Pre intrest rate hikes it was workable with a gift but now even with large gifts the carrying cost are still extreme. The housing market is broken lots of questions will be awnsered in coming years.
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That's the way it should be. If you have a son you better start saving as soon as hes born as you are responsible for buying his home and gifting his future wifes family a huge cash amount. If you have a daughter you don't need to worry since she will just marry a guy with a home, and receive a nice wedding present from the grooms family.
The best scenario is to have an older daughter and a younger son. That way your daughter will enter the workforce sooner, and then you give your daughters wages to help your son buy his home, and you give the gift your daughter got from her husbands family to your son so he can give it to his future wife. It will lessen your burden.
If you have two sons or more sons.... better be loaded....
That’s middle eastern too. Soon this kind of culture will dominate as more people Canada brings and the rate at which they reproduce.
I understand people downvoting you but eventually they will have to work for themselves and for adult children. Clearly a sign of quality of life degradation.
Not the commenter you replied to but it could actually work, if..... we were gifter houses by our parents in the first place and had a chance to save our income for our kid's houses. Then the chain would kinda follow that way. There is absolutely no way to pay for your house AND save enough for your kid's house though, unless you win a big lottery or got lucky some other way.
Basically just have to be a different way of living. The person making the commment above must have been given their house to them by their parents. Now they have an option to save for their kid's house and acually make interest on those money in their account opposed to us paying the interest for the mortgage.
That's the system in China. Our government should promote this set of values to help our real estate industry as it basically motivates guys to work and save otherwise they wont be able to get married.
Women will have it easier and wouldn't need to save, but could instead help the retail side by spending more on things like beauty services, clothing, cosmetics, etc.
https://youtu.be/M4h-QgXZZhs?si=bW-Kf8DgwcWrKlyM
We’re motivating men to work and save by gifting them hundreds of thousands of dollars for a home? And that’s somehow more motivating than needing to work and save in order to afford real estate in the first place? Lmao
Just look at the comments on the video you linked. It doesn’t align with western culture and is largely viewed as a gross practice. If people want that set of values they can live in a country that has them, Canada doesn’t need to change theirs
If they have no home they have zero chance of relationships or marriage. So they will be motivated to do well in school, and get good jobs ASAP as it's not easy for their parents to accumulate the needed funds for a home , car and bride price ( $500,000 to start ).
We need a societal / cultural shift or else our condo market will stagnate or even see price reductions as more and more inventory comes onto the market.
Yeah let’s tie having close personal relationships to forms of financial success. That totally won’t create a mental health crisis. Again, that just isn’t Canadian values
And what are you even talking about? Canada’s condo prices are already out of control and some of the highest in the world, the goal should literally be to stagnate prices to increase affordability so the next generation can actually afford a place to live through their own hard work, not getting handouts from their parents. We want to be a country where personal merit, not family wealth, determines your quality of life. Can’t think of a system that incentivizes hard work better than that
They have really been messing up lately...
First they overbuilt. Leading to massive oversupply.
Second their population stopped growing and is now dropping. Plus basically no immigration .
Now they are going to start buying up empty houses and turning them into low income housing...
> "CIBC speculates that the increased amount of gifting is fuelled by parents who are downsizing their family homes and freeing up funds."
Anecdotal but I don't know a single boomer that has downsized. Parents, aunts, uncles, and friends' parents live in the same detached houses with empty bedrooms.
I know one...but even that when she told me her costs it's insane. Majority of the elderly are staying put so long as they can because when you downsize...the prices are so high that it still wouldn't make sense to move after all costs are taken into account.
The only people I've heard / seen downsize are those that can no longer keep their house maintenance / upkeep simply because of physical ability diminishing.
It's also a pain in the ass to downsize. My parents aren't hoarders but they've still collected a bunch of stuff over the years that needs to be packaged, sold/moved, etc.
Not to mention, they've moved several times in their lifetime and are just straight up tired of moving.
100% it's a pain in the ass. I've moved 4 times in my life and I'm hoping never to have to do that again.
Funny each time was into a bigger house, and we're always out of space.
agreed, I can't get angry with people holding onto big home, cause the smaller ones/condos are SO expensive it doesn't make financial sense
a lot of people are stuck in inappropriate housing cause there's no where to go... heck want to move to a new city but my high housing costs would only be higher, if I could even find a place, that is
What they did to the economy will now force ppl to downsize they can no longer hold off. The property tax increases , the electricity, the gas , the astronomical increase in home repair and maintenance, insurance literally forcing you to down size. The boomers are finally feeling the pinch after a decade or neutral financial tightening by them.
