Thats exact mechanism through which immigration propels growth. Every newly landed couple "adds" 1M to the economy :) Most of the growth has very little with productivity or skills, but with willingness to take on new debt.
I've been watching your channel for a few months now. Great content.! I live in Kitchener and am trying to buy my first home. I asked around my workplace (mostly home owners) and not a single person had a clue what is going on with the market. If home prices go down at this point, I may be able to afford something, but the economy would likely crash and be out of a job. Great job BOC. Im pissed.
I m passed too that we were kidnapped by RE market even before the pandemic. The bail out/money printing is the ransom. We have done nothing wrong. Now the gov decided to waste our tax dollars to bail out the leveraged RE investors. @Steve, don't tell me we have no monetary alternatives, the gov screwed it up, punish the the one who are responsible.
are you out of your mind? the only reason you should buy a house right now is if you can afford to pay cash and you have other assets that are beating inflation. why on earth would you take on a massive debt load at historically low interest rates? you are walking right into their trap. buy what you can afford and right now most cant afford anything, by design. listen to catherine austin fits if you are confused
@@Vkob how is renting being responsible? I'd rather not be renovicted or have my rent surpass my means to pay during retirement. Sounds like buying is the responsible thing to do
I remember my parents were into saving for the rainy days; nowadays it is opposite...go into debt if you can...the government has your back...can't afford mortgages...no problem ....we create inflation and someday you will pay it...
The Mayor of Vancouver I think is the one in lower mainland that understands the situation and tried to do something about it. Making it illegal to put on Airbnb your entire unit, and going after those who kept doing it and the effect was quick. But it has to be done by all the cities in lower mainland, or let’s have the same law on Airbnb nationwide and make it illegal to use residential units as a hotel. I don’t buy the excuse it’s helping a home owner to afford their mortgage, when it’s the cause for prices to triple in five years in some areas in lower mainland. The highest new building boom in USA two years ago was Seattle it had 60 Cranes on the sky, lower mainland had around 250 then and we still going strong so it’s not supply shortage but who is buying and holding them away from rentals as well.
@@goldenhandcuffs having an answer to that question would be like knowing what the stock market is going to do. Who knows? Anyone who says they do, don't.
Another informative video. As a Canadian living in Japan when I speak to my friends and family in Canada, the feelings are mixed. Those that own property are pleased with the rise in house prices, meanwhile those that are looking to purchase are very quickly being priced out of owning. I feel terrible as I watch the inequalities and wealth gap grow. This is the new reality for most Western nations. I have plenty of friends here from Australia, New Zealand, and European countries and they are all facing similar scenerios. Welcome to the new reality.
It's extremely bad for our competitiveness to inflate asset bubbles in unproductive assets like housing. credit should be going into things that increase productivity. housing should just be a place to live
I feel every thing you said, I said it in a much better way than I can..... Thanks for making video. It feels like time is coming to think about going back to India where jobs are good and good housing in comparison to Canada... if this Govt will not help people new immigrants will go back.
If I had the option, I would bail on Canada now. I am a home owner and make decent money, but this country seems to bleed you dry. I am a frugal individual and don't spend more money than neccessary, but it seems I never get ahead. Me and the wife want to move to Mexico, we can build a house and actually afford to retire there.
A lot of simple hard working family are just saving for down payment and got priced out. One of the biggest problem here are the greedy speculators. They are very rich now because they own not just one property but multiple property. They were using their equity yo keep on buying properties. Governmemt should do something about this but they are not doing anything to stop this because our government is also greedy. It's all about Greed.
Love the breath of fresh air each week. Thank you. I'm building a home right now, crazy price increases in materials (wood, etc) and big delays. $105 for 3/4 sheet of plywood, crazy. Thanks Steve.
Why do so many houses sit empty? That's my question. I was reading it's a huge factor in the Vancouver real estate that the apartments and houses are owned but no one lives in them.
Self fulfilling prophecy brought on firstly by low bond yields so real estate has been replacing bonds in portfolios. Self fulfilling prophecy comes in when ppl realized they can make more money on appreciation and not renting it out, this also causes lower supply of housing in total which drives prices higher.
There's a huge burden of grief going on. Majority has been played bamboozled and find it hard to blame themselves due to putting their hope on the system and "officials" storylines. The rat race has been expanded.
Hi Steve, I just had a poignant discussion with a recently widowed woman, now 68. Her late husband concluded they had done everything wrong.They had saved and got no interest, now had a few hundred thousand $ that would no longer buy even a bachelor apt in Sidney and it now looks like future inflation will destroy the value of their savings. The woman has very few options. She lives on a boat she can no longer maintain and her pension income is not enough for rental accommodation and living expenses. They were prudent, lived modestly but as a widow with one pension she now has very few choices despite making few demands and working hard.
Great video! I have been following you since the pandemic started. I really agree with your opinion of what is really going on. I don't have the time to look into these things myself but I'm glad that you do. Keep up the good work.
House next to me listed in December for 1.88 million did not get sold in February they listed for 1.95 million did not get sold now they listed 2.1 million .what the fuck when home doesn't get sold should be marked down or up.
