so many condos being rented as investment properties. If people can't pay their rent, and owners don't have cash to cover the difference cause they don't have jobs either?.... don't get caught looking in the rear view mirror when the 18 wheeler in front of you hits his brakes.
Housing and Condos are going to crash
- Thread starter thadude
- Start date
The market is essentially on hold but there will be more pressure on some sellers to sell and no rush for buyers to buy.
With the number of businesses that are collapsing and the number of jobs that are never coming back, I can`t see there being a seller`s market again any time soon.
There is not way interest rates will ever return to anything remotely close to historical norms or there would be massive insolvencies and a major crash.
I actually don`t think we truly recovered from the Great Recession of 2008.
We stopped the collapse but nothing was really resolved and we basically just kicked the can down the road and made the underlying fundamentals a lot worse.
I just hope this house of cards does not collapse before I die.
With the number of businesses that are collapsing and the number of jobs that are never coming back, I can`t see there being a seller`s market again any time soon.
There is not way interest rates will ever return to anything remotely close to historical norms or there would be massive insolvencies and a major crash.
I actually don`t think we truly recovered from the Great Recession of 2008.
We stopped the collapse but nothing was really resolved and we basically just kicked the can down the road and made the underlying fundamentals a lot worse.
I just hope this house of cards does not collapse before I die.
Actually theres plenty of money in the system thanks to MMT (modern monetary theory). Governments across the world including Canada are simply creating new money and new debt to cover the majority of financial losses. And with interest rates as low as they are they can afford to finance this debt well into the future especially since there currently seems to be no inflationary trends. Ofc long term there should be ramigications in this regard but remains to be seen how much and how fast if at all. Also unlike the FC moral hazard doesn't exist in this environment because the blame falls on the pandemic, yes I know argueable because there are/were multiple assets bubbles in the making but nowhere near the gross management that existed before the FC ie the subprime mortgage fiasco. In any case it should be clear to everyone by now that governments across the world will not allow industry to simply fail and there'll be as many bailouts as necessary and financial support for most people(but maybe not all yes) until the situation stabilizes.
Not saying I necessarily agree with what they're doing but what's the other choice? Simply allow people to lose everything and suffer? And you wouldn't support something that could prevent that?
Not saying I necessarily agree with what they're doing but what's the other choice? Simply allow people to lose everything and suffer? And you wouldn't support something that could prevent that?
Well said Gstep. :encouragement:
CNBC's "Halftime Report" is joined by Social Capital CEO Chamath Palihapitiya to discuss his latest deal, his view of the U.S. economy and markets.
Social Capital CEO Chamath Palihapitiya on Wednesday doubled down on his comments that the government shouldn’t bail out billionaires or allow buybacks amid the Covid-19 pandemic.
“Buybacks are the primary example of a growing strain of incompetence amongst CEOs and amongst boards,” Palihapitiya said on CNBC’s “Fast Money Halftime Report.” “And it’s where we need to start thinking about how the rules need to change.”
Palihapitiya was defending his comments from two weeks ago, when he said poor-performing CEO’s deserve to be “wiped out” rather than bailed out from coronavirus-related economic issues.
“I think why I was frustrated is that I just think that that kind of behavior makes no sense and instead of being punished, it has been rewarded,” Palihapitiya said Wednesday.
“Since 2009, the 500 companies in the S&P 500, they bought back $7 trillion of stock and or issued dividends that turned out to be more than 90 cents of every dollar of profit that they made over the last 11-plus years. The federal government, as well as the Fed, between monetary and fiscal stimulus combined, have essentially transferred around $7 trillion now back to those said companies as well as companies slightly smaller than them,” he added.
Palihapitiya has been critical of the United States’ economic reaction to the Covid-19 pandemic, saying that stimulus money should go directly to consumers and workers rather than businesses. The Federal Reserve has announced a slew of new moves aimed at getting trillions of dollars into businesses and governments, including its Main Street business lending program and market interventions, as part of an aggressive strategy to keep markets functioning and support the economy.
CNBC's "Halftime Report" is joined by Social Capital CEO Chamath Palihapitiya to discuss his latest deal, his view of the U.S. economy and markets.
Social Capital CEO Chamath Palihapitiya on Wednesday doubled down on his comments that the government shouldn’t bail out billionaires or allow buybacks amid the Covid-19 pandemic.
