I absolutely love reading your articles. Insightful, packed with decades of experience and practically free to all who listen. I wish there was a way to help get the message spread far and wide.
Interesting (and worrying) analysis. A large component of the current inflation rate is actually made up of the increase in housing costs driven by BoC (and consequent bank) rate increases. We're screwed if we pop to $100+ oil, and then the BoC decides it can bring the situation under control through yet more rate increases. Exacerbating the issue is the impact of immigration on housing costs: we already have a supply problem (certainly an "affordable" supply problem), which will be made worse by poorly managed and ill-thought through immigration policies.
One big inflation cost are taxes, fees and red tape. I recently backed away from buying a modest home(sub $1m) in Toronto when I realized that land transfer taxes were $50K on an existing property, a new property ALSO has GST, never mind the $250K number Ive seen stated to develop a new property in Toronto just to cover fees, permits and red tape.
Its too late now, but a friend who recently immigrated from S.Africa bought a house 2 years ago, when going over the mortgages details he was asked if he wanted a 5 year mortgage, I guess not knowing any better he said, "we like the house and plan on staying, can I get a 10 year mortgage?", after saying they need to check, they came back with "Yes", he now has a 10 year sub 2% mortgage....
I feel fortunate as well, I have 2 houses, 1 due Oct 26@1.94 the other July 25@ 2.49, under 50% of the property values, which if necessary I could pay off.
A friend is really hurting with a large floating mortgage, payments have gone from around $2k to $6k a month. I suspect the Federal Govt will just create money to cover up their reckless spending, however the provincial, municipal and others debt will really hurt.... Taxes are going up, way up..
We need a change to our system to improve democracy; an election every 4-5 years doesn't work, except for the globalists. The west needs to get out from this crap.
Ive stayed away from office and retail REIT's, however its becoming apparent that even apartment and industrial REIT's are struggling. As mortgages get refinanced at higher rates, costs rise, and if lenders want to reduce the %of value financed, or even mark down the value of the property, it can create extremely high interest rate costs and other problems. Most of the Canadian apartment REITs are under 50% mortgages on the buildings, rents have risen, but still higher interest, insurance, labour and maintenance costs can be an issue.
I absolutely love reading your articles. Insightful, packed with decades of experience and practically free to all who listen. I wish there was a way to help get the message spread far and wide.
Interesting (and worrying) analysis. A large component of the current inflation rate is actually made up of the increase in housing costs driven by BoC (and consequent bank) rate increases. We're screwed if we pop to $100+ oil, and then the BoC decides it can bring the situation under control through yet more rate increases. Exacerbating the issue is the impact of immigration on housing costs: we already have a supply problem (certainly an "affordable" supply problem), which will be made worse by poorly managed and ill-thought through immigration policies.
One big inflation cost are taxes, fees and red tape. I recently backed away from buying a modest home(sub $1m) in Toronto when I realized that land transfer taxes were $50K on an existing property, a new property ALSO has GST, never mind the $250K number Ive seen stated to develop a new property in Toronto just to cover fees, permits and red tape.
As Barry McGuire sang " we're on the eve of destruction..." thanks to the Trudeau/Sing government.
Step aside Barry, new song out last few weeks (BTW I loved "Eve" when I was a young guy)
"Rich Men North Of Richmond" lyrics
Oliver Anthony
"Rich Men North Of Richmond"
I've been sellin' my soul, workin' all day
Overtime hours for bullshit pay
So I can sit out here and waste my life away
Drag back home and drown my troubles away
It's a damn shame what the world's gotten to
For people like me and people like you
Wish I could just wake up and it not be true
But it is, oh, it is
Livin' in the new world
With an old soul
These rich men north of Richmond
Lord knows they all just wanna have total control
Wanna know what you think, wanna know what you do
And they don't think you know, but I know that you do
'Cause your dollar ain't shit and it's taxed to no end
'Cause of rich men north of Richmond
I wish politicians would look out for miners
And not just minors on an island somewhere
Lord, we got folks in the street, ain't got nothin' to eat
And the obese milkin' welfare
Well, God, if you're 5-foot-3 and you're 300 pounds
Taxes ought not to pay for your bags of fudge rounds
Young men are puttin' themselves six feet in the ground
'Cause all this damn country does is keep on kickin' them down
Lord, it's a damn shame what the world's gotten to
For people like me and people like you
Wish I could just wake up and it not be true
But it is, oh, it is
Livin' in the new world
With an old soul
These rich men north of Richmond
Lord knows they all just wanna have total control
Wanna know what you think, wanna know what you do
And they don't think you know, but I know that you do
'Cause your dollar ain't shit and it's taxed to no end
'Cause of rich men north of Richmond
I've been sellin' my soul, workin' all day
Overtime hours for bullshit pay
Scott, Greta tune- spot on today's world. Thanks.Arnie
Its too late now, but a friend who recently immigrated from S.Africa bought a house 2 years ago, when going over the mortgages details he was asked if he wanted a 5 year mortgage, I guess not knowing any better he said, "we like the house and plan on staying, can I get a 10 year mortgage?", after saying they need to check, they came back with "Yes", he now has a 10 year sub 2% mortgage....
I feel fortunate as well, I have 2 houses, 1 due Oct 26@1.94 the other July 25@ 2.49, under 50% of the property values, which if necessary I could pay off.
A friend is really hurting with a large floating mortgage, payments have gone from around $2k to $6k a month. I suspect the Federal Govt will just create money to cover up their reckless spending, however the provincial, municipal and others debt will really hurt.... Taxes are going up, way up..
Australia too ... might even be worse in some ways
We need a change to our system to improve democracy; an election every 4-5 years doesn't work, except for the globalists. The west needs to get out from this crap.
Ive stayed away from office and retail REIT's, however its becoming apparent that even apartment and industrial REIT's are struggling. As mortgages get refinanced at higher rates, costs rise, and if lenders want to reduce the %of value financed, or even mark down the value of the property, it can create extremely high interest rate costs and other problems. Most of the Canadian apartment REITs are under 50% mortgages on the buildings, rents have risen, but still higher interest, insurance, labour and maintenance costs can be an issue.