Ottawa’s discovered renters. So what are we to make of this?
You may have heard that the Trudeau Libs will be doing three things in Chrystia’s April 16 budget. There’ll be (if provinces agree) a renter’s ‘bill of rights’ forcing LLs to disclose past price history and offering a standardized lease form. As well, $15 million will fund tenants’ groups that fight landlords. And rent payments will (maybe) be reflected in credit scores, if banks, LLs and credit bureaus agree.
This is happening because (a) it’s only fair to assist renters when owners have been shamelessly doted upon and housing has tax-free profits and subsidized 20x, taxpayer-backed leverage, plus (b) lots of Mills and Zs rent – and the Libs really, really, really want their votes next year.
How many rent? What’s the situation?
About a third of Canadians have leases – five million households. Renters, says RBC, have increased at three times the rate of owners (we know why when houses are crazy expensive). The greatest number of renters are young, but the ranks of downsized Boomers are growing fast.
As for rents, they’ve popped 10.5% in the last year while vacancy rates have dropped. The average rent for all residential properties in the country is just under $2,200. A two-bed unit in Van averages $3,500, in Toronto $3,200, Victoria $2,700 and Calgary just over $2,000.
As evidenced on this pathetic blog and elsewhere in the social media swamp, there’s a war raging between tenants and landlords. Provincial legislation favours renters and makes life a bitch for many property owners. By the same token, amateur landlords have spring up everywhere, encouraged by those ill-thought-out empty-house taxes. That’s helped fuel the conflict.
Also proven here many times is the indisputable fact a young person with limited capital and income is far better off being a renter than trying to sacrifice and own. But societal, peer and (especially) parental pressures often push a successful tenant into being an indebted, stressed-out, cash-poor and immobile homeowner.
There should be zero shame in renting. But there’s plenty. To date politicians have been slavish believers in real estate ownership, contributing mightily to that shaming. The coming budget, it seems, seeks to reverse that.
However, it will fail. Maybe it already has. The reaction to the announcements by the PM and poor Sean Fraser, his housing guy, have been… awful. “Virtually every word is false,” says mortgage brokers and social media rockstar Ron Butler of Fraser’s latest vid on the issue. And he’s right. The minister is spinning, fabricating, exaggerating and shedding credibility faster than my Chow is dumping his winter coat.
This is what the Libs claim: “This is about protecting renters. But this is also about generational fairness – making sure Millennials and Gen Z, who are most likely to rent, get a level playing field in the rental market. This is just one of the things that we are going to be doing in this budget to build an economy that is fair for every generation.”
Reality is another thing.
A Bill of Rights for renters means nothing. It’s provincial jurisdiction that covers tenancies and landlord behaviour, so the fed pledge means diddly until those other governments sign on. No landlord will be forced to reveal past income from his/her properties unless the province compels it. And why would that happen? Market rent is market rent. History means nothing.
As for rent going towards a credit score – more fiction. First, small landlords do not (and cannot) report to credit bureaus. Second, just 8% of the kiddos asking for a first mortgage are rejected because of lousy credit. A history of not baying bills or walking out on a credit card will trump any rent record. Nore than 90% are given a loan or refused one simply because they can or cannot afford the property. It’s all about the price of real estate, not the creditworthiness of the wannabe buyer. The Lib claim this will “help millions of renters” get a loan is bunk. Third, lenders are already allowed to take rental payment history into account when reviewing a mortgage app.
It’s not the ability to get a mortgage which stops renters becoming owners. It’s price. Downpayments. Ownership costs, like property tax, land transfer tax, condo fees, insurance and, yup, the mortgage rate. Adds Butler: “The idea that MILLIONS of renters could become owners over night if rental payment history could be applied to a mortgage application is one of the biggest WHOPPERS in the history of lying.”
This is not going to help people who rent become part of the landed gentry. It won’t drop the cost of a lease or a house. It exacerbates the conflict between landlords and tenants. It builds false, groundless expectations. It tromps on provincial turf. And while owners are showered with real tax benefits and financial incentives (making real estate prices worse), renters get smoke, mirrors and falsity.
No wonder the kids are pissed.
About the picture: “Here’s a pic of our rescue, Corby,” writes Paul. “He’s an 8 month old havanese-poodle (or hava-poo). He’s pretty cute!”
To be in touch or send a picture of your beast, email to ‘[email protected]’.
130 comments ↓
Our country appears to be getting more and more complicated, with the governments at all levels, getting their fingers into everything. Maybe it has always been that way, but these upcoming tax raises: booze, carbon etc…. sure seem to be putting a solid brick wall in front of our future generations. I am feeling so bad for their future.
With billions of renewal mortgages coming at us over the next few months will create a frenzy in Canuck mindsets, “do we sell and rent or bite the bullet, the later will prevail”, Canadians love to say, we own it rather than eat crow and call themselves a renter in front of their friends, but the past few years as shown us, renters have won hand over fist in spending less on rocks and mud, unfortunately , pride gets in the way for the millines and generation Z’s.
China is treating the global economy as a dumping ground for its cheaper clean energy products, depressing market prices and squeezing green manufacturing in the U.S. Trump said if he gets elected as president, he is floating the idea of reinstating a significant tariff level on Chinese products if he wins a second presidential term.
Americans are pushing ahead with their economy, three times faster than us Canucks, if Trump gets elected by year’s end, he will most likely extend the Ghosted Imaginary Wall along the Canadian border to keep our Oil, Steel and Lumber at bay, so sad.
Now with the surprisingly religious run-on bibles frenzy that Trump has endorsed for Country Music Star Lee Greenwood. Trump is not stupid in some ways, he knows every home needs a bible, “ keep praying for America Again” As much as I would not want to see Trump win, he has surely tapped into sectors that other politicians could not dream up to rally votes, he is an outside the box thinker, “I give him that”.
If Trump wins the election and at this point in time, he will unless something drastic changes the landscape, he will spend more time in revenge and retaliation then he will be running the country, he forgives or forgets NO-ONE.
How quick you can go from fair of being broke and potential property seizures to being extremely rich starting on the very day that the courts lowered his bill bond. Trump now has a net worth of $6.4 billion, as of 4 p.m. Eastern yesterday. That makes the former president one of the 450 richest people in the world, according to Forbes real time tracker.
Talk about self-perception, even Trump’s media stock ticker is DJT.
My take on Trump is, if he had the bad luck of falling into a sewer system, he will surface with good luck, coming out smelling like a bed of roses. What can we say about TRUMP, other than “yes, it’s hard to say and we don’t want to say it, after using up all your luck, “you are smart” but stupid at the same time.” The truth is the truth. If only he could get real and practice to control his lies and misconceptions of false information to the American people.
Not even sure why I pay close attention to any of the rhetoric in America, we certainly have enough of our own problems right here in Canada that keeps plenty of people awake at night.
Quote of the day: “Do not do unto others as you do not want others to do unto you.” or “Do as you would be done by.”
The current federal Liberal government is clueless.
Like many have said – how is a mom & pop landlord going to report a rent payment to a credit bureau? How would they correct an error if one is made? As many have said how does this possibly help someone buy a home. Who cares about past rent – rent today is what rent today is.
Inflation remains out of control.
North Vancouver – wtaer / sewer treatment plant.
$700 million initial budget.
$3.8 billion is the new cost.
$4.8 billion will likely be the final cost.
Beware – items like this will be coming to almost every community & will be paid for by the people – wait til that gets into the inflation number…
Canada’s productivity has fallen badly since 2019 and it is getting worse. Even Japan has done much better than Canada.See the attached chart from this week’s edition of The Economist.
https://www.economist.com/cdn-cgi/image/width=360,quality=80,format=auto/content-assets/images/20240330_FNC079.png
Absolutely 100% correct.
But really no major strain on the brain to figure that out. The Liberals know this. The top ranking ones are elite politicians who see their ultimate goal is to stay in power.
The right thing to do is obvious, but that would crash the market.
All they have to do is wait it out, the market will eventually crash on its own.
And with no real credible opposition, to prove otherwise, the Liberals won’t be taking the blame.
The Liberals are making false promises and lying again?
I am SHOCKED
Ah, for the halcyon days of yore… when leadership gravitas prevailed and business class pillars of the community were properly revered with well-deserved outsize influence.
Western leadership now unfortunately panders to the helpless, useless and most strident. Sad.
The reason that renters have been shafted is because our corrupt politicians allow developers to build condos, which are mostly used for speculation and money laundering, at the expense of rentals, so the supply of rentals dwindles every year and the prices go up. Then amateur landlords buy condos to rent them out. How perverse is that?
