Canada .. it seems how good u speak English seems to be a yardstick a phobia to skill talent productivity good job . Etc etc Fact is in today's world top 10 economy only 3-4 speak or care for English! All that is in focus is English speaking international student to do menial labor jobs....to serve baby boomers is focus. All the industrial investment are geared to packaging warehouse and transportation And ofcourse real estate based economic target.. so once interest rate up.. the country is doomed... Even the talent immigrant soon leaves the country as they figure out the economy is hollow optics based ... No depth
I’ve been a tower crane operator for 17 years . If you think the Indian immigrants are entering the construction industry you’re sadly mistaken . I was the youngest guy 17 years ago and unfortunately I still am one of the youngest guys on site .
@@showblingyeah strange that when they come to Canada they instead work retail or uber. I guess in the other countries they must force them to only work in construction.
We need to stop state-sponsored, high leverage investing in residential real-estate. What other asset class can an investor in this country leverage up to 90% with 25 year repayment terms and mortgage level, interest rates??? Access to that leverage and borrowing terms should be reserved for owner-occupied homes only. Canada should join the many countries that have taken away that investor leverage and using tax policy to discourage speculative residential real estate investments. Residential real estate need to return to its original use - as a home - NOT as an asset class. We need to allocate our capital to much needed investments in technology, automation and other forms of R&D. Our productivity and by extension, our incomes are stagnating in this country, while we endlessly flip real estate.
Well said. This is Canada - the easy life. These real estate types make more money on a sale than the architects who design the buildings. Canada's long term prospects are bleak due to this stupidity.
I wonder why this easy change has not yet crossed anyone's mind. Just increase the down-payment requirement on an investment property to 35% and it will significantly reduce the mom and pop investors. This means more opportunities for first time home buyers. However, it may also mean fewer condos built as most are bought by investors, and without them, not many can be sold at current prices. If the prices drop significantly, and the construction cost does not, builders will stop building. Also, let's not forget that even with all the existing rules the interest rates are cost prohibitive for the developers. A side effect could be that only the very rich will be able to invest in rental properties. In Toronto, about 30% of the rental supply is condos, which are bought by mom and pop investors, and often rented below cost. Purpose built rental units are never rented below cost and are far more expensive as institutional owners can afford some vacancies and have more resources to deal with problem tenants. So, I am not sure if this measure will help the lower income people. May be it will restrict the real estate to only very deep pockets.
I am not sure that they will skyrocket but I can certainly say that prices will not go down much from where they are now. As long as immigration is high and construction starts are low the price will continue to go up regardless of how the economy is performing.
You are joking suggesting immigrants will leave should Canadian economy tank? I don’t think you appreciate the challenges that motivated their decision to migrate.
Great balanced program! Looked at both the demand and supply side and at about @24:00 , great points by Steve about lomg term and short term. We need supply for the longterm and need to influence demand for the shorterm.
There is no politician who has solutions. If we are so far behind in homes to reach affordability… whatever that means… we are only falling further and further behind every year. The supply is not going to materialize as we know. So, where is this going? Something is going to be sacrificed. It will happen regardless of what the politicians decide however. Some sort of wide scale humanitarian crisis will happen if nothing is done. The most likely resolution is the end of Canadas immigration story. Who would you sacrifice when there is no choice? You know the answer. It is the immigrants. They will be dehumanized exploited and abused.
are banks not suppose to allow paying back principal beyond 15-20% per year? BMO TD seems to be completely unaware of this announcement by Federal government?
Steve was actually taking a jab at Canada's immigration minister Marc Miller who called international students "an asset that is very lucrative". Google it. I appreciate that we need to make it very clear when we take jabs at politicians by quoting or paraphrasing their terrible comments, that we are in fact quoting them
@SW-li7gd - As John (@johnpasalis8205) notes above, Steve was referring to the Minister of Immigration Miller who said this, we actually did clarify this right in the episode itself @38:31 - Thanks for watching! ~ Urmi
There's literally nothing racist about that. That's exactly what foreign students are to Canada or assets. It's not some evil plot it's literally just the education industry we export education by bringing people in educating them and, though this is the part we need to get better at, sending them back, while skimming the best of the best off the top. There's nothing negative about that I don't know why people are twisting it that way It's a great industry. High value add, Good jobs, clean. It's the kind of industry we want for Canada. But of course keeping up the long Canadian tradition of kneecapping every productive industry we have we have to hate on it. Because we can't have anything actually making us money in this country apparently without half the country wanting to shut it down.
The reality is the real estate market needs to collapse like USA 2008. Need to bankrupt the industry to reduce costs. The market needs t table flipped and companies broken. Will Canada fail dramatically or fizzle out as the swamp is drained?
