Capital gain tax's impact on the real estate market
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- Опубликовано: 7 сен 2024
- Paul Maranger, Broker and Senior Vice President at Sotheby's International Realty Canada, joins BNN Bloomberg to talk about the luxury real estate in Canada. Maranger says there has been decent demand for luxury real estate in Q1. However, he adds luxury real estate buyers are looking for quality homes adding the have the luxury of time give expectations of rate cuts at some point this year are increasing.
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Not sure bringing on a realtor counts as an expert opinion...
The capital gains tax will bring down sales of real estate and therefore reduce prices. Hmmm seems good to me
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.
this sounds considerable! think you know any advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her
Taxing our way into prosperity. When will people learn that taxing and money printing does not bring prosperity. You just cannot print or tax yourself more goods and services.
The most prosperous decades that North America ever had was the 50s and 60s. They happened to be the highest tax rates ever. Keep in mind when taxes are high, and governments are responsible, you don't have to pay a lot of extras for insurance or health care or education, because there's lots for everyone. Lowering taxes is a lot of the corporations have sold for decades because it benefits them the most unfortunately when you have low taxes you must Implement High fees because the infrastructure still needs to be maintained. Fun fact, when it was first opened the University of Berkeley was free to California residents. Then they lowered taxes.
@@glenhodgetts6448 Productivity is the main engine for wealth creation and prices of goods and services just determine the relative value of each according to the population demand. Taxes do not create more productivity. They just forcibly shift the power to direct productivity from one master (private corporation) to another (government) by adding the inefficiency of bureaucracy to the mix. A profit-oriented corporation + competition is an ongoing pressure towards high efficiency and high productivity. This is why 99.9% of all rises in living standards, inventions, automation, innovation, etc. comes from private corporations. While a non-profit oriented government is a monopoly of power who has no penalty for taking large amounts of capital and wasting them (i.e. no penalty for destroying productivity through more bureaucracy). "Rich versus poor" is just an artificial division of society, a false narrative, shifting away from the real problem: inefficient, incompetent government who always wants to take more and more - forcibly, because it has monopoly of power.
Although I agree that there are a small number of instances this tradeoff (private -> govt) may be useful, on balance, a large government intervention just leads to a less productive society and therefore more poverty because there are fewer things to go around on aggregate. And to add to that, the so called rich, still consume not much more than the so called poor. No one lives in 50x houses or drives 50x cars or eats 50x the food even though on paper they're 50x richer because they own some piece of a factory.
What I find unfortunate is that most people having strong opinions and most voters have very little economic literacy and therefore they get fooled by false narratives. And that's how we end up electing the same incompetent leaders over and over again who run on falsehoods and slogans, but in the end destroy productivity and drift the nation towards poverty.
On the capital gains tax - taking more from someone who owned a cottage for 40 years or from a corporation will not magically create more doctors, more houses, more food or more of anything. It will however tell people who are competent and to companies who supply goods and services efficiently, that there is a penalty for that efficiency (higher taxes). It's telling them that the incentives for staying in Canada have just gone down. In sum, it's a government move which just sounds good as a slogan: "fairness for every generation", but which will just end up impoverishing the nation even further.
@@glenhodgetts6448 Productivity is the main engine for wealth creation and prices of goods and services just determine the relative value of each according to the population demand. Taxes do not create more productivity. They just forcibly shift the power to direct labour force from one master (private corporation) to another (government) by adding the inefficiency of bureaucracy to the mix. A profit-oriented corporation + competition is an ongoing pressure towards high efficiency and high productivity. This is why 99% of all rises in living standards, inventions, automation, innovation, etc. comes from the private sector. While a non-profit oriented government is a monopoly of power who has no penalty for forcibly taking large amounts of capital and wasting them (through more bureaucracy). "Rich versus poor" is just an artificial division of society, a false narrative, shifting away from the real problem: inefficient, incompetent and ever-growing government.