Looks like the Liberals have taken some Millennial and Gen-Z FarceBook memes and turned them into policy.
Hopefully we will have an election this year and request Mr. Trudeau and Mr. Singh to abdicate.
Worst case scenario: NDP + Liberal: 51%, Cons get: 49%. Prime Minister Mr. Singh. God save Canada.
This renters bill of rights seems to favor landlords as they now can check credit history and threaten tenants with a bad credit score if they don’t pay. Not seeing what this will do for tenants.
Personal finance and shopping tip: Costco
Costco is the wise household’s source for all necessities, from food to clothing to housewares… and more.
My office attire on this lazy Thursday consists of Costco-acquired underwear, socks, Tilley pants, Ralph Lauren collared shirt, Banana Republic merino wool sweater and brown leather Prospector knockoff Blundstone-style shoes. Costco down jacket. Stylin’
Last night’s dinner, and today’s lunch, is baked one-pan chicken, potato, onion and carrot dish- all items from Costco, including seasoning. Mandarin oranges for snack. Also a bowl of Costco Easter chocolates for the office.
Recently picked up a fine Wetskins raingear set for $59… reduced from $79. Shut the front door!
Costco stock CAGR last 10 years: 22%. $10,000 in 2014 = $73,000 today.
Who could ask for anything more?
It is unfortunate that Canadian politicians at all levels will not stay in their lanes. Our system is a federal one with clearly defined areas of responsibility. In their quest for short term political gain, Federal politicians interfere in areas of Provincial responsibility and vice versa.
Municipal politicians run around and try desperately to attact media attention.
Is this pattern going to change? I suspect not.
#11 teddy on 03.28.24 at 11:52 am
This renters bill of rights seems to favor landlords as they now can check credit history and threaten tenants with a bad credit score if they don’t pay.
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I’m not sure if you know this … but that’s the whole point of a credit score. To identify people who have a history of paying their bills and people who have a history of not paying their bills. So I don’t see the problem.
Government Logic: There are too few rentals and rent is too expensive. So we’re going to layer on a bunch of regulation that favors tenants
Landlords response: government regulation has added to the costs and risks of being a landlord. I’ve got to raise my rents to make up for it or sell my unit because it’s just not worth it anymore.
More evidence that government involvement only messes things up because they can’t see the forest for the trees.
Sailed away from sanity
⬇⬇⬇⬇⬇⬇
#7 Sail Away on 03.28.24 at 11:32 am
This would make for the most interesting Long Game in Kanada.
Turn over the land to the FN. They may build without all the development charges.
Sell, Rent to others.
I mean what is the purpose of all those Land Acknowledgements in fashion? Lip service?
Time for the Left to pony up.
https://www.businessinsider.com/first-nations-vancouver-canada-building-housing-high-rises-battery-plant-2024-3
Canada’s First Nations are building the densest neighborhood in the country by reclaiming their ancestral land and defying NIMBYs
Eliza Relman Mar 27, 2024, 6:06 AM EDT
Ground has already been broken on one of these projects, 11 towers with 6,000 homes being built by the Squamish Nation on a 12-acre piece of land near downtown Vancouver,
Because the development, named Sen̓áḵw, is on Squamish Nation reserve land, it’s not subject to the same governmental land-use regulations as land elsewhere in the city, allowing for a speedier approval and construction process
Brother and sister in law recently retired. They both have Ontario govt DB pensions. They sold their condo in Toronto for top dollar two years ago and then rented one for $2500 plus plus a month for a year while they had a think.
Decided that even on two Govt pensions, max RRSPs and stock investments they could not afford to retire in Toronto. Plus the winters were killing them. Off they went to Panama. Their Canadian LL re-rented the two bed, two bath condo for $3000 a month.
In Panama they rent a top quality, fully furnished and equipped, beach side condo. It has two beds and two baths and is a generous size. Cost is $1300 American per month plus internet. Cost of middle class living is peanuts.
They won’t be the only ones.
#4 Bigbird2 on 03.28.24 at 11:27 am
Canada’s productivity has fallen badly since 2019…
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This is the *largest* issue facing Canadians over the long term. While Ottawa diddles with the housing market (and will invariably make things even worse), we are falling behind other nations in terms of overall productivity.
A less productive nation results in less tax revenue, worse healthcare, older infrastructure, higher debt, and larger deficits.
We MUST demand that governments provide “can-do” policies that enable risk takers to boldly innovate, including everything from AI tech to exporting our abundant energy resources.
Enough is enough with this ridiculous posturing and virtue signalling. Our nation could be great, yet it seems the powers in government are content with a policy of death by a thousand cuts.
This is so frustrating that I am considering pulling my wealth from Canada and going elsewhere. I can’t be the only one contemplating this?
Being a landlord is a fundamentally illegitimate practice, like being a ticket scalper.
If a collection of wealthy corporations and individuals went out and bought a significant number of new and used cars off every lot in an area, and then re-sold them with a markup to compensate them for their “work”, what exactly has been achieved? No value has been added, it’s just made cars more scarce and expensive for people who actually want one to use instead of resell.
Rent is a penalty the poor pay under duress to the rich for not having the financial means to buy something outright. It does not create or add value, and is a drain on the economy. Socialists know it, Adam Smith even knew it, it is self evident.
That being said, nothing the Liberals are planning to do will actually fix anything.
Seems the Federal Liberal government is making every policy decision based on trying to get re-elected rather than good governance.
They are laying waste to the work of those who came before them.
I guess they think the electorate is stupid and can’t see through their scheming.
Eventually they will have to pay the piper,
and I hope they take the Rolex and Armani wearing socialist with them.
DELETED
#20 Sunshowers
Rent is a penalty the poor pay under duress to the rich for not having the financial means to buy something outright. It does not create or add value, and is a drain on the economy. Socialists know it, Adam Smith even knew it, it is self evident.
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Lots of smart people who could buy are renting.
Owning an immobile asset is what does not create or add value.
It pays no dividends, and ties up cash, that could be used to invest in liquid assets.
And don’t forget the freedom to relocate on a few months notice.
#20 Sunshowers
Fortunately, your concept will never be accepted. It ignores the need for temporary long-term rental. Say, you are coming to another city for a work contract that will last 6 months or 1 year. Or you are a student coming for 3-4 years. Or a newcommer to the country, and you first come to one city where you have relatives, but think of moving to another city a few years later.
Way too long and expensive to stay in a hotel. Yet, no point going through the hoops of buying a place and then selling it, even if you have the means.
Then, there is a matter of in-house rental suites. You bought a house and live there with your family, but it is a bit too big and you can rent out a basement for someone else. That’s a win-win. If being a landlord becomes “illegitimate”, then do you think people will sell their house and buy one a bit smaller? No, they will keep the same house and use the basement for some storage instead of renting it out. You just reduced the rental supply, and noone benefits.
#113 crowdedelevatorfartz on 03.27.24 at 9:57 pm
Canada’s population just hit 41 million.
About 9 months gestation after it hit 40 million.
https://globalnews.ca/news/10386750/canada-41-million-population/
Thats a lot of babies…..
****
People in Canada are NOT having babies.
We stopped doing that.
The Liberals don’t recognize the severity/urgency of the problem. None of the politicians do. This is a national emergency. Skilled young people have the option to go south and earn twice as much with a lower cost of living. I am not suggesting the U.S. is a panacea, but when the gap is so large (and growing), increasing numbers will make that tough call. Those that do stay in Canada must demand higher wages in order to not be homeless, which leads to more inflation.
The higher skilled and ambitious are the ones that will increase productivity, something we desperate need. Bringing in 10 diploma mill grads for every 1 skilled person leaving is not a path to prosperity. Rather, it’s a path to lower quality of life, as witnessed by 6 straight quarters of declining GDP per capita.
At the risk of repeating myself, the only way out of this problem is to rapidly and significantly curtail demand. We simply can’t build our way out of this – it would take decades. Curtailing demand means, among other things, dis-incentivizing rent-seeking behaviour and home hoarding. But of course half the bloody parliament are landlords – heck, the prior housing minister supposedly charged with improving home affordability has three income properties – so of course that won’t happen. I know will know public policy is taking the problem seriously when MPs start selling their income properties. Until then, it’s all window dressing.
The sentiment is that if people can’t afford to buy a house why stay there? There is no shame in renting. If there is no future for residents and their kids in owning a house then why be enslaved to Landlords and employers? If companies can’t provide living wages then people will leave instead of being slaves to them. Simple economics.
