Canadians have bid up the prices of houses so high that builders don’t want to build them because they are so unaffordable.
Canadians have decided that houses are expensive. We’ve decided to pay any price allowable by banking regulators and thus the prices are insane.
I wish we’d stop blaming everything on external factors like immigration. We keep voting for and supporting governments that make buying a home easier which inevitably drives up total prices in the long run. RRSP withdrawals, FHSA, CMHC insurance for less than 20% down, tax credits, etc. we vote in municipal governments that foster NIMBYism and stop development. We allow giant land transfer taxes and other red tape which makes houses more expensive.
chemtrailer21 on
Nice work.
How many people began to call this country home last month?
Automatic-Bake9847 on
I would love to build an ADU on my property and rent it out.
Even with no direct land cost, and doing a lot of the build myself (I’m a carpenter) it is tough to justify financially.
I could probably get a one bed, one bath apartment style home built for around $150,000 or so. At today’s interest rates, and assuming a 15 year payback period, I would need to rent it for around $1,600 a month just to break even.
I am in a rural setting in Ontario so I could see it being tough to rent at that price point.
Originally I wanted to buy another piece of land nearby and build a rental, possibly adding another rental over time, but if you factor in land costs you are going to be significantly in the red.
MarxCosmo on
We are a country run by landlords, half the federal representatives, landlords or married to landlords, provincially the numbers are sometimes even higher.
Stop voting for landlords unless your interests align with landlords.
5 Comments
Canadians have bid up the prices of houses so high that builders don’t want to build them because they are so unaffordable.
Canadians have decided that houses are expensive. We’ve decided to pay any price allowable by banking regulators and thus the prices are insane.
I wish we’d stop blaming everything on external factors like immigration. We keep voting for and supporting governments that make buying a home easier which inevitably drives up total prices in the long run. RRSP withdrawals, FHSA, CMHC insurance for less than 20% down, tax credits, etc. we vote in municipal governments that foster NIMBYism and stop development. We allow giant land transfer taxes and other red tape which makes houses more expensive.
Nice work.
How many people began to call this country home last month?
I would love to build an ADU on my property and rent it out.
Even with no direct land cost, and doing a lot of the build myself (I’m a carpenter) it is tough to justify financially.
I could probably get a one bed, one bath apartment style home built for around $150,000 or so. At today’s interest rates, and assuming a 15 year payback period, I would need to rent it for around $1,600 a month just to break even.
I am in a rural setting in Ontario so I could see it being tough to rent at that price point.
Originally I wanted to buy another piece of land nearby and build a rental, possibly adding another rental over time, but if you factor in land costs you are going to be significantly in the red.
We are a country run by landlords, half the federal representatives, landlords or married to landlords, provincially the numbers are sometimes even higher.
Stop voting for landlords unless your interests align with landlords.
Meantime in my new homeland: [https://www.ft.com/content/3b819571-662d-4185-9ca5-c7e682b55700](https://www.ft.com/content/3b819571-662d-4185-9ca5-c7e682b55700)
And they raised the tax brackets to higher income cut offs and the standard tax credit deduction.