The wealth simple commercial add before the video is killing me. I don't want stonks I'm stacking Sats and maples like the Mad Trapper. Commercial or no commercial Stevie S keeps me coming back for the Canadian goods. All the best this year Steve.
What is happening is when you sell or flip the house you profit on you'll not be able to buy a similar one. Leads to a rootles unstable population. To cash in and rent is no way to live.
Bank of England definition of QE says it all. Jason Hartman is convinced the best hedge against inflation is Real Estate. He stated if you’d bought a house in 1971 and amortized it for 30 years at 7.14% fixed. You’re cost to borrow us actually 2% = 7.14 less 5.1(inflation). You’d benefit from the cost to borrow alone, let alone the house appreciation. The calculation of interest is a concern, US interest when from 7.14% to 20%(1980) and then slowly grinder down to zero. Are we going to see the new Digital Currency do this again or will they back it with Gold which saw no inflation, fixed interest like from 1944 to 1971. If so the calculation of real rate of interest will be 7.14% with no inflation and minimal asset price increase.
Hi. Steve so what do you recommend to buy bitcoin, or gold silver and copper,if someone have 100,000$ in the bank. Overall inflation rate may be at 3% now at present time.
Don't worry everyone. We will go back to a period of feudalism. Where your province is your king, and the people who own 10 properties+ are the lords. You won't have a family, and if you do, you will live in a tiny apartment and share it with 2 other families! Canada will be great!
I have been follower of ur videos. But regarding Bitcoin. Vs bank deposit comparison I have a different opinion. What if the Bitcoin price goes below the buy price of the condominium.. It just needs to go below their purchase price to incur losses where as banks are guaranteed to give atleast 0.1 percent interest..
Hey Steve, I really enoy your videos, thank you for all the content you provide. Just curious, if a correction is imminent, why are you buying real estate? Even if it is rehab, shouldn't that be bull trap?
Both have it right in their own way, but with Schiff, you don't have to play the "time the market" game (fun fact, nobody can call the top). Rents are currently low and gold is currently on sale. Why chase the dragon of RE? PS Schiff recommends value dividend-paying foreign stocks as well. Gold is a big piece of his recommendations, but not all of it.
@@martinrev8487 I've been listening to Schiff since 2008, and seen the video of him predicting the dot com bubble. Schiff and Saretsky are both right, saying the system will fail. But it's not about being slick and timing the market. Although Schiff has called each bubble out, he's been consistently wrong in his claim that the bubble fallout will lead to a rapid loss of confidence in the dollar. YCC, negative rates, and deep NIRP can possibly feed another 2-8 year cycle each. Each cycle fiat globally will decline further yes, but I don't see how we go from our current situation to Zimbabwe in the aftermath of a single cycle.
@@SwannyMatt Thank you for the thoughtful response. “How did you go bankrupt?” Bill asked. “Two ways,” Mike said. “Gradually, then suddenly.” Ernest Hemingway's “The Sun Also Rises” I'm with Schiff. As you said, he called DotCom and GFC and what he is calling now is bigger than both of those put together. I'd rather be two years early than a day late. That said, during crack-up booms usually, 90% of the gains are made in the last 10% of the cycle, so Steve can do very well doing his thing if he gets out in time. But let say Steve does get out at the top, what will he do with his proceeds? Stay in fiat? We've seen his charts this week, might as well get the gold now, while you still can. Sure, real estate gives you leverage, but so do mining stocks (plus an eligible dividend in most cases). Will the US become Zimbabwe, no, but losing the "exorbitant privilege" of being the world reserve currency will fundamentally change that nation. Their entire system is based on maximizing that advantage. I recommend reading The Mandibles by Lionel Shriver. It's fiction, but it shows a way it can unfold.
Steve these are great but where did Vancouver housing go? You almost don't talk about local housing market anymore. Can we have some of those touched too? Really appreciate what you do. Enjoyed it over 2 years now.
What me and my friends are saying is people made good money investing spending less staying home and offloading their condos. Thus all those condo owners are sting on some nice cash. They are looking for houses that dont exist. The boomers dont want to put up their houses on the market to have all these strangers walking around their house. Its when a pandemic meets a supply crunch meets a demand growth. Its when emotions meets common sense.
Google a Japan real estate chart and you'll see their real estate went down 50% over the 20 years after their crisis. A slow fall. This is the moment to sell, not to be dumb money.
@Burnt Podcast That is genuinely very interesting. However you didn't check the data. Real Estate (RE) in Japan went up 900% or more from 1955 to its peak in the 1980's. I tried to post the link to the stats, but I think YT took it down. Perhaps this is what people say now that the RE market has been dead in Japan for 30 years. Perhaps they will say the same thing in Canada in a few decades. I have RE in Canada. No bias. We're f-ed long term. If the immigration slows we are super f-ed.
Holy OCD, your books are organized by color! When Money Dies is also a fantastic read especially for these strange and trying times Great stuff as per usual Mr. Saretsky. Love how he (Poloz) says that people in those sectors are use to turn over, cycles and the like. As if to say "meh, whatever, there just minions anyway and used to this sort of stuff". The hubris of these people.
