Why are Housing prices so high?

I'm talking to you Canadians, Londoners, and Australians.

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It's because you can't stop going to Starbucks, stupid millennial.

youtube.com/watch?v=RDZCM6v3ORA

Miss Noir

Because when you give the entire lower class free money to throw around, they all end up in a bidding war for the same real estate.

capitalism

It's just the chinks dumping money in canada and trading in bitcoins.

Go 20 minutes away from large cities and price fall down sharply to 300K and less which is basically worth 100K in britbong money.

cheap debt, slack lending standards, infinite amortization and greed

plus the mentality that stocks just crash so put all your money into housing

we are the US in 2007

Kek. Yeah leaf, youre real capitalist.

Plebs whose only notion of investing or saving is: "Muh massively levered single asset strategy".

Phenomenal T&A on that woman.

if everyone devalues their dollar at the same time our currency exchange rates stay more or less the same while everything we need to survive goes up in price. healthcare food clothing housing cars...

Central banks have kept interest rates near zero percent for 8 years.

At these low rates people can afford to take out much bigger loans.

When you reduce the interest rate from 4% to 2% a person can afford to pay the interest on a loan that is twice as large.

People have been using these money from these huge loans (mortgages) to bid up the price of houses.

Because countries use it to fuel their financial engines. Low interest rates too.

this too europe has neg interest rate meaning gtfo of the dollar and buy anything


the only thing that doesn't cause inflation is capitalism because it doesn't really exist beyond the supply and demand reaction caused from gov intervention

Mainland Chinese flood into Australia to buy property and rent it out but not maintaining it. Government gives away billions to keep the prices going higher

It keeps the worthless boomers happy and prevents them from seeking improvement in government.

>>People have been using these money from these huge loans (mortgages) to bid up the price of houses.
this.

i do not know of a single person who owns their house outright, and bought their house in the last 10 years. every cunt is on a mortgage or in their 60s.

kek.yeah. kekKEKEKEK

Fuck, it's humiliating that I'm not Alpha enough to pull a gf like this.

>Why are Housing prices so high?

Because boomers priced everyone out of the market, and there's more of them then any other generation (due to WW2).

Ergo, we should be getting a SHIT TON of social welfare to offset that (especially with automation on its way)... but we're not. Instead we're getting shafted.

This very much, that and combined with fuck tonnes of people buying houses and just renting them out.
Not very fair when all the houses available are owned and are just rented out by your local 3t hairdresser/70 year old couple on oxygen tanks

Mr. Chang buys out property, boomers refuse to sell, so millenials are forced to suck Mr. Changs cock for rent.

More like they should have killed negative gearing decades ago and made landlording much less attractive.
A guy at my work has 4 rental properties with a 1.5 million mortgage on ~$60k a year and he manages the repayments with an offset and tax right offs. Oh yeah and he rents too.

Absolute insanity.

Anna goes full Sup Forums

housing is treated as a commodity, when it should be a right. until we nationalize 80% of rental property, the costs will continue to go up. and people should not be expecting to make a profit off buying and selling land. houses and land are separate. no profit on land, its a public resource. said by a homeowner.

>tax right offs

My grandparents paid $9000 in cash for their house in the mid 60s.

Fun fact, government caused the disparities in your comics

that's capitalism bitch

It's muh right to make muh money however I see fit. How do you think he bought 4 properties? he pulled himself up by his bootstraps and through hard work he bought those houses.

>he pulled himself up by his bootstraps and through hard work he bought those houses

Its not even hard work, getting a mortage of $1.2m is pretty common in Ausland (especially if you live in Sydney) and doesnt take long to pay off if you are in a relationship earnign over 70k+ a year

You're retarded. If housing was nationalized, projects would be the norm, not single family units. Without competition, there would be no reason to keep neighborhoods clean. What happens when the government decides 20 families who own their homes and the land they sit on need to give that shit up so they can be bulldozed and an apartment bloc can go up? What makes you think individual government officials in charge of local land redistribution are any less affected by greed than land owners?

chinks. you guys should bring back the head tax

Cuz of all that avocado toast you be eating. Buying a house is easy if you're willing to save your pennies.

