BBDB859 wrote: Hi Flamingo.
First of all let me tell you that, I agree with the low Interest theory as been ONE culprit for getting people in the market flipping houses. But that only explains part of the equation. I also didn't want to expand on that, because I was trying to answer what was going on in the USA with "Trumps behaviour" to Flyman.
But since you brought it up. Btw I agree with Carney. I like his thinking.
He's one guy that deserves to run the country to instill some order in the Economic chaos created in the Housing industry. You do know me long enough here on this site to know, that I'm a Real Estate man. I'm aslo involved on the building side too, as I have said here before.
So, yes flipping works to pass on inflated prices, yes it's rampant here in Ontario. But flipping is the last cog on the chain. Interest rates were the enabler. You couldn't flip houses at crazy prices, if other scenarios weren't in place that helped Inflate prices.
Hence the need for Immigration to create a heathy market that is under supplied, like here in Ontario. This brings me to what the main reason for housing Inflation, or Inflation in general is.
The reason Ontario is under supplied for housing is ten fold. So I'll touch on as many that come to mind, so I don't write an essay. 1) The cost of development land. 2) The cost of Development of that land for housing. 3) The cost of Bureaucratic Levies to bring that product to the building stage (In Ontario municipalities add around $500K for a townhouse lot to $1M for single lots). 4) The cost of Construction. Both the Service side and the Materials side are very inflated. 5) Builders here in Ontario, especially in the GTA are very wealthy and they are not going to be blackmailed by the Municipalities and Govt authorities to build houses.
So they only build when necessary, not when the Govt needs housing for Immigration or Refugees. I'll stop there it's too much.
So, as you can see
the flipping of the house is dependent on the price the greedy flippers bought at that inflated house price, from a builder, and the wrong type of Immigration (Rich immigrants) is here to flip all the Inflated Inventory. So Inflation on top of Inflation.
I'm sorry that if you're getting that I'm throwing fear to the board. That's not the intention. That's the reality on the housing side. Then there is the other part of
Inflation in Goods & Services. Goods such as cars & all of consumer goods including food & appliances, .Then, there is the Servicing
sector. Then there is the raw Material side of Inflation as well.
So overall.
If the govt. was working with the Building side, and Goods and Services side,
instead of trying to Tax these sectors to death to keep the overblown Bureaucracy (Govt Employees) rich and fed. Then, the Govt could have worked together with those sectors to bring the right Immigration, to help in the SKILLED labour market, and the cheap also labor market. Then, we're may be cooking with gas and things may get done cheaper, and done quickly, to serve the Canadian growth. Of course this is not the case here today, and a good start is a "MARK CARNEY" to help put order in the whole thing. We need someone like him to coordinate this. Especially on the Fiscal and Monetary Policy. There is no Govt fiscal policy right now. The Govt is just printing money, and trowing money at problems.
Cheers pal
flamingogold wrote: 859, that is sosunding extreme with a lot of fear and anger thrown in. First off let me state I do not like Trump. However, he is a stock market president. He will not want to tank it. Much of this tariff talk is part of the art of the deal. It's tactics, pre-negotiation. Yes, tariffs are coming. Yes, inflation will return. But, nothing like what we just came out of.
Second, I don't like Trudeau either and I hope Carney decides to run because I don't trust Poilievre either. Regarding the housing market, we the people did this to ourselves. No one else. Politicians are easy targets to life's problems.
The fact is, rates needed to drop to historical lows to avert a depression which would have been multiple times more devastating than the recession we had during and post covid. Rates falling to historical lows turned real estate into a mania. The worst thing people should have done when rates were in the ditch was buy real estate. Did they think rates would stay low forever? Canada's problem is not just immigration but debt, debt and more debt and a lack of industry. Losing Bombardier's rail business will come back to hurt us. We are a nation of house flippers which lately is in the toilet.
BBDB859 wrote: Hey Fly.
If Trump puts a tariff of 100% on the Chinese products? The American companies who produce those similar products will also raise the price to be similar in price to what the Chinese products (Tariff included) are selling for in the USA.
That's 20% higher for consumer goods in the US This is what happens. So we're going to see
inflation galore in the US, & don't sit there and try to tell me that, the Americans are going to pay for that Inflation with closed eyes. Yes they are GULLiBLE as you say to Trumps lies. But even they are not stupid enough to see how their money is buying less since he's been in office. This time they won't have the Govt handouts from Covid either to pay for goods. So in 2026 mid-elections, the Republicans will lose their mandated power they were given in the 2024 elections. Believe me Trump will somehow step in his own
859, that is sosunding extreme with a lot of fear and anger thrown in. First off let me state I do not like Trump. However, he is a stock market president. He will not want to tank it. Much of this tariff talk is part of the art of the deal. It's tactics, pre-negotiation. Yes, tariffs are coming. Yes, inflation will return. But, nothing like what we just came out of.