I got annihilated. I worked my ass off, went from 44k a year to 80k in 5 years. I kept my money in the market through the dip and halfway back up. I sold because it was in our plans to buy a house, and I couldn't handle a 10 year market plunge. Instead, the bank of Canada, FED, etc all changed the rules. I held my cash for the opportunity to buy an asset be it stocks, housing etc...and I got destroyed. I paid down my debts and saved 20% for a house. Friends couldn't even get 5% so they borrowed from their parents, over leveraged themselves and came out up 100k. This is disgusting and immoral.
bought a condo in Toronto in January the same unit on the same floor sold for 7% higher yesterday. The condo bid wars are back. Buy when there is blood in the streets my friends and always model anything you buy to get the best deal or at least not pay more than fair market value on a relative basis.
@@billpetersen298 condo not a house, condo prices were and are still down form 2019. Also, there is a huge supply glut in the rental market which was keeping investors at bay. Bought my condo at a cap rate of 4% in todays rent, when the average cap rate is 3%. The owner just wanted to get out since he had been months without a tenant and at the time there was still some speculation about the second wave and vaccine roll out. That is blood on the streets.
Hi Steve, Thanks for yet another great video. Your videos are always helpful in understanding how the Monterey affairs happens behind the scenes. Got a question regarding the side-effects of inflations. What is the end game? They say a new currency (most likely digital) will be introduced. How that will impact the common people? Especially those who have put their money in savings account?
It seems most of the people that bought houses were ones who already owned property. They look equity out of their property and bought more. Rich get richer
Your suggesting there have been no new home buyers over the last 5 years? Gotta be kidding me, new home buyers are the ones bidding up the lower end of the market, making condo prices irrational and feeding the market upwards
@@tidbit5 I just meant during this recent pandemic boom the ones that took advantage of the low interest rates were the ones who already owned property and could leverage against it to buy more. That's just my perspective where I live. Could be totally different were you are. And of course there were some first time home buyers as well, but I kinda doubt it happened where I live
@@adabialynicka9188 you are right. Alot are using their equity to buy more property. And banks are tolerating it. I know a lot who just bought 5 years ago, the equity of their house is already doubled the amount they bought their property. Easy money for them actually.
@@G9PYes yup exactly. the market has doubled in 5 years where I lives. seems if you couldn't get in 5 years ago that's for you for life. but if got in 5 years ago you're set.
Doubled in 5 years where I live too. When I moved here it was still affordable and I thought one day if I save and work hard I'll own something too. Only 5 years that dream is way out of reach
I wonder how many people own more than one property. When you said you bought Reno properties in the last 6 months, you mean you yourself or you as an agent on behalf of other? If there are enough people eating up supply by buying, renovating and renting/selling, this would contribute to the heat of the market. I’m curious if there are stats on this. Probably not.
As a Torontonian who finally is on the verge of making my first 100K in salary after years of hard work I’m enraged. But after watching this video and thinking about history I’m starting to feel like Slim Pickens in Dr. Strangelove. Usually when currencies deflate to $0 it’s followed by empire crumbling wars. The world is fucked, we’re all screwed, finance will not save you 🤷🏾♂️
Hey Steve, you mentioned before that the one bedrooms are going fast. Is there any segment of the downtown condo market that is still slow? 2 bedrooms?
By the way there is a 2016 film of the same title you can find on RUclips or Amazon Prime video. It is very very good. Further you can find Huge Hendry interviewing Werner if you google it. Highly recommended.
I think it’s another way to divide the wealthy from the poor. Real estate is a great way to develop a passive income and boost wealth. Put the prices out of reach for the 9 to 5 population and the rich keep buying homes to rent out to the 9 to 5 population. Great video
Another great video Steve. This is a must watch every week. I have been meaning to read Werner's book, but am trying to get through a few others first (Wealth of Nations is one). I would love to see Richard Werner interviewed on your Saturday podcast
"he was actually the first guy, prior to Steve Keen, that ah, figured out that banks actually create credit..." I think it was Hammurabi that knew about that. Perhaps hie Sumerian grandparents as well. LOL
Hi Steve. I learn so much listening to you but I was wondering if it would be a good idea if you could allocate a portion of your videos (maybe 25% or so) to focus on the YVR real state market) sort of going back to the initial objective or your channel. Thanks again, you make think every week. Alex
I the Halifax area there was a supply and demand problem prior to the pandemic. Then we had migration from people outside Atlantic Canada. If people were moving from a million + dollar small house in the Toronto area they would get a huge house in the Halifax area for the same price or lower.
Thanks. Great content, well presented, but I take issue with your comment from last week that when the downturn comes, Ottawa won't care about your house values. Collateral damage, kind of thing. The way I see it is that homeowners are the biggest political lobby out there, and the feds will do everything they can to keep them all happy. Where it ends, nobody knows.
Steve, you need to change the intro. Based on the last 30+ shows, "Canadian real estate update with particular focus on Vancouver" should be changed to something like "Canadian real estate update with particular focus on macro economic outlook".