By the way, speaking of the need to curtail housing demand, it looks like central banks are about to make a big mistake and cut rates despite inflation not yet being vanquished – in the U.S., far from it in fact. Of course, keeping rates too low for so long (like 15 years straight) is a primary reason homes and other asset values are so high.
The prudent thing to do would be to keep real rates positive for an extended period to gradually burn off the excess of the last 15 years (no one wants a disorderly crash, after all). Instead it looks like CB’s are keen to cut to zero and print more money. They will never learn.
What actually happens if you remove the capital gains exemption on primary residences? Has anybody actually looked at doing that instead of these meaningless gestures?
Being a landlord is a fools game here in Victoria. There are few homes that can be bought for under one million.
That amount of money brings in at least 60 to 70K if invested properly. Only half is taxable.
No house in Victoria is renting for that kind of money if it is valued at one million. It would rent for about 42 – 48K and all income is taxable.
This new information will just drive more landlords of SFHs to sell.
Not necessarily because of the tenants, as most are good people, but it just isn’t worth the hassle.
Government needs to stay out of the housing market.
Coming up with the downpayment is probably the leading issue in your list.
No one can save a substantial amount of money anymore after paying all their expenses.
Request to stop calling Sean ‘poor Sean’. He could’ve said ‘ No’ when offered the Minister of Housing job. He won’t have a job next election anyway.
Nor will the tower climbing carbon tax guy.
“often push a successful tenant into being an indebted, stressed-out, cash-poor and immobile homeowner.”
Hate to break it to you, Mr. Turner, but it’s not just homeowners who are immobile.
Anecdotal: I’m trying to leave my high-tax province, and move to a low-tax one, with a decade-plus of work in my field. I cannot get a callback on a job application if I apply with my current address, because HR folk aren’t looking that far. When I apply with a local address, I get a call, but they balk when I tell them I’m not in the city, and have plans to move, but need a job, first. There’s apparently zero wiggle room in the ‘we MUST be in the office 3 times a week’ corporate policy. I’m not even looking for help with moving expenses, and I’m willing to eat the cost of flights and hotels for the next x weeks to be in the city some of the time to show up at work – maybe every other week, until I actually get a place, then I’m theirs for however many days, every week.
So, I’m trapped here. I can’t get an apartment without having a job. I can’t get a job without being in the city I’m applying to. And, of course, that’s not even accounting for the rent differential of having lived here for the past few years with rent protections, and having to pay market rents in the city I want to move to.
So, yeah, it’s a good idea to rent so you’re mobile and can take advantage of job opportunities and chances, but rather less realistic once you try applying the principle in the real world. Barriers have been thrown up left, right and centre.
And that’s not even TOUCHING on the people who have lived in their apartments for 5 or 7 years, and can’t AFFORD the market rate of rent wherever they may end up to pursue an opportunity.
Canada’s population increased by another net 1 million people, (now over 41 million), in just under an astonishing 9 months.
I wonder how that will impact an already dogfight rental market.
A much better solution would be to give renters the ability to write off their rent. That would provide a far more equal off-set than another “social program”.
Well, neighborinoes, I must say, I’m feeling as sprightly as a spring lamb! You see, when it comes to being good, well, let’s just say I’m the Michelangelo of goodness, chiseling away at life’s challenges with a smile! My goodness is so pure, it could make an angel blush. I’m like a beacon of righteousness, guiding others toward the light of virtue. In fact, I’m so good, I make Mother Teresa look like a slacker! But hey, being this good ain’t easy, it’s a full-time job! So if you need some tips on how to be as good as me, just ask, neighborinoes!
The Trudeau Libs at this point, must totally believe their own bull$h!t. What else could possibly explain this latest barge full?
Ah, the rental game.
I vowed to avoid landlording, but…
Nanaimo will be enacting a bylaw change rezoning an empty lot we own from R1 to R5. R5 allows 4 homes on the lot.
So… we are considering building 4 townhomes for rent. Specifically, for our employees. That would avoid a lot of the ‘random tenant’ issues. Control is good. This may have legs.
If it were Wednesday, we could at least get our whoppers on sale at BK…
I used to be hopeful that things would improve over time. I had a tin plated employer pension plus the Federal drop in the bucket. I knew how to live very frugally , and how to do 99% of maint . and repairs myself. Thrift stores are my Walmart , but socks and underwear I do splurge on new. Basic simple diet works fine. Eat out or entertainment is very rare. No cell up until about 6 months ago and then a flip that has already packed it in { battery won’t take a charge } I won’t be replacing it anytime soon. No subscriptions other than basic internet and cable. Old, very basic hatchback for wheels, 5 speed to maximize mpg. A $2,000 work truck that has already had expensive problems. More tow homes in the last 3 weeks than the previous 30 years. But a reasonably nice house that I almost own and payments less than 1 bed. Apt. rent.
The inflation over the last 3 years have sealed my fate.
Moving is not going to happen . Too old for another country and wife won’t leave our family.
More and more I am rooting for the young peoples ” burn it down ” movement.
Those of us in the middle class and lower segment are dying a death of a thousand cuts anyway, what’s to loose at this point ?
Canada can’t survive in any way with the current set up, 20% with more money than they know what to do with and 80% just barely making it.
With more and more moving to the desperate group each year.
There was hope for the first 4 decades of my life , the next two and 1/2 went a bit sideways. But the last 3 years has removed any hope for most Canadians myself included.
I can’t even imagine what it would take to stop and reverse the train wreck. Perhaps a fresh start might work ?
Off Topic
GDP data out.
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MONTHLY
Dec 2023 to Jan 2024, $ (x 1,000,000)
2,204,337 —> 2,217,503
Change = +0.59%
(don’t annualize until you see quarterly numbers later on and HARD TO BELIEVE January, a very, very, very low month of Consumer Spending had such a HUGE leap in GDP… but hey, welcome to Seasonal Adjusting).
Discussion (seasonally adjusted, lively, make it up as you go along):
https://www150.statcan.gc.ca/n1/daily-quotidien/240328/dq240328a-eng.htm?HPA=1
—————
2023 YEARLY
Quarter, $ (x 1,000,000), Change Quarter over Quarter
Q4 2022…2,185,857
Q1 2023…2,200,238……0.65%
Q2 2023…2,203,291……0.14%
Q3 2023…2,200,361……-0.13%
Q4 2023…2,204,563……0.19%
Year over Year = 0.86%
(up better than down)
Also Seasonally Adjusted but over the year the statistical smoothing kinks are largely worked out. Why more believable than monthly GDP.
——————————————-
Canada.
Real Estate Nation.
Rental Litigious Nation.
What a country!
What ‘shame’ in renting? I never felt shame when I rented – if I were able to rent a place on my own that was a matter for celebration. For the record, I usually had at least one room mate all the years I rented & plenty of my compatriots had several. Sharing costs to be able to live on one’s actual income is not a new thing or confined to the present younger generation(s). Not a few single elderly folk share their living quarters because they too can’t otherwise afford them. That too is nothing new.
As for the latest federal government ideas on ‘helping’ renters, given how their actions regarding home ownership seem to have made things more expensive can’t see how renters would end up benefitting. A universal rental contract may prevent rental abuses, but again if I were considering renting out a property such legislation might make me decide against, particularly if it made being a landlord even more fraught with difficulty.
As for funding tenants rights groups, that seems to me to underline that the government is placing the lack of affordable housing blame on the shoulders of landlords yet again. Now that IS something to feel ashamed about!
#24 Michael in-north-york
“Then, there is a matter of in-house rental suites.”
It’s not really a matter, because someone who rents out part of a home they already live in is not reducing the supply and increasing the demand of other homes available to own by purchasing another one to rent out.
They could also provide temporary long term housing to the people you mentioned as well.
The Feds funding lessee lawsuits against landlords is not constitutional. It will be overturned.
The part about credit rating reporting is a double edge sword and may be great for landlords. If landlords can report non-payment to credit rating agencies then tenants in that situation will wish to leave expeditiously. That has been a major problem for “mom & pop” landlords. Not such an issue for the larger landlords that have already been doing this through workarounds.
Off Topic
CONSUMER SPENDING 2023
(a.k.a., in StatCan parlance as: “Detailed household final consumption expenditure, Canada, quarterly”)
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610012401
————–
Qtr … $ (x 1,000,000)
Q1 2023 … 383,329
Q2 2023 … 385,969
Q3 2023 … 389,480
Q4 2023 … 393,986
Total…….1,552,764
Dec 2023 GDP = 2,204,337
– Consumer Spending accounted for 70.4% of GDP in 2023 or thereabouts. Too lazy to do a quarterly or monthly weighted average. Thus, close enough for “Government Work”.