I'm sorry but this is just not true, you think 2008 was good for the US industry? Because it absolutely wasn't. It was a horrible way to go about lowering prices nobody would ever want or ask for that. It crushed a ton of people and scarred the industry so bad that it led to this boom in prices in the US of constant under building since then. Your whole comment just reeks of someone who wants what they can't have so bad that they're willing to burn it all down to get it, Even though you likely wouldn't. A much better approach would be stagnation in prices do high rates and supply meeting demand. The fundamentally have a supply demand mismatch and blowing up the housing industry would not fix it It would worsen it. You would accomplish making people live with their parents instead of being able to get a house. Sure you might lower the prices but at a terrible cost.
@@stevecatpatrick8056 I was taught by my father and 3 uncles to invest as a contrarian. i didn’t want this latest trend to occur. I wish people would not make the same mistakes that repeat the past. But, I have learned to capitalize on the excessive greed of others. I have tried to advise people, friends, family. But they either don’t want to understand or have no patience for a in-depth understanding. I believe this will be worse then 2008. It’s in the math that is unwinding now.
@@stevecatpatrick8056 Look around the world to find the positive narratives. There are none. Study the trends in every economy. Tell me which one is in a “strength/growing” position in adverse to North America, Europe, Asia.
If there is no need to sell, why I need to sell it with lower price? I can wait till market is better. I do not worry about Vancouver market especially foreigner ban will be removed in Jan 2025. I know a lot of Chinese will like to Back to Canada market especially Vancouver because China housing market is bad . They want to invest elsewhere. I will keep my properties in Vancouver for sure, no need to rush to sell rush in this market .
If the land surrounding the major cities are rezoned to allow housing, sprawl, it would make housing affordable. All we need is lots that cost less than 100 K and housing becomes affordable again.
Canada .. it seems how good u speak English seems to be a yardstick a phobia to skill talent productivity good job . Etc etc
Fact is in today's world top 10 economy only 3-4 speak or care for English!
All that is in focus is English speaking international student to do menial labor jobs....to serve baby boomers is focus.
All the industrial investment are geared to packaging warehouse and transportation
And ofcourse real estate based economic target.. so once interest rate up.. the country is doomed...
Even the talent immigrant soon leaves the country as they figure out the economy is hollow optics based ...
No depth
I’ve been a tower crane operator for 17 years . If you think the Indian immigrants are entering the construction industry you’re sadly mistaken . I was the youngest guy 17 years ago and unfortunately I still am one of the youngest guys on site .
I visited China recently and they have a lot more migrants from India and Pakistan working at construction sites
@@showblingyeah strange that when they come to Canada they instead work retail or uber. I guess in the other countries they must force them to only work in construction.
We need to stop state-sponsored, high leverage investing in residential real-estate. What other asset class can an investor in this country leverage up to 90% with 25 year repayment terms and mortgage level, interest rates??? Access to that leverage and borrowing terms should be reserved for owner-occupied homes only. Canada should join the many countries that have taken away that investor leverage and using tax policy to discourage speculative residential real estate investments. Residential real estate need to return to its original use - as a home - NOT as an asset class. We need to allocate our capital to much needed investments in technology, automation and other forms of R&D. Our productivity and by extension, our incomes are stagnating in this country, while we endlessly flip real estate.
Well said. This is Canada - the easy life. These real estate types make more money on a sale than the architects who design the buildings. Canada's long term prospects are bleak due to this stupidity.
I wonder why this easy change has not yet crossed anyone's mind. Just increase the down-payment requirement on an investment property to 35% and it will significantly reduce the mom and pop investors. This means more opportunities for first time home buyers. However, it may also mean fewer condos built as most are bought by investors, and without them, not many can be sold at current prices. If the prices drop significantly, and the construction cost does not, builders will stop building. Also, let's not forget that even with all the existing rules the interest rates are cost prohibitive for the developers. A side effect could be that only the very rich will be able to invest in rental properties. In Toronto, about 30% of the rental supply is condos, which are bought by mom and pop investors, and often rented below cost. Purpose built rental units are never rented below cost and are far more expensive as institutional owners can afford some vacancies and have more resources to deal with problem tenants. So, I am not sure if this measure will help the lower income people. May be it will restrict the real estate to only very deep pockets.
Has anyone examined the role of land value speculation in driving both housing prices and rents sky high?
Won't be any realtors left after all of this
How? If more supply, realtor will have more houses to sell to make hefty money
10 weeks to become a realtor and grenade the housing market
Market prices for 1 bedroom condo's in my area in Richmond Hill have come down $20-30k over the last month.
Listings are going to SKYROCKET over the next 6 months...
I am not sure that they will skyrocket but I can certainly say that prices will not go down much from where they are now. As long as immigration is high and construction starts are low the price will continue to go up regardless of how the economy is performing.
Good to see John actually making some money to get a Haircut. Poor guy was struggling man
You are just jealous 😊
You are joking suggesting immigrants will leave should Canadian economy tank? I don’t think you appreciate the challenges that motivated their decision to migrate.
Houses will go back up in about 2 years time
Are low rise prices lower than 2023 year high in May?