Princes of the yen is where it’s at and explains the housing bubble to a tee. Hugh Henry has brought this one up talking about his overall macro thesis....printing being directed by government in areas which become distorted. 👍👍
Gonna be fun to see how much those property tax assessments are valued moving forward. Fun fact, most municipalities are broke. Also, inflation (in regards to basic materials) will put pressure on upkeep and maintenance fees. Oh yeah, enjoy sliding into higher land transfer tax brackets and don't forget those realtor fees are usually based on a percentage. Soon, getting "rich" will become very expensive. But it's ok, wage growth is roaring in Canada, right? People can afford higher rents, right? A positive cash flow is guaranteed, right? Nimble people like Steve and those who choose to cash out will do well in the short-term (maybe medium), but this is not sustainable.
Condo market has been depressed for most of the past year. Instead of people taking advantage of the opportunity to get into the market at a discount, they wanted to wait for prices to drop even further, too late now. Many buyers are learning a hard lesson that if they buy assets with the herd you'll always overpay.
What does the Bank of Canada mean when it says “admits responsibility for the Real Estate bubble”? The prices have been going on for many years. Today, It would take a median-income household over 30 years to save for the down payment on an average Toronto home! What does it plan to do about it?
It is time for recorrections to Rebalance the housing industry...so average people can start buying homes again ...the higher interest rates go the lower house prices are....interest rates go up and down but the price you pay for a properly valued home always much lower interest payments...in order to take advantage of lower interest rates to pay down your lower principle...history dictates this
I see designed deflation coming to calm down residential RE, it's reaching unsustainable levels, It went up everywhere in the world but not like what happened here
I don’t think their goal was to prop up the real estate market 30-40%. I think they thought it would only stabilize the market. That show you how terrified they are in a downturn in real estate. But they over shot this thing by a mile and now they have massive mess to deal with
@@saretsky rather than invest in a tangible hard asset (metal that's been around for 5000 years) like real estate, you prefer a digital illusion of wealth ;-) Hmmm... Why?
Keynes is rolling in his grave. These people are pathological liars and psychos 🤦🏻♂️. RIP working wage individuals (myself included). As far as the housing “boom”, my family thinks it’s lack of supply and immigration, can’t see the paper games 🤣. I would say speculators are to blame but they’re enabled by the central banking cartel so ...
A year ago For the same house banks were reluctant to lend you 500k are now lending you 900k. It i big scam and debt Trap
Yup exactly
Thats exact mechanism through which immigration propels growth.
Every newly landed couple "adds" 1M to the economy :)
Most of the growth has very little with productivity or skills, but with willingness to take on new debt.
@@michaelitsol more than 1 million when you add interest that are in your monthly house payment..
I've been watching your channel for a few months now. Great content.! I live in Kitchener and am trying to buy my first home. I asked around my workplace (mostly home owners) and not a single person had a clue what is going on with the market.
If home prices go down at this point, I may be able to afford something, but the economy would likely crash and be out of a job.
Great job BOC.
Im pissed.
I m passed too that we were kidnapped by RE market even before the pandemic. The bail out/money printing is the ransom. We have done nothing wrong. Now the gov decided to waste our tax dollars to bail out the leveraged RE investors. @Steve, don't tell me we have no monetary alternatives, the gov screwed it up, punish the the one who are responsible.
are you out of your mind? the only reason you should buy a house right now is if you can afford to pay cash and you have other assets that are beating inflation. why on earth would you take on a massive debt load at historically low interest rates? you are walking right into their trap. buy what you can afford and right now most cant afford anything, by design. listen to catherine austin fits if you are confused
@@DJRS2178 I like Catherine, her and Michael Ruppert
Being irresponsible and going into massive debt you can't afford has really paid off for alot of people
I wish I had of, I'd be rich AF
@@donm2067 Me too 😔
Only if they sell and realize the profits. Otherwise it's only a profit on paper.
@@Rawdiswar still better off than the responsible people who didn't buy and kept renting
@@Vkob how is renting being responsible? I'd rather not be renovicted or have my rent surpass my means to pay during retirement. Sounds like buying is the responsible thing to do
I remember my parents were into saving for the rainy days; nowadays it is opposite...go into debt if you can...the government has your back...can't afford mortgages...no problem ....we create inflation and someday you will pay it...
The Mayor of Vancouver I think is the one in lower mainland that understands the situation and tried to do something about it. Making it illegal to put on Airbnb your entire unit, and going after those who kept doing it and the effect was quick. But it has to be done by all the cities in lower mainland, or let’s have the same law on Airbnb nationwide and make it illegal to use residential units as a hotel. I don’t buy the excuse it’s helping a home owner to afford their mortgage, when it’s the cause for prices to triple in five years in some areas in lower mainland. The highest new building boom in USA two years ago was Seattle it had 60 Cranes on the sky, lower mainland had around 250 then and we still going strong so it’s not supply shortage but who is buying and holding them away from rentals as well.
Baby boomer investors ruled the last 30 years time for some recorrections
13:48 - A basic 8 foot framing 2"x4" is $7.50 now..... Last time I bought 2"x4"'s was back in in 2018-19, and they were $2-$3.
Purchased cheapest 3 bulb light fixture on Dec 31,2019 and exactly same thing on Dec 31,2020 same store, but 15% higher. No inflation.
4. 2by 4 of 10 ft cedar is $100 from the mill
The price of a 2x4 fluctuates all the time. Ofcourse covid has caused supply constraints
@@timber543 do you think it’s going down to 2-3 bucks anymore?
