A wiser man than me once said to me "Never sell your real estate". I'm glad I followed his advice - I have never sold a property in my life and am very pleased with that decision. As I contemplate retirement, I may start to consider selling one of them.
The City of Vancouver says it wants to create more affordable housing. But what they actually want is higher real estate prices. That’s how they get more #tax revenue without directly “raising” people’s taxes.😏
Owen Bigland throwing down the gauntlet on Vancouver city hall....I like it!! So when do we begin our road map of kicking these people out and getting you in there? You have my nomination: Bigland for Mayor!!
Thanks... but running for mayor would be up there with getting a root canal for me. That said i'm going to have to do my homework on the candidates next year. Sure would love to see a pro business, less tax and red tape mayor win for once. 20 years of socialist mayors in Vancouver.. maybe we should give the other side a chance.. nothing to loose . Time for a change!
Thanks for the great video! Awesome as always!!! Parking spots are also disappearing because the City is making the streets narrower by adding bike lanes & oversized sidewalks. What remains of parking spots is scarce & ultra expensive. There is also someone who is watching your time to ticket you $50 the minute your parking expires :)
You are right the City double talks - with empty homes tax and speculation tax - I could no longer justify renting my property - so I sold it and there is one less rental available - one more tenant locking for a house and supply/demand equals increased rents
To clarify what Owen said about capital gains taxes: In Canada, we don't actually pay 50% of our capital gains in taxes. 50% is the "inclusion rate" for capital gains, i.e. capital gains are taxed at half the rate as "other income" (e.g. an employee's salary). One's marginal tax rate depends on his total taxable income. In BC, the marginal tax rate on capital gains is anywhere from 10% (for first $42k of taxable income) to about 27% (for taxable income over $222k) [ Source: www.taxtips.ca/taxrates/bc.htm ].
Agree. I have mentioned this in several videos. We should be demanding a full audit of Vancouver City Hall. Where exactly are the 100's of millions in tax revenue they are collecting from us going???
I couldn’t agree with you more. I have no problem paying taxes. I have a problem paying taxes when those funds are used frivolously. And, as a builder/renovator I can tell you that the City of Vancouver and the District of North Vancouver have sucked the fun out of doing what we do. The City of North Van is pretty decent and West Van is ok depending on what you are trying to do. I’d like to see legislation out in place limiting how long municipalities can have to issue building permits. 6 months or more for a new home build is outrageous. And who pays those costs, the end user... Not the developers...
And in the meantime all the merchants that are trying to rent and just try to make a living , are having to wait for the red tape to pass it takes years and also in the same time have to pay the Taxes for a six story building ! It is hard to imagine but yes this is the way the Tax department operates! Who would want a business with those conditions ? 😩 Get the NDP out !!
Idea is - No one needs to own anything. At the end you live in the houses and leave these places when you cannot afford. High prices ensures high equities and you take loan against them keep yourself in debt. If you don't take loans then you will be paying high property taxes and then forced to leave.
Hi Owen, just curious what your investment plan with the stock market plummeted past two weeks!! Will you be stocking up more or wait a bit to see things settle down? May seems quite volatile. I wonder if this is an opportunity like March last year? Thanks!
Pretty much every week i'm putting money to work. I find there are always attractive companies i want to add or top up on that are at fair value for a long term investor like me. I look at every dollar in my investment cash account like a worker or soldier. I want to put them to work making me money. Keeping my workers on the sideline for long periods of time is not going to be making me any money. ( actually loosing money with inflation) The small pullback we had this week is a tiny blip compared to the massive 30% sharp sell off like we had in March 2020. These 2-5% corrections should be expected 3 or 4 times every year. A 10-15% correction every 12-18 months. 30% + corrections are more rare.. maybe every 7-10 years. This week i bought Amazon, FB, EL, MKC I'm quite confident that the price i paid will look like a bargain in 10-15 years.
Funny thing is they increase housing prices with all these taxes and with that comes wealthier people who are essentially attracted to the high prices...basically doing the exact opposite of what they're telling people their goal is.