Mainland Chinks.

>linking TYT
kys faggot

The housing prices are actually quite reasonable in a lot of Canada. Toronto, Vancouver and Montreal on the other hand...

Once it crashes I am going to buy up Canadian rental properties, then I am going to abuse my Canadian tenants.

government regulation

TX has relatively higher real estate taxes, and much lower house prices

union fuckers build overpriced shitbox houses then they force the overpriced shit on people

house should be like desktop pc
cheaper and better every year

tax man loves it
they regualte shit outa industry with buuilding codes and voerpriced tradesmen and unions
then same for materials
everythign drastically overprced
they fight mass production and factor high tek produced houses liek motherfucker
fight monorail and other cheap private run transport options
even fight private bus

Abuse Canadian tenants? Good luck, pal. It'll take you a year and a half to evict some deadbeat out of your property once he gives some sob story to the provinces proto-communist rental tribunal.

lel, enjoy being featured on GoPublic cunt

Lot prices and regulations out the ass. Completely stops anyone from trying to get into home building.

I wish like the 2nd of moth u could call cops
throw motherfuckers out
pay rent
or get the fuck out

exactly
need to deregualte
take all millions of unemployed fucks
make house parts n concrete factory
there work thre bitches
make concrete pillars
cap with metal roof
maek hard pastic wals nto to hold load but jsut to contrain humans and keep rain off
bam
cheap
90% less material
I even dubbed this pillar durathin

Blame all the amateur property investors who emerged out of the last housing crash.

People in the upper class with enough disposable income basically spent the late 00's and early 10's running around buying up all the nice, affordable started homes and either renovating and flipping them at obscenely inflated prices or turning them into shitty rental properties. Home prices skyrocketed and now we're in a place where every family with a doctor or a lawyer or a college professor in it owns 5 or 6 "investment properties" and all the young people who ought to be settling down and starting families can't find a single-family starter home for less than $200K, so they stay in their shitty rentals and put off having kids

Capitalism in the west hasn't existed for a century.

Jews, Chinks and Boomers

one reason in california the contractors of a neighborhood is forced by law to build a school and put trees in.

>Summary

CMHC = Fannie/Freddie Mac

Canadian housing has nearly tripled in 10 years.
A single detached house has gone from about $200K CAD to over $800K CAD.

CMHC has $20B in assets and $946B in liabilities
>50:1 leverage

Banks have lent out a trillion dollars in mortgages for hyperinflated crackshacks while removing any risk of default for them by offloading them to the CMHC (mortgage insurer). At one point, the CMHC allowed 40 year mortgages (in 2008 60% of all new mortgages were 40 year terms), with 0% down (cashback mortgages were a thing with 7-10% cashback), and no maximum loan value. In 2008, over 90% of mortgages were insured by the CMHC (read:

>the entire Canadian housing market is subprime

CDIC = FDIC

Insures up to $100K.

CDIC has $3.4B in assets
CDIC has $679B in liabilities
>200:1 leverage

Both CMHC and CDIC are backstopped by the government.

A 20+% correction would wipe out the CMHC and at least one major Canadian bank as they have uninsured mortgages (already happening with Home Capital, the Canadian CountryWide). A bank being wiped out would wipe out the CDIC.

The CDIC and CMHC being wiped out would require the Canadian government to issue hundreds of billions of loonies in new debt, sending the loonie to sub-50 cents, possibly to 20-30 cents or even hyperinflating.

>The Day of the Rake is nigh

Chinks, period.

Also standard bubble chart. Look familiar?

>2008 dip/rebound

Harper bailed out the Canadian banks with a $119B secret bailout. The Canadian banks were all insolvent at the time.

>What's happening now?
The CMHC has been reigned in to a max loan value of $1M, max amortizations of 25 years (from a high of 40), 5% downpayment on the first $500K, 10% on the next $500K (7.5% on $1M).