Although I agree that there are a small number of instances where this tradeoff (private -> govt) may be useful, on balance, a large government intervention just leads to a less productive society and therefore more poverty because there are fewer things to go around on aggregate. To add to that, the so called rich, do not consume much more than the so called poor. No one lives in 50x houses or drives 50x cars or eats 50x the food even though on paper they're 50x richer on paper because they own some piece of a factory.
What I find unfortunate is that most people having strong opinions and most voters have very little economic literacy and therefore they get fooled by false narratives. And that's how we end up electing the same incompetent leaders over and over again who run on falsehoods and slogans, but end by destroying people's incentives to do well, and thereby destroying productivity.
On the capital gains tax - taking more from someone who owned a cottage for 40 years or from a corporation will not magically create more doctors, more houses, more food or more of anything. It will just get wasted in the ever-growing unproductive government bureaucracy, and it will tell people who are competent, innovate, do well, as well as to companies who supply goods and services efficiently, that there is a penalty for doing well, there's a penalty for being efficient: higher and higher taxes. It's telling them that the incentives for staying in Canada have just gone down. It's a government move which sounds good as a slogan: "fairness for every generation", but which will just end up impoverishing the nation even further.
@@glenhodgetts6448
Yet it didn't last because it wasn't sustainable.
Wealth is never destroyed or created. It's only ever transferred. To create wealth, at least with a Fiat currency, you would have to increase the currency printing which is in itself inflationary.
The math of the 1950s and 60s, after World War II, don't lie. The highest tax rate ever in American at 94% also happened to be the most prosperous era for the middle class.
The average (median) income of families was estimated at $5,100 in 1958.
In 1958 Charles Heston made 250,000 for the movie Ben-Hur.
Highest tax rate in 1958 of 91% that means that he took home over $22,000 ( you know there were tax shelters so he made more than that) for one movie. After tax at 4 1/2 times the average family income he still had enough for a mansion, staff and several properties to live the life of a wealthy person.
Universities and colleges were free and there was plenty of money for the GI bill which sent Veterans of the war to school and created an educated class. There was plenty of money for infrastructure spending through building superhighways, bridges, schools hospitals, employing millions of middle-class workers which made the country boom.
The problem is not wealthy creation but wealth distribution. The super wealthy have gotten so powerful that we no longer have a democracy but a plutocracy. That was symbolically solidified in when America signed the citizens united bill in 2010.
Taxing, when used appropriately, is a means to spread the wealth to create a society where everyone has "equal OPPORTUNITY". Imagine the corporation having everything and the people nothing. You'd have one person or entity that had a world of slaves for a bowl of soup. Of course that won't happen as the pitch forks always come.
Instead today we have a handful of Corporations that own everything.
The super wealthy own the media to lie to us. The chemical industries to poison us, the pharmaceutical corporations to "heal"(really poison) us. The insurance and banking and energy corporations to enslave us and the military industrial complex to eventualky police us...when the pitch forks come. Going to a cashless economy will allow them to track, trace and control us.
All the while the middle class has the privilege of being saddled with a debt that will never be repaid while they take over the world creating wars (war is good for business) not to mention saddle Americans with massive student loan debt never ever having a hope of owning a home, while they send their pampered children to Ivy League schools like West Point and our children to die in war. Support the troops???? HAA... damn right support the troops! How about this.
1.
Don't send them to die and unjust wars over oil rights in the first place.
.2
When war is necessary and the vets come home send them to University, give them jobs Healthcare including psychological care, as opposed to sending them to a military doctor to get another dose of Oxycontin....just sayin😏
A luxury home is $4M??? Luxury to me is a home I can live in without fear of being kicked out.
"Luxury" in price, but mediocre housing at best. Enjoy!
Amen
Then pay your rent/mortgage on time
I’m tired of this government and the way they generate income not through trade, but by taxing their citizens into poverty.
Yeah, people with multiple homes are so impoverished.
Not sure what kind of working person will pay capital gains lol. This is a rich person problem
@@supraccc working people with pensions.
@@Solairethedarksoul WRONG
@@Roof_Pizzafor a poor person, you sure have a lot to say about something you know nothing about.
Did not know that I lived in luxury. Canada has become a fantasy land, like "La-la-land".