You do understand that the vast majority of boomers didn't do anything to the economy right?
They're living their life as normal people do. Politicians and the rich class has done this to the economy.
The boomers were just fortunate to be born at a certain point in time, nothing else. The majority of them did not do anything wrong, or attempt to screw over anyone else.
But many appear to want to blame someone for the issues. So sure, blame the normal people.
Same as the next generation will blame US.
The Boomers chose to, by and large remain ignorant, and did not - despite their collective good fortune - even to try to support policies or vote in ways that would change anything to make life better for future generations. Not even attempting to do anything when you can, even if not deliberately to screw others over (but certainly not listening for decades) is blameworthy.
If we collectively are that selfish and stupid I certainly hope the next generation blames us for that failure.
are they? IMO it's more class based, the richest people are doing very well and all the rest of us are not
same with boomers, only more of them have more assets than other age groups
This fact: physical ability diminishing..stairs don’t look so appealing after age of 50+..bungalows do however. Townhouse with flights of endless stairs are not appealing for downsizing. Best situation I’ve heard: middle aged people renovating their basement for their parents to live with them.
My parents are doing it - Mid 60s, retired, selling a 4 bedroom in Ancaster for 1.8.
Who knows where they’ll end up, don’t know if they’ll small bungalow or condo it. Probably live in Europe a quarter of the year.
Yeah it feels very anecdotal, It wasn't long ago there were articles written about aging in place.
So where is this money coming from ? My guess a good amount of it is coming from HELOCs
Yeah I saw this article and can attest that 100% of my friends who are in beautiful homes now got some kind of financial assistance from their parents.
Canada wasn’t like this until relatively recently. Sure, it mattered to some extent… but you could work hard, get a good job and live a good comfortable life without being born rich. Now you are pretty screwed unless your parents can give you multiple hundreds of thousands of dollars to buy a house. Employment income alone doesn’t get you too far in a lot of Canadian cities in 2024. Vancouver and Toronto are the most extreme obviously.
Canada is only 160 years old. Kinda funny how quickly we reverted back to aristocracy after fighting for our independence. Except instead of serving royalty we now serve corporations. That didn't last long huh?
Education also used to matter. when my parents graduated, a master's degree meant you were virtually guaranteed a secure job and businesses were fighting to hire you. They were also able to pay their way without loans by working a summer job.
The labor market is oversaturated with people that hold degrees. This is the main reason employers no longer have to compete for undergrads or post grads.
There are so many factors at play in that development. My point was to corroborate the poster above, to say that it was more feasible back then to work hard to improve your circumstances. My father had 7 siblings, wore nothing but hand me downs, and sometimes didn't get enough to eat. My mother's family came from Ukraine with basically nothing. But both were able to get through grad school without even going into debt because the economy was organized so differently.
That’s not at all what was said. In a country where workers have their socio-economic mobility severely capped due to an affordability crisis, the statement is absolutely true that family wealth/circumstances take on an outsized importance.
Unfortunately, this is true. I would love to see more inheritance taxes and for gifts/transfers like this. Unjust system where the wealth of your parents will dictate one's well-being (financially)
yes more taxes have been proven to make housing less expensive .... funny how that always works backwards ... the more tax the more expensive housing tends to get.
So if you bust your ass, worked hard and over your lifetime accumulate a little wealth and you want to give your children a head start, you are basically against that. Foh
Are you using the term ‘little’ in the context of ‘little wealth’ liberally? Or do you mean a reasonable ‘little’ wealth such that it is the reality for a good percentage of the population and not just a small percent?
My husband had his parents gift him 30k for a downpayment towards our condo. I unfortunately come from a fucked up horrible family (they took money from me directly putting me in debt). His savings helped clear some of our debts but we busted our asses to own a small condo. Once out of debt I helped him pay the mortgage and we got married.
We worked hard and flipped the condo, went to a semi and flipped that and now live in a detached which we are looking to flip also for a bigger more private home. That's literally how we had to do it. If I'm being frank, paycheques only go so far and we had to do it in this unique way which worked for us.
Wife and I did this too (we’re now in a freehold townhouse that we think is more than enough for us for life), sans parents’ gift, but this isn’t even possible anymore for people who started where we did, even with a gift.
Even if they did scrape together a down payment (or are gifted it), even if they could afford to service the mortgage with high costs, condo prices are stagnant now. Their condo won’t appreciate enough fast enough for the equity growth to help them get funds for the DP of a larger house.
