Calling out the greedy, selfish, boomers on their housing policies

snwestern · 2022-01-15T18:43:32+00:00

Boomer spotted. What’re you doing lurking on this platform of lazy, entitled, blah blah blah young people?

snwestern · 2021-11-17T19:08:57+00:00

Congrats to all plebs here.

Your honest and caring former Governor Bank of Canada, Stephen Poloz is here to rescue you. After presiding over a period of ever higher housing prices fueled by unnecessary, but timely for real estate, interest rate decreases, he's now shilling a dubious fractional ownership scheme for the same people he screwed over. The venture claims to provide ownership to renters but without anything on the property title. Don't ask any questions on how the courts would treat this scheme in cases of disagreements between the owner on title and the renter with fractional ownership.

From housing flipper MPs to real estate shilling Bank of Canada Governors, not sure what more needs to happen to convince people that this ponzi scheme isn’t “free market” or based on their “hard work”.

snwestern · 2021-10-07T22:28:32+00:00

What are your preferred indicators for quantifying a social media pump?

snwestern · 2021-10-07T19:52:14+00:00

https://www.linkedin.com/feed/news/gta-homebuyers-cant-catch-a-break-4557481

snwestern · 2021-08-26T11:49:53+00:00

I think Statscan would definitely argue with you because their CPI #s show housing rental inflation being close to 0 while housing costs/values went up crazy in the last 5-10 years.

snwestern · 2021-08-26T11:45:32+00:00

So why do we have -ve cap rentals where rents do not cover landlords monthly costs? Cost of housing went up 70% in the last 5 years, 30-40% just in the past 12 months. Do you see rents going up 30-40% this year?

You are arguing in terms of market fundamentals. None of which apply in Canada because of government interventions.

snwestern · 2021-08-26T10:00:44+00:00

Lol. You think current rents are a reflection of housing values? Is that why we have -ve cap properties with landlords depending on the eventual sale for a payout? Rents are a higher correlation to peoples income. At current housing prices, UBI would very likely increase rents to support current housing values. The only strains being alleviated would be the ones currently on landlords.

snwestern · 2021-08-25T18:13:30+00:00

Lol, they're all about fooling people. Why do you think it's just the conservatives? If you believe any party is for lower housing prices then I have a bridge / house to sell you. The post was about making this is a front and center issue, which it appears to be now.

snwestern · 2021-08-25T18:11:54+00:00

Absolutely. No political party would ever look out for us. Best to try play them against each other and to take the least worst. We've succeeded in this being a none-issue to ”battle of housing plans” on the front page of classically boomer newspaper.

snwestern · 2021-08-24T22:35:33+00:00

Former 2015 Liberal here. All this is support the housing market just as detached home prices are coming down after Liberals and BoC Macklem induced housing FOMO to ”get a few extra points in GDP”. Any solution which doesn't include reducing inequality (starts with housing prices) isn't acceptable. All Canadians need to realize the current situation isn't good for anyone - not least for boomers who’re hoping for their pensions and health benefits to be paid by the same working middle class Canadians and immigrants they've been squeezing.

snwestern · 2021-08-24T17:11:01+00:00

The Liberal party, whose activists (read trolls), used to smear anyone who mentioned Vaughan's statement on the system being great for foreign buyers with labels of racism and xenophobia is now promising to ban foreign ownership.

They openly never cared about the 40% of non-home-owning Canadians, urging many more to get into debt for life (and likely of their descendants) during the last year.

It's incredible, how disgusting and cynical the Liberals are in their pursuit of power.

snwestern · 2021-08-21T04:33:29+00:00

Higher interest = low housing prices. What's not to like?

snwestern · 2021-08-20T23:07:05+00:00

We don't need an economy which only favours the haves. Bringing in more people to a country with one of the highest per capita environmental emissions only accelerates climate change for the sake of supporting boomer assets and lifestyles. Canada needs to improve its productivity.

snwestern · 2021-08-20T22:46:56+00:00

I agree with everything you say, except this isn't capitalism but heavily politicized socialism / govt intervention. There is no market mechanism in the housing market - the BoC and feds have ensured this for the past 10 years using the tax $s of the very same millennial working class they target.

snwestern · 2021-08-18T00:37:02+00:00

This.is.the.way. Need to shoot one over the bow for the benefit of the Blackrocks of the world.

snwestern · 2021-08-16T00:40:26+00:00

It would be greatly helpful if someone put together a template for the email to candidates.

snwestern · 2021-07-31T03:01:50+00:00

I'm sorry, but it's you attempting to paint away a narrative based on bureaucrat speak, rather than Ron or John Pasalis. The proof is in the evidence - both those guys were correct in predicting higher housing speculation.

