LOL. Wow. The lunacy of some people is absolutely hilarious.

If fundamentals detach, how are locals expected to continue to live in these markets? You have nearly 25% of industry based just on buying, selling, and warehousing people. The other 75% of industry is just suppose to constantly raise wages to support the other 25%? At what point do people go, you know what – I’m going to the US, because I can pay for health insurance and STILL come up with a lower cost of living?

Spoiler, we saw this in the early 1990s, when locals said screw this, I’m moving to the US after the last “immigrants will come here forever” blew Montreal and Toronto into oblivion, only to see prices recover in 2014.

So long as no measures to limit/regulate the foreign flow of capital is implemented, you’ll see the trend continues in a fairly sustainable manner. With the exception of a few months in 2008 and 2012, the prices been skyrocketing over the past two decades; has the real income? No. But, given the political stability, safe communities and the clean environment, Canada continues attracting the wealthiest, those who are not bothered by the fundamentals.

Real estate was never an investment vehicle and a necessity should never become one; however, due to poor policies of many central banks and various governments, it has turned into a solid means of investment and that’s our new reality, like a developing country.

Incredibly bad take. Professors aren’t market participants.

The more accurate take is “if fundamentals and data always DON’T prevail, the middle class would be the wealthier than the upper classes.”

If housing were the way to get rich, 68% of Canadians would be the wealthiest class of people, and we wouldn’t have Canadians on Bay St that earn 7-figure salaries renting. Unless you think 68% of the population is perfect at assessing the proper value for assets, and the one-percent (outside of real estate) has a bad take that primary housing a consumption, not an investment.

Oh yes, our unparalleled uniqueness is known throughout the lands. In fact, when a child is born anywhere but here it is not uncommon to hear the parent’s delicately whisper into their child’s ear, “We’re so sorry this isn’t Canada, land of the chosen ones.”

These numbers only paint a side of reality…the ‘what should be’ idea and does not include many other factors. I stress on immigration being a key driver on why prices continue to remain high and we might see even higher peaks. Regular people that work and pay high taxes in this country get the short end of the stick when immigrants coming from countries with much lower taxes bring in their wealth.

Just one straight forward example, Hong Kong is experiencing a difficult time and if I was a wealthy/better to do middle age person, won’t I try to keep my options open by getting a permanent residence in a country like Canada? If the situation in HK deteriorates, I can simply move my lifetime wealth to Canada and live in a nice house without paying Canadian income taxes throughout my whole life.
I get free healthcare and all the other benefits that Canada provides (more now with every election! Woohoo!). These people when they move over, become ‘semi-retired’, in the sense that they work for lower income jobs that are less stressful and use their wealth to invest in real estate/equity/etc. Their regular income reported from their jobs here do not reflect what they actually make through other investments which may be tax-free depending on the tax treaty.

So when data is being gathered for analysis, of course it shows that real estate is overpriced compared to income levels/affordability levels.

We are one major catalyst away from prices dropping. This is not sustainable. Businesses will move out of the city cause cost of real estate and salaries will be so high. Most Business is done virtually today, no need for higher expenses in a major city. People will move out further from cores of toronto and Vancouver to maximize quality of life.

Job replacement with machines and a global slowdown are two major issues in our future. This will harms many people and push them to the sidelines of ownership.

At some point in time wealthy people with wealthy assets will have to let others in on ownership or they can’t continue to grow. We live in awkward times with such division of wealth clearly growing but the system also arms the wealthy cause they need consumers. Hence why we are entering negative rate territory and pretty soon will be punished if we save money and incentivized to spend more and more. What a broken ass system. I have enough capital to retire in Thailand on a beach right now in my 30s but can’t even afford a home here in toronto. What are we chasing to be happy? People will wake up.

The “devaluation” is a result of expanded credit print. If you have 10 of something one day, and you divide it into 11 the next, how you think it works?

To get another bump like 2015, credit would have to hit zero, banks would have to lend for fun, and unemployment needs to go to negatives. 😂

Over half the population traded homes in the past 10 years. How fast do you think people upgrade?