What's with that one guest of yours laughing his ass off the entire time. I guess he's locked into a fixed rate mortgage and looking at the destruction from the sidelines. I don't really think it's appropriate to laugh your ass off for 90 minutes when you're talking about something as devastating as this is to 1/3 of Canadians.

If you can't afford a house then you don't deserve one.

Saying "likely" means nothing.
What degrees do you have?

Would love to see you guys in Calgary! I will 100% be there! I listen in every week!

I don’t understand what’s the problem here. If people can’t afford their new payment’s on mortgages just sell. Sell!!! Selll!!! Come on people it’s time to sell. I really don’t understand why people insist on holding on to these blood sucking properties. Life sucking properties. People have to sell. this isn’t that complicated.

I wanted to enter this conversation from a maligned position, unvaccinated and lost a job. Reading the comments, there’s a common univariable analysis of: “this is a necessary correction and over-leveraged people need to feel the pain.” (I sincerely appreciate Rich’s push back on this framing, comparing today's rapid interest rate increases to the high interest rates of the 80’s…)

I lost two jobs in a calendar year. My fiancé and I had a home on the mainland, sold high and bought cheap on Van Island. This was done as a move between offices of company #1. They had approved my move, but then rescinded after I had signed the mortgage papers. I felt it was constructive dismissal even though I had technically resigned from my six-figure job. After many months thereafter, I landed another gig, only to lose that job within one week due to the vaccine mandates. (Mandates were not in-place officially when I accepted the job. I had also been open about my 'status'.)

My point is this, the rate hikes could have increased well past 400% and I would’ve been fine. I’m financially prudent. Got my 2010 Subaru paid for years ago, same situation for the missus with her car. I’ve always lived within my means. We sold our house on the mainland at the height of Covid madness and bought a place where we put down 28%. Our mortgage is $550k. My fiancé designed an edible garden; got food in the freezer from it that’s helping through the winter. I’m operating at 25%-30% of my average income, and my mortgage payment is up by $1100. As an independent contractor now, I’m still facing persecution for a private medical choice. I’ve lost two projects that I really needed due to ‘soft’ enforcement of the mandate; meaning, the projects were lost at time when the mandates had been officially suspended. I’m struggling to make my payments, not putting enough away for taxes, and will likely have to ask my parents for some assistance. Our operating budget is now $100/week inclusive of all expenses.

To lose two jobs in a calendar year for reasons that have nothing to do with my performance, it’s spiritually shocking more than anything. (And I’m not even getting into the personal side of things as far having people awkwardly ‘needle’ me about not being vaccinated) And, then to go over a year trying to land a job, my savings evaporated.

It’s easy to say we need this correction, but a multivariate approach at least leaves room for compassion for those struggling. The last 2-years really hardened the hearts of some people.

Overall, some of us out here had constructed good plans with financial contingency baked in while living within our means and are still getting crushed. At times, it’s hard to not feel that this is by design. People can and have argued that it was my choice to make as far as the mandates. I made my choice accepting whatever consequences may come. I just didn’t anticipate the accompanying disdain from fellow Canadians. I appreciate that it may come across as a tangent, but felt it related.

If you have next event in Montreal, maybe Steve will finally realize it is 2nd metro in Canada and not Vancouver 🙂

👍👍👍

Interest rates peaked 🤣🤣🤣🤣🤣🤣🤣🤣🤣you haven’t seen anything yet 2023 will the year of pain just as 2020 was the year of easy money

Steve
I don't understand how you think the federal government is reigning in spending. Almost daily they announce a new mutibillion dollar program.

BOC is not done raising interest rates

Kelowna has great skiing @BigWhite

Lot of great content. Thanks.
In time we all may start to see that the BOC, PM, Premier etc… are not all that talented. Just guys that want to keep high paying jobs, status etc… realize that if they stick together – that they can hang onto money, status, & control.

Important that you realize you have insights greater than most & that there are serious dishonest forces related to Cda/BC govt and Media & the importance of speaking up. Over time we will see that the Left/Communist model of Central Control (&benefit by a very few party members)… money printing etc was fully unnecessary… and has caused great harm to many.