– Down a bit from 2022 when Consumer Spending was 71.1% of GDP.
– Consumer Spending Change 2022 —> 2023
+5.6%
Again, up better than down.
Seasonally Adjusted but the total is the same for Unadjusted or Actual as statistical smoothing kinks are worked out over the year.
———————-
No screaming heck but positive nevertheless.
Cdn Consumer still ALIVE and KICKING.
It will cost 3.8Billion to implement 15Million in support.
Mostly to Liberal friendly companies…..
What drove me over the edge is 2024 construction costs. The one serious want in my life is a very basic shop building . Not small, but not huge. About 20 x 30.
Today I got a glimpse of what something like this might cost. Local builder is offering 2 vehicle car ports . A slightly unorthodox design that uses 2 precast concrete bases craned into position so no permanent foundation or footings are required , therefore no building permit. Saves quite a bit on overall cost. Site prep is not included so $8,000 gravel base or $12,000 concrete slab base plus $55,000 for the structure installed, plus tax 12 % in B.C. so toss in another $7,400 or so. The total cost ends up at $70,000 or so for a 2 car carport.
Just nuts !!! It’s going to shipping containers and tarp buildings till I die I guess.
A Bill of Rights for renters means nothing. It’s provincial jurisdiction that covers tenancies and landlord behaviour, so the fed pledge means diddly until those other governments sign on. No landlord will be forced to reveal past income from his/her properties unless the province compels it. And why would that happen? Market rent is market rent. History means nothing.
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I agree with the above. There is something that the federal government can do though. It’s to use its ability to tax.
1. Residential real estate is only for the use of primary residence home owners and renters (via landlord). Tax punitively all other owners of residential real estate (speculators) via 10% value of property annually. See the speculators run for the hills. And, the federal government doesn’t get itself involved in a provincial jurisdiction.
2. So that landlords and primary residence home owners aren’t treated as residential real estate speculators taxed out of the wazoo, federal government creates a national residential property registry. Both landlords and primary residence home owners register in their respective category using a unique identifier: social insurance number for sole proprietors, partnerships and primary residence homeowners and BIN for incorporated landlords. This still doesn’t touch provincial jurisdiction.
3. So that landlords don’t scam the system, residential renters/tenants must register independently of landlords on specific unit they rent and rent payment must go through the national residential property registry. Benefit here is that a national rent control process is set up this way. Why wouldn’t renters want that? Might this part touch provincial jurisdiction? It feels like a grey zone to me.
4. Rent payments through the national residential property registry creates a historical record of rent payments that over time can be used to enforce standard rents even when an old tenant leaves a property and a new one comes in. Will landlords like this? Likely not however the existing system isn’t working so why not try something new. And anyways, landlords are in the minority so, whatever.
Overall, the above is what I think the federal government should do.
Is the above thoughtful or garbage? Please chime in your thoughts.
My Sidney 50′ marina slip lease increased 10% y/y.
I may move the boat back to Mexico but their peso is wildly out performing our peso.
we need a digital technology bill of rights
ECONOMIC NUT CASES. MADE IN CANADA.
When the government wants to make something more affordable, usually means new subsidies, laws and regulations that drive up the real price. Higher prices, higher bankruptcies. Meanwhile genuine economic nut cases are calling for more public housing. Some of their vote buying nonsense would surely elicit blushes from even the old Catholic Church censors.
“No one is totally useless as long as they can be used as a bad example.” Captain Tom Batty, Princess Louisa’s Royal Fusiliers.
“Bill of Rights for renters means nothing. It’s provincial jurisdiction that covers tenancies and landlord behaviour, so the fed pledge means diddly until those other governments sign on. No landlord will be forced to reveal past income from his/her properties unless the province compels it. And why would that happen? Market rent is market rent. History means nothing.”
This little bit of ‘legislation’ is actually a crafty bit of work.
The CRA is going to enjoy the ‘information’ the renters will provide the governments about landlords. Lots of information will be provided. Taxable information – to be sure.
And other benefits – you know, for reporting.
Sure would be nice to have RE treated as a financial asset. You can lend out financial assets (like an airbnb) and have your rights protected, and sign whatever contract you want. No-one complains, and contracts are enforced.
I don’t see that happening these days with RE. Capital gains tax isn’t a particular glaring concern if you don’t plan to sell.
Canada is now the fourth largest producer of oil and gas in the world. Look at the state we’re in.
#39 Dragonfly58 on 03.28.24 at 2:13 pm
More and more I am rooting for the young peoples ” burn it down ” movement.
Those of us in the middle class and lower segment are dying a death of a thousand cuts anyway, what’s to loose at this point ?
Canada can’t survive in any way with the current set up, 20% with more money than they know what to do with and 80% just barely making it.
___________________
Welcome to Trudeau’s Canada. Productivity is dropping so fast in this country that the Bank of Canada is panicking. The USA makes us look like a joke, yet Canadians still point their nose in the air at Americans. Inflation ripped during the pandemic, yet wages barely caught up and the middle class is dying a slow death.
Just think, back in 2015 this country was doing well. What changed? You can bet all this pain was 100% self-inflicted. Voting matters!
The CB is not panicking. There was no inflation during the pandemic as we slipped into a recssion with 14% unemployment. Prices went up post-pandemic globally, but the CPI in Canada has plunged from 8% to 2.8%, lower than in the US. Wages have been increasing faster than the inflation rate for an entire year. Maybe you should do Canada a favour and leave, since you hate it. – Garth
Oh yes, another ‘database’ for the CRA to tap into.
“We’re from the government and we’re here to help.”
#48 Travelling on 03.28.24 at 2:51 pm
#52 Triplenet on 03.28.24 at 3:05 pm
You guys do realize that the moment any of this happens the small time landlors (renting a basement or a condo) will bow out as it will not be economically feasible. In a private market no profit means no activity.
Yes, maybe a lot of these properties will get sold but so what ? Not like the renters can afford to buy them and carry the monthly total cost.
Here is a radical thought for you of 3 changes to be implement at same time if you want more rentals :
No Income tax on rental revenue .
Instant eviction for non-payment of rent.
No fault eviction for any/no reason with 60-90 days notice.
And offourse the govt. must build social housing.
The days of landlords subisidizing the tenanats banking on capital gains are all but gone.
#19 JP on 03.28.24 at 12:19 pm
#4 Bigbird2 on 03.28.24 at 11:27 am
Canada’s productivity has fallen badly since 2019…
——————————–
This is the *largest* issue facing Canadians over the long term. While Ottawa diddles with the housing market (and will invariably make things even worse), we are falling behind other nations in terms of overall productivity.
A less productive nation results in less tax revenue, worse healthcare, older infrastructure, higher debt, and larger deficits.
We MUST demand that governments provide “can-do” policies that enable risk takers to boldly innovate, including everything from AI tech to exporting our abundant energy resources.
Enough is enough with this ridiculous posturing and virtue signaling.
———————————————–
You do this at the ballot box!
It will take time, and needs to be done at the Prov. level as well, and with the Judiciary. The only hope is that PP takes a sledge hammer to all the levels that block economic growth.
BC looks set to give the NDP a new mandate to embark on a new $40B green energy plan with BC Hydro.
Virtue signaling at its finest, No talk of using the massive natural gas resources and spending an extra $40B for health care.
They just gave away the Queen Charlotte Islands in exchange for a future of zero revenue, but the virtue feels good…..
You do the math.
Well said.
There is a criminal tax and policy conspiracy that supports landlords.
It needs to be crushed.
Tenants, keep your rent.
Landlords, keep your distance.
Stuff your threat. Nobody rides for free. – Garth
#48 ‘Travelling’ – interesting post. Comment on your second point about a ‘national registry’ for homes. Very Big Brother, yet more paperwork for folks to deal with on an annual basis & you know government likes to make it complex. Think about the National Gun Registry debacle. Was supposed to prevent someone doing a mass shooting (didn’t), lower crime (didn’t), cost very little but ended up costing literally a billion with a ‘B’ plus. It was however very effective in making life more difficult for legal gun owners. Plus created all sorts of government jobs as someone had to process all that paperwork.
As for point 3, why wouldn’t tenants want to report what they pay? Easy answer: anyone who doesn’t want to be located for legal or safety related issues. Oh, the data won’t be used for any other purpose or ever get compromised? Good luck with that.
#20 Sunshowers on 03.28.24 at 12:19 pm
Being a landlord is a fundamentally illegitimate practice, like being a ticket scalper.
——————————-
What you’ve described is the role of the speculator. And I agree that they add very little to the whole equation.
