Great interview - a truly holistic approach. Driving wealth or GDP from housing is inefficient economically no matter how you calculate and putting people into greater debt to buy a house it is also economically crippling as it leads to less disposal income to invest/spend in the economy. I'm with Paul - we need to shift our thinking on housing.
I was arguing with someone in RUclips comments or Reddit about housing being a non-productive asset. It shocks me how so many people cannot understand that housing is an unproductive asset. Building it is productive but having existing stock increase in price faster than inflation is not.
@@dougpatterson7494For sure! It seems pretty intuitive to me...unless...are the walls doing something productive that I'm not seeing when I'm sleeping?
Anyone under 40 in the country is basically economically worse off than previous generations, what a great way to start of the younger cohort in a country to make great civilised society members that produce community and society.
Yes! This What annoys me too is that politicians are willing to call out "greedflation" of corporations but not of NIMBY homeowners. I purchased a house last October, before I turned thirty. I could have bought a new suburban home, but that would have pushed me right to the edge of what I qualified for as well as to the edge of the city. This well maintained and renovated house from the 1960's is in a good location. Being a half block from a 5 story condo/apartment building is not a bad thing nor is bring two blocks from a pub or three from a school! Two big things that helped: 1) I received a 200,000 CAD inheritance which paid about half of my purchase price. 2) I live in a city that actually allows homes to be built in reasonable numbers so homes aren't stupid expensive. The median home purchase price last October was 417K. Not "cheap" but way more attainable than many Canadian cities.
That's my thoughts too. I mean is the goal to create more tax dollars for the government because they need it or to punish Canadian home owners for being themselves? If the latter than that says more about the negativity of the person than anything else. If the former then why not just focus on leveraging our resource industry to create more jobs and tax dollars that way.
You can't really beat around the bush to solve these issues. For one, the asset values must come down. There is no way around it. This means that the "nest eggs" will be hurt by any solution. There is no affordability without reconnecting earning potential with values. That is what affordability means . Everyone talks like they can fix this problem without crushing the home owners (or banks) - they can't do it. The only question left is: how should the home owners and banks be crushed? It would be a real shame that cap gains can't be applied to primary homes. They should because it is fair. Those who gained a lot will pay. Those who gained little will pay little. Those who lost, can write it off. I am sorry, but that is almost too perfect. But, we are protecting the values for banks, and privileged classes of people who got their gains with gov policy. So, take away the privileges. Put the risk back on the banks (no mortgage insurance). It will all melt away like snow in spring. It is as gentle as it can be. We are just pretending that we can keep this going - we can not. It is over, so put a nail on that coffin and move on to a better future. Boomers will still be rich - all things being relative.
This is likely to happen over the next decade anyway, with old people and real estate kicking and screaming all the way down. At a certain point, if there’s no productive activity left in the economy because it was crowded out by real estate, prices will have to fall in real terms (though high inflation may mask the real drops.)
De-commodification of housing is the only way to fix our housing crisis. Housing can either be a lucrative investment, or affordable shelter, but not both.
@@rayneboone9696 Expecting taxpayers to pay for building affordable housing when land prices have exploded is extremely irresponsible. Also somehow you think that actually providing enough affordable housing via the public sector wouldn't completely collapse private sector house prices? The fact is housing built by the housing sector can be very affordable, as it was for many decades before the recent run-up at the beginning of the 2000s.
Paul is a Canadian hero, a true activist, and a legend. I love his work. However, Paul's work and personality don't align with the purpose of this channel because FOMO Pumper and speculator Saretsky is one of the key figures here.
When you die, your estate has to pay debts before transferring the assets to your beneficiaries. Inheritance tax should include paying towards your share of the national debt incurred during your lifetime. That societal debt has increased the value of your investments. We cannot leave the debt to the next generation of taxpayers to finance, it must in part be paid down by the generation that built their wealth on top of that debt.
You're doing a fantastic job! Just a quick off-topic question: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How can I transfer them to Binance?
The root problem is a society that is taking future wealth (from borrowing) to fund present day consumption, while also not setting up our future sepves with the ability to pay for what has already been spent (decreasing productivity aka GDP per capital). This will result in a brittle and ultimately weaker Canadian society unless we go through an adjustment. This medicine will be very painful for some (especially those in key voting demographics).