Owen, your problems are; you have a good work ethic, you take responsibility for yourself, & you find flushing taxpayer money down the toilet (on a daily basis) extremely frustrating & wasteful. You'll never fit in at Vancouver City Hall with attitudes like that! 😁
just grind to buy rental properties is what I say to others. Incorporate, write everything off, keep spinning the profits into more properties. We are at a point where the majority of young generation in their 20s and 30s just cannot purchase a detached, and we are getting close to a point where a reasonable middle income couple are forced to rent for good 5 years before they can purchase a condo, and will likely live there going forward, as they are tied to the mortgage. What government really needs to do is work on improving transit and lowering congestion, providing better loan structures with low interest for families with zero housing, be transparent about their spendings like Owen said, and allow small business subsidies. Let capitalism work the magic on its own and stop regulating the real estate market!
Well, the money goes to schools, hospitals, social programs, police, roads, transit, city employee salary and pensions etc etc. Welcome to the peoples republic of British Columbia.
Interesting idea that a stepped principle residence exemption removal would actually increase prices by decreasing supply. I doubt that would actually be the case. I think most principle residence buyers are buying the house to live in... so the chance they resell and move within 5 years is low due to the hassle of it and the friction costs.... a tax hit on a sale if they wanted to move wouldnt really matter. You still either want to upsize, downsize, or have to move towns for whatever reason. The people it would clearly impact the most is flippers and short term investors, because it eats into their profit margin. If you can somehow remove flippers and short term investors from the market everybody wins. In Chilliwack BC if you look at home sales and resales you will see a LOT of homes resold within the past year. And no surprise here, chilliwack was one of the hottest markets in canada and saw price growth >50% in some sectors
Eventually when i get really old i might sell some of my shares but companies that i consider core long term holds Apple, Amazon JNJ MCD GOOGL DIS MKC EL BRK-B
got a haircut, good... lets get the symantics right, here in Canada 50% is a capital inclusion rate on the cap gain. We don't pay 50% cap gain tax. If I have $100 in cap gains from flipping a property or stock, I pay tax on the $50 at my marginal tax rate. Highest margin tax rate in Canada/BC is 53.5%. (in the highest tax bracket). Max I will pay in taxes is $100 x 50% inclusion rate x 53.5% marginal rate = $26.75 in cap gain tax payable. So on $100 of cap gains, one would pay max $26.75 in taxes, that's 26.75% cap gains tax! Btw I'm not an accountant, don't use the above as advice.
great video Owen. The left wing thinking is so shallow it drives me crazy. I noticed when you mention your stock portfolio you have a lot of big u.s. companies. do you not mind the %15 tax on your dividends? do you hold many Canadian companies?
75% of my portfolio is in US listed equities. The 15% US dividend withholding tax is waived in RRSP and it's refundable in my non registered US $ accounts. ...They hit you with the 15% but your accountant will file to get that back in cash accounts. The only place you do not want to be holding high dividend paying US equities is in your TFSA. They hit you with the 15% and it's non -refundable. My TFSA is holding 100% US growth stocks.. most do not pay a dividend or they pay a very small one. Yes i hold all the familiar names in my Canadian portfolio. All the Canadian banks, Telcos, etc. In my book i reveal all my holdings including all my ETF's
You need this was coming we just went through a year where tax revenue was limited of course this was going to happen This is just the beginning as they have to make up for the loss of revenue in the past. Taxes have to be paid Do you like toads schools policing etc. Taxes pay for that so quit whining about taxes
![[UA] NAVI vs MOUZ | BO5 | IEM Rio 2024](http://i.ytimg.com/vi/CMBYk0cbGoA/mqdefault.jpg)
I see Owen Bigland, I click.
😀
A wiser man than me once said to me "Never sell your real estate". I'm glad I followed his advice - I have never sold a property in my life and am very pleased with that decision. As I contemplate retirement, I may start to consider selling one of them.
The City of Vancouver says it wants to create more affordable housing.
But what they actually want is higher real estate prices.
