Calgary real estate prospects

[89coupe]

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I think you're missing the point. The younger generations have no ability (nor interest) to keep the housing market in an inflated state.

I disagree, there are plenty of young ambitious people who want a similar lifestyle to their parents.

Most of the people I’m selling $1-2M homes are in their 30’s & 40’s

The $3M plus homes are late 40-50’s still

You will have generation wealth as well.

The numbers are less though for sure.

[CompletelyNumb]

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I think you're missing the point. The younger generations have no ability (nor interest) to keep the housing market in an inflated state.

That's where immigration comes in.

[suntan]

Apparently my gen - Gen X - actually put money into equities so we're not reliant on selling our home to fund our retirement.

OTOH a lot of my friends have like zero fucking savings, so there's that.

I really sorta don't give a shit what my house sells for. My original purchase was for $196K, so hey whatever.

[Sugarphreak]

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You know who says renting is more liberating? People who don't rent.

Being mortgage free is liberating.

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No it's not.

Being property tax free is liberating.

You never own the land. You are just a caretaker of the property taxes. Stop paying your property taxes and tell me you own the land.

Property tax is one thing, but we are going to all be renters pretty soon

The City of Victoria instituted a system a year ago for homeowners to make voluntary payments equivalent to five or 10 per cent of their annual property taxes to the Songhees and Esquimalt nations.

https://www.timescolonist.com/life/c...malt%20nations.

The way things are going, this won't be a voluntary for much longer as land titles start to change.

The Haida nation just got title over their land...
https://www.nationalobserver.com/202...0Haida%20Gwaii.

Almost no point to own land in Canada anymore

[suntan]

The current BC gov't makes a lot of regretful decisions.

[vengie]

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I disagree, there are plenty of young ambitious people who want a similar lifestyle to their parents.

Most of the people I’m selling $1-2M homes are in their 30’s & 40’s

The $3M plus homes are late 40-50’s still

You will have generation wealth as well.

The numbers are less though for sure.

Nothing like being house poor in your mid 30's.

[ExtraSlow]

Money isn't real, it's just zeros and ones in a computer, and so neither is debt. Yolo baby.

[brucebanner]

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Nothing like being house poor in your mid 30's.

It's Calgary bro, everybody ballin'

[max_boost]

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Apparently my gen - Gen X - actually put money into equities so we're not reliant on selling our home to fund our retirement.

OTOH a lot of my friends have like zero fucking savings, so there's that.

I really sorta don't give a shit what my house sells for. My original purchase was for $196K, so hey whatever.

Very few people I think have a portfolio > house value but sounds like you do and mannnn when that portfolio compounds during bull years it’s pretty dope lol

[CompletelyNumb]

Max's next breakup gonna be expensive.

[max_boost]

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Max's next breakup gonna be expensive.

lol oh man is the trick to put it in your parents name and then have power of attorney over them lol

[CompletelyNumb]

I just keep mine in the corp. Guess I'll be paying more capital gains soon.

[Power_Of_Rotary]

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I think you're missing the point. The younger generations have no ability (nor interest) to keep the housing market in an inflated state.

This is a weird way to predict a housing market. You cannot assume all younger gen will have no ambition to buy and you are ignoring the fact there are wealthy boomers backing them. Also, having no interest does not mean the housing market will tumble to affordability levels, housing is still a basic need whether you rent or buy. Just take a quick peek out side your narrow view of Calgary only. Almost every country is facing a similar issue with inflated housing costs (buy AND rent). Affordability is no longer a real factor in valuation.

[Buster]

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This is a weird way to predict a housing market. You cannot assume all younger gen will have no ambition to buy and you are ignoring the fact there are wealthy boomers backing them. Also, having no interest does not mean the housing market will tumble to affordability levels, housing is still a basic need whether you rent or buy. Just take a quick peek out side your narrow view of Calgary only. Almost every country is facing a similar issue with inflated housing costs (buy AND rent). Affordability is no longer a real factor in valuation.

I don't think a macro economic perspective is a weird way to predict that housing market.

Currently boomers perceive that their home equity has value because it has performed so well. So they are reluctant to sell (along with some other reasons). But once boomers decide they want to unlock the paper value of their equity (or die), you may see a flight from home equity for them.

People are so concerned about the value of the house, they forget that the equity also has value, and those are opposite trades.

[Power_Of_Rotary]

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I don't think a macro economic perspective is a weird way to predict that housing market.

Currently boomers perceive that their home equity has value because it has performed so well. So they are reluctant to sell (along with some other reasons). But once boomers decide they want to unlock the paper value of their equity (or die), you may see a flight from home equity for them.

People are so concerned about the value of the house, they forget that the equity also has value, and those are opposite trades.

Even if there are changes in mentality for the younger gen, it is not enough to assume a market correction based on that metrics alone. If you are really viewing the market on a macro perspective, you should realize the RE will continue to rise. With supply on the low end, demand is continue to grow, hot money is flowing into Canada, there is no real reason for the market to correct yet. The "young" gen is barely even a contributor to the gains or losses. They are just cheerleaders on the side lines.

I know you are bearish on real estate since this thread started lol. But results speak louder than gut feelings.

[arcticcat522]

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I think you're missing the point. The younger generations have no ability (nor interest) to keep the housing market in an inflated state.

Replying before I read more...I'm just saying, there's nothing they can do about it. They need to live somewhere.

[msommers]

If younger folks can't/won't purchase, a corporation will and be happy to rent to them.

[ThePenIsMightier]

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If younger folks can't/won't purchase, a corporation will and be happy to rent to them.

You spelled government wrong, Comrade.

[Power_Of_Rotary]

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You spelled government wrong, Comrade.

Word.

The gov can easily just squeeze people out of their houses by their legal means. Ie. Increase property taxes on already inflated housing value/assessment.

Retired folks with one principle property in Vancouver can no longer even afford to live in their home they have owned for 30 years. While these folks have equity of over 2-3m, their best option is to sell and relocate somewhere cheaper. Perhaps, out of Canada. Its ridiculous to see how on paper these people are rich, but they are struggling to keep up with cost of everything. While for investors, they are not as susceptible to these inflationary costs as they forward to burden to tenants.

[Buster]

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Replying before I read more...I'm just saying, there's nothing they can do about it. They need to live somewhere.

The equity in the real estate market is not there because of fundamentals. It is there because of continued speculation...at least to a non trivial degree

People need to live somewhere, but it does not automatically follow that prices will outstrip fundamentals (forever).

What I am stating is not outlandish. In fact it is the stated/explicit/express policy of both major Canadian political parties.