It seems the GTA overheated housing market (i.e. bubble) is about to have a sharp knitting needle poked into it. All levels of government are talking of taxes to stop speculation in this “… just plain stupid ..” real estate market. As a Libertarian, I am not fond of governments sticking their oar into a free market, but this market is being gamed by outside forces. The entire real-estate industry has always been near the Pay Day Loan world in my view, but in the GTA right now, this is getting stupid. The Ontario Government did announce a bunch of measures, which may help?
I keep hearing arguments that there are ethical real-estate folks out there, and I have no doubt that there are some, but when this much money is being thrown around, the unscrupulous come running. Making 2% (or higher) on a million dollar sale, is motivation enough for some.
I note that no solution being suggested has any regulations being put on the real-estate industry? Rules and regulations in this area might be more useful, as well as an ethics watch dog in the area might help too.
Rent controls sound like a good idea, but increasing government control of the rental market worries me as well. Government regulation isn’t going to fix things, if anything it will create a more cumbersome system. Landlords will simply hire consultants to find ways to get around regulations.
The bubble has even come to Ottawa, with nutty folks speculating in the Ottawa market. I get calls daily from real-estate folks wanting to help sell the Big Cajun Hacienda (I didn’t know I wanted to sell it). Sure I might make good money selling my house, but where would I live? The only fun stories I have seen are of folks moving from YYZ to YOW, and being able to buy their new house for cash, except that might be what is causing Ottawa’s market to heat up?
As I have said, money is not the root of all evil, but it is the cause of a lot of stupid decisions.
Maybe Marijuana legalization is coming just in time, so we can all mellow out about this whole thing?
I missed a chance to be at a Financial Smart Guy Brunch (formerly known as the N.C.F.B.A), sounds like it was a rip-snorting event. I am glad my absence was noted, although the commentary about cloud chasing (while true) was not necessary (see the tweet further on). Some great new investment ideas were discussed including:
- The Blue Chip Winery Fund
- Giant Cash Bonfire Fund
- The Ultra Super Cool Ponzi Group
- Horizons Medical Marijuana Life Sciences ETF
- Thor High Growth with Ultra Stability Fund
Guess which ones are real. I would also think that Bernoulli would win in a Thunderdome Cage Match with Kahneman (but I think they may have been pulling my leg on that one).
A Money Thought
I guess there is such a thing as bad press ? I suppose it is good they remembered me.
Spring has Finally Sprung
In Ottawa the rain keeps coming, everything is greening up, and the Golf Courses have opened as well. Wonder how long the Golf Courses in Toronto will last before they are subdivided into many ludicrously overpriced homes?
- I never had to worry too much about Capital Gains, but Mark from the Blunt Bean Counter points out in Realized Capital Gain/Loss Reports – Rely on Them at Your Own Risk, some of the pitfalls involved.
- The Continued Growth in Passive Investing, is another point of view on the entire Couch Potato investing world.
- Do you want to learn more about Bonds, and how cool they are (OK they aren’t cool, but it is an important aspect to your portfolio), listen to the Canadian Couch Potato’s latest podcast, Podcast 7: Making Sense of Bonds
- The CBC has yet another disturbing investing story with ‘Canada is in the Dark Ages’: Investment insiders reveal how lax laws put your financial interests last, I am not that surprised by this, but I also hate being right.
- Nelson! at Financial Uproar gives us a helpful Reminder: Don’t Invest with Investors Group. How nice of him to remind us of that point.
- Barry from Money We Have gives us an interesting perspective with How Much Does IVF Cost ? Good on you for your insights!
- Do you want to know The Real Reason Why a Big Mortgage is a Bad Idea ? Well you had better read this oldie but goody from Michael James and find out.
I Want In on This Bubble?
The Bond Market is now offering a bundled mortgage bond. I will be giving it a pass, after having read the Big Short (the book is even scarier than the movie).
2017 Random Thoughts
- Ladies on Panels, Good Friday, Friendly Skies, Loose Money and #MoneyTalk (April 14th)
- Tax Time, Housing Bubbles, Financial Easter and #MoneyTalk (April 7th)
- April Fools, High on Life and #MoneyTalk (March 31st)
- Ho Hum Budget, Brackets Busted and #MoneyTalk (March 24th)
- Naughty Banks, March Madness, Big Snow and #MoneyTalk (March 17th)
- Teller Upselling, Auto-filling Taxes, Spring Forward and #MoneyTalk, (March 10th )
- Lent Begins, Loose Money and #MoneyTalk (March 3rd )
- RRSP Season, Tax Time, and #MoneyTalk (February 24th )
- Farewell Vinyl Café, Snow, Monopoly and #MoneyTalk (February 17th )
- RRSP , Tax , TFSA , RESP, and RDSP Time and #MoneyTalk (February 10th )
- Year of the Fire Rooster, Financial Groundhog Day and #MoneyTalk (February 3rd )
- Alternate Financial Facts, 1984 and #Moneytalk (January 27th)
- Bungled Mortgages, Friday the 13th and #Moneytalk (January 13th)
- Merry New Year, CPP, EI and #MoneyTalk (January 6th)
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