Canada Housing/Debt: Trust me, I'm a landlord.

The Something Awful Forums > Discussion > Debate & Discussion > Canada Housing/Debt: Trust me, I'm a landlord.

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apatheticman: May 13, 2003; Wedge Regret

jet sanchEz posted:

I have a defined benefits pension, what's so great about them?

You are guaranteed a specific payout regardless of market conditions?

# ¿ Jul 21, 2017 03:24

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# ¿ May 13, 2024 04:24

apatheticman: May 13, 2003; Wedge Regret

Baronjutter posted:

As long as you don't have a kid you're doing more than every greenwashed yuppie idiot or LEED DOUBLE PLATINUM certified building apparently.

Where is the childless couple tax credit?!

# ¿ Aug 4, 2017 13:27

apatheticman: May 13, 2003; Wedge Regret

RBC posted:

i buy six dollar bread at the farmers market i dont understand what the big deal is

Food prices in the states are significantly lower...

# ¿ Sep 10, 2017 17:22

apatheticman: May 13, 2003; Wedge Regret

rgocs posted:

Apparently real estate agents are actually socially responsible people that care about the environment, animals and schools.

Are those taxes? Are they talking about taxes?

# ¿ Oct 27, 2017 05:04

apatheticman: May 13, 2003; Wedge Regret

http://www.macleans.ca/economy/surprise-realtors-want-you-to-be-able-to-raid-your-rrsp-to-buy-your-kid-a-house/

Realtors - Nothing to see here, continue purchasing!

Maclean's posted:

The real estate industry knows buying a home in major cities is becoming prohibitively expensive for many Canadians. So it�s proposing to help. The Canadian Real Estate Association is lobbying the federal government to allow parents to dip into their registered retirement savings accounts to fund their children�s home-ownership dreams.

CREA, which represents more than 100,000 agents, brokers and salespeople, has made a 2018 pre-budget submission proposing changes to the Home Buyers� Plan (HBP). That program allows a first-time buyer to withdraw up to $25,000 from an RRSP account to purchase or build a home. The realtors� association suggests expanding the program so that parents can withdraw from their own RRSPs for their children to purchase of a home. Both parents would be eligible to take funds from their accounts, subject to a maximum amount. �Extending the HBP is a compassionate and fiscally responsible way to help modern Canadian families finance the purchase of a home, and also help close the gap for young Canadians,� according to CREA�s submission.

Family already plays a big role in financing first-time buyers. A survey conducted this year by Genworth Canada, a mortgage insurer, found that 22 per cent of first-time buyers received a gift from a family member and 12 per cent received a loan, up from nine per cent in 2015. �As many parents are already �loaning� their savings to their children, a formalized mechanism which allows for the transfer of RRSP savings would help not only increase the available down payment and reduce the amount borrowed, but also limit risk to the lender,� CREA contends.

Some observers are not convinced. �This is a remarkably stupid idea,� says Josh Gordon, an assistant professor at Simon Fraser University�s School of Public Policy. �One of the dumbest ideas I�ve heard in the housing debate.� The policy change would only fuel demand for real estate, he says. With more access to funds, buyers are able to pay more for homes, driving up prices and exacerbating the very problem CREA purports to address. �You�re just allowing people to take on more debt, meaning they can bid more for the same house,� Gordon says.

John Pasalis, president of Realosophy Realty, agrees. �It�s a terrible policy,� he says, adding that it�s typical for real estate groups to propose ideas that stimulate demand in response to affordability issues. �They�re going to recommend things that drive real estate sales, independent of whether it�s good policy,� he says.

Home ownership can be beneficial, says David Madani, an economist at Capital Economics in Toronto. Homes operate like a forced savings mechanism as owners pay down the mortgage and build equity. But now is the wrong time to implement CREA�s policy suggestion, he says, given Canada is grappling with record high household debt and overvaluation in large markets such as Toronto. �It�s unwise to encourage potentially thousands of younger people to rush buying a house at this particular correction point in the housing cycle,� according to Madani.

Tim Syrianos, president of the Toronto Real Estate Board, which is supporting CREA�s proposals, rejects the criticism. �Why would it drive up home prices?� he asks. �The intent of CREA�s proposals is not to drive up more demand. It�s to provide the opportunity for people to own a home.� The government requires that RRSP withdrawals are paid back within 15 years, but Syrianos contends �intergenerational RRSP loans,� to use CREA�s term, do not amount to more debt for first-time buyers. �It could be paid back by the parent,� he says. (A CREA representative was not available for comment.)

In addition to RRSP loans, the real estate association is recommending an expansion of the home buyer�s program to include those who have undergone major life events, such as a divorce or relocating for work. CREA also proposes raising the maximum withdrawal limit from $25,000 to $35,000, since the cap hasn�t increased with inflation since 2009. �Anyone knows $25,000 for a down payment doesn�t get you very far right now, so it makes sense to perhaps increase that a little bit,� Pasalis says.