@@goldenhandcuffs having an answer to that question would be like knowing what the stock market is going to do. Who knows? Anyone who says they do, don't.
Another informative video. As a Canadian living in Japan when I speak to my friends and family in Canada, the feelings are mixed. Those that own property are pleased with the rise in house prices, meanwhile those that are looking to purchase are very quickly being priced out of owning. I feel terrible as I watch the inequalities and wealth gap grow. This is the new reality for most Western nations. I have plenty of friends here from Australia, New Zealand, and European countries and they are all facing similar scenerios. Welcome to the new reality.
Homeless by design
buy something in tokyo
It's extremely bad for our competitiveness to inflate asset bubbles in unproductive assets like housing. credit should be going into things that increase productivity. housing should just be a place to live
Steve you know you’ve made it on RUclips when you’ve got the robot Bitcoin scammers lol
Lol..I get them on every comment.
Steve, your doing a great job. People need to hear this message.
Yes, they can not raise interest rates to normalize the system.
Thanks
I feel every thing you said, I said it in a much better way than I can..... Thanks for making video. It feels like time is coming to think about going back to India where jobs are good and good housing in comparison to Canada... if this Govt will not help people new immigrants will go back.
If I had the option, I would bail on Canada now. I am a home owner and make decent money, but this country seems to bleed you dry. I am a frugal individual and don't spend more money than neccessary, but it seems I never get ahead.
Me and the wife want to move to Mexico, we can build a house and actually afford to retire there.
Gov't of Canada wants to keep bringing immigrants in but there is not enough infrastructure to support this
A lot of simple hard working family are just saving for down payment and got priced out. One of the biggest problem here are the greedy speculators. They are very rich now because they own not just one property but multiple property. They were using their equity yo keep on buying properties. Governmemt should do something about this but they are not doing anything to stop this because our government is also greedy. It's all about Greed.
What do you suggest gold or land?
Love the breath of fresh air each week. Thank you. I'm building a home right now, crazy price increases in materials (wood, etc) and big delays. $105 for 3/4 sheet of plywood, crazy. Thanks Steve.
Why do so many houses sit empty? That's my question. I was reading it's a huge factor in the Vancouver real estate that the apartments and houses are owned but no one lives in them.
Not just Van, its everywhere. Very frustrating.
Arbitrary rent controls that are lopsided to benefit renters deters owners from renting their empty units
Zombie cities
Self fulfilling prophecy brought on firstly by low bond yields so real estate has been replacing bonds in portfolios.
Self fulfilling prophecy comes in when ppl realized they can make more money on appreciation and not renting it out, this also causes lower supply of housing in total which drives prices higher.
Provide evidence of all these homes sitting empty...I'll wait. The reality is you cannot as you have absolutely nothing concrete to back it up.
There's a huge burden of grief going on. Majority has been played bamboozled and find it hard to blame themselves due to putting their hope on the system and "officials" storylines. The rat race has been expanded.
Your videos are awesome, I love the critical perspective, thank you
Hi Steve, I just had a poignant discussion with a recently widowed woman, now 68. Her late husband concluded they had done everything wrong.They had saved and got no interest, now had a few hundred thousand $ that would no longer buy even a bachelor apt in Sidney and it now looks like future inflation will destroy the value of their savings. The woman has very few options. She lives on a boat she can no longer maintain and her pension income is not enough for rental accommodation and living expenses. They were prudent, lived modestly but as a widow with one pension she now has very few choices despite making few demands and working hard.
The federal government has been paying most people's rent and mortgages to support less bankruptcy with cerb among other programs
Thanks Steve, Most Canadians have no clue what's going on or have no clue how money is created
Steve "The Real real news" Saretsky......
Thank you sir!
Great video! I have been following you since the pandemic started. I really agree with your opinion of what is really going on. I don't have the time to look into these things myself but I'm glad that you do. Keep up the good work.
House next to me listed in December for 1.88 million did not get sold in February they listed for 1.95 million did not get sold now they listed 2.1 million .what the fuck when home doesn't get sold should be marked down or up.
Its probably because they got multiple offers. Some people just list to see what they can get. Doesn't cost anything
The wealth simple commercial add before the video is killing me.
I don't want stonks I'm stacking Sats and maples like the Mad Trapper.
Commercial or no commercial Stevie S keeps me coming back for the Canadian goods. All the best this year Steve.
What is happening is when you sell or flip the house you profit on you'll not be able to buy a similar one. Leads to a rootles unstable population. To cash in and rent is no way to live.
@NWO Compilations buddy the 70s are long over. We are in the age of greed.
Bank of England definition of QE says it all. Jason Hartman is convinced the best hedge against inflation is Real Estate. He stated if you’d bought a house in 1971 and amortized it for 30 years at 7.14% fixed. You’re cost to borrow us actually 2% = 7.14 less 5.1(inflation). You’d benefit from the cost to borrow alone, let alone the house appreciation. The calculation of interest is a concern, US interest when from 7.14% to 20%(1980) and then slowly grinder down to zero. Are we going to see the new Digital Currency do this again or will they back it with Gold which saw no inflation, fixed interest like from 1944 to 1971. If so the calculation of real rate of interest will be 7.14% with no inflation and minimal asset price increase.