People have been using "alternative lenders" who loan $2-3M on self-declared income or with fake documents. Now these lenders are blowing up and not making new mortgages, hence prices have stagnated or dropped (as in Van, already down 15% this year).

Once a massive across the board drop occurs, lots of people who are leveraged to the tits with negative/0/5% downpayment 30/35/40 year mortgages will be underwater (they will owe more than they can sell their house for).

>Canadian mortgages are all Adjustable Rate Mortgages (ARMs) that reset every 5 years

When renewal comes up, which is soon for a lot of 2010-2012 mortgages on 40 year terms with negative/0/5% downpayments, they will be forced to come up with hundreds of thousands of cash to bring their mortgage Loan-to-Value back down to 80-95%. 99% of people won't be able to come up with the money, so the bank will write off the mortgage with the CMHC mortgage insurer, who will pay the bank the loan back then take possession of the house and do a fire sale, and then go after the homecuck for the balance which will be hundreds of thousands for life. Bankruptcy can't discharge CMHC debt since it is Crown debt.

In fact, banks can call in mortgages at any time for any reason (lol). So if they see prices dropping, they will pre-emptively call in mortgages and write them off to stay afloat. Once this occurs, it's a race to the bottom as banks are forced to call in more and more mortgages to stay afloat (in order to maintain their Tier 1 capital ratios with marked market values of the houses on their books)

>A significant price drop will put millions of homecucks underwater
>Banks call in mortgages
>Homecucks can't come up with margin
>CMHC bails out banks and dumps toxic houses on market collapsing prices

Rich third world assholes moving their money into developed countries and ain't contributing shit to the economy or society.

Because of the fucking chinks buying up all the houses and raising the prices (I know cause I am one)

Supply and demand. Every one decided that for some reason they all want to do business in only major urban areas so now that's where all the jobs are and where everyone is trying to live. In addition to that it's peoples propensity to change jobs on a regular basis throughout their lives, and since it's easier to change a job than to change where you live, people just pay a ton of money to live in the place where all the jobs are.

>implying purchase of a house outside of a recession/depression
>complaining about high housing costs during a bubble
do you even real estate economics?

this is a great chart

lol enjoy losing all your property

(From May 1st, Home Capital is down to $120M HISA deposits and bleeding $60M/day)
>NINJA lenders
Home Capital Group, the "CountryWide" of Canada that does jumbo ($2-3M) NINJA (No Income No Job or Assets) and liar loans (self-declared income), has a $20B mortgage book.

In 2015, they were forced to cut ties with nearly 50 brokers due to massive fraud (homecucks using forged documents or lying about their income). They estimated $2B in mortgages on their books are fraudulent. They don't know which ones. In fact, the number is likely to be far higher. The Ontario securities regulator recently accused the former CEO/CFO of material fraud by lying to the public (the # of fraudulent mortgages is in fact far higher).

As a result, people have been withdrawing nearly all their savings from Home Capital's High Interest Savings accounts. These are term deposits and must be paid out immediately; the run on Home Capital has resulted in their HISA account going from $2B to under $400M in just under a week. As a result, they obtained a $2B credit line from a government pension fund at 22.5% interest and drew down $1B today to stay afloat.

They are essentially bankrupt. They cannot borrow at 22.5% and loan at 3%. Their stock dropped 65% on Wednesday last week and over 30% today. The Canadian bank regulator (OFSI) is "staging" them (seeing how bad their books are). It's rumoured they are terminal, and the OFSI is forcing them to liquidate. This will result in hundreds of thousands of million+ cuckshacks flooding the market, crashing prices.

that might be a small factor but really it's much more complicated than that

fucking regulations
school is a crony money making scheme to fuck kids and tax payers
expand libraryies n shut down school n university
it makes kids dumb

People need houses, houses are worth something, keep importing people, people keep buying houses, (((they))) keep rising the price for same people to inhabit house, while at the same time keep wages artificially low by employing undocumented of right out poor ignorant idiots who take as a given, the cycle of work day in and out to barely afford a shelter.