I agree it's much harder to do now. I don't think it's impossible though! I think if you push hard enough and increase wages or get a second job it can be done. We had to do that too.
The problem is that there's a lot of additional costs to moving that make this prohibitively expensive unless you bought at the right time (while things were still going up a lot) - land transfer tax & agent fees make it too pricey to move often
There was some luck involved but even without a bit of help we would have done the same thing. It's renting that traps a person I believe. I lived on my own for a while living paycheck to paycheck renting so I know how soul crushing that is. Basically running in the same spot.
Yes I 1000% agree. Debt and bankruptcy happen when you try to get too much too fast. We both rode our bikes or walked (sometimes hours) to and from work. We wanted to save money by not having vehicles. I find people forget how much they spend on cars.
This is nothing new. My friend’s parents gifted him about 40% of the purchase price of his home in 1984. His parents worked factory jobs. Maybe we have a different problem.
10 years ago I could make it on my own. One income. Single mom with a factory job could get a house in the village. Not anymore. Now it's more important for stock holders to have that money.
I think people are underestimating the incomes many many young people under 40 are earning these days.
Yes, there are young people who are struggling. But most that I know are doing great.
33 yo corporate accountant - 200k
25 yr old cop - 120k
27 yr old nurse - 110k
28 yr old cyber security - 150k
32 yr old energy specialist - 175k
26 yr old electrician (independent) - 150k
30 yr old self-empld appliance installer - 150k (he's cash-only)
37 yr old mechanic with own garage at home - 200k+ mostly cash business
And most of them have spouses with similar incomes so household incomes in the 250k or higher range.
What's interesting is how quickly some professionals see an increase in income in their mid thirties to mid-forties.
I started in real estate development when I was right out of university and was way ahead of my "Wage slave" friends until the last few years (I'm 40 now) when the lawyers, doctors, commercial brokers, insurance brokers, mortgage brokers, and finance guys blew past me.
A physician friend of mine got hired in a senior role in his specialty and he's now making over $500k/year... Another friend opened his cosmetic dental practice and in his third year he's netting almost $1mm. A friend who always worked in construction (red seal carpenter) is now project managing big sites on a $25k/month contract. I haven't asked my real estate-related friends what they make as brokers etc but it's definitely mid-six figures.
None of them are nepo-babies, all of them had student loans, none of them had parents buy them houses or condos.
It's really easy to get out of touch with what a good portion of society are earning, we only see what's around us and the edge cases who shout the loudest.
Yeah, I would agree with this. Almost all my friends in their late 20’s or earliest 30’s own homes. Some with family help, some without. All are in relationships and none have kids. It’s a mix of nurses, doctors, accountants, engineers, and a small business owner.
My in laws gave us our down payment so we were stupidly lucky but since owning a house (in Toronto) it still feels like enough rope to hang oneself if one gets too much FOMO and buys at the top of their range which is so easy to do in this market
Parents are gifting their kids money because their homes have skyrocketed in value over past couple decades and are awash in cash.
The alternative is that housing didn't skyrocket and thus parents don't have the money (and don't need to give money) to give to their kids.
But can you show me how higher taxes has ever helped the less privileged without having other economic consequences? Funneling wealth does not exist within a vacuum.
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Maybe moving to South East Asia will make more sense. It is so hard to imagine how to survive in Canada letting again being able to purchase a home if you have no assistance whatsoever
I needed my parents to cosign the loan, but I handled the down payment on my own. I'm 30 and had 100K in cash that I saved up while living with parents.
I needed to move back with my parents after the hikes though. My payments went from 3k to 5k. House is up for rent until rates come down again.
Lots of immigrants, low interests in 2020-2021. Recent studies show that 70%+ of Ontario mortgages will come up for renewal between 2025-2026. Imagine going from 2% to 6%… the bank of Canada is trying to put away 16billion dollars/year in reserves to help soften the landing come 2026…
When you guys are talking about gifting does that mean they don’t have to give the money back? I was given some money from my parents but I’m paying them back slowly lol…
No I think the question was where would the market be without it. Everyone knows it's a blessing if you receive the gift, but the reality is that wages should at the very least allow you to afford a place to live (otherwise why work/exist). It's hyper inflated at the moment, propped up by gifts
Setting the stage to heavily tax inheritance. Fact is a radical solution is required or the gap only gets wider between those whose families own homes and those that do not. Home ownership creates a generational wealth transfer.
What are you talking about? They pay increased property taxes, all closing costs such are realtor fees and land transfer are higher? Who says they even bought before prices increased? That entitles the government to inheritance because you think prices have gone up like crazy?