Government officials, the Canada Mortgage and Housing Corporation and the Office of the Superintendent of Financial Institutions (OSFI) have all been working to temper demand for real estate, however. OSFI, the country�s banking regulator, tightened mortgage qualification criteria twice since 2016. The latest measures, which take effect in January, could affect up to 10 per cent of prospective homebuyers, according to the Bank of Canada, prompting them to purchase cheaper properties or simply delay.

CREA�s proposals, especially intergenerational RRSPs loans, appear to run counter to the aims of housing and finance authorities. But politics have trumped sound real estate policymaking in the past. The former Liberal government in B.C. introduced a down payment loan program for first-time buyers in response to eroding affordability last year, a few months ahead of an election. CMHC head Evan Siddall was a strident critic. �Programs that support demand in supply-constrained markets, like Vancouver, serve primarily to increase prices and make the affordability problem worse,� he emailed to provincial officials.

Siddall has also used recent speeches to point out governments at all levels offer ample assistance to homebuyers. When talking about affordability in a speech this month, Siddall said it makes more sense to �restrict unhealthy demand� by keeping lending rules tight and stimulating housing supply, rather than providing more financial support to prospective homeowners.

Affordability is a real�and growing�concern in major cities, of course, but Gordon says policymakers need to target the underlying causes of soaring home prices, namely speculation and foreign investment. Although both Ontario and B.C. implemented taxes on non-resident buyers, the programs might not be adequately capturing foreign dollars. Gordon�s colleague at SFU, Rhys Kesselman, has proposed a one per cent annual tax on homes worth at least $1 million that increases with the value of the property. Importantly, the levy is deductible against income tax paid in the previous year�effectively exempting those who pay income tax in Canada while targeting those who don�t. Such a tax would be more difficult to evade, according to Gordon, even for foreign buyers who use business entities to purchase homes.
Measures like that come with an another benefit: parents can hold on to their retirement savings, guilt-free.

apatheticman fucked around with this message at 21:55 on Dec 4, 2017

# ¿ Dec 4, 2017 20:16

apatheticman: May 13, 2003; Wedge Regret

namaste friends posted:

http://www.macleans.ca/economy/realestateeconomy/mortgage-rates/everyones-mortgage-is-about-to-get-more-expensive/

you can always euthanize a family pet to make ends meet

With Canada's new assisted dying program you too can save thousands a month by letting your loved one move on to another plane of existence.

# ¿ Jan 18, 2018 05:53

apatheticman: May 13, 2003; Wedge Regret

Realtors "We only want to be treated like professional organizations or designations when it benefits us!"

I'd be perfectly happy to pay their fees if they had some sort of skin in the game but they somehow fooled everyone into this caveat emptor bullshit that basically makes their entire jobs useless from a customer standpoint.

# ¿ Jul 8, 2018 18:04

apatheticman: May 13, 2003; Wedge Regret

PT6A posted:

What does a chain restaurant have that an independent restaurant doesn't, in regards to socialization?

Consistency

# ¿ Sep 14, 2018 21:02

apatheticman: May 13, 2003; Wedge Regret

Subjunctive posted:

Gov�t spending at 58% lol.

Regan mind hosed all the olds with the whole "It's not a revenue problem its a spending problem".

Stupid fucks bought it hook line and sinker, now their social safety net is full of person-sized holes that I hope they fall through before the next generation does.

# ¿ Jan 15, 2019 05:16

apatheticman: May 13, 2003; Wedge Regret

Powershift posted:

Everything is so far gone, when the housing market craters, it will create a series of cascading failures, that will eventually lead to everything literally being on fire.

Your only chance for burnt-out husk equity is to buy now. Get on the flaming wreck ladder right now, or be priced out forever.

We're 2 weeks away from the 6th anniversary of calling the crash in this very thread.

We are basically an apocalyptic death cult but with shelter.

# ¿ Feb 1, 2019 20:27

apatheticman: May 13, 2003; Wedge Regret

leftist heap posted:

Isn't conventional wisdom... the exact opposite. Up-zoning a lot very obviously increases the value and always has.

Depends if you think conventional wisdom comes from the economists or the dumb rear end NIMBYs.

# ¿ Feb 4, 2019 20:04

apatheticman: May 13, 2003; Wedge Regret

Rime posted:

I saw AlbertaTrash.jpeg today, in Dryden.

Brand new F250. Massive, glimmering fifth wheel trailer behind it. Occupants old as dirt. Alberta plates. Pulling into a Holiday Inn, because I guess you can't sleep in your $90k+ RV when it's raining?

I drove forty minutes out of town and off onto some dirt track to sleep, as you do when you're not a fuckhead boomer.

The greatest generation followed by the worst.

ABMD.

# ¿ May 2, 2019 01:47

apatheticman: May 13, 2003; Wedge Regret

Claes Oldenburger posted:

I guess more than anything it's a good to reminder to me that echo chambers exist everywhere, and the stress they cause me could possibly be slightly alleviated by just... not going on reddit haha.

There is about 3 or 4 dudes in the Calgary reddit that private message people with some pretty hateful stuff.

Its not great, so I've just stuck to drive by poo poo posting. Much like this thread.

# ¿ May 10, 2019 19:38

apatheticman: May 13, 2003; Wedge Regret

cowofwar posted:

Why would you ever read the poo poo that turns up in your reddit private messages? I have like 300 unread messages, never read any and never will.