It truly is an artificial bubble, if you deport all undocumented you'll have a second housing bubble burst, at the same time if you keep bringing more shit skins you can keep the scam going as Pedro, xi ju ping and Ahmed bump the native population in to homelessness.

Is a win win situation... for (((them)))

Here we go again

hot damn! dat ass gonna start a fire.

Wrong. It's a classic Moral Hazard caused by government interference in the market.

Take out CMHC out of the game (removing any risk for banks), and prices attain true market fundamentals (anchored to wages which have decreased PPP wise).

>That $1.5M cuckshack in Toronto is worth maybe $300-400K sans CMHC

honestly? immigration and foreign investment, 99,9%

short answer? CMHC for 1st time home buyers.
Its a guarantee TO the (((banks))) that they get paid no matter what. Its insured by the tax payer. This makes risk a laughable issue for banks and they start using Overtime and Bonus as "monthly income" increasing your buying power by 1.5x to 2x depending on career. Buying power gets matched by the housing market which makes for a higher price.

This is probably very specific to the central prairie provinces since we have barley any immigrants.
Eastern provinces and B.C are foreign home buyers with lots of $$$

Anyone know the current standard deviation of the Canadian housing market? I can't find a stat anywhere and too lazy to plug all the numbers in excel to do it myself.

DEBT VELOCITY

TAX BREAKS

CHINESE CAPITAL FLIGHT

/thread

stop.being poor. fagghat

Chinks

>soon....very soon....kaboom!

yep
just ganking
regulation = monopoly sky high prices

monopoly is always government

Government regulation constricting supply and zoning laws

Too many Asians.

1 in 6 people in the would are Chinese. The average human on Earth is a Chinese man from the Han province.

They're buying more of our property than they should be allowed to. You're not able to buy a property in China, why should they be allowed to buy in London, Sydney or Vancouver?

Short answer bubble.
Long answer bubble chinese people boomers negative gearing and probably the jews

this shit is going to happen to australia next, i can feel it.

Chink niggers driving up prices with their commie dollars

This is wrong.

Neck yourself faggot

>In 2015, they were forced to cut ties with nearly 50 brokers due to massive fraud (homecucks using forged documents or lying about their income). They estimated $2B in mortgages on their books are fraudulent. They don't know which ones. In fact, the number is likely to be far higher. The Ontario securities regulator recently accused the former CEO/CFO of material fraud by lying to the public (the # of fraudulent mortgages is in fact far higher).

abc.net.au/news/2016-10-07/mortgage-fraud-systemic-in-australia-ubs-survey-shows/7911978

>However, one-in-20 mortgage applicants admitted that their loan application was only "partially factual and accurate", while 2 per cent "would rather not say".

>Out of the people who misrepresented parts of their application, 14 per cent said they overstated household income, 13 per cent overstated asset values, 17 per cent understated their debts, more than a quarter understated living expenses, while over 40 per cent said "other" or would not say what they had lied about.

>"However, there was a correlation between borrowers who misrepresented their application and: those whose expenditure was broadly equal to their income; stated they are under financial stress; or have missed a debt payment."

SO, YOU WANNA KNOW IF I CAN FEEL IT?

>they regualte shit outa industry with buuilding codes
because retards like you don't know what to look at when you buy houses. Building codes are just the minimum standard so the houses that idiot office workers buys stand for 10-15 years. It might be bullshit written by lawyers and >engineers but it somewhat protects the masses who don't have a single clue what to look for in buying a house. Although side note fuck HOA shit.

No it isnt.

ayo hol up! Sonatine is a beautiful film n shit
>grabs crotch
ya got beat takeshi fuckin around for hours 'n'shit
>smacks lips
me 'n' m'boys be watchin' that shit regular in Tyroneville with cans 'n' cans of Orion

hes going to buy Canadian real estate

> Nowhere left in our economy to invest besides housing - Mining & Banks are fucked
> Government restricting supply through Zoning
> Government restricting supply through red tape for developers
> huge foreign investment
> Low interest rates allowing all time high household debt
> Baby Boomers

I dunno mate you tell me.