I think we certainly need to shift to generate less tax from income and more from housing. The older generation has far too much wealth tied up in their homes and that same generation is going to become a huge burden for our society to fund. It should come from them and not the younger generations. Property taxes should be 200-300% higher and income taxes should be much lower.
No one talks about the bank appraisers role in the price of housing. The appraisers could have easily stopped the dramatic rise in prices, but because the real estate agent and the bank wants the deal to go through the appraiser just plays along.
I’m all for taxing primary residences!! A dollar is a dollar is a dollar, all income should be taxable and all taxes should be reduced proportionally. Otherwise my labor is subsidizing the current capital gain tax break.
I'd go a step back and exclude post-pandemic first time home buyers from capital gains tax in primary residences. They're already squeezed enough after absorbing the huge bump in shelter costs after the pandemic.
@ I can sort of understand. But I think if anyone is making a capital gain on their house then that gain should be included. there could be a differentiation between the equity gained from the original market value and the equity gained through the inflation of the assets value over time. If it’s a forced savings account, then that’s fine, but if it doubled or tripled in value…that higher price minus the original price should all be taxed on the marginal rates. And we should lower the marginal rates for everyone so that this wouldn’t feel like the end of the world.
You really gotta rethink who you invite onto the channel to opine on the state of our economy and housing sector. A professor of "public policy" who knows nothing about the real world CANNOT have any legitimate policy ideas for fixing our housing. I lost it when this fellow suggested that part of our housing crisis is b/c of the way gov't measures our CPI..... Do you think we are idiots?? So housing inflation is not b/c gov't is letting in too many unqualified immigrants? Not b/c there is too many development charges and taxes + red tape in building new homes? Not b/c our government has a spending problem? Not b/c printing our money supply into oblivion has forced Canadians to use a house as a savings mechanism to protect themselves against inflation???? OF COURSE its not any one of these reasons right??? It had to come down to the way CPI gets reported, which sends the wrong signal to the economy huh..... And isn't this the same moron that thinks taxes are going to help solve our housing crisis. NEWS FLASH, it won't. We need LESS tax, LESS government, LESS money printing, and the gov't needs to get out of the way so we can BUILD MORE HOMES. You do not solve the problem by punishing current home owners. You solve it by fixing the broken elements in the system. This guy is a farce.
Cpi is not the true measure of inflation. Inflation is expansion of money supply and higher prices are the result. The rise in house prices is actually the collapse of the cad dollar vs gold, so it takes more dollars to buy the same house. Priced in gold house prices have not gone up
The "older" generation paid for your education, the roads you drive on, the infrastructure you enjoy, the health care and pensions of the generation before them. It is how it works... each generation pays for the older, the younger and their own generation.
Yeah it’s how it goes, but younger generations are paying more than you did. When you were growing up, there were far more workers compared to retirees, now it’s the opposite. Who will pay more for it? We do. Go enjoy your pinochle game now
I dont know if it was just my distain for Trudeau but when I saw this group talking with Trudeau I didnt like what this guy said but he makes a lot more sense here. Maybe it was because you guys actually understand the housing market so you could ask the right questions. When he brought up property tax at the provincial or federal level it sorta makes sense. I just think it would make more sense at the provincial level. At least the money is staying within the province. I dont really want more of my money going to Quebec. As a side note. I almost think this guy will be voting for Pierre. A few things he talked about were much more aligned with Pierre than with Trudeau
This guy is a total gatekeeper, his only solutions are TAX TAX TAX more, blame evil boomers. Absolutely NO mention of stopping over-immigration (would cause a rise in wages for Cdn workers and reduce income:price ratio), no talk of cutting the size of govt and municipal red tape, getting rid of that terrible carbon tax, etc. Would bet good money that inviting this pied piper was mostly Urmi's idea, since this dude talks a good game that convinces the average low-information millennial who to be angry at.
@@john_pasalis I would say you were not easy :) but I am sure Prof. Kershaw would have appreciated your attention to details. Your program is very insightful!
Am I the only one who felt like this guy wasn't saying anything substantial? I couldn't handle it enough to watch the whole thing but it felt extremely superficial
This is by far my favorite channel for real estate and financial information. John is my go-to Greek scholar (lol)! No BS, no generic real estate guru talking points. just smart, well-rounded assessments all around. I really appreciate how informative and in-depth this channel is. They truly deserve way more viewers and subscribers than they currently have!
