
Basically the housing market will continue to increase and fall off of a cliff in about 10 years!
Things will only get worse until there’s a change in government!