Renting is entirely different. If I fly somewhere on vacation I don’t want to hassle with buying new car just so I can get around. Thankfully there are people in the business of renting cars. For a fee I get to use the car for a set amount of time and then I bring it back. They pay all of the costs associated with owning the car like maintenance, insurance, etc. In return they get a fee that covers their cost and with some left over as profit (gasp), because after all they have to pay their employees and still have money left to pay themselves. It’s false to think that if these rental companies didn’t exist that people who rent cars would suddenly prefer to buy them.
Same with landlords. There are a lot of reasons why people might prefer to rent. Maybe they’ll only be in a city for a year or two. It’s hardly worth all the expense of owning so instead they rent a place. The owner has all of the expenses of owning (mortgage, taxes, rent, maintenance). In return they charge a rental amount that covers their costs and still a little left over for pay themselves for the work they do and money they invest. And as garth frequently points out most amateur landlords don’t collect enough to make a profit or even cover their costs and it’s only if the property value goes up that they make a profit. It’s false to think that if all of the landlords were to sell their property that the renters would prefer to buy them. Or if the main issue is affordability that they would suddenly be able to afford them.
Are there bad landlords? Of course. And there needs to be rules in place to protect tenants from bad land lords and drive them out of the industry. But that doesn’t mean the whole practice of people renting properties to others is illegitimate.
DELETED
Garth, it’s not that we hate Canada. It’s that we hate how things are evolving financially in our lives. In my early 50’s I was just brushing on the underside of upper middle class. Very good education , very good skill set, very good work ethic, { passed on to my son thank you . he is reasonably often complemented on it by supervisors and the overall boss } moderately good employer. I do have a 85% paid off house to show for it all. But what’s left over after my very basic living expenses are paid for is a total joke. 2.8 % inflation ? Are you serious ? Anyone who buys anything other than what is on Stats Can’s cherry picked list knows what a lie that number is. House insurance , up 45 % this year, used vehicles , up, up , up. Even my son is seeing it , looking at 20 year old used cars . All the sort of used heaps that were $2,000 – $3,000 last year { the sort of car a young guy working landscape has to be thinking about are all $5,000 + this year. And so on. The later 1970’s F250’s I drove for years and would buy when needed for $800.00 – $1,200 any day of the week are all $6,000 – $8,000 now. And then there is the grocery check out. In what possible world does these sort of numbers square with 2.8% inflation ? Canada is just ducky for people such as your self , sitting on what has to be a very substantial sum.
But for many of us little beavers , despite decades of school , skills upgrades , hard work ; nose to the grindstone stuff , the wheels are indeed coming off the bus. I am not yet to the point of checking if cat food is on sale this week , or collecting roadside bottles and cans, but surely there should be more to life in Canada for a retired old engineer than bird watching and long walks in the park and trying to make every nickel do a quarters work.
DELETED
That’s lefties’ default way of solving problems. More regulation, more control, more rules and restrictions, more bureaucracy. Like, let’s introduce more friction in the machine, and see if it works better…
#47 Dragonfly58 ****
As I have repeatedly said. There will be NO AFFORDABLE HOUSING, until costs come down, which I very doubt.
Politicos cannot do anything about the price of cement, lumber, labour. Eliminating the carbon tax would definitely help with cement and drywall and metal product costs.
Municipalities are a big factor in cost escalations due to fees, zoning, and regulations.
It ain’t interest rates nor the personal home exemption that’s the problem. It’s costs and costs only.
Not exactly. Most real estate transactions are resales, not new construction. – Garth
Hey Garth, please consider removing:
#62 Diamond Dog on 03.28.24 at 4:08 pm
This ad-hominem post would have been deleted in short order, had it been about anyone other than President Trump. Besides, it has nothing to do with today’s subject.
Agreed. – Garth
LLs in BC already operate under THE most oppressive regime in Canada, under the socialist NDP. Having a bsmt suite in your home has been a very helpful mortgage helper for many new homeowners, and many elderly as well, giving much needed temp homes for post-secondary students in major centres.
Unfortunately, the BC NDP has reinforced its class warfare here, fooling those that don’t know any better. The Rental Act in BC is tilted completely to deadbeat renters. Too many examples to list of deadbeats stiffing innocent homeowners. It’s a strategy amongst many renters.
We have space to rent, but, given the Reneters Act, unless it’s completely redrawn using common sense, will never, ever rent it.
Not exactly. Most real estate transactions are resales, not new construction. – Garth
Except for the fact that if you sell, and pay a personal exemption tax, then you have to ask more to cover the personal exemption tax plus the new abode.
More tax never decreased costs – ever.
Our Rulers are growing the tax farm herd guys.
Goooo Economy. Woohoo.
Yo – we’re going to score a double here
https://www.youtube.com/watch?v=g3A2rUsI7-0
Speech from the Throne – Fall 2023
Over the coming months, Alberta’s government will work collaboratively with industry and consumers on a package of substantive reforms to ensure Albertans have an electricity grid that gives them access to affordable and reliable power and supports the expansion of a power grid that will need to more than double its base load capacity in the coming decades.
As our province doubles in size over the coming decades, we will also need to significantly improve and grow the capacity of our health-care system for all Albertans.
https://edmonton.ctvnews.ca/alberta-seeks-higher-immigration-allotment-to-address-workforce-shortage-ukrainian-evacuees-1.6824687
Alberta seeks higher immigration allotment to address workforce shortage, Ukrainian evacuees
— —
“”Nova Scotia has an estimated population of 1,070,643. That’s not good enough for Premier Tim Houston, who has set an ambitious target for his small Maritime province: doubling the total population.
After forming government in 2021, Houston’s Progressive Conservative government tabled its Population Growth Strategy, setting a goal of reaching the 2 million mark by 2060. To reach this aggressive target, the Houston government calculates that Nova Scotia will have to welcome 25,000 newcomers every year going forward.
Ever since the Population Growth Strategy was announced, the 25,000 newcomers per year goal has been exceeded twice. From 2021-2022, the province grew by 28,608 people. This was surpassed the following year: from 2022-2023, 33,249 people moved to Nova Scotia.””
#57 ElGatoNeroYVR on 03.28.24 at 3:50 pm
#48 Travelling on 03.28.24 at 2:51 pm
#52 Triplenet on 03.28.24 at 3:05 pm
You guys do realize that the moment any of this happens the small time landlors (renting a basement or a condo) will bow out as it will not be economically feasible. In a private market no profit means no activity.
Yes, maybe a lot of these properties will get sold but so what ? Not like the renters can afford to buy them and carry the monthly total cost.
Here is a radical thought for you of 3 changes to be implement at same time if you want more rentals :
No Income tax on rental revenue .
Instant eviction for non-payment of rent.
No fault eviction for any/no reason with 60-90 days notice.
And offourse the govt. must build social housing.
The days of landlords subisidizing the tenanats banking on capital gains are all but gone.
———
Appreciate the feedback.
Based on your comments, I’m ok with small time landlords bowing out. Renting to tenants is a serious business and this line of business should be managed by professionals.
I don’t agree with the 3 points you bring up as they can be heavily abused but I propose a different approach. Again, all in the name of professionalising the landlord role. Make capital gains on movable assets (stock, bonds, ETFs) tax free for all individuals (including the small time amateur landlord) if held for minimum 6 months or longer. Dividends and interest would still be taxable but not capital gains. This occurs in Switzerland, Luxembourg, and Belgium. The small time amateur landlord (and everyone else) now has an alternate investing option to real estate that is attractive.
#48 Travelling on 03.28.24 at 2:51 pm
———————————–
Garbage.
I get where you’re going in theory, but we need less government in our lives, not more. Having every single rent transaction go through the government? What a nightmare. They can’t even manage to pay they employees on time.
Government’s role in the whole rental market should be to punish bad actors through a well thought out set of rules. There needs to be a system that’s well funded so cases can be heard and ruled upon in a reasonable timeframe. Tenants need to be protected from bad landlords AND landlords need to be protected from bad tenants. Whole thing can be funded by a fee on rentals (paid by the land lord, but in practice this gets passed on to the renter).
#60 Linda on 03.28.24 at 3:58 pm
#48 ‘Travelling’ – interesting post. Comment on your second point about a ‘national registry’ for homes. Very Big Brother, yet more paperwork for folks to deal with on an annual basis & you know government likes to make it complex. Think about the National Gun Registry debacle. Was supposed to prevent someone doing a mass shooting (didn’t), lower crime (didn’t), cost very little but ended up costing literally a billion with a ‘B’ plus. It was however very effective in making life more difficult for legal gun owners. Plus created all sorts of government jobs as someone had to process all that paperwork.