“Buybacks are the primary example of a growing strain of incompetence amongst CEOs and amongst boards,” Palihapitiya said on CNBC’s “Fast Money Halftime Report.” “And it’s where we need to start thinking about how the rules need to change.”
Palihapitiya was defending his comments from two weeks ago, when he said poor-performing CEO’s deserve to be “wiped out” rather than bailed out from coronavirus-related economic issues.
“I think why I was frustrated is that I just think that that kind of behavior makes no sense and instead of being punished, it has been rewarded,” Palihapitiya said Wednesday.
“Since 2009, the 500 companies in the S&P 500, they bought back $7 trillion of stock and or issued dividends that turned out to be more than 90 cents of every dollar of profit that they made over the last 11-plus years. The federal government, as well as the Fed, between monetary and fiscal stimulus combined, have essentially transferred around $7 trillion now back to those said companies as well as companies slightly smaller than them,” he added.
Palihapitiya has been critical of the United States’ economic reaction to the Covid-19 pandemic, saying that stimulus money should go directly to consumers and workers rather than businesses. The Federal Reserve has announced a slew of new moves aimed at getting trillions of dollars into businesses and governments, including its Main Street business lending program and market interventions, as part of an aggressive strategy to keep markets functioning and support the economy.
Looks like he was right given the bidding wars on houses. However, condos did go down.
So glad I stuck with my long time friend and agent.
I don't mean to brag....but I have correctly predicted 20 of the last 2 stock market crashes. Just sayin.
Nope. The market is manipulated. The Gov't controls the demand through immigration. They also control how much supply gets built.
I used to complain that Harper's only economic policy was immigration and oil. Trudeau has no oil. All he has is housing.
In ten year the price of bus tickets went up 40%
In the past two year, the cost of my eggs went up 20%
The cost of Bell Canada services went up 60% in 8 years.
Yup, no inflationary trends.
According to Milton Freedman "the bigger the national debt, the bigger the rise in the cost of living".
When residential real estate goes up... so does Commercial.
When Commercial real estate goes, then mortgage/rent payments go up for stores, plazas, malls... and the suppliers, shippers, plants, factories.
A bag of chips should not cost $4 or more, lol. But retailers need the mark up to cover the rent.
And when new buyers get into the rental market... they are paying a premium, and have to charge a premium to make a buck... and when the people who got in the market years ago see what new rentals go for, they just turn around and charge the same... "market value". You would be crazy not too.
Bottom line, if you try and start a business where you have to have a store front... anything from pet foods to oil changes... your rents have increased dramatically... and those costs are passed along to consumers.
The cycle gets amplified when you factor in employees are facing higher rents, and higher costs, and need higher wages to survive. Again, that's a higher cost to business getting passed along.
The ripples from the real estate market are hitting you in ways you have not even begun to comprehend.
Best part... people are going blame Covid, or Ford, or Trudeau. Had a friend post something from that Consercative MP Peirre so-and-so.... blaming Housing costs on Trudeau's money printing. What a joke. If real estate only boomed in the last year, sure... but what about the last 20 years prior?
Real Estate is the problem. If it was in check, a lot of problems would be solved.
When Commercial real estate goes, then mortgage/rent payments go up for stores, plazas, malls... and the suppliers, shippers, plants, factories.
A bag of chips should not cost $4 or more, lol. But retailers need the mark up to cover the rent.
And when new buyers get into the rental market... they are paying a premium, and have to charge a premium to make a buck... and when the people who got in the market years ago see what new rentals go for, they just turn around and charge the same... "market value". You would be crazy not too.
Bottom line, if you try and start a business where you have to have a store front... anything from pet foods to oil changes... your rents have increased dramatically... and those costs are passed along to consumers.
The cycle gets amplified when you factor in employees are facing higher rents, and higher costs, and need higher wages to survive. Again, that's a higher cost to business getting passed along.
The ripples from the real estate market are hitting you in ways you have not even begun to comprehend.
Best part... people are going blame Covid, or Ford, or Trudeau. Had a friend post something from that Consercative MP Peirre so-and-so.... blaming Housing costs on Trudeau's money printing. What a joke. If real estate only boomed in the last year, sure... but what about the last 20 years prior?
Real Estate is the problem. If it was in check, a lot of problems would be solved.
