Real Estate

TD and BMO: Toronto housing prices "simply unsustainable" and a "bubble"

  • Last Updated:
  • Mar 20th, 2017 10:09 pm
Penalty Box
Dec 27, 2013
8003 posts
4050 upvotes
Toronto
zakarydoks wrote: Of course we have different characteristics. Heck, all our provinces have vastly different real estate and labour markets. Alberta "crumbled" in 2015 and 2016 but BC did very well. I find Vancouver more similar to Seattle than Montreal. The US and Canada is more similar than you think and any difference is more emotional than rational. Listen, I'm not saying we are identical, but to me Canada and Mexico is far different and Canada and the US is very similar. Are we more similar or different is more of an opinion but when I make investment decisions, for example, should I buy SHOP or BOX, where their HQ is located is not a determining factor. QSR can buy and integrate TH with minimal difficulty is another example where Canada and US regulatory framework is very similar. Again, this is a good thing.
Man, I think you need to go visit the states. It's not just "emotional difference". It's very very different. Right down to how people think, talk, and act. There are some exceptions, but for the most part very different culture and very different society.
Deal Fanatic
User avatar
Jan 14, 2009
5887 posts
4817 upvotes
Vancouver, BC
daivey wrote: Man, I think you need to go visit the states. It's not just "emotional difference". It's very very different. Right down to how people think, talk, and act. There are some exceptions, but for the most part very different culture and very different society.
Vancouver is very different from Quebec City or Moncton. Right down to how people think, talk, and act. I have been to the US many times and that is my opinion. You are welcome to yours.
If you buy vgro for a thousand years Vancouver homes will still be out of reach.
Deal Expert
Oct 7, 2010
15536 posts
5790 upvotes
rkanwar109 wrote: Why would they? All the risky loans are backstopped by CMHC. It's essentially a license to print money for the banks.
The government is going to stop to insure the mortgages through CMHC. If one has not 20% down payment, they have no business buying a house. Banks were giving out loans because they won't be on the hook if things go bad. The banks are starting to run scared, and will pass the additional risk to the borrowers in the form of higher interest.
Deal Fanatic
May 31, 2007
5018 posts
2175 upvotes
daivey wrote: Also, what a lot of people fail to realize is that Canada has a much better social safety net than the USA.

People always compare us to the USA but fail to make real comparisons - e.g. qualify of life. Look at the Niagara Falls, CAD vs. USA.... or Detroit vs. Windsor. Not only are house prices astronomically different, but qualify of life is way way way way x 1000 times better on the Canadian side of the border than the USA... And on top of that, these cities are much larger which would make you think that economy of scales would make quality of life in the USA better... but it's not..

At the end of the day, or welfare, social system helps our economy WAY WAY WAY more than people think. And I'm so glad I live in Canada because of this. Housing will never crumble the same way it did in the states because our system is 180 degrees different. maybe there will be some small crashes and bumps along the way, but nothing like the USA.
Too much socialism, social benefits and tax abuse have really hurt our productivity and economic potential. It can also provide little incentive for growth, abuse from gov on taxpayers, and rewards risk in the wrong ways.

For example, have three kids and collect thousands in child tax benefit? use the welfare and low income benefits. ( this is actually a strategy many use now)

As an entrepreneur, innovator, business owner, why take a risk or work so hard, ( and be taxed high) when you can buy a house and make the same money almost doing nothing with a system that rewards this tax free no risk so highly?

Why build a factory, oil, or global operation expansion into Canada, when the corp tax rates will be cheaper in USA once Trump cuts? + now we have carbon tax.

I don't buy the quality of life is better in Canada, if anything there is more opportunity in America then just being comfortable and the GOV providing everything for you.
Deal Addict
Nov 26, 2005
3214 posts
387 upvotes
Vancouver
spike1128 wrote: The government is going to stop to insure the mortgages through CMHC. If one has not 20% down payment, they have no business buying a house. Banks were giving out loans because they won't be on the hook if things go bad. The banks are starting to run scared, and will pass the additional risk to the borrowers in the form of higher interest.
i think they just stopped that plan in quiet... banks are making profit and their share price is way up from a year ago. RBC is up 36% yoy.
Deal Addict
Nov 26, 2005
3214 posts
387 upvotes
Vancouver
Jungle wrote: Too much socialism, social benefits and tax abuse have really hurt our productivity and economic potential. It can also provide little incentive for growth, abuse from gov on taxpayers, and rewards risk in the wrong ways.

For example, have three kids and collect thousands in child tax benefit? use the welfare and low income benefits. ( this is actually a strategy many use now)

As an entrepreneur, innovator, business owner, why take a risk or work so hard, ( and be taxed high) when you can buy a house and make the same money almost doing nothing with a system that rewards this tax free no risk so highly?

Why build a factory, oil, or global operation expansion into Canada, when the corp tax rates will be cheaper in USA once Trump cuts? + now we have carbon tax.

I don't buy the quality of life is better in Canada, if anything there is more opportunity in America then just being comfortable and the GOV providing everything for you.
unless you are talking about big money, if you are just a small business making under 500k, tax rate in BC for corp is 13%, vs in the states 26% (not sure about trump's tax cut)

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