As for point 3, why wouldn’t tenants want to report what they pay? Easy answer: anyone who doesn’t want to be located for legal or safety related issues. Oh, the data won’t be used for any other purpose or ever get compromised? Good luck with that.
———
The national gun registry was trying to accomplish something very different. Apples and oranges. A national residential property registry would create transparency and kill speculation flat. You’re not on the registry, you’re a speculator. The Canadian taxpayer thanks the speculator for their contribution to reduce the federal debt.
As for those you feel don’t want to be located for legal or safety issues, do they pay any bills in their name? If the answer is yes, they are screwed regardless if the thinking is that any type of online presence will be compromised. Renters registering and paying their rent on the registry would be the same as paying your utility bill. We live in a very digital world. The time of living off the radar/grid is long past and a fantasy today. Also, if you only think to cater to outliers, you can’t get anything done. Would the change I propose assist 99.9% of renters as well as 99.9% of those who want to become a primary residence home owner, I think the answer is yes. Helping 99.9% of renters and potential primary home owners is a worthy goal.
The writing is on the wall. Sooner or later a return to full blown
provincial rent control with rental registries etc. No increases beyond capped increases and a new formula for above guideline increases which will reign in capital spending and lead to an overall decline in the quality of existing rental stock. New York did this with some purpose built rentals and destroyed property values overnight.
Canadian Oil Production and Alberta
#54 Vancouver Keith on 03.28.24 at 3:12 pm
Canada is now the fourth largest producer of oil and gas in the world. Look at the state we’re in.
************************************
At something like 4.8 million barrels per day we are only 5% of global production which is just a bit over 100 million barrels per day. So numbers 1,2 and 3 are quite a bit larger than us.
But oil is hugely important to Canada. Energy (largely oil) is Canada’s top NET export at $145 billion in 2023. Next highest was down at $33 Billion (farm, fishing and intermediate food products).
Oil is very much bringing home the bacon to this country.
Auto assembly creates a load of jobs and GDP but that category is actually a NET IMPORT to this county.
All hail oil! All hail Alberta! All move to Alberta!
Alberta gained a net 57,000 people from other provinces in 2023. And Alberta gained 202,000 population in total. A 4.4% increase in population. We are now at 4.8 million people. EVERYONE is moving here. What are you waiting for?
One way that the Feds can have a meaningful impact on the rental markets would be for people who rent report the address of their rental (like their mailing address), their landlord’s name, and the amount of rent they’re paying. This information could then be checked against the income figures reported by the landlords.
Ontario used to allow renters with income below a set threshold to deduct their rent payments from income for figuring provincial income tax. The Feds could do the same – it might help for those on low incomes.
The flaw in the Ontario scheme was that the landlord’s name, rental address, and rent amounts had to be written out long-hand, and it is unlikely that the entries were ever collected, digitized or analyzed.
Such a measure could be a boon to statisticians, tracking the fluctuations in the cost of rent in real time, and well as providing direct data to show what percentage of income is really spent on housing, broken down by province, postal code, or income bracket.
It might also crack down on rentalnincome that is not reported, not taxed or not legal, in terms of illegal suites (enforceable at rhe municipal level).
#69 Necessary on 03.28.24 at 4:52 pm
Not exactly. Most real estate transactions are resales, not new construction. – Garth
Except for the fact that if you sell, and pay a personal exemption tax, then you have to ask more to cover the personal exemption tax plus the new abode.
More tax never decreased costs – ever.
************************
I believe that’s Garth’s line. He said that about empty house tax and anti-Chinese (okay foreign) tax.
Every tractor, combine, truck runs on diesel. I read where mushroom growers are now paying 80,000 / month in carbon tax … There’s a reason the great Stephen Harper referred to the carbon tax as an “everything tax” and had to banish a critical MP who ran a muckraking economics blog.
any politician who spreads disinformation should be fired and or have their pensions removed
Washington CNN —
A Republican state representative in Michigan, Rep. Matt Maddock, claimed on social media on Wednesday night that he had photo evidence of “illegal invaders” arriving at Detroit Metro Airport.
One of the two photos Maddock posted on the platform called X, formerly known as Twitter, showed an Allegiant Air plane. The other photo showed three buses. Maddock wrote: “Happening right now. Three busses just loaded up with illegal invaders at Detroit Metro. Anyone have any idea where they’re headed with their police escort?”
Facts First: Maddock’s claim is false. The buses were not for “illegal invaders”; they were for the men’s college basketball teams that landed at the Detroit airport to compete in the NCAA tournament known as March Madness. The only Allegiant Air flight to the airport on Wednesday was a charter flight that carried the team from Gonzaga University, which plays Purdue University on Friday.
Each province could probably tweak their rental act policies to reflect the times, but all they need to do is enable enforcing the rules that already exist in a reasonable time.
When it takes a year to get a hearing to get your security deposit back, or evict a non-paying renter, the system is broken.
I say simplify, make sure overseeing agencies are staffed as required.
Without enforcement it becomes the wild west and the boundaries get pushed.
Their are bad landlords and renters as there always have been, but they are a minority. What has changed is the Gov can’t manage their end.
You know what they say, lead, follow, or get the F out of the way.
Governments solution is always to add more government, even when they can’t handle what the got.
CUT TEH RATES….!
PROPADEE TO THE MOON !
@#23 Ponzie’s perfect pal
“Lots of smart people who could buy are renting.”
+++
Thats me buddy!
@#25 Gen Z opportunist
“People in Canada are NOT having babies.”
++++
????
Where did the 1 million people in 9 months come from?
Renter here…
You might feel some pity for me, as a foolish, hapless, hopeless renter.
However your deep well of pity might rapidly evaporate, and transmogrify into astonishment and even a hollow sense of envy, if you saw the returns my B&D portfolio has been churning out of late….
“Stay modest and live quietly amongst the masses…”
Andrew Morgan on 03.28.24 at 4:46 pm
I had wondered if such a comment would be allowed here obviously and I’m not all that upset about it because I had expected it but to clarify, it’s not a personal attack on Trump the way some might think. What it is, is an explanation of why Trump behaves the way he does regardless of how unpopular it might be.
No good will come from ignoring Trump’s worst flaws no matter what we think or believe otherwise. As to bringing Trump up, it was in response to what someone else said about Trump on this thread. I don’t see much wrong with being off topic. The content… that’s actually kind of hard to water down and doesn’t fit here but still.
If I’ve learned anything by now concerning geopolitics, it’s that U.S. policy can dwarf any other issue this side of the border including today’s rent/own conflict theme. We are not an island. Who runs and controls U.S. political parties should matter to us regardless of our inability to change it. All we can do is try to anticipate and prepare for what happens next. If we can’t or won’t, we won’t be clear eyed with a reaction, it’s that simple.
That said, there are bigger issues in motion now that are unstoppable and much worse than a potential Trump presidency (and today’s topic) which in and of itself wouldn’t be that bad in some ways, we tend to pay attention more when we experience significant loss. We know what these bigger issues are, but we aren’t facing them on a national and global level and it will cost us all dearly.
Case in point, it’s an if/then that’s already in motion. If the green revolution can’t keep up with growing global populations and more importantly global pollution and climate change, rent/own conflicts won’t matter one iota. It’s best described as “can’t see the forest for the trees”.
MAGA sales tax:
10% tax to consumers =~an extra 1500/year per household
Trump “is running on jacking up prices on a huge amount of the goods we use every day. …But genuinely his core economic policy proposal right now is an across-the-board, consumer sales tax for every good imported into the United States,” says Chris Hayes on Trump’s tariff plan.
March 27, 2024
https://www.msnbc.com/all-in/watch/maga-sales-tax-the-trump-plan-to-make-everything-more-expensive-207837253764
Sanity prevails!
CRA announced this afternoon they are reversing their decision to require T3 reporting for Bare Trusts! Huge amount of pushback in the press.
Wonder how many folks have already filed and paid accountant fees? I’d be pissed.
#70 TurnerNation on 03.28.24 at 5:00 pm
25,000 newcomers per year goal has been exceeded twice. From 2021-2022, the province grew by 28,608 people. This was surpassed the following year: from 2022-2023, 33,249 people moved to Nova Scotia.””
________________________________
These newcomers are afraid of the dark.
The night lighting on their properties, Mein Gutten!
We were on the rural road at six this morning, easy to tell where the newbies live, in the pitch dark, you can see their houses aglow…. whatever that is all about.