116,000 realtors and you guys are the only one trying to scare people to buy.
Steve Saretsky - patron saint of wishful thinking.
Has he performed a miracle?
Yes,he diminished 1/4 of his networth by overleveraging😅
Extend and pretend. Government issuing endles debt. Let's be Canadian and pretend there isn't a problem.
Hey why don't we squeeze the inventory more. It'll send prices to infinity.. 😅
$7000! $13000 per month in morgage payments in VAncouver ! WTF!! Come out to Alberta and live like a KING!
No, not living like a king as Alberta has crazy, very cold weather
Great balanced program! Looked at both the demand and supply side and at about @24:00 , great points by Steve about lomg term and short term. We need supply for the longterm and need to influence demand for the shorterm.
Thanks for watching and the kind words about our show! ~ Urmi
There is no politician who has solutions. If we are so far behind in homes to reach affordability… whatever that means… we are only falling further and further behind every year. The supply is not going to materialize as we know.
So, where is this going? Something is going to be sacrificed. It will happen regardless of what the politicians decide however. Some sort of wide scale humanitarian crisis will happen if nothing is done. The most likely resolution is the end of Canadas immigration story. Who would you sacrifice when there is no choice? You know the answer. It is the immigrants. They will be dehumanized exploited and abused.
40% of MP's own rentals ....
are banks not suppose to allow paying back principal beyond 15-20% per year? BMO TD seems to be completely unaware of this announcement by Federal government?
0:30 Exactly how I feel.....
For sellers: Why sell when you don't really have to! Rent them out and prices will go up in 2 years
For buyers: buy now before you regret
Steve calling foreign (Mostly Indian) students locative assets... Almost a racist comment.
Steve was actually taking a jab at Canada's immigration minister Marc Miller who called international students "an asset that is very lucrative". Google it.
I appreciate that we need to make it very clear when we take jabs at politicians by quoting or paraphrasing their terrible comments, that we are in fact quoting them
@SW-li7gd - As John (@johnpasalis8205) notes above, Steve was referring to the Minister of Immigration Miller who said this, we actually did clarify this right in the episode itself @38:31 - Thanks for watching! ~ Urmi
There's literally nothing racist about that. That's exactly what foreign students are to Canada or assets. It's not some evil plot it's literally just the education industry we export education by bringing people in educating them and, though this is the part we need to get better at, sending them back, while skimming the best of the best off the top.
There's nothing negative about that I don't know why people are twisting it that way It's a great industry. High value add, Good jobs, clean. It's the kind of industry we want for Canada. But of course keeping up the long Canadian tradition of kneecapping every productive industry we have we have to hate on it. Because we can't have anything actually making us money in this country apparently without half the country wanting to shut it down.
The reality is the real estate market needs to collapse like USA 2008. Need to bankrupt the industry to reduce costs. The market needs t table flipped and companies broken.
Will Canada fail dramatically or fizzle out as the swamp is drained?
I'm sorry but this is just not true, you think 2008 was good for the US industry? Because it absolutely wasn't. It was a horrible way to go about lowering prices nobody would ever want or ask for that. It crushed a ton of people and scarred the industry so bad that it led to this boom in prices in the US of constant under building since then.
Your whole comment just reeks of someone who wants what they can't have so bad that they're willing to burn it all down to get it, Even though you likely wouldn't. A much better approach would be stagnation in prices do high rates and supply meeting demand. The fundamentally have a supply demand mismatch and blowing up the housing industry would not fix it It would worsen it. You would accomplish making people live with their parents instead of being able to get a house. Sure you might lower the prices but at a terrible cost.
@@stevecatpatrick8056 I was taught by my father and 3 uncles to invest as a contrarian. i didn’t want this latest trend to occur. I wish people would not make the same mistakes that repeat the past. But, I have learned to capitalize on the excessive greed of others. I have tried to advise people, friends, family. But they either don’t want to understand or have no patience for a in-depth understanding. I believe this will be worse then 2008. It’s in the math that is unwinding now.
@@stevecatpatrick8056 Look around the world to find the positive narratives. There are none. Study the trends in every economy. Tell me which one is in a “strength/growing” position in adverse to North America, Europe, Asia.
If there is no need to sell, why I need to sell it with lower price? I can wait till market is better. I do not worry about Vancouver market especially foreigner ban will be removed in Jan 2025. I know a lot of Chinese will like to
Back to Canada market especially Vancouver because China housing market is bad . They want to invest elsewhere. I will keep my properties in Vancouver for sure, no need to rush to sell rush in this market .
China is trying to stop their citizens from buying real estate abroad to help keep money from leaving their economy! I would rethink your analysis!
Correct, just rent them and market will recover in 2 years time.
Sorry about your bag .....😢
If the land surrounding the major cities are rezoned to allow housing, sprawl, it would make housing affordable. All we need is lots that cost less than 100 K and housing becomes affordable again.
divorce increases rent demand as well. Going up in these times