A federal Land tax based on services (land lift) to fund the supply side innovation funds for density. But also an income tax / small business tax reduction is needed to offset it as well
That is awful logic. It is possible that older generation had better circumstances, but they did work hard and basically built their houses(either literally or by paying to their peers voluntarily agreed price). The fact that sticker price for their homes is growing is not a reason to take it away from them, your logic is pure evil. Intent of property tax is paying for municipal services that home owner consumes now, converting it into revenue stream for federal government is even worse than tax on equity growth it is a tax on wealth itself, it is theft. Why do not younger generation learn the skills an go build houses for themselves?
Yeah let’s just build our homes. How on earth do you intend for younger generations to do that based on how much development fees have increased? Should everyone just become a tradesman and build new cities where no jobs are? This isn’t Sim City.
That is a great question, development fees are an issue and that is what government can actually fix, instead of stealing from seniors and fantasizing about inflation and interest rates that are not revolving around housing market alone and you can't really change it at will for sole purpose of changing house prices without destroying rest of the economy. Speaking of becoming tradesman - you do not have to be a tradesman, but then you should do something of equivalent value, and pay tradesman his market wage.
Great interview - a truly holistic approach. Driving wealth or GDP from housing is inefficient economically no matter how you calculate and putting people into greater debt to buy a house it is also economically crippling as it leads to less disposal income to invest/spend in the economy. I'm with Paul - we need to shift our thinking on housing.
I was arguing with someone in RUclips comments or Reddit about housing being a non-productive asset. It shocks me how so many people cannot understand that housing is an unproductive asset. Building it is productive but having existing stock increase in price faster than inflation is not.
@@dougpatterson7494For sure! It seems pretty intuitive to me...unless...are the walls doing something productive that I'm not seeing when I'm sleeping?
I would imagine they mean it's being rented out therefore providing housing as a functional asset in society ?
This guy is amazing. Logical and balanced argument. Canadians need to wake up to the true cost of getting rich on real estate, a non productive asset.
Anyone under 40 in the country is basically economically worse off than previous generations, what a great way to start of the younger cohort in a country to make great civilised society members that produce community and society.
Yes! This
What annoys me too is that politicians are willing to call out "greedflation" of corporations but not of NIMBY homeowners. I purchased a house last October, before I turned thirty.
I could have bought a new suburban home, but that would have pushed me right to the edge of what I qualified for as well as to the edge of the city. This well maintained and renovated house from the 1960's is in a good location. Being a half block from a 5 story condo/apartment building is not a bad thing nor is bring two blocks from a pub or three from a school!
Two big things that helped:
1) I received a 200,000 CAD inheritance which paid about half of my purchase price.
2) I live in a city that actually allows homes to be built in reasonable numbers so homes aren't stupid expensive. The median home purchase price last October was 417K. Not "cheap" but way more attainable than many Canadian cities.
People under 40 have always been poorer than their parents. Parents have a 25 year head-start on wealth accumulation... Mileage may vary...
We Canadians are already over Taxed. The Canadian Government needs to cut costs and stop making life more uncomfortable.
That's my thoughts too. I mean is the goal to create more tax dollars for the government because they need it or to punish Canadian home owners for being themselves? If the latter than that says more about the negativity of the person than anything else. If the former then why not just focus on leveraging our resource industry to create more jobs and tax dollars that way.
That was a great show today guys. Keep up the good work.
Great show today guys, really need to make this conversation more mainstream.
You can't really beat around the bush to solve these issues. For one, the asset values must come down. There is no way around it. This means that the "nest eggs" will be hurt by any solution. There is no affordability without reconnecting earning potential with values. That is what affordability means . Everyone talks like they can fix this problem without crushing the home owners (or banks) - they can't do it. The only question left is: how should the home owners and banks be crushed?
It would be a real shame that cap gains can't be applied to primary homes. They should because it is fair. Those who gained a lot will pay. Those who gained little will pay little. Those who lost, can write it off. I am sorry, but that is almost too perfect. But, we are protecting the values for banks, and privileged classes of people who got their gains with gov policy. So, take away the privileges. Put the risk back on the banks (no mortgage insurance). It will all melt away like snow in spring. It is as gentle as it can be. We are just pretending that we can keep this going - we can not. It is over, so put a nail on that coffin and move on to a better future. Boomers will still be rich - all things being relative.
This is likely to happen over the next decade anyway, with old people and real estate kicking and screaming all the way down. At a certain point, if there’s no productive activity left in the economy because it was crowded out by real estate, prices will have to fall in real terms (though high inflation may mask the real drops.)
Assets should be the same if we could afford it so could you. Work harder or find a job that pays you more. I’m not losing my value cuz your lazy
De-commodification of housing is the only way to fix our housing crisis. Housing can either be a lucrative investment, or affordable shelter, but not both.
It can be both - one is private and the other public (tax payer funded). Private will never be affordable as their purpose is to make a profit.
@@rayneboone9696 Expecting taxpayers to pay for building affordable housing when land prices have exploded is extremely irresponsible. Also somehow you think that actually providing enough affordable housing via the public sector wouldn't completely collapse private sector house prices?
The fact is housing built by the housing sector can be very affordable, as it was for many decades before the recent run-up at the beginning of the 2000s.
Paul is a Canadian hero, a true activist, and a legend. I love his work. However, Paul's work and personality don't align with the purpose of this channel because FOMO Pumper and speculator Saretsky is one of the key figures here.
I would love to see Paul on unbiased platforms rather than this speculation channel.
Thanks for sharing your perspective!
When you die, your estate has to pay debts before transferring the assets to your beneficiaries. Inheritance tax should include paying towards your share of the national debt incurred during your lifetime. That societal debt has increased the value of your investments. We cannot leave the debt to the next generation of taxpayers to finance, it must in part be paid down by the generation that built their wealth on top of that debt.
This was a phenomenal conversation. 👏🏽
Isn’t that the guy asking to tax primary residences ?
You're doing a fantastic job! Just a quick off-topic question: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How can I transfer them to Binance?
The root problem is a society that is taking future wealth (from borrowing) to fund present day consumption, while also not setting up our future sepves with the ability to pay for what has already been spent (decreasing productivity aka GDP per capital).
This will result in a brittle and ultimately weaker Canadian society unless we go through an adjustment. This medicine will be very painful for some (especially those in key voting demographics).
I think we certainly need to shift to generate less tax from income and more from housing. The older generation has far too much wealth tied up in their homes and that same generation is going to become a huge burden for our society to fund. It should come from them and not the younger generations. Property taxes should be 200-300% higher and income taxes should be much lower.
No one talks about the bank appraisers role in the price of housing. The appraisers could have easily stopped the dramatic rise in prices, but because the real estate agent and the bank wants the deal to go through the appraiser just plays along.
So it became another useless job, like so many others in the communist regime.
Could the BOC use math to help Canadians out with the cost of housing say, Canadian median house price = 4 times Canadian median household income.
I’m all for taxing primary residences!! A dollar is a dollar is a dollar, all income should be taxable and all taxes should be reduced proportionally. Otherwise my labor is subsidizing the current capital gain tax break.
Stop with the fucking taxes I had enough you Trudeau worshiper
I'd go a step back and exclude post-pandemic first time home buyers from capital gains tax in primary residences. They're already squeezed enough after absorbing the huge bump in shelter costs after the pandemic.
@ I can sort of understand. But I think if anyone is making a capital gain on their house then that gain should be included. there could be a differentiation between the equity gained from the original market value and the equity gained through the inflation of the assets value over time. If it’s a forced savings account, then that’s fine, but if it doubled or tripled in value…that higher price minus the original price should all be taxed on the marginal rates. And we should lower the marginal rates for everyone so that this wouldn’t feel like the end of the world.
You really gotta rethink who you invite onto the channel to opine on the state of our economy and housing sector. A professor of "public policy" who knows nothing about the real world CANNOT have any legitimate policy ideas for fixing our housing. I lost it when this fellow suggested that part of our housing crisis is b/c of the way gov't measures our CPI..... Do you think we are idiots?? So housing inflation is not b/c gov't is letting in too many unqualified immigrants? Not b/c there is too many development charges and taxes + red tape in building new homes? Not b/c our government has a spending problem? Not b/c printing our money supply into oblivion has forced Canadians to use a house as a savings mechanism to protect themselves against inflation???? OF COURSE its not any one of these reasons right??? It had to come down to the way CPI gets reported, which sends the wrong signal to the economy huh..... And isn't this the same moron that thinks taxes are going to help solve our housing crisis. NEWS FLASH, it won't. We need LESS tax, LESS government, LESS money printing, and the gov't needs to get out of the way so we can BUILD MORE HOMES. You do not solve the problem by punishing current home owners. You solve it by fixing the broken elements in the system. This guy is a farce.