The single most meaningful the government could do is help Tiff and OSFI in their efforts to rein in excessive borrowing/lending. And encourage them to do more. Then just step back and stop meddling.
I will be astonished if anything new coming from Trudeau Libs is any more useful to me than their carbon rebate that I have never received. Best thing they can do is call an election and resign. Yes, I rent.
This government usually has a screw-up or scandal every day or two.
They’ve excelled themselves this time – there’s two in the time it took for Garth posting, and the 86th comment in steerage.
Good Lord, is there anything they touch that doesn’t turn to absolute shit?
If I’d paid up for an accountant for this nonsense I’d be raging.
So, does this make me a Land Lord ?
https://x.com/buitengebieden/status/1772184874037743730?s=20
#86 Elon Fanboy on 03.28.24 at 7:41 pm
Sanity prevails!
CRA announced this afternoon they are reversing their decision to require T3 reporting for Bare Trusts! Huge amount of pushback in the press.
Wonder how many folks have already filed and paid accountant fees? I’d be pissed.
—————
Yep. As expected.
Still, though, this should be taken as a warning shot to dissolve or reconfigure shared accounts to avoid future pain.
If you’re less than thrilled with how the government manages healthcare, imagine how impressed you’ll be with their management of your housing.
Flop Drops.
O.k, I’ve finished my Bachelor Ironing, otherwise known as folding clothes while they are still warm from coming out of the tumble dryer, it’s time to get back on the house horse.
What’s happening in Mission, said no one.
We’ve seen quite the cooling in the Eastern flanks of the valley, as interest rates stay put does that mean it will keep moving west, who knows but let’s have a look at these fresh meat sales.
Detached house in Mission #1
Original ask 780k
Assessment 723k
Just sold for 678k
Previously bought for 690k in April 2022
https://www.zealty.ca/mls-R2856600/32716-BEST-AVENUE-Mission-BC/
&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
Detached house in Mission #2
Original ask 965k
Assessment 855k
Just sold for 819k
Previously bought for 880k May 2022
https://www.zealty.ca/mls-R2856161/7973-GRAND-STREET-Mission-BC/
&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
Detached house in Mission #3
Original ask 862k
Assessment 765k, 2023 number, BC Assessment still hates me.
Just sold for 817k
Previously bought for 862k Nov 2021
https://www.zealty.ca/mls-R2857312/33475-2-AVENUE-Mission-BC/
So, there’s probably more, but there’s 3 sales in the last few days in a small area that were pandemic purchases, held for a relatively short amount of time, listed for higher, or in the case of the last one, equal amount of purchase, they all unfortunately lost money.
Is it a Pink Snow blizzard blowing west, is it the cherry blossoms shedding early for the summer, only time will tell…
M49BC
Liberal Government in desperation mode.
Announce new rental rules.
Announce expansion of $10 day day care.
Announce reversal of bare trusts.
Try to cover carbon tax increase Apr 1, say most people get back more than they pay and refer to C02 as “pollution”.
I almost feel sorry for them, not.
BC renter here, for the first time on my income tax return I was allowed to report my rent for the last year and gave my address and name of landlord company and received a $400.00 tax refund.
It has already started!
In Manitoba decades ago you could do that and there were next to nothing for homes with suites as nobody wanted to be taxed for the income. Interesting time now.
HaHa,
BC NDP Government buying votes.
Just received an email saying I will receive a 4.6% credit on my BC Hydro business account from last years use.
Returning 4.6% of my electricity expense, I’ll take it, but the cynic in me says they will get it back somewhere else after the election.
@84 Diamond Dog:
“.. If the green revolution can’t keep up with growing global populations and more importantly global pollution and climate change, rent/own conflicts won’t matter one iota…”
Which is why I’m on here trying to do my very small part by highlighting alternative ways of living that others elsewhere find positive, with a reduced individual footprint, living well, smaller resource usage, and better well-being, social skills and health.
Doubt I’m successful by any metric, but it’s in my nature to keep hitting my head on the floor trying.
Garth and Diamond Dog, Thanks, and Thanks to Paul for sharing Corby with us.
It was better when the Liberals got 7 seats. Toronto is the main culprit and this is why it is going bankrupt and collapsing everyday.
#93 Old Boot on 03.28.24 at 8:24 pm
If you’re less than thrilled with how the government manages healthcare, imagine how impressed you’ll be with their management of your housing.
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If you are talking about JT’s Government.
Both Housing and Health are in Provincial hands.
Yet another failed policy that is created for the sole purpose of vote harvesting. Actual results of this policy are irrelevant, like all other Liberal policies.
Canada is in serious trouble the longer we have this present Government tanking our nation.
I hope Canada can endure this disaster before it’s too late.
Fellow Canadians. We. Are. So. Screwed.
” It exacerbates the conflict between landlords and tenants”.
Is that what Lib has been doing for the last 8 years anyways in all aspects?!
Kelowna proposes controversial stormwater funding model labelled elsewhere a ‘rain tax’
Have a big driveway or roof? You will be paying more in stormwater fees in Kelowna under a new proposed policy.
Yes. A new way to tax homeowners.
A similar proposal by the City of Toronto earlier this month kicked off a storm of punditry labeling it a “rain tax.”
Another policy cobbled together on the back of a napkin. Just like battery plants, Covid, immigration and carbon.
Since deleting Facebook for its leftist hysteria I have switched to X and Reditt whose more more balanced content has really surprised me. The latter are also much more youth community and oriented. You get what you ask for, not a puking of hate speech and ‘anti this and that ‘ socialist diatribe. And if the Trudeau Liberals say they ‘really really really’ need the youth vote, they’re in for a cold shock. The Redditters in particular have become radical conservatives and say so adamantly why they’ve turned their backs on Justin and globalist dictates. Young people in Canada are saying they know they’ve been screwed and aren’t going to take it any more. But…read its voice for yourself.
So miss a rent payment and no late fees but your CC and potential mortgage rates go up? Sounds very Delaware Biden to me, sad to see Liberals importing American style credit policy.
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Deadbeat renters more prevalent now than ever before will simply use the so-called bill of rights to their advantage to ply their trade which is to avoid paying rent.
Gullible landlords will drop their guard and rent to unvetted strangers believing there to be much less risk with their credit history on the line.
Deadbeats don’t give a damn about credit scores or credit history and their numbers are growing exponentially.
Fake id’s are easy to obtain to fool any landlord not requiring a lease deadbeats outright avoid.
Many a residential rental is monthly where the deadbeat pays first and last becoming the first and last time you will see anything from him.
The flawed system that accommodates the deadbeat was already going to get worse no bill of rights is going to fix, but pile more regulation on the landlord that will do nothing to keep from getting stiffed by the occasional deadbeat that has worked his way in initially gaining an unsuspecting landlords trust.
One unit 10 units or a hundred units to rent makes no difference. There are more than enough deadbeats to go around everywhere.
The longer an LL is in business the more likely he will be dealing with one or more of these creeps at some point.
There is an effective way to deal with deadbeats and never lose a dime i have spoke of a number of times over the past dozen or so years …. always met with zero interest here.
So a coveted trade secret will remain that way.
I just watched a YouTube of a girl in a ‘ major retailer’ pointing first to a loaf of bread for $7.99 and then to a ‘ one hand span’ veggie platter priced at $44.99. One carrot sliced, two crowns cauliflower, 5 mini Tom’s. So don’t tell me inflation is under control in Canada. Who will pay the extra 17 cents a liter for the fuel to grow, process and deliver those items to the consumer. Justin Trudeau makes $407, 000 a year. You?
No Name sliced white break loaf, Loblaws: $2.49. – Garth
Regarding #20. Rent is Usury and it matters not what is being rented. Usually the term usury refers to the rental of money or food but there is some indication that it includes mortgage lending also.
https://www.christianity.com/wiki/christian-terms/what-is-usury-what-does-the-bible-say.html
Even the Nazis had zero percent mortgages and prohibited or restricted the real estate resale and rental market which was very predatory. Any way the principle was that you should not take advantage of your own people especially the poor.
What is so shocking is this Government will throw any piece of jello against the wall to see if it sticks to improve their popularity regardless of the cost and it consequences. To quote one Canadian investor, “our PM and this government is a terrible manager who could not run a candy store”.
To dividend or not to dividend?
https://seekingalpha.com/article/4681180-dividends-dont-lie
I know where Shawn stands, and he knows my stance!