Browser notifications don't discriminate between replys or dms.

# ¿ May 11, 2019 01:06

apatheticman: May 13, 2003; Wedge Regret

lovely to their "Independent contractors"

# ¿ Jun 24, 2019 03:19

apatheticman: May 13, 2003; Wedge Regret

The Butcher posted:

Ah, the Canadian Dream.

The best part is the PT cruiser.

# ¿ Jul 12, 2019 03:57

apatheticman: May 13, 2003; Wedge Regret

half cocaine posted:

https://www.bankofcanada.ca/2018/05/canada-economy-household-debt-how-big-the-problem/

quote:

It is time for me to conclude. If Shakespeare were writing today, he might say that our financial system gives Canadians more choices than ever in deciding whether to be, or not to be, in debt.

*worlds longest fart noise*

# ¿ Dec 5, 2019 05:27

apatheticman: May 13, 2003; Wedge Regret

Mandibular Fiasco posted:

Six figures doesn�t let you afford anything in this town. Let�s stop pretending that Amazon is going to pay US dollar equivalent wages in Vancouver.

That's probably specifically why they are getting office space, Vancouver tech jobs are hilariously under compensated for their US dollar and cost of living equivalents.

# ¿ Dec 30, 2019 19:05

apatheticman: May 13, 2003; Wedge Regret

qhat posted:

Er, no it's not? That is literally the definition of an emergency fund.

Hi,

In an economy where wage growth has been replace by consumer debt to keep quality of life it is not shocking that emergency funds have gone by the wayside.

This is not the fault of the consumer or the average person, this is a systemic economic issue not a DURR JIMMY SHOULDA SAVED issue.

Hope this helps.

# ¿ Apr 4, 2020 21:08

apatheticman: May 13, 2003; Wedge Regret

Skizzzer posted:

https://app.vancouver.ca/QFOrgChart_net/orgchart.cshtml

there's 41 people in the Comms department, there's a lot of chaff to cut I'm sure. My feeling is there's bloat there in the bureaucracy of CoV, but that doesn't make it easy to identify how to tighten up processes.

Wow you must be every conservative voter ever.

My feeling is government is not efficient but I don't know how.....

# ¿ Apr 14, 2020 19:22

apatheticman: May 13, 2003; Wedge Regret

The family friend we know that was trying to winter in Arizona just got told by her insurance company LOL no.

# ¿ Jul 15, 2020 01:32

apatheticman: May 13, 2003; Wedge Regret

qhat posted:

It shouldn't come as a surprise that you're expected to amortize the interest over that period. It was very well publicised.

I mean when you market as "Helping out" and "relief" there is some expectation of actual sacrifice not just LOL gonna charge u later.

I can forgive people for not paying attention to the 3rd paragraph of every ad or new story being like "this is essentially useless"

# ¿ Sep 10, 2020 04:36

apatheticman: May 13, 2003; Wedge Regret

Professor Shark posted:

Crossposting w Canadian Finance because it doesn't seem to get too much traffic and I can't find the CanPol thread:

No

https://www.canada.ca/en/employment-social-development/programs/ei/ei-list/courses-training.html

# ¿ Jan 28, 2021 00:55

apatheticman: May 13, 2003; Wedge Regret

RBC posted:

yes

full time students can't get ei

You can, you just have to

1) Go to an accredited instituion from the list
2) Not be unemployed for 36 weeks prior
3) Pay into EI for 7-10 years

# ¿ Jan 28, 2021 01:10

apatheticman: May 13, 2003; Wedge Regret

Boy this is about as exciting as tagesschau's previous THE LAWWWWWWWW ALLOWS ME TO TRAVEL AND NOTHING CAN STOP MEEEEEEEEEEEEEEEEE.

# ¿ Mar 3, 2021 05:28

apatheticman: May 13, 2003; Wedge Regret

Anything its a big enough problem for social development initiatives if you just make it up in your mind.

# ¿ Mar 3, 2021 05:52

apatheticman: May 13, 2003; Wedge Regret

Illegal activity in Vancouver involving large sums of cash?!

# ¿ Mar 8, 2021 03:35

apatheticman: May 13, 2003; Wedge Regret

qhat posted:

There is never a 'while you can' and it would be nice if people stopped thinking this way. Housing prices will always adjust to however much capital is available to people at any point in time, which right now is a lot. But there is no more urgency now than there has been at any other time in history, other than people's own mistaken impression that they will forever be locked out of housing. This never actually happens.

It just slowly erodes at their quality of life as increasingly they have to pair down the budget in order to get a roof over their heads.

They aren't locked out though they are just serfs in their own homes.

# ¿ Jun 24, 2021 01:51

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# ¿ May 13, 2024 04:24

apatheticman: May 13, 2003; Wedge Regret

Poodlebear posted:

Man reading some of the earlier posts in this thread is a real trip. Here�s the OP from 2013

GONNA DROP ANYTIME NOW.

# ¿ Jan 9, 2022 23:12

The Something Awful Forums > Discussion > Debate & Discussion > Canada Housing/Debt: Trust me, I'm a landlord.

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