It is wrong. More than 1 in 6 people are Chinese.

7.5b/1.37b = 5.47.

Roughly 1 in 5.47 people are Chinese.

they need people to move OUT of the fucking cities are retards are too stupid to do it. Housing in rural areas is cheap.

deregulate housing
ban unions
ban regulations
ban lawsuits based on stupid shit
factory produce concrete and forms
metal roof
plastic walls
make hsoues out of 4 column box capped with metal roof and bolted on plastc walls
low material
all unemployed work to create
get paid in house
monoraisl privately owned to transport
no aparmetn beehives
houses far apart way out in boonies and monorail in
all private
no regs
everyoine happy

Capitalism is breeding cucks like you away

Hard to measure since the RE boards reboard the patented Home-Price Index (HPI), which is a massaged number that's impossible to decipher

If you look at exponential growth, from 2008 when a Toronto SFD cost $400K, to today 9 years later at $1.2M, 3^(1/9) = 13% compounded annual return

However in the last 2 years SFD's have gone from $700K to 1.2M, or 31%/year YoY

It's essentially only been up, so volatility is relatively low prior to 2015, I would estimate vol being 8% annualized (400K to 700K in 7 years). Last 2 years have been in excess of 31% (700K to 1.2M) or 4 standard deviations assuming a normal probability distrution with a Z score of 4, with an expected p score of 3.2/10^5 or a 4 delta move occuring once every 3125 years.

This is in light of stagnant wages (in fact wages have decreased PPP wise). Wages theoretically are to rise in line with inflation (2-3%), and theoretically are supposed to go up. Home prices are usually anchored to a wage multiplier (usually 3x). So assuming one direction, vol can be assumed to 2-3% annualized for home price appreciation assuming a standard Central Bank ideal scenario, so a spike of 31% in one year is a 10-15 delta move, or a black swan if you follow Taleb. Theoretically these events should never happen but they often due to to fat tail theory in probability.

give me your land then.

Average house in Vancouver is about $1.6 million USD.

Poor people never enter the equation, m8.

people want entire blocks so

1. they buy one house, renovate it to be a box house that nobody wants, driving the price of the suburb down
2. when it's down enough they put buy offers out to other houses so that people who are paranoid about how much money they have think "oh I have to take this, 30% higher than surrounded house prices".
3. when they have enough, sell house to friend for more than it's worth, driving price back up.
4. once it's high enough, sell to developer for bigger bull block buildings.

they've been doing this for years.

Have you cunts seen the rental price per sqm these days? Fucking insanity. Rentals all being built on 400/450 sqm and renting out for $400-$500/week in QLD and that's in budget suburbs.

>Assuming they trusted the UBS survey
>Assuming people are honest to admitting to criminal acts

I'd say multiply that by 3 just like Doctors multiple your reported drink income by 3 or women multiply men's bag divide by 3 (or we multiply women's by 3)

fuking bastards

I thought about this is hwo you grab all the city property
let nigs nig
area dperssed
get massive tax money to renovate bad area
cops smash nigs over to enxt place to eb taken over
rinse and repeat

But Vancouver real estate is completely detached from wages, and has been for years.
If you take Vancouver out of the national equation, how do things look?

Sounds like the plot of Saints Row 2.

are you saying that this isn't normal?

that bush alone is worth a few hundred thousand.

lol

funny ever walk into costo?
its metal roof and concerete wall warehouse

why arent houses made liek that?
but say 6000 sq feet?

Average SFD in Toronto/Van was ~$350K in 2002.

2002 is precisely when CMHC regulations were loosened (amortizations went from 25 to 30 to 35 to 40), Loan to Values went from 90% to 95% to 100 to 107% (cash back), etc.

2002 was also when central banks started flooding the system with cheap credit.

>It's X
>It's Y
>It's Z
"It's different this time"

Anytime you want to identify a bubble and people are saying how it's different because of any reason detached from economic fundamentals, it's a bubble.