Hi. Steve so what do you recommend to buy bitcoin, or gold silver and copper,if someone have 100,000$ in the bank. Overall inflation rate may be at 3% now at present time.
They say "Now is the time to buy. Real Estate will never drop. Low interest rates is free money."
Currently in Spruce Grove, AB (Live in Vancouver) and you are able to get one/two bedroom new builds for 200-250k
Don't worry everyone. We will go back to a period of feudalism. Where your province is your king, and the people who own 10 properties+ are the lords. You won't have a family, and if you do, you will live in a tiny apartment and share it with 2 other families! Canada will be great!
I have been follower of ur videos. But regarding Bitcoin. Vs bank deposit comparison I have a different opinion. What if the Bitcoin price goes below the buy price of the condominium.. It just needs to go below their purchase price to incur losses where as banks are guaranteed to give atleast 0.1 percent interest..
Hey Steve, I really enoy your videos, thank you for all the content you provide. Just curious, if a correction is imminent, why are you buying real estate? Even if it is rehab, shouldn't that be bull trap?
Schiff: It's doomed to fall apart, gold only!
🥜🤏
Saretsky: intermediate steps tho
🧠
Both have it right in their own way, but with Schiff, you don't have to play the "time the market" game (fun fact, nobody can call the top). Rents are currently low and gold is currently on sale. Why chase the dragon of RE?
PS Schiff recommends value dividend-paying foreign stocks as well. Gold is a big piece of his recommendations, but not all of it.
@@martinrev8487 "rents are currently low" haha tell that to my bank account
@@AnIdeaIsLikeAVirus Downtown Toronto rents are down. Shop around.
@@martinrev8487 I've been listening to Schiff since 2008, and seen the video of him predicting the dot com bubble. Schiff and Saretsky are both right, saying the system will fail. But it's not about being slick and timing the market. Although Schiff has called each bubble out, he's been consistently wrong in his claim that the bubble fallout will lead to a rapid loss of confidence in the dollar. YCC, negative rates, and deep NIRP can possibly feed another 2-8 year cycle each. Each cycle fiat globally will decline further yes, but I don't see how we go from our current situation to Zimbabwe in the aftermath of a single cycle.
@@SwannyMatt Thank you for the thoughtful response.
“How did you go bankrupt?” Bill asked. “Two ways,” Mike said. “Gradually, then suddenly.” Ernest Hemingway's “The Sun Also Rises”
I'm with Schiff. As you said, he called DotCom and GFC and what he is calling now is bigger than both of those put together.
I'd rather be two years early than a day late. That said, during crack-up booms usually, 90% of the gains are made in the last 10% of the cycle, so Steve can do very well doing his thing if he gets out in time.
But let say Steve does get out at the top, what will he do with his proceeds? Stay in fiat? We've seen his charts this week, might as well get the gold now, while you still can. Sure, real estate gives you leverage, but so do mining stocks (plus an eligible dividend in most cases).
Will the US become Zimbabwe, no, but losing the "exorbitant privilege" of being the world reserve currency will fundamentally change that nation. Their entire system is based on maximizing that advantage.
I recommend reading The Mandibles by Lionel Shriver. It's fiction, but it shows a way it can unfold.
The older generation controls things and their greed will ruin the next genereation.
@Burnt Podcast lucky sperm lottery
this is the video Steve S....this is the one.....congrats!!!!
This decade... where Toronto and Vancouver become rental only markets. Landlords and tenants.
Way she goes..
Is the borrowing for long periods as possible? Or are they just trying to get out of cash ??
Steve these are great but where did Vancouver housing go? You almost don't talk about local housing market anymore. Can we have some of those touched too? Really appreciate what you do. Enjoyed it over 2 years now.
What me and my friends are saying is people made good money investing spending less staying home and offloading their condos. Thus all those condo owners are sting on some nice cash. They are looking for houses that dont exist. The boomers dont want to put up their houses on the market to have all these strangers walking around their house. Its when a pandemic meets a supply crunch meets a demand growth. Its when emotions meets common sense.
Google a Japan real estate chart and you'll see their real estate went down 50% over the 20 years after their crisis. A slow fall. This is the moment to sell, not to be dumb money.
@Burnt Podcast That is genuinely very interesting. However you didn't check the data. Real Estate (RE) in Japan went up 900% or more from 1955 to its peak in the 1980's. I tried to post the link to the stats, but I think YT took it down. Perhaps this is what people say now that the RE market has been dead in Japan for 30 years. Perhaps they will say the same thing in Canada in a few decades. I have RE in Canada. No bias. We're f-ed long term. If the immigration slows we are super f-ed.
Love the videos. Keep up the good work. Nice to see someone who understands the game is rigged but still plays and seems to be winning.
Holy OCD, your books are organized by color!
When Money Dies is also a fantastic read especially for these strange and trying times Great stuff as per usual Mr. Saretsky.
Love how he (Poloz) says that people in those sectors are use to turn over, cycles and the like. As if to say "meh, whatever, there just minions anyway and used to this sort of stuff". The hubris of these people.
