A 'Economist's view' of Inflation issues in Canada and how its premedidated

[suntan]

There's no immigants in BC.

[g-m]

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You need another generation in there…

Grandparents die…

Will $3m free and clear 50ft wide lot, detached home in van or TO to parents (who already owning a house, sell to developers to put in multi-res rentals). They feel bad for kids, pay off their modest $300k mortgage and gift DP to kids, but kids need their unsecured debt cleared out to qualify, so parents also pay that. Houses keep inflating, and that money that was locked up in a fiscally responsible retiree’s accounts can finally circulate

Double penetration?

[r3ccOs]

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But that's not what OP's so-called analyst is saying at all.

Here is what I think "analyst" is saying:

- Parents have house.
- Parent die.
- Parents will house to kids.
- Kids can live in house.
- Kids no longer have mortgage/rent to pay.
- Kids can take that income and pay off their debt.

Now there's a lot of problems with this.

- House may not be fully paid off.
- Kids can't actually live in house, because if you have two or more kids this isn't really viable.
- Kids won't actually pay off debt because what's forcing them to?

But what do I know.

no its former... but kinda both.

Driving the valuation of housing (inflation) through demand (immigration), will reduce the significance of the debt accured as the wealth holders pass on.

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if you look at the relgious background of most of the recent migrants... yep

[suntan]

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no its former... but kinda both.

Driving the valuation of housing (inflation) through demand (immigration), will reduce the significance of the debt accured as the wealth holders pass on.

- - - Updated - - -

if you look at the relgious background of most of the recent migrants... yep

In an inflationary environment, if you owe $200K, and you make $50K, the significance of the debt is still significant for that person. If anything it's even more significant since your living expenses have risen. And even more so if the loan is variable rate.

You're using macroeconomic concepts on a personal level. Stop it.

[Disoblige]

Guys, the solution is ALWAYS the same no matter what.

The answer is q.

And what is q?

q = 6-6 Accord Make more money.

[max_boost]

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Guys, the solution is ALWAYS the same no matter what.

The answer is q.

And what is q?

q = 6-6 Accord Make more money.

Or less golf
Less Michelin restaurants
Less travel
Less m cars

[ercchry]

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In an inflationary environment, if you owe $200K, and you make $50K, the significance of the debt is still significant for that person. If anything it's even more significant since your living expenses have risen. And even more so if the loan is variable rate.

You're using macroeconomic concepts on a personal level. Stop it.

If you didn’t make a fortune off that $200k by reselling PS5’s, toilet paper, or camper vans since 2020, that’s on you. The wealth gap widens, as usual

[Xtrema]

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I'm guessing you talk to the ones who chose to move to Alberta rather than BC or Quebec...

Non-Canadian immigrants are generally conservative.

Housing refugee we get in Calgary from other parts of Canada are generally Liberal.

I am not surprised if next Fed election that CPC loses a couple of seats in AB due to that demographic change. Much like last time that gave us Trudeau and Kent Hehr in 2016.


And immigration won't stop...

https://www.centuryinitiative.ca/why-100m

The Century Initiative was co-founded by Mark Wiseman and Dominic Barton, who also led the Trudeau Jr. government’s Advisory Council on Economic Growth.[4][5] The Initiative is supported by former Conservative Prime Minister Brian Mulroney[6] and by influential Liberal Party advisors including advisors to former Minister of Finance Bill Morneau.[7][8] The Century Initiative has been listed on Canada's lobbyist registry since 2021 and has organized meetings with the immigration minister's office, the minister's parliamentary secretary, and Conservative and NDP members of parliament.[9]

And if we are not pumping out 3 kids per couple, 1m immigrant/year is basically on par to reach this goal. And so far they have been doing it for 2022 and 23, ever since this lobbyist group registered.

And for the conspiracy theory...

The Century Initiative Board of Directors is chaired by co-founder Mark Wiseman, who was the Global Head of Active Equities of BlackRock and ran Blackrock's Alternative Investment division at the time that the Initiative was founded.[27][28] BlackRock owns $35 billion in real estate and it could possibly benefit from a real-estate bubble.[29]

BlackRock's Alternative Investment division includes the firm's international real estate investment portfolio[30] and is reported to be actively purchasing single family homes.[31] The Century Initiative's other co-founder, Dominic Barton, is married to Geraldine Buckingham, BlackRock's Asia Pacific chief, which has previously generated conflict-of-interest concerns.[32]

Follow the money. There is no interest in solving this housing crisis.

https://en.wikipedia.org/wiki/Century_Initiative

Calgary-Edmonton region is expected to have 16M people by 2100.

[msommers]

So stay in your current house until you die, then have your kids stay in it until they die, and so on.

Sounds like the only way for future generations to create wealth because working 9-5 is sure not gonna do it.

[ExtraSlow]

If the house you live in goes up in value and you never move out or sell, that's not "wealth" in any meaningful sense.

[ercchry]

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If the house you live in goes up in value and you never move out or sell, that's not "wealth" in any meaningful sense.

The $50m I helped facilitate last year in (mostly) Ontario refinances says otherwise

[max_boost]

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So stay in your current house until you die, then have your kids stay in it until they die, and so on.

Sounds like the only way for future generations to create wealth because working 9-5 is sure not gonna do it.

buy the spy
dca
compound interest is the only way

[ExtraSlow]

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The $50m I helped facilitate last year in (mostly) Ontario refinances says otherwise

I'm not a sophisticated finance expert, but refinancing your primary residence doesn't seem like a sign of wealth either.

Probably too smooth brained to get it.

[ercchry]

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I'm not a sophisticated finance expert, but refinancing your primary residence doesn't seem like a sign of wealth either.

Probably too smooth brained to get it.

What’s to get? Live the high life, die with nothing.

[max_boost]

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What’s to get? Live the high life, die with nothing.

This is the way
Heloc that shit

If your kids are capable they will be fine
If they aren’t capable lol well that sucks
Leave them with something but don’t leave them with everything heh

[ExtraSlow]

I really must be smooth brained. I thought we were talking about becoming wealthy. So baffled.

[Xtrema]

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I really must be smooth brained. I thought we were talking about becoming wealthy. So baffled.

I thought the game is getting wealthy by helping others getting into huge debts due to fomo. IE Mortgage brokers and Realtors.

[you&me]

Everyone knows wealthy people only have stacks of cash and big balances in their chequing accounts... Would never have money tied up in assets or equity in businesses or real estate.

What's to get indeed.

[max_boost]

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I really must be smooth brained. I thought we were talking about becoming wealthy. So baffled.

thread derailed dilarang!

[ercchry]

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I really must be smooth brained. I thought we were talking about becoming wealthy. So baffled.

Well… I guess you could like. Use the proceeds to purchase assets that increase in value with inflation. But spenders are the real heroes. Keep the wheel turning!

Primary residences being worth more is very important if one wants to start building wealth via business, as most business loans will require a personal guarantee and your net worth will be a large part of that (including securing that loan on your property).