I’m surprised you guys didn’t talk about the Blackstone REIT story. It’s an interesting situation and another sign of trouble on the horizon. I’m shocked at the fees they charge – unbelievable.

How about Banff for the next live event!

2023 and 2024 are going to be blood bathes in Canadian RE imo. Bottom will be when they turn down the immigration spigots because there's no jobs post RE price collapse. Looking forward to the show.

26:42 This is the denial phase of the crash…much more pain coming. These young lads are pretty naive imo.

Definitely Calgary!!!

Sorry Steve but I couldn’t disagree with you more on the furniture sales analogy. My wife owns a high end furniture store in greater Vancouver and sales are still strong. The renovation industry can still do well when house sales are slow. This is why Home Depot and furniture stores are still holding their own.

Ughhh..Shakepay next FTX or Voyageur Digital? Will need to rethink YouTube channels promoting sketchy products to their followers

Next event has to be Calgary! Great job guys 🙂

Tiff said the BOC will not stop raising rates until Inflation hits 2%, so, I finally think those rates are nowhere near stopping until Inflation hits 2%

Thanks for another great session guys.

I know all 3 of you are worried about negative financial shocks. There is an optimistic case for where we are at, however. The optimism is around the fact that we finally have a concerted effort to tackle inflation. After more than a decade of pro-inflationary policies, it looks like this cycle has come to an end.

It's true, some people will lose a lot if they bet hard on debt and leverage. However, persistent inflation is one of the worst things that can happen to an economy. Eventually, the party comes to a end. Would it have been better to let this cycle persist for 5 more years? That would have ensured a terribly hard landing.

So a hopeful outcome is that inflation comes down in the next year. Canada has a small recession, the BOC levels out rates at around 3%. Canada's housing market flattens instead of a profound crash. Homeowners will be ok. They will willingly eat a few years of interest-only mortgages, if they still get to own their own home after 30 years.
The people who will struggle the most? Speculators. Highly leveraged housing speculators are hurting already, and the longer rates stay above 3.5% the more they will quit the market and write down losses.

For those of us hoping to buy a home in the next decade, nothing could be better than an end to the housing speculation cycle. Home prices will remain high, but if the speculators disappear, then it's less likely we will see another massive run up in housing prices in the 2020s. And this will likely improve affordability in the medium term when the BOC eventually lowers it's rate back to around 1.5-2% (whatever the long-term average needs to be).

Canadians. get equity from homes, then spend it, only to have to pay it back? thats similar to someone making $50 dollars an hour and having to pay $20 back to their employer? thats the wealth effect? sounds wicked and dellesional.

Come visit Winterpeg!

Great job guys 👍

Was it Max Fawcett that wrote the article? I have no idea, but it sounds like the usual crap he pulls.

What about a super stuffy event in Ottawa that ends at 8 and is politically correct

My son was renting a condo in Stoney Creek for $1600. He got 60 days notice from his landlord that they were selling and he was being evicted.. Last week he heard from his landlord that they were selling to a friend and if he paid $2000 a month, he wouldn't need to move. He counter offered for $1850 because the same condo in the building was that much. They refused, so my son is moving into the $1850 condo. He continues to save money for a house. For him, the softening of the real estate prices is a bonus.

As specs and builders fold the inventory meme will look a little silly. In all bubble collapses bagholders hold on till the bottom and sell at any price. In two years this inventory meme will reversed. After 45 years owning real estate it's always the same in the down cycle. The fear stage hasn't even started yet. The get me out phase is 2 years out. That is if these specs haven't foreclosed. Remember this – 50% of all inventory in all cities is owned by undercapitalized specs. Specs include Airbnb, rentals, etc.

Another great rant by Rich calling out the shady "investigative journalism".

It makes< sense, XRP and crypto is off helping to regulate, rather that pretend it won't ever happen. The big institutions getting in is the catalyst that will launch us into the stratosphere. Most people don't like change but after the change is made they grow used to it and it becomes a non issue usually because their fears never materialize. And benefits they were unaware with before turn out to be far more beneficial. Few if any rug pulls. The projects that initiated the process of regulation have not been ruined, they got involved in setting guidelines and helping the regulators understand the crypto space. I’d get involved more knowing that I have made over 16` btc from day-trade with Samy Dominic Crypto in few weeks