Maybe demand is also being dented by stubbornly high prices 🤔
Prices are lower right now, much in line with every other major city in the world
As a multiple of wages the prices make no sense but ok if you say so.
@@bdegrdsActually much worse than most major cities.
Nice!! I guess my 3.5m home is considered average detached.
I think we need to remember we are only young and healthy once. Maybe we do already. Maybe thats why canada has a productivity crisis because minimum vacation standards are so low compared to the rest of world that gets minimum 3 to 5 weeks off, many get 4.
That gives young workers the time to do things only possible when young and healthy, and the old the chance to see their families.
Why live a life full of regrets pursuing profit above all? We are people and yes we need to be responsible, but dont we also want to have the time to appreciate the things that matter to our lives? Face it, when we are older and less healthy, many canadians are full of regrets because we didnt do the things that brought us life satisfaction due to not enough time off.
Because if we dont have that time, what is the point of being productive?
I’ll move my liquid of $450 into penny shares into a TFSA. Over 10 million seems to be less competitive so I’ll take my time with those viewings .
For now I’ll keep optimistic while standing in the lengthening line at the food bank .
Complete mon answer on the central question of capital gains tax effect. I can tell you it will push rental stock to new lows and rent prices skyward
WOW . This guy finally ripped the lie in half. Wealthy owners leverage more than ordinary people. They will feel the interest rates more so than anyone else. Gecko said it best “greed is good”! Until the market catches them. Remember New York well during the GFC. No QE coming this time. Just cliffs and vultures waiting for the deals. That is desperate to sell. LOL
Unfortunately the boom is over..higher rates bite...liquidity dries up...leach population dwindles as hosts die
With housing so difficult for many, should buildings in residential zones even be allowed to be investment vehicles?
Taxed out of the country. That's what is happening to the young generation
Interest rates?
I've been looking to buy for 15 years.
Down-payment is the elusive bit.
Nope, people are not looking for top, buyers are looking for top.
I'm looking for "house".
I wonder how the poor people are doing? You know the one's who's condo's are only worth $2.8 M 😂
The luxury market is basically useless as far being a tool to combat the housing crisis.
They literally have so much wealth price is no object and the resources they purchase reflect that.
It is over after June 25
Are rich people ever going to stop whining? The tax increase on the rich won't affect their lives at all. It's always the people with the most who never stop crying about being asked to contribute. They benefit more from society then anyone else does.
And maybe now corporations will stop buying up all the houses.
This country is getting ridiculous on all levels !
Are we just going to ignore this guy's glasses? It's basically "white-dude-with-a-grill" energy.
Talking about the advantaged elite.
Well they cannot exist without nurses,
Police officers, firemen, teachers.
Taking care of these type. Talk about housing for these very important people. Not the elite.
Home prices will come down 10% to 15 % down in the future.
And people will start demanding 3 to 4 weeks minimum paid time off from employers. Canadians are less productive because we know that even if we work hard we cannot get enough time to really enjoy our lives or pursue our interests. Most of world gets 3 to 5 weeks minimum, and europeans are much more productive. Any one of these analysts who claims its about something financial forgot we are only young and healthy once.
So why bother working hard if we cannot enjoy doing the thing we can only do when young and healthy. I dont think anyone wants to waste their lives and become old filled with regrets. Its good to be competent and responsible. But what good is it all if one ends up sick and old after devoting their life to the pursuit of profit above all else?
When we could be better off less burnt out and more focused because we actually have time to do things we like? We are only young and healthy once. Just my opinions
This is the cause of the productivity crisis in my opinion.
Maybe prices will come down and the middle class can buy instead of the rich buying up all the real estate.
💰💰💰💰💰💰💰
Never trust a guy who wears "bold statement" glasses.
i remember when houses were built for living in, now built for investment purposes, not ever going to be affordable until the demise of the Liberal/Ndp/Conservative partys cease to exist and the formation of a new government where a prime minister and beauracrats are paid a minimum wage and work for the citizens
That is just not going to happen.
Your wife lied to you dude... those glasses do NOT look good.