Smart kids understand the plaintive truth of Canada. There is no quick recovery from what Trudeau has done to the country. Hell, I’d be lucky to even live long enough to see a return to the Canada which prospered under Chrétien, Martin, and Harper – the groundwork of which was laid by Mulroney, staked within the smoking crater left by Pierre. Alas, decades of slag now await in the wake of Justin Trudeau. There are no more Mulroney’s lying in wait to save the day. These are the wages of electing a PM who is paralysed from the neck up.
So kids, if you’re going to win in this dumpster fire, it’s explicitly *on you* to make it happen. Improve your hands on skills, shop the MLS nation wide, operate that calculator with skill, and confidence. Be flexible, reasonable, stalwart, and logical. Above all, think outside the box.
Here’s a piece to play in the background while you’re making a plan to escape the effluent cascading out of Ottawa:
https://www.youtube.com/watch?v=VbxgYlcNxE8
I suggest a high level of volume. A very situation specific composition. Especially since it depicts the French getting annihilated (get it? haha). Fix your bayonets Lads, you’re going to have to fight your way out. Any score that calls for bell towers and field cannons seems an apt canvas for painting a portrait of victory in post-Trudeau Canada.
@#112 Mr Canada
“What is so shocking is this Government will throw any piece of jello against the wall to see if it sticks to improve their popularity regardless of the cost and it consequences. ”
+++
OUR tax dollars at work.
What is even more shocking is ….they were able to squander billions of tax $$$ to try and raise their popularity because …they are in a Minority Govt.
NO Federal, Provincial or Municipal govt should be permitted to spend more than they receive in taxes…especially minority govts.
Landlords being allowed to purchase multiple homes creates false scarcity in the resale market, driving up prices and and preventing young people from benefiting from tax free capital gains on the keystone asset of Canadian families.
Landlords don’t build houses, and don’t add value – textbook rent seeking, and legalized theft from the next generation.
#110 Avoid on 03.29.24 at 2:56 am
I just watched a YouTube of a girl in a ‘ major retailer’ pointing first to a loaf of bread for $7.99 and then to a ‘ one hand span’ veggie platter priced at $44.99. One carrot sliced, two crowns cauliflower, 5 mini Tom’s. So don’t tell me inflation is under control in Canada.
___________________________________
that’s just Loblaws stealing from the Rich or stupid. Anyone dumb enough paying those prices deserves to get ripped off.
I saw a girl on Twitter complain she paid $7.75 for 5 turkey slices for her daughter. Well, she was pretty stupid. She paid $4.60/100 gr for turkey breast.
Her options?
i. go to Walmart and pay $1.98/100 gr, every day
ii. wait for the turkey to go on sale, this week $2.99/100 gr at Metro
iii. buy a different deli meat for less (lots of options), just look at what is there.
iv. buy a precooked chicken at any one of the grocers for $10-12 for the WHOLE chicken, give your daughter chicken breast instead of processed meat
Bread $7.99, again only an idiot would pay those prices.
veggie platter? $44?… idiot.
#113 Wkd.dover
Thanks for posting that article.
#42 Sunshowers on 03.28.24 at 2:26 pm
#24 Michael in-north-york
“Then, there is a matter of in-house rental suites.”
It’s not really a matter, because someone who rents out part of a home they already live in is not reducing the supply and increasing the demand of other homes available to own by purchasing another one to rent out.
They could also provide temporary long term housing to the people you mentioned as well.
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But your original post stated that all landlords should be illegitimate. Technically, that includes landlords with an in-house suite.
If you only have an issue with people buying houses and renting them out entirely, while not living there themselves – well, I am not a a fan of that arrangement either.
I would discourage that kind of ownership via taxation, and hope that the units will hit the market and improve the supply-to-demand ratio. Thus, more people who want to buy for their own use will be able to do so.
January Insured Mortgage Lending by Canadian Banks Fell to the Lowest Level Since Records Began
https://thenorthernaccount.ca/january-insured-mortgage-borrowing-from-chartered-banks-falls-to-the-lowest-level-ever-recorded-by-the-boc/
The Fed Libs attempt at doing anything towards those who rent is an attempt to round up the horses after they’ve left the barn. We had rent controls in Ontario until Doug Ford scrapped them. Where you stated, “Market rent is market rent” is nonsense. That so-called market was created by 2 things: 1) the aforementioned rent control stoppage, and 2) greed. At this rate, all it would take is for a few to start charging $5K a month in rent for a two-bedroom until that amount becomes “market rent”. In fact, the square footage is becoming less while the price of rent is climbing. Check out the MLS listings in Toronto proper where 400 sq ft is
$2.5K p/m. Anything less, you’re in someone’s basement.
Actually, some of the Feds proposals are not bad.
The disclosure of the price history can make it harder for the landlords to bypass the rent increase limits by evicting the current tenant and immediately bringing in a new one. If that happens and the price history is presented in writing, then the previous tenant and the new one have a chance to find each other, compare the records, and take legal actions. But yes, this area is in the provincial jurisdictions and the Feds can’t do much.
Reflecting the rent payments in credit scores is a good idea, too. Credit scores affect several areas of life, not just the mortgage eligibility. Applicants for certain jobs that handle finances have to pass a credit check, even if they are happily living in a rental and have no intention to ever buy a house. The situation where “a mortgage is a good debt” while the rent payments count for nothing may be negatively affecting such people.
How to report the rent payments to the credit agencies? Yes, small landlords cannot report, and if the payments are in cash, they can’t count. But the banks can report based on transactions in their system. Just let the customer designate all payments to a particular account as rent payments. If the amount is regular and roughly matches the rent value in the area, then the bank can report that tenant as a reliable rent payer and improve the person’s credit score. Notably, the banks are federally regulated, so the Feds don’t even need the provincial governments on board.
However, giving money to the tenant groups to fight landlords is a stupid idea. Feeding the political activists who can’t do anything productive, while reducing the supply of rental dwellings by making the field more hostile to the would-be landlords.
I dumped my last investment house in 2017.
Rental income is expensive.
Tenants are deadbeats.
Maintenance is never ending.
The government is against you.
Landlording is a lowlife way to make a buck.
Things elected officials and ppl who make > 100K per year never have to do:
1) find roommates
2) get renovicted
3) put items back at the grocery store checkout
4) ride the bus
5) use a safe injection site
6) OD
7) go to a walk-in clinic b/c no doctors
8) wait-list for just about anything
9) stopped by police just because.
When did we stop giving a fcuk? Drive (better yet, walk) down the main drag in your town. They are not going away; they are increasing in number. They are us.
“No landlord will be forced to reveal past income from his/her properties unless the province compels it.”
One can only hope. If this rule comes in, then tenants will get a serious heads up on who the ass hat land lords are.
“It last rented for 1000 dollars. yes, I know I have raised rent by 1500 dollars. What is that? It was rented by a blue hair who had been here for 20 years.”
“They moved to pay 1500 more a month in rent elsewhere.”
It is good info, and it costs the government nothing to make it happen.
@Stock Ticker, post #29 and The West, post #34:
I couldn’t agree more with both of you. Taxing capital gains on primary residences and using the revenue to give a tax break to renters would not only be a good idea but might actually work. Instead we get these half ass bandaid solutions that do little if any good and are like going from A to B by passing through Z.
It’s been brought to my attention that a lot of younger voters are showing a preference for the Conservative party. I can understand why, but if Big Mouth Pierre becomes our next prime minister will he fix these problems? I wouldn’t bet more than a nickel on it.
#73 ‘Traveling’ – my example of the gun registry was to underline the point that government legislation to ‘fix’ housing will be both ineffective & costly. Who bears this? The taxpayer at large? The homeowners registering their properties? Those who rent from said homeowners? My point is, don’t believe government measures as outlined will do anything to improve things.
I took your point #3 as requesting a comment as to why someone renting wouldn’t want to follow along; I gave reasons why. Have you never heard of the underground or cash economy? Lots of rentals include utilities so the tenant doesn’t have their own utility bill. While I agree that it is extremely easy to track someone in this digital age the fact remains that there are ways to obscure the paper or online trail.
Kudos for coming up with suggestions on how to address the issues. Just don’t expect everyone to agree those suggestions will solve them or trigger other issues in turn.
118 Millmech
#113 Wkd.dover
Thanks for posting that article.
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Ditto.
#124. Poverty isn’t the cause of drug abuse. Drug abuse causes poverty.
@3124 jeffinguelph
I know plenty of people making over 100k per year that are absolute simpletons when it comes to money.
They are always broke because they can’t budget.
Pay cheque to pay cheque.
Greaterfools.
And then they grow old and are shocked when they realize…their govt stipend of CPP, OAS and GIS isnt enough to feed a cat.
Stupidity and money soon part ways….
And thats my fault?