That’s how they get more #tax revenue without directly “raising” people’s taxes.😏
Owen Bigland throwing down the gauntlet on Vancouver city hall....I like it!! So when do we begin our road map of kicking these people out and getting you in there? You have my nomination: Bigland for Mayor!!
Thanks... but running for mayor would be up there with getting a root canal for me. That said i'm going to have to do my homework on the candidates next year. Sure would love to see a pro business, less tax and red tape mayor win for once. 20 years of socialist mayors in Vancouver.. maybe we should give the other side a chance.. nothing to loose . Time for a change!
Thanks for the great video! Awesome as always!!! Parking spots are also disappearing because the City is making the streets narrower by adding bike lanes & oversized sidewalks. What remains of parking spots is scarce & ultra expensive. There is also someone who is watching your time to ticket you $50 the minute your parking expires :)
Very true!
Parking spots DT work like your housing and stock buy back analogy ;)
Owen for Mayor!
I wish all young potential first time buyer can watch this clip and eventually know who to vote for (or may be they're all the same)!
You are right the City double talks - with empty homes tax and speculation tax - I could no longer justify renting my property - so I sold it and there is one less rental available - one more tenant locking for a house and supply/demand equals increased rents
To clarify what Owen said about capital gains taxes: In Canada, we don't actually pay 50% of our capital gains in taxes. 50% is the "inclusion rate" for capital gains, i.e. capital gains are taxed at half the rate as "other income" (e.g. an employee's salary). One's marginal tax rate depends on his total taxable income. In BC, the marginal tax rate on capital gains is anywhere from 10% (for first $42k of taxable income) to about 27% (for taxable income over $222k) [ Source: www.taxtips.ca/taxrates/bc.htm ].
Thanks for posting.
Every city hall should provide transparency of where the money get spent every year. You wonder why rent is so high, property tax is extreme.
Agree. I have mentioned this in several videos. We should be demanding a full audit of Vancouver City Hall. Where exactly are the 100's of millions in tax revenue they are collecting from us going???
thanks for the informative video. Tax, Tax and more taxes. What a city we live in!
BTW, TORONTO does the same thing on commercial business's.
I couldn’t agree with you more. I have no problem paying taxes. I have a problem paying taxes when those funds are used frivolously.
And, as a builder/renovator I can tell you that the City of Vancouver and the District of North Vancouver have sucked the fun out of doing what we do. The City of North Van is pretty decent and West Van is ok depending on what you are trying to do.
I’d like to see legislation out in place limiting how long municipalities can have to issue building permits. 6 months or more for a new home build is outrageous. And who pays those costs, the end user... Not the developers...
Agree.
OWEN FOR MAYOR
And in the meantime all the merchants that are trying to rent and just try to make a living , are having to wait for the red tape to pass it takes years and also in the same time have to pay the Taxes for a six story building ! It is hard to imagine but yes this is the way the Tax department operates!
Who would want a business with those conditions ? 😩 Get the NDP out !!
Owen for Mayor
great episode Owen
Idea is - No one needs to own anything. At the end you live in the houses and leave these places when you cannot afford. High prices ensures high equities and you take loan against them keep yourself in debt. If you don't take loans then you will be paying high property taxes and then forced to leave.
Hi Owen, just curious what your investment plan with the stock market plummeted past two weeks!! Will you be stocking up more or wait a bit to see things settle down? May seems quite volatile. I wonder if this is an opportunity like March last year? Thanks!
Pretty much every week i'm putting money to work. I find there are always attractive companies i want to add or top up on that are at fair value for a long term investor like me. I look at every dollar in my investment cash account like a worker or soldier. I want to put them to work making me money. Keeping my workers on the sideline for long periods of time is not going to be making me any money. ( actually loosing money with inflation)
The small pullback we had this week is a tiny blip compared to the massive 30% sharp sell off like we had in March 2020. These 2-5% corrections should be expected 3 or 4 times every year. A 10-15% correction every 12-18 months. 30% + corrections are more rare.. maybe every 7-10 years.
This week i bought Amazon, FB, EL, MKC I'm quite confident that the price i paid will look like a bargain in 10-15 years.
Thank you for your time to respond to my message. Play the long term game and let the dividend do the heavy lifting. Love your videos as always!
Was Owen wearing the Nike Nocta black polo in last video? Anyone knows?
Rag & Bone NYC 😀
Funny thing is they increase housing prices with all these taxes and with that comes wealthier people who are essentially attracted to the high prices...basically doing the exact opposite of what they're telling people their goal is.
Owen, your problems are; you have a good work ethic, you take responsibility for yourself, & you find flushing taxpayer money down the toilet (on a daily basis) extremely frustrating & wasteful.
You'll never fit in at Vancouver City Hall with attitudes like that! 😁
I think you're right!
So is it better to be a developer in Toronto?
just grind to buy rental properties is what I say to others. Incorporate, write everything off, keep spinning the profits into more properties. We are at a point where the majority of young generation in their 20s and 30s just cannot purchase a detached, and we are getting close to a point where a reasonable middle income couple are forced to rent for good 5 years before they can purchase a condo, and will likely live there going forward, as they are tied to the mortgage.
What government really needs to do is work on improving transit and lowering congestion, providing better loan structures with low interest for families with zero housing, be transparent about their spendings like Owen said, and allow small business subsidies. Let capitalism work the magic on its own and stop regulating the real estate market!
Agree.
Well, the money goes to schools, hospitals, social programs, police, roads, transit, city employee salary and pensions etc etc. Welcome to the peoples republic of British Columbia.
Interesting idea that a stepped principle residence exemption removal would actually increase prices by decreasing supply.
I doubt that would actually be the case. I think most principle residence buyers are buying the house to live in... so the chance they resell and move within 5 years is low due to the hassle of it and the friction costs.... a tax hit on a sale if they wanted to move wouldnt really matter. You still either want to upsize, downsize, or have to move towns for whatever reason. The people it would clearly impact the most is flippers and short term investors, because it eats into their profit margin. If you can somehow remove flippers and short term investors from the market everybody wins. In Chilliwack BC if you look at home sales and resales you will see a LOT of homes resold within the past year. And no surprise here, chilliwack was one of the hottest markets in canada and saw price growth >50% in some sectors
What shares you would never sell, Owen?
Eventually when i get really old i might sell some of my shares but companies that i consider core long term holds Apple, Amazon JNJ MCD GOOGL DIS MKC EL BRK-B
got a haircut, good... lets get the symantics right, here in Canada 50% is a capital inclusion rate on the cap gain. We don't pay 50% cap gain tax. If I have $100 in cap gains from flipping a property or stock, I pay tax on the $50 at my marginal tax rate. Highest margin tax rate in Canada/BC is 53.5%. (in the highest tax bracket). Max I will pay in taxes is $100 x 50% inclusion rate x 53.5% marginal rate = $26.75 in cap gain tax payable. So on $100 of cap gains, one would pay max $26.75 in taxes, that's 26.75% cap gains tax!
Btw I'm not an accountant, don't use the above as advice.
great video Owen. The left wing thinking is so shallow it drives me crazy. I noticed when you mention your stock portfolio you have a lot of big u.s. companies. do you not mind the %15 tax on your dividends? do you hold many Canadian companies?
75% of my portfolio is in US listed equities. The 15% US dividend withholding tax is waived in RRSP and it's refundable in my non registered US $ accounts. ...They hit you with the 15% but your accountant will file to get that back in cash accounts. The only place you do not want to be holding high dividend paying US equities is in your TFSA. They hit you with the 15% and it's non -refundable. My TFSA is holding 100% US growth stocks.. most do not pay a dividend or they pay a very small one. Yes i hold all the familiar names in my Canadian portfolio. All the Canadian banks, Telcos, etc. In my book i reveal all my holdings including all my ETF's
Have you ever thought of entering into politics?
No Chance😀
You need this was coming we just went through a year where tax revenue was limited of course this was going to happen This is just the beginning as they have to make up for the loss of revenue in the past. Taxes have to be paid Do you like toads schools policing etc. Taxes pay for that so quit whining about taxes