I got annihilated. I worked my ass off, went from 44k a year to 80k in 5 years. I kept my money in the market through the dip and halfway back up. I sold because it was in our plans to buy a house, and I couldn't handle a 10 year market plunge.
Instead, the bank of Canada, FED, etc all changed the rules. I held my cash for the opportunity to buy an asset be it stocks, housing etc...and I got destroyed. I paid down my debts and saved 20% for a house. Friends couldn't even get 5% so they borrowed from their parents, over leveraged themselves and came out up 100k. This is disgusting and immoral.
bought a condo in Toronto in January the same unit on the same floor sold for 7% higher yesterday. The condo bid wars are back. Buy when there is blood in the streets my friends and always model anything you buy to get the best deal or at least not pay more than fair market value on a relative basis.
I’m confused, you just bought. And then you say, buy when there is blood in the streets?
Are you opposite man?
@@billpetersen298 condo not a house, condo prices were and are still down form 2019. Also, there is a huge supply glut in the rental market which was keeping investors at bay. Bought my condo at a cap rate of 4% in todays rent, when the average cap rate is 3%. The owner just wanted to get out since he had been months without a tenant and at the time there was still some speculation about the second wave and vaccine roll out. That is blood on the streets.
Got to order that book!! Where do I get that book?
@@saretsky I know. I want it!!! lol
Hi Steve, Thanks for yet another great video. Your videos are always helpful in understanding how the Monterey affairs happens behind the scenes. Got a question regarding the side-effects of inflations. What is the end game? They say a new currency (most likely digital) will be introduced. How that will impact the common people? Especially those who have put their money in savings account?
It seems most of the people that bought houses were ones who already owned property. They look equity out of their property and bought more. Rich get richer
Your suggesting there have been no new home buyers over the last 5 years? Gotta be kidding me, new home buyers are the ones bidding up the lower end of the market, making condo prices irrational and feeding the market upwards
@@tidbit5 I just meant during this recent pandemic boom the ones that took advantage of the low interest rates were the ones who already owned property and could leverage against it to buy more. That's just my perspective where I live. Could be totally different were you are. And of course there were some first time home buyers as well, but I kinda doubt it happened where I live
@@adabialynicka9188 you are right. Alot are using their equity to buy more property. And banks are tolerating it. I know a lot who just bought 5 years ago, the equity of their house is already doubled the amount they bought their property. Easy money for them actually.
@@G9PYes yup exactly. the market has doubled in 5 years where I lives. seems if you couldn't get in 5 years ago that's for you for life. but if got in 5 years ago you're set.
Doubled in 5 years where I live too. When I moved here it was still affordable and I thought one day if I save and work hard I'll own something too. Only 5 years that dream is way out of reach
Employees and unions need to negotiate wages in gold, not fiat.
I wonder how many people own more than one property. When you said you bought Reno properties in the last 6 months, you mean you yourself or you as an agent on behalf of other? If there are enough people eating up supply by buying, renovating and renting/selling, this would contribute to the heat of the market. I’m curious if there are stats on this. Probably not.
I dare anyone to withdraw 50k+ from any bank right now in cash. All that money... It's your money right? so shouldn't be a problem right. Godspeed.
As a Torontonian who finally is on the verge of making my first 100K in salary after years of hard work I’m enraged. But after watching this video and thinking about history I’m starting to feel like Slim Pickens in Dr. Strangelove. Usually when currencies deflate to $0 it’s followed by empire crumbling wars. The world is fucked, we’re all screwed, finance will not save you 🤷🏾♂️
Amazing Steve. Thanks for your time and effort.
Hey Steve, you mentioned before that the one bedrooms are going fast. Is there any segment of the downtown condo market that is still slow? 2 bedrooms?
By the way there is a 2016 film of the same title you can find on RUclips or Amazon Prime video. It is very very good.
Further you can find Huge Hendry interviewing Werner if you google it. Highly recommended.
Fantastic video as usual, Steve. Thank you!
I think it’s another way to divide the wealthy from the poor. Real estate is a great way to develop a passive income and boost wealth. Put the prices out of reach for the 9 to 5 population and the rich keep buying homes to rent out to the 9 to 5 population.
Great video
constant debt acceleration = constant peace
Keep up the good work.
Another great video Steve. This is a must watch every week. I have been meaning to read Werner's book, but am trying to get through a few others first (Wealth of Nations is one). I would love to see Richard Werner interviewed on your Saturday podcast
The Fed already said inflation coming will only be "temporary" ...but when it cannot be stopped ...out will come the white flag ...
Looked up the book you recommended, they have a documentary on RUclips for free!
"he was actually the first guy, prior to Steve Keen, that ah, figured out that banks actually create credit..."
I think it was Hammurabi that knew about that. Perhaps hie Sumerian grandparents as well. LOL
How long can the BoC keep up the bond buying program? Can you do an entire clip on that specific part of the "problem"?
For ever if they so choose.
@@donm2067 But at what expense? I'm assuming the currency will suffer.
@@Rawdiswar Oh don't get me wrong, us plebians are fvcked, but they cam do this for ever.
@@donm2067 I suppose you're technically correct.
