https://www.youtube.com/watch?v=dUoJydVaF4E
It sounds like an absurd "let them eat cake" question, but the majority of Canadians live in cities where the average single family home costs ONE MILLION DOLLARS or more, and taxes are very high. You get into your million dollar home, you pay your 8,000 or 10,000 annually in land taxes on top of the 50% income taxes, you're paying high food costs, high insurance costs, high energy costs, some of the highest Internet and cell phone prices in the world, and before long you're looking at six figures just to have a basic life.
The Trudeau government wants to blame everyone but themselves, but if you look at every single election campaign, they throw more incentives at buying a home, as if they aren't just raising the costs of an individual home in doing so.
More of the Canadian economy is selling crappy houses to each or surrounding services other than manufacturing. Not by a small amount.
If inflation doesn't get in check, then mortgage rates are going to continue to rise, and a lot of people who were relying on the government to continue keeping interest rates low forever are going to discover that with interest rates being what they are there is no mortgage term long enough where they can ever pay back their house. At the 1% some mortgages were coming out at, your monthly payment for 900,000 of debt over a whopping 30 years is about 2800/month. At the current rates of about 6%, that rises to 5300/month. At the historical average prior to the great recession of about 9%, payments work out to about 7100 monthly. Accounting for tax, 7100 monthly is a six figure job just to pay that. You'd already be spending almost two dollars in interest for every dollar in principal.
It sounds like an absurd "let them eat cake" question, but the majority of Canadians live in cities where the average single family home costs ONE MILLION DOLLARS or more, and taxes are very high. You get into your million dollar home, you pay your 8,000 or 10,000 annually in land taxes on top of the 50% income taxes, you're paying high food costs, high insurance costs, high energy costs, some of the highest Internet and cell phone prices in the world, and before long you're looking at six figures just to have a basic life.
The Trudeau government wants to blame everyone but themselves, but if you look at every single election campaign, they throw more incentives at buying a home, as if they aren't just raising the costs of an individual home in doing so.
More of the Canadian economy is selling crappy houses to each or surrounding services other than manufacturing. Not by a small amount.
If inflation doesn't get in check, then mortgage rates are going to continue to rise, and a lot of people who were relying on the government to continue keeping interest rates low forever are going to discover that with interest rates being what they are there is no mortgage term long enough where they can ever pay back their house. At the 1% some mortgages were coming out at, your monthly payment for 900,000 of debt over a whopping 30 years is about 2800/month. At the current rates of about 6%, that rises to 5300/month. At the historical average prior to the great recession of about 9%, payments work out to about 7100 monthly. Accounting for tax, 7100 monthly is a six figure job just to pay that. You'd already be spending almost two dollars in interest for every dollar in principal.
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