Canada’s housing affordability has reached the worst level in 28 years According to RBC – September 29, 2018,
I’m going to start of this post talking about Donald Trump when Donald Trump used to flirt with the idea of running for president one of the hot topics he used to get on Obama about was high gasoline prices. Well, guess what it’s September 29, 2018, and the price of gasoline has been going up, up, up and I haven’t heard a peep out of Trump regarding this. That said, high gasoline prices and social justice Prime minister of Canada doesn’t equate to a robust economy. In fact, this was my problem with Justin Trudeau running a deficit in the first place.
I’ve been in debt before, I know what personal debt feels like, I know how I felt when I was in debt and nobody can ever convince me that being in debt is a good thing in anyway shape or form, being honest, when I look at my spending habits since getting out of debt, they’ve actually gone up, however anytime I get close to being in debt I automatically stop spending. I guess you can tell by now that I’m a workaholic and I’ll tell you something working to a full-time job to repay the bank is a depressing way to live.
Justin Trudeau, Bill Morneau, and Chrystia Freeland all come from places of privilege, they all actually don’t know what struggle looks like, what it feels like and what people who come from nothing have to go through on a daily basis. This is the reason for their smug arrogance. Bill Morneau adapted a child from Africa, I’m not calling him a bad person, I just don’t think these people are cut out to be politicians.
So people are meant to do certain things, personally I think Bill Morneau should probably write books and maybe start more charities or something like that, but in regards to running a country, I don’t think these guys have a clue, this is actually the first time in Canadian history where is obvious that our politicians are puppets. Now, personally I thought Stephen Harper was a bit of a political puppet, but the reason why I didn’t view him as a puppet was when I listened to him, he had a comprehension of how the real socioeconomic world worked.
If you pinned Stephen Harper on economic issues he was able to hold his own without changing the narrative of the topic. If you’ve ever listened to a Justin Trudeau interview, you’ll notice that he’s trained to push economic topics into social discussions, he does this all the time, so does Chrystia Freeland and so does Bill Morneau. This is why when I observe Trudeau’s Liberals I feel like I’m watching spoiled children turned adults who are giving the political thing a try. Why I say all of this is because the Canadian economy is in some serious trouble, the world economy is in some serious trouble the difference with Canada, however, is we haven’t had to change since 2008 when the U.S housing market crashed.
We’ve accelerated everything, it’s 10 times worse now and because our housing markets are so heavily regulated and the barrier to entry is so high that if there ever was a crash, the revival would be so hard that only a devaluing of the Canadian currency could fix it. Understand, that in order to really fix this real estate problem in Canada that interest rates would have to reach about 10%, now if interest rates reach 10% a lot of the shadiness in the Toronto real estate market will be exposed.
I’ve been saying this for years, the Toronto real estate market is monstrosity to behold, we’re still in the party stage in Ontario but once the music stops and the badly built condos and the horribly newly built homes and townhomes are exposed, all I can say is things are going to get really, really interesting. I can picture it in my head, it’s just when it happens, I know I’ll probably learn more. I don’t know if Ontarians have been noticing but, home insurance prices have been going up, there have been a lot more claims and the reason for so many claims stems from badly built or badly maintained homes and condos.
A little rain and somehow the rain gets into people’s basements, many of these claims are not only from people with old homes but people with new homes, there are also claims from people living in newly built Condos. The Canadians with money, typically buy a home tear it down and then have CANADIAN BUILDERS rebuild it. Why? Because everyone in Toronto with half a brain knows that foreigners are building most of these newly built houses, townhouses, and condominiums. A lot of the newly built residences in Toronto are crap, however, the owners don’t want to talk about it, because for 1 usually they don’t live there and 2 it makes the house harder to sell.
So here we are, Canada’s housing affordability has reached the worst level in 28 years, the last time things were this bad mortgage rates were above 10%. But even though affordability has reached the worst level in 28 years, you’d never know it if you came to Toronto, there are cranes everywhere building new condominiums. So if housing affordability is this bad who are the people or entities building and buying condos? Canada I’m telling you we are so screwed, we better make economic changes quickly, because the longer this bubble lasts, the harder it will be to fix.
Interesting times ahead.