Hi Steve. I learn so much listening to you but I was wondering if it would be a good idea if you could allocate a portion of your videos (maybe 25% or so) to focus on the YVR real state market) sort of going back to the initial objective or your channel. Thanks again, you make think every week. Alex
The beatings! Oh the beatings! Classic. Great video as always. My stop loss on bitcoin is still zero
I the Halifax area there was a supply and demand problem prior to the pandemic. Then we had migration from people outside Atlantic Canada. If people were moving from a million + dollar small house in the Toronto area they would get a huge house in the Halifax area for the same price or lower.
Great video, very informative and logical Im a new subscriber!
The documentary of princes of the yen is a must watch!!!!
Canada real estate is overpriced vs. average Joe income and underpriced vs gold 👌
Steve should tweet that one!
Thanks. Great content, well presented, but I take issue with your comment from last week that when the downturn comes, Ottawa won't care about your house values. Collateral damage, kind of thing. The way I see it is that homeowners are the biggest political lobby out there, and the feds will do everything they can to keep them all happy. Where it ends, nobody knows.
Steve, you need to change the intro. Based on the last 30+ shows, "Canadian real estate update with particular focus on Vancouver" should be changed to something like "Canadian real estate update with particular focus on macro economic outlook".
Princes of the yen is where it’s at and explains the housing bubble to a tee. Hugh Henry has brought this one up talking about his overall macro thesis....printing being directed by government in areas which become distorted. 👍👍
@@saretsky what's the end game? Does it provide a solution?
Great stuff Steve. I've learned so much from watching your channel. Keep it up!
Gonna be fun to see how much those property tax assessments are valued moving forward. Fun fact, most municipalities are broke.
Also, inflation (in regards to basic materials) will put pressure on upkeep and maintenance fees. Oh yeah, enjoy sliding into higher land transfer tax brackets and don't forget those realtor fees are usually based on a percentage.
Soon, getting "rich" will become very expensive.
But it's ok, wage growth is roaring in Canada, right? People can afford higher rents, right? A positive cash flow is guaranteed, right?
Nimble people like Steve and those who choose to cash out will do well in the short-term (maybe medium), but this is not sustainable.
Condo market has been depressed for most of the past year. Instead of people taking advantage of the opportunity to get into the market at a discount, they wanted to wait for prices to drop even further, too late now. Many buyers are learning a hard lesson that if they buy assets with the herd you'll always overpay.
What does the Bank of Canada mean when it says “admits responsibility for the Real Estate bubble”? The prices have been going on for many years. Today, It would take a median-income household over 30 years to save for the down payment on an average Toronto home! What does it plan to do about it?
It may constitute inside trading, isn't it? How many houses Tiff, Poloz and their family members bought during COVID period in 2020 vs in year 2019?
Like the sorcerers apprentice, BOC has created a monster
Thanks Steve!
Thanks, super helpful and informative as always.
A great video again Sir
If rates can not be raised in order to normalize the system will real estate continue to hyper inflate? What do you see Steve
Wow, inflation really is kicking in... that book is $244!
I just checked Amazon and now it costs $749.00!! Fuck you Jeff Luther Bezos!!
It is time for recorrections to Rebalance the housing industry...so average people can start buying homes again ...the higher interest rates go the lower house prices are....interest rates go up and down but the price you pay for a properly valued home always much lower interest payments...in order to take advantage of lower interest rates to pay down your lower principle...history dictates this
I see designed deflation coming to calm down residential RE, it's reaching unsustainable levels, It went up everywhere in the world but not like what happened here
Where do you get your medicinal weed... it must be fantastic
@@Vkob Magic mushrooms 🍄
I wonder how a vote for Maxine Bernier would have panned out through this pandemic and with housing
Build more houses to meet demand
Buddy we could build millions more and it won't satiate the investors.
@@donm2067 Ok raise rates to 18%
@@tubesThursday oddly enough, that's what we actually need to reset
what are the thoughts on the stock market. Tech taking a beating right now ?
I don’t think their goal was to prop up the real estate market 30-40%. I think they thought it would only stabilize the market. That show you how terrified they are in a downturn in real estate. But they over shot this thing by a mile and now they have massive mess to deal with
You overpay for a house, jail! You underpay for a house, also jail! We have the best speculators in Canada, because of jail!
So, Steve are you buying AU or BTC?
@@saretsky rather than invest in a tangible hard asset (metal that's been around for 5000 years) like real estate, you prefer a digital illusion of wealth ;-)
Hmmm... Why?
The "tap tap" at the end 😂.
There's also a documentary on youtube based on the same book: ruclips.net/video/p5Ac7ap_MAY/видео.html
"We did it!"
Thanks Steve for telling the best joke for 2021!
Great info....Thank You....This sounds like a disaster in the making...? We'll see in a year or so...maybe sooner...?
Keynes is rolling in his grave. These people are pathological liars and psychos 🤦🏻♂️. RIP working wage individuals (myself included). As far as the housing “boom”, my family thinks it’s lack of supply and immigration, can’t see the paper games 🤣. I would say speculators are to blame but they’re enabled by the central banking cartel so ...
great video love the perspective
Top quality content
Thanks for the book recommendation, will read for sure
Fantastic book. There is a documentary on this book on RUclips. Must watch! Great recommendation.
They won't be able to control that yield curve forever believe me you can take that to the bank