Cpi is not the true measure of inflation. Inflation is expansion of money supply and higher prices are the result.
The rise in house prices is actually the collapse of the cad dollar vs gold, so it takes more dollars to buy the same house. Priced in gold house prices have not gone up
The "older" generation paid for your education, the roads you drive on, the infrastructure you enjoy, the health care and pensions of the generation before them. It is how it works... each generation pays for the older, the younger and their own generation.
Enjoy your long term care facility.
@forklaundry what a useless response.
@forklaundry … Don’t you worry, we will. But first we’ll sell the farm and live it up at the costliest of facilities. Full stop!
Yeah it’s how it goes, but younger generations are paying more than you did. When you were growing up, there were far more workers compared to retirees, now it’s the opposite. Who will pay more for it? We do. Go enjoy your pinochle game now
I dont know if it was just my distain for Trudeau but when I saw this group talking with Trudeau I didnt like what this guy said but he makes a lot more sense here. Maybe it was because you guys actually understand the housing market so you could ask the right questions. When he brought up property tax at the provincial or federal level it sorta makes sense. I just think it would make more sense at the provincial level. At least the money is staying within the province. I dont really want more of my money going to Quebec.
As a side note. I almost think this guy will be voting for Pierre. A few things he talked about were much more aligned with Pierre than with Trudeau
This guy is a total gatekeeper, his only solutions are TAX TAX TAX more, blame evil boomers. Absolutely NO mention of stopping over-immigration (would cause a rise in wages for Cdn workers and reduce income:price ratio), no talk of cutting the size of govt and municipal red tape, getting rid of that terrible carbon tax, etc. Would bet good money that inviting this pied piper was mostly Urmi's idea, since this dude talks a good game that convinces the average low-information millennial who to be angry at.
John you must be a strict academic. I am imagining you giving highly critical comments and rejections on academic papers :)
What makes you say that, hopefully I wasn't too hard on our guest 😉
@@john_pasalis I would say you were not easy :) but I am sure Prof. Kershaw would have appreciated your attention to details. Your program is very insightful!
Public Policy professor...lol. Housing has always been a source of wealth. Paul is brilliant, but very controversial.
Great solution oriented thinking. Why do you even bother?
Am I the only one who felt like this guy wasn't saying anything substantial? I couldn't handle it enough to watch the whole thing but it felt extremely superficial
Hello Urmi. Thanks for uploading this episode on podcast (CASTBOX) on the same day. Appreciate it !!
🙏🙏
Man this fella is an amazing presenter.
Don't confuse luck with skill. Diversify. Real estate is one piece. If this guy was born in Detroit, he would be broke
This guy is too smart; my brain almost exploded 🤣
This is by far my favorite channel for real estate and financial information. John is my go-to Greek scholar (lol)! No BS, no generic real estate guru talking points. just smart, well-rounded assessments all around.
I really appreciate how informative and in-depth this channel is. They truly deserve way more viewers and subscribers than they currently have!
Thanks for your feedback :)
A federal Land tax based on services (land lift) to fund the supply side innovation funds for density. But also an income tax / small business tax reduction is needed to offset it as well
That is awful logic. It is possible that older generation had better circumstances, but they did work hard and basically built their houses(either literally or by paying to their peers voluntarily agreed price). The fact that sticker price for their homes is growing is not a reason to take it away from them, your logic is pure evil. Intent of property tax is paying for municipal services that home owner consumes now, converting it into revenue stream for federal government is even worse than tax on equity growth it is a tax on wealth itself, it is theft. Why do not younger generation learn the skills an go build houses for themselves?
Yeah let’s just build our homes. How on earth do you intend for younger generations to do that based on how much development fees have increased? Should everyone just become a tradesman and build new cities where no jobs are? This isn’t Sim City.
That is a great question, development fees are an issue and that is what government can actually fix, instead of stealing from seniors and fantasizing about inflation and interest rates that are not revolving around housing market alone and you can't really change it at will for sole purpose of changing house prices without destroying rest of the economy. Speaking of becoming tradesman - you do not have to be a tradesman, but then you should do something of equivalent value, and pay tradesman his market wage.