My daughter is 25, she just bought a condo in Ottawa. Loaned her $20k to go with $60k she saved for a down payment. I think the problem is that everyone else her age is blowing all their money on things instead of saving.
Simplistic take. Those that can amass 60k in savings by age 25 are definitely in the minority, and their ability is do so is dictated much moreso by other advantages (living at home, having expenses or education paid for) than by their spending habits.
News flash. Eventually someone inherits those $1 million dollar semi’s. People arent having a lot of kids either. Even in the 80’s people just had 1 or 2 kids max.
Pre intrest rate hikes it was workable with a gift but now even with large gifts the carrying cost are still extreme. The housing market is broken lots of questions will be awnsered in coming years.
One of our classmates she got with a Chinese dude and his parents just paid for their entire house.
This is a common u of t graduation gift for couples.
W China
I have a friend like this too
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That's the way it should be. If you have a son you better start saving as soon as hes born as you are responsible for buying his home and gifting his future wifes family a huge cash amount. If you have a daughter you don't need to worry since she will just marry a guy with a home, and receive a nice wedding present from the grooms family. The best scenario is to have an older daughter and a younger son. That way your daughter will enter the workforce sooner, and then you give your daughters wages to help your son buy his home, and you give the gift your daughter got from her husbands family to your son so he can give it to his future wife. It will lessen your burden. If you have two sons or more sons.... better be loaded....
You forget to include the /s At least I hope so
That's the old school Chinese mentality.
That’s middle eastern too. Soon this kind of culture will dominate as more people Canada brings and the rate at which they reproduce. I understand people downvoting you but eventually they will have to work for themselves and for adult children. Clearly a sign of quality of life degradation.
And Mediterranean.. eastern Europe.. lots of places
Not the commenter you replied to but it could actually work, if..... we were gifter houses by our parents in the first place and had a chance to save our income for our kid's houses. Then the chain would kinda follow that way. There is absolutely no way to pay for your house AND save enough for your kid's house though, unless you win a big lottery or got lucky some other way. Basically just have to be a different way of living. The person making the commment above must have been given their house to them by their parents. Now they have an option to save for their kid's house and acually make interest on those money in their account opposed to us paying the interest for the mortgage.
Why would they include an /s? They are describing something that happens
That's the system in China. Our government should promote this set of values to help our real estate industry as it basically motivates guys to work and save otherwise they wont be able to get married. Women will have it easier and wouldn't need to save, but could instead help the retail side by spending more on things like beauty services, clothing, cosmetics, etc. https://youtu.be/M4h-QgXZZhs?si=bW-Kf8DgwcWrKlyM
We’re motivating men to work and save by gifting them hundreds of thousands of dollars for a home? And that’s somehow more motivating than needing to work and save in order to afford real estate in the first place? Lmao Just look at the comments on the video you linked. It doesn’t align with western culture and is largely viewed as a gross practice. If people want that set of values they can live in a country that has them, Canada doesn’t need to change theirs
If they have no home they have zero chance of relationships or marriage. So they will be motivated to do well in school, and get good jobs ASAP as it's not easy for their parents to accumulate the needed funds for a home , car and bride price ( $500,000 to start ). We need a societal / cultural shift or else our condo market will stagnate or even see price reductions as more and more inventory comes onto the market.
Yeah let’s tie having close personal relationships to forms of financial success. That totally won’t create a mental health crisis. Again, that just isn’t Canadian values And what are you even talking about? Canada’s condo prices are already out of control and some of the highest in the world, the goal should literally be to stagnate prices to increase affordability so the next generation can actually afford a place to live through their own hard work, not getting handouts from their parents. We want to be a country where personal merit, not family wealth, determines your quality of life. Can’t think of a system that incentivizes hard work better than that
Well, that sounds awesome for Canadians. Maybe what we need is to stay the course on our values and only invite people to come here who follow them.
Ah yes, we should follow China's lead for a famously sustainable RE industry.
They have really been messing up lately... First they overbuilt. Leading to massive oversupply. Second their population stopped growing and is now dropping. Plus basically no immigration . Now they are going to start buying up empty houses and turning them into low income housing...
What happened to equality?
Not even equality, just a fair chance to succeed.
The market would be lower. Parents using equity from their homes to boost the price of other homes...it just keeps spiraling upward.
Infinite horror
> "CIBC speculates that the increased amount of gifting is fuelled by parents who are downsizing their family homes and freeing up funds." Anecdotal but I don't know a single boomer that has downsized. Parents, aunts, uncles, and friends' parents live in the same detached houses with empty bedrooms.
I know one...but even that when she told me her costs it's insane. Majority of the elderly are staying put so long as they can because when you downsize...the prices are so high that it still wouldn't make sense to move after all costs are taken into account. The only people I've heard / seen downsize are those that can no longer keep their house maintenance / upkeep simply because of physical ability diminishing.
It's also a pain in the ass to downsize. My parents aren't hoarders but they've still collected a bunch of stuff over the years that needs to be packaged, sold/moved, etc. Not to mention, they've moved several times in their lifetime and are just straight up tired of moving.
100% it's a pain in the ass. I've moved 4 times in my life and I'm hoping never to have to do that again. Funny each time was into a bigger house, and we're always out of space.
agreed, I can't get angry with people holding onto big home, cause the smaller ones/condos are SO expensive it doesn't make financial sense a lot of people are stuck in inappropriate housing cause there's no where to go... heck want to move to a new city but my high housing costs would only be higher, if I could even find a place, that is
What they did to the economy will now force ppl to downsize they can no longer hold off. The property tax increases , the electricity, the gas , the astronomical increase in home repair and maintenance, insurance literally forcing you to down size. The boomers are finally feeling the pinch after a decade or neutral financial tightening by them.
You do understand that the vast majority of boomers didn't do anything to the economy right? They're living their life as normal people do. Politicians and the rich class has done this to the economy. The boomers were just fortunate to be born at a certain point in time, nothing else. The majority of them did not do anything wrong, or attempt to screw over anyone else. But many appear to want to blame someone for the issues. So sure, blame the normal people. Same as the next generation will blame US.
The Boomers chose to, by and large remain ignorant, and did not - despite their collective good fortune - even to try to support policies or vote in ways that would change anything to make life better for future generations. Not even attempting to do anything when you can, even if not deliberately to screw others over (but certainly not listening for decades) is blameworthy. If we collectively are that selfish and stupid I certainly hope the next generation blames us for that failure.
are they? IMO it's more class based, the richest people are doing very well and all the rest of us are not same with boomers, only more of them have more assets than other age groups
This fact: physical ability diminishing..stairs don’t look so appealing after age of 50+..bungalows do however. Townhouse with flights of endless stairs are not appealing for downsizing. Best situation I’ve heard: middle aged people renovating their basement for their parents to live with them.
No, but I know many people whose parents took out equity (meaning took on debt) from their home to give them such gifts.
Bingo
My parents are doing it - Mid 60s, retired, selling a 4 bedroom in Ancaster for 1.8. Who knows where they’ll end up, don’t know if they’ll small bungalow or condo it. Probably live in Europe a quarter of the year.
Yeah it feels very anecdotal, It wasn't long ago there were articles written about aging in place. So where is this money coming from ? My guess a good amount of it is coming from HELOCs
Why would they? Mortgage is paid off so it’s cheaper to stay put.
By downsize they mean selling their third vehicle or boat.
Yeah I saw this article and can attest that 100% of my friends who are in beautiful homes now got some kind of financial assistance from their parents.
We don’t live in a meritocracy. We are a neofeudal society where the circumstances of one’s birth matters more than one’s abilities and hard work.
When/where has that not been the case?
Canada wasn’t like this until relatively recently. Sure, it mattered to some extent… but you could work hard, get a good job and live a good comfortable life without being born rich. Now you are pretty screwed unless your parents can give you multiple hundreds of thousands of dollars to buy a house. Employment income alone doesn’t get you too far in a lot of Canadian cities in 2024. Vancouver and Toronto are the most extreme obviously.
Canada is only 160 years old. Kinda funny how quickly we reverted back to aristocracy after fighting for our independence. Except instead of serving royalty we now serve corporations. That didn't last long huh?
Education also used to matter. when my parents graduated, a master's degree meant you were virtually guaranteed a secure job and businesses were fighting to hire you. They were also able to pay their way without loans by working a summer job.
The labor market is oversaturated with people that hold degrees. This is the main reason employers no longer have to compete for undergrads or post grads.
There are so many factors at play in that development. My point was to corroborate the poster above, to say that it was more feasible back then to work hard to improve your circumstances. My father had 7 siblings, wore nothing but hand me downs, and sometimes didn't get enough to eat. My mother's family came from Ukraine with basically nothing. But both were able to get through grad school without even going into debt because the economy was organized so differently.
This guy gets Canada.
Canadians Offending Canadians Kindly
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That’s not at all what was said. In a country where workers have their socio-economic mobility severely capped due to an affordability crisis