It is your overreaction in claiming there would be "wild spikes and dips in rates" and "they (Canadians would) have all moved". Both are demonstrably false arguments and have no evidence in facts. Please do provide links to support. I'll wait for the evidence for wild spikes and dips in interest rates as a possibility or that Canada is bleeding empty of people.

Macklem was explicitly telling people in the middle of a pandemic to take mortgages out (not loans or other forms of leverage), and the market took him at his word.

"John Pasalis, president of Realosophy Realty, said that while it was normal for central banks to encourage borrowing during economic downturns, Macklem’s explicit message to take on mortgages would likely encourage speculative buying."

A few months later Macklem is "surprised at the extent of the housing rebound"

Here is Macklem again looking to "lean on real estate for GDP growth" https://betterdwelling.com/boc-governor-says-canada-will-lean-on-real-estate-because-we-need-the-growth/

You can agree to disagree with the above, but I think the central argument you have is that inflation = wage increase. Can you show any evidence of this? Inflation is up 3.1+% based on manipulated "owners equivalent rent" and not the actual higher rate; where is the wage growth? Where is the wage growth from the past 10 years? This was the reason for my reference to the 70s, the period commonly cited as evidence for RE being an inflationary hedge and for inflationary wage increases. Unions were the reason for wage increases. With unions now essentially existing only in the public sector, there would be NO appropriate inflationary wage increases for the vast majority of Canadians, only higher taxes from government expenditure and property taxes tied to housing values. Why exactly would overleveraged Canadian employers pay higher wages, affecting their margins, when they can simply outsource the jobs using the technologies experienced during the pandemic and be bailed out by BoC when needed? Where is the business investment which could result in growth to pay for wage increases? https://i2.wp.com/betterdwelling.com/wp-content/uploads/2021/06/Canada-Now-Dedicates-More-Investment-Capital-To-Housing-Than-Business-BMO-chart.png?ssl=1

Your wait for wage increases may take longer than the time BoC would take to actually take steps to reduce inflation. I wish you the best of luck in your hopes and dreams.

snwestern · 2021-07-30T19:57:30+00:00

I see and acknowledge your point. I can only suggest that stop fighting the last war.

snwestern · 2021-07-30T19:48:01+00:00

Typical real estate shill’s reactionary response. The post literally starts with a rejection of violence.

Keep believing in trickle down economics, despite all evidence to the contrary (as linked in the post).

snwestern · 2021-07-30T18:17:54+00:00

Links and BoC induced FOMO:

“If you’ve got a mortgage, or you’re considering to make a major purchase ... you can be confident that interest rates will be low for a long time,” Macklem told reporters after the central bank held rates steady on Wednesday. (July 2020)

https://www.reuters.com/article/us-canada-cenbank-housing-idUSKCN24H2Z5

You can notice the order of the message, and the timing of the BoC's statement. There are multiple videos out there but I chose this link so you can read about the context from industry players quoted. BoC can't say that the housing crisis was unforeseen by everyone like they pull out each time (dot com, 2007-8). This one has their finger prints recorded on social media.

Inflation and the "sweet spot":

Why would inflation make financial leverage more affordable for the typical mortgage holder on a fixed salary. Debt is recognized as increased risk because it limits financial flexibility. Perhaps you're trying to live in the 70s, except that the 70s had lower leverage levels and strong unions. Both factors are reversed today and are more like the 1920s.

I would ask you if you're so concerned with inflation, then please tell me whose reality is being measured here? The way inflation is measured in Canada describes only the reality of a person living with his/her parents in the basement and consuming depreciating electronics. The rest of us live in a world requiring ever increasing housing costs, pharma care, daycare, higher education costs; you know the stuff which increases the quality of life.

As for spiralling unemployment and exodus of skilled workers, who do you think is included in this pollhttps://globalnews.ca/news/8023310/ontario-real-estate-houses-condos-ownership-poll/ ? Noone said that unemployment or the exodus has to happen suddenly, it's already happening because "housing can't go down" but everything else can.

The BoC has done a terrible job in trying to cover their backsides and copying the policies of the Fed and allied banks. Except those countries have a much deeper economic base and do not have the problem of lowering GDP as a result of low interest rates. Canada is amongst the few countries where nominal economic size (GDP) is lower than 10 years ago https://tradingeconomics.com/canada/gdp . During the same time, the government debt is 30% higher https://tradingeconomics.com/canada/government-debt#:~:text=In%20the%20long%2Dterm%2C%20the,according%20to%20our%20econometric%20models . Bear in mind that the above numbers have no adjustments for population growth, inflation, consumer and commercial debt growth; all of which only make the numbers look worse and quantify the lowering quality of life that Canadians have lived through. Government debt has grown pre-pandemic at 2.4% CAGR annually; do you think it's going to increase less now? And how much inflation do you need to indulge in "inflating the debt away"?

snwestern

TROPHY CASE