You are entitled. And we are – in the millions! Surrey SF home from $1,050,000 to $1,900,000 is runaway inflation (in 3 years).

On high in place: …markets are”…It’s a game where there are no guilty or innocent parties. Everyone participates with eyes wide open. However, in this mad world there will be a peak… There will be demand destruction in a recession in this and many areas of the economy. “

68/59/70: Feb-April 2022 GENERAL: We have had a lot of questions and  comments on the “high may be in place’comments. It is clear that momentum is slowing (look at the Fraser Valley board stats) but it is still there. I expect that this spring a large number of owners will continue to list(!). Initially many of those listings will be soaked up’ by the demand, but it will slow into the summer with news reports about listings and a slowing market.

If you are an investor, take a good hard look at your portfolio. Sell your losers (subsidizing rental income) keep the cash flow (it will be harder to come by in the future). As an owner, understand your blessing of low rates – maybe look at your HELOC convert it to a long-term mortgage.”

Headline in Issue #67. Actually it was then an ongoing discussion over several issues from 66 – 69 and so on… In Jan/Feb 2022 we saw a massive downturn. We reported sharply lower sales in Jan 2022.We talked about it in the questions constantly-see below:

Excerpts: “Issue 67: The High is in Place?; Issue 68

Hold on. It’s up 2 cents not 3. It is not a new stance…I have felt strong about the US dollar always. Reserve currency, strong economy, what options? High returns! 

No, I had not. Thanks. Insurance rate increases are raising their ugly heads everywhere. Thank you to everyone that send a story on panels, windpower, water power and EVs. I’ll do something on it next month. 

Agreed. I download a PDF and instead of the adobe version, my woke AI assistant wants to do it, but first I must sign in…

Indeed…the numbers don’t lie…

You look well set up. Your thoughts are clear and logical. Alberta? Yes, but Edmonton and Calgary only.  (Note sales are down and listings also rising). Industrial? Yes. No rent control. Review feature on Alta’s taxes versus BC. Issue #96

BUT (you knew there would be a ‘but’): It is my view that if you are over 65 you should be 35% in cash. Over 75 it should be 50%. I have written in previous issues on the fact that we live 2 investment lives based on:

• The state of the markets and
• Your age and standing (retired, employed or self)
• Add to that that central banks around the world are signalling massive trouble ahead. (Can you spell Deutsche Bank, Flagstar Bank and Zion Bancorporation, Lau…?) Actually, sit down! 186 Banks are in Danger of Failing? A report posted on the Social Science Research Network found that 186 banks in the United States are at risk of failure or collapse due to rising interest rates and a high proportion of uninsured deposits. July 31, 2024.
• Major wars are pending.
• $350 trillion is owed to the world (never will be repaid).
  Buffet sold 50% of Apple and now sits on 277 billion in cash. The most cash he was in …EVER!
• So, cash is not trash.
• Note: Part of that must be easily accessible as well. Watch my video ‘cash is not trash’. Even Mr. “Cash is Trash” Ray Dalio changed his tune!

The million-dollar question. Trudeau stated that the Liberals will not take away the Capital gains tax exemption. He also said, he has (thru CMHC) not commissioned studies on wealth taxes in general and elimination of all free or low capital gains taxes. Alas, the facts are:

In 2016 Trudeau brought in the registration of the sale of all private residences. Why? It is tax free gain, right? So, why?

Last year he brought in a capital gains tax on private residences that are sold in a year after purchase. A 100 per cent gains tax (66% – 100%). Ask yourself, how easy that would be to make it 2,3,4,10 years after purchase. And there you have the prime residence capital gains taxes exemption – eliminated. 

Now, your question is how far back will they go? Well, at least back to 2016 when properties started to be registered at CRA. Since most capital gains (50% or so) for many homeowners came after that date…hmmm?

Can they do it further retroactive? BC Liberals did it with the foreign buyers tax, against all common sense. I called it dastardly at the time. We are taxed a lot worse now.

Yes, they could. Go to Land registry – get purchase price on every property in Canada, measure total amount of gain based on median prices. All boards have them. Not Benchmark prices – don’t go far enough back. Give an annual allowance for insurance, taxes and other costs, some repairs…and grab the balance. Not saying they will. But could they? Again – read Generation Squeeze website.

Solution?

I don’t have any. Just ask yourself how long it would it take to save 1.2 million tax free? Ideally your neighbour has the same house…you buy his and he buys yours. Trigger the gains. Live happy ever after.

Commercial and multi family real estate has been under great pressure, but with falling rates (perhaps faster falling rates) there will be recovery of rental income. As far as the US indebtedness goes (Interest cost surpass the cost of the military) there are huge dangers ahead. Not only the US, but as far as residential real estate goes, US prices are downright cheap (average prices lower than even Calgary) compared to Canada/Australia and a dozen other countries. The average SF home under $450,000, condos under $250,000 etc. Compare that to Canada!

The paradox of tolerance states that if a society’s practice of tolerance is inclusive of the intolerant, intolerance will ultimately dominate, eliminating the tolerant and the practice of tolerance with them.

That is particularly so in today’s world, where we tolerate students in tents on campus stating openly that they want to kill people, where a small majority use the tolerance and then build ‘woke’ premises on it.

Men are trash, masculinity is patriarchy, family is dead. Traditional values, our longstanding beliefs, customs, and societal norms that have been passed down through generations. Stability, respect for authority, and adherence to established social roles, all that’s in question.

People come from all over the world to North America running away from murderous governments and then force their views, their religion, even their laws on the society that they fled to.

Why can they do this? Because we let them. We are tolerant.