Second, I don't like Trudeau either and I hope Carney decides to run because I don't trust Poilievre either. Regarding the housing market, we the people did this to ourselves. No one else. Politicians are easy targets to life's problems.
The fact is, rates needed to drop to historical lows to avert a depression which would have been multiple times more devastating than the recession we had during and post covid. Rates falling to historical lows turned real estate into a mania. The worst thing people should have done when rates were in the ditch was buy real estate. Did they think rates would stay low forever? Canada's problem is not just immigration but debt, debt and more debt and a lack of industry. Losing Bombardier's rail business will come back to hurt us. We are a nation of house flippers which lately is in the toilet.
t soon. He's already starting to put his plan in motion, of putting idiots into all these promotions to high ranking office positions (Zars). The American public won't know what hit them, until it does hit them. They voted him in, now they have to live with the concequences.
Just wait & see where inflation will go to. This 10% we just saw will be nothing compared to what's coming. And Interest rates will be through the roof next year in the US. Then he strarts deporting another 5 mill Immigrants of cheap labor, and the labor force gets smaller too.
What do you think will happen to prices then. TRUMP has no idea what he's doing to the US economy. And neither does TRUDOPE with his pea sized brain, with immigration. Trudope almost destroyed our housing industry and now we have to correct it in the next 5 to 10 years because of his Immigration policies. Plus this printing of money, what a covid mistake? NO FISCAL RESPONSIBILITY WHATS SO EVER.
All I see is Interest rates going up again, in both our countries. Because we have idiots in power. At lease Trudope is out next year. The other idiot in the US is there for 4. INFLATION INFLATION INFLATION.
flyman12 wrote: If memory serves me well I seem to remember Trump stating that he wants to put tarrifs of 10 to 20% on all imports except for China. They get a 100%. As for the USMCA agreement I think that it can be reviewed and revised in 2026. On top of that he hates Trudeau. As for having Americans pay more for things what makes you believe that they would bock. They will swallow any Hey Fly.
If Trump puts a tariff of 100% on the Chinese products? The American companies who produce those similar products will also raise the price to be similar in price to what the Chinese products (Tariff included) are selling for in the USA.
That's 20% higher for consumer goods in the US This is what happens. So we're going to see
inflation galore in the US, & don't sit there and try to tell me that, the Americans are going to pay for that Inflation with closed eyes. Yes they are GULLiBLE as you say to Trumps lies. But even they are not stupid enough to see how their money is buying less since he's been in office. This time they won't have the Govt handouts from Covid either to pay for goods. So in 2026 mid-elections, the Republicans will lose their mandated power they were given in the 2024 elections. Believe me Trump will somehow step in his own
859, that is sosunding extreme with a lot of fear and anger thrown in. First off let me state I do not like Trump. However, he is a stock market president. He will not want to tank it. Much of this tariff talk is part of the art of the deal. It's tactics, pre-negotiation. Yes, tariffs are coming. Yes, inflation will return. But, nothing like what we just came out of.
Second, I don't like Trudeau either and I hope Carney decides to run because I don't trust Poilievre either. Regarding the housing market, we the people did this to ourselves. No one else. Politicians are easy targets to life's problems.
The fact is, rates needed to drop to historical lows to avert a depression which would have been multiple times more devastating than the recession we had during and post covid. Rates falling to historical lows turned real estate into a mania. The worst thing people should have done when rates were in the ditch was buy real estate. Did they think rates would stay low forever? Canada's problem is not just immigration but debt, debt and more debt and a lack of industry. Losing Bombardier's rail business will come back to hurt us. We are a nation of house flippers which lately is in the toilet.
t soon. He's already starting to put his plan in motion, of putting idiots into all these promotions to high ranking office positions (Zars). The American public won't know what hit them, until it does hit them. They voted him in, now they have to live with the concequences.
Just wait & see where inflation will go to. This 10% we just saw will be nothing compared to what's coming. And Interest rates will be through the roof next year in the US. Then he strarts deporting another 5 mill Immigrants of cheap labor, and the labor force gets smaller too.
What do you think will happen to prices then. TRUMP has no idea what he's doing to the US economy. And neither does TRUDOPE with his pea sized brain, with immigration. Trudope almost destroyed our housing industry and now we have to correct it in the next 5 to 10 years because of his Immigration policies. Plus this printing of money, what a covid mistake? NO FISCAL RESPONSIBILITY WHATS SO EVER.
All I see is Interest rates going up again, in both our countries. Because we have idiots in power. At lease Trudope is out next year. The other idiot in the US is there for 4. INFLATION INFLATION INFLATION.
it that he spews. He will just blame someone else.