Last edited:
Canada's real estate prices are the result of Chinese pouring billions into the market.
betterdwelling.com
New Book Dives Into Canadian Real Estate, Gangs, Laundering, and Corrupt Officials - Better Dwelling
The most important book on Canadian real estate you’ll read this year isn’t about demographics or interest rates. It’s investigative journalist Sam Cooper’s new book, Wilful Blindness: How A Network of Narcos, Tycoons and CCP Agents Infiltrated The West. The controversial best-seller outlines...
betterdwelling.com
Amazon.ca
www.amazon.ca
For sure.Canada's real estate prices are the result of Chinese pouring billions into the market.
New Book Dives Into Canadian Real Estate, Gangs, Laundering, and Corrupt Officials - Better Dwelling
The most important book on Canadian real estate you’ll read this year isn’t about demographics or interest rates. It’s investigative journalist Sam Cooper’s new book, Wilful Blindness: How A Network of Narcos, Tycoons and CCP Agents Infiltrated The West. The controversial best-seller outlines...
Amazon.ca
www.amazon.ca
tgere is an estimated 45 billion dollars that are ready to leave Hong Kong. Our govt wants a huge piece of it so they will make all sorts of concessions to attract it.
Fuck me i was looking at realestate today in turks and Caicos. They where unbelievable homes. The views architecture was ...well there's no words to describe it. If I had money the last place I'd buy something is in Canada.
Congratulations Canada... it was announced today you won 2nd place! Yes... in the global frothy housing bubble, you're #2. Beaten out by New Zealand once again, but edging out Sweden for the Silver.
As I see it... while there are no fixed rules or market levers, there are sort of soft invisable walls.
Market insiders, investors, sellers, do the math. They break it down to square footage... and calculate how much income you have to generate... decide what the best business is. Not all businesses are equal. Corner Store vs high end designer crap.
And when the math stops working, as in Day Care's... the Gov't has to step in an subsidize.
But at what point do oil changes become too expensive? Brake jobs? Pet food?
At one point do laundry mats stop existing? Spending a $100,000 on a building and putting 20 washers and 20 dryers makes sense. Spending $2.5 million on the same building does not.
The Gov't cannot subsidize everything. (Although my Liberals do try). Do you think if we stopped subsidizing daycares prices would come back to reality? ( and no, there is no scenario that would ever happen. Gov't and bankers will not allow one income families ever again. Economy would collapse).
But at what point does lower margin business stop existing? Dollar stores?
Or, has someone already done the math and knows what the market can bare?
Is our PM, or any Federal leader smart enough to understand the demographics and implications of over immigration, and its affect on the real estate bubble and how it trickles down to small business.
Thank goodness there have been properties owned for decades that can afford some of this stuff... but once they cash out, neighborhoods will transform dramatically. But I think we are already seeing that with the closures of fixtures like Honest Ed's, and some of the great Toronto Bars and clubs that are going down. It's not lack of a market for clubs... it's a lack of a viable business model with todays realestate bubble.
As I see it... while there are no fixed rules or market levers, there are sort of soft invisable walls.
Market insiders, investors, sellers, do the math. They break it down to square footage... and calculate how much income you have to generate... decide what the best business is. Not all businesses are equal. Corner Store vs high end designer crap.
And when the math stops working, as in Day Care's... the Gov't has to step in an subsidize.
But at what point do oil changes become too expensive? Brake jobs? Pet food?
At one point do laundry mats stop existing? Spending a $100,000 on a building and putting 20 washers and 20 dryers makes sense. Spending $2.5 million on the same building does not.
The Gov't cannot subsidize everything. (Although my Liberals do try). Do you think if we stopped subsidizing daycares prices would come back to reality? ( and no, there is no scenario that would ever happen. Gov't and bankers will not allow one income families ever again. Economy would collapse).
But at what point does lower margin business stop existing? Dollar stores?
Or, has someone already done the math and knows what the market can bare?
Is our PM, or any Federal leader smart enough to understand the demographics and implications of over immigration, and its affect on the real estate bubble and how it trickles down to small business.
Thank goodness there have been properties owned for decades that can afford some of this stuff... but once they cash out, neighborhoods will transform dramatically. But I think we are already seeing that with the closures of fixtures like Honest Ed's, and some of the great Toronto Bars and clubs that are going down. It's not lack of a market for clubs... it's a lack of a viable business model with todays realestate bubble.
Last edited:
