Its woken up Ottawa, they are now blaming in on Galen Weston and the banks..
When I might say that grocery makes 2-4% profit in good times, and they provide competition and good service versus the 13% gst on many products, including most of the food young people eat, pop, chips, etc, never mind the soap, toilet paper etc etc for doing nothing they get angry.
I pay way more on taxes than anything else... gas, alcohol, sales tax, income, etc etc really adds up Governments will be getting lots more tax this year as anyone collecting interest is sending 50% to the Government :(
I was also pretty lucky, I give some credit to a car salesman who sold me a car in 1995, the promotion rate was 2%, I wanted to pay cash and he said "Take the loan, 2% is almost nothing". After being mortgage free for 30+ years I started taking out mortgages briefly in 2008 and a couple in 2015 and 2020, some were tax deductible, but I thought 2% is almost nothing.
No doubt that our generation has benefitted from rising real estate values and somewhat recently from very low rates for those that got into the real estate market 10, 15,20 years ago. It has been a good ride however, the youth today will struggle with the high costs of everything.
Will be interesting to see if new immigrants will help to offset high interest rates. There is a ton of mortgages coming due in the next 12-24 months.
Personally, we have just downsized & are getting out of dodge.
Prices will come down further and wages go up, traditionally 6% is not that high, I had mortgages in the 70's and 80's when anything under 10% was good. Ive also been through times in the 70's and 80's when prices were "so high" that no one could afford a home, the only thing different today imo -too much red tape, too many Govt fees. to many restrictions, and too many people coming into the country with so little housing. I blame about 98% on Govt policies and out of control spending, that may not normalize.
I mean HST and transfer taxes on home purchases can add 15-20%, never mind the 100's of $k's in fees...
I was wondering why butter and cheese has gone up so much and doesn’t want to come down. Of course the carbon tax, but even more the Canadian milk board helping all the Quebec dairy farmers raised milk prices by 12+%, another raise this year on the books. More competition needed and perhaps more farmers allowed in each province. Shipping butter, cheese and sometimes milk from Quebec to BC can’t be very efficient
To some extend the banks may be able to not mark to market and with the 5 year anyway, the values should quickly climb. Perhaps they look at it like not getting a raise :) Canadian banks for the most part still paying zero on the bank accounts, and they have acted quickly on mortgages.
(For GIC's Ive mentioned before EQbank is great, maximum of 20 GIC's allowed)
I heard some interesting stories from a realtor in Frankfurt, at the top, mortgages were 0.25%, fixed until the person turns 65, included all fees and even money for renovation, could be 125% of the selling price. The banks there didnt want to pay negative rates so were desperate to lend money.
Its woken up Ottawa, they are now blaming in on Galen Weston and the banks..
When I might say that grocery makes 2-4% profit in good times, and they provide competition and good service versus the 13% gst on many products, including most of the food young people eat, pop, chips, etc, never mind the soap, toilet paper etc etc for doing nothing they get angry.
I pay way more on taxes than anything else... gas, alcohol, sales tax, income, etc etc really adds up Governments will be getting lots more tax this year as anyone collecting interest is sending 50% to the Government :(
Thankful that I disposed all my ( limited ) bond holdings years ago.
I was also pretty lucky, I give some credit to a car salesman who sold me a car in 1995, the promotion rate was 2%, I wanted to pay cash and he said "Take the loan, 2% is almost nothing". After being mortgage free for 30+ years I started taking out mortgages briefly in 2008 and a couple in 2015 and 2020, some were tax deductible, but I thought 2% is almost nothing.
No doubt that our generation has benefitted from rising real estate values and somewhat recently from very low rates for those that got into the real estate market 10, 15,20 years ago. It has been a good ride however, the youth today will struggle with the high costs of everything.
Will be interesting to see if new immigrants will help to offset high interest rates. There is a ton of mortgages coming due in the next 12-24 months.
Personally, we have just downsized & are getting out of dodge.
Prices will come down further and wages go up, traditionally 6% is not that high, I had mortgages in the 70's and 80's when anything under 10% was good. Ive also been through times in the 70's and 80's when prices were "so high" that no one could afford a home, the only thing different today imo -too much red tape, too many Govt fees. to many restrictions, and too many people coming into the country with so little housing. I blame about 98% on Govt policies and out of control spending, that may not normalize.
I mean HST and transfer taxes on home purchases can add 15-20%, never mind the 100's of $k's in fees...
I was wondering why butter and cheese has gone up so much and doesn’t want to come down. Of course the carbon tax, but even more the Canadian milk board helping all the Quebec dairy farmers raised milk prices by 12+%, another raise this year on the books. More competition needed and perhaps more farmers allowed in each province. Shipping butter, cheese and sometimes milk from Quebec to BC can’t be very efficient
My bet is on inflation via 'hedonic adjustments' to try and pull the wool over the eyes of the average punter rather than default.
To some extend the banks may be able to not mark to market and with the 5 year anyway, the values should quickly climb. Perhaps they look at it like not getting a raise :) Canadian banks for the most part still paying zero on the bank accounts, and they have acted quickly on mortgages.
(For GIC's Ive mentioned before EQbank is great, maximum of 20 GIC's allowed)
I heard some interesting stories from a realtor in Frankfurt, at the top, mortgages were 0.25%, fixed until the person turns 65, included all fees and even money for renovation, could be 125% of the selling price. The banks there didnt want to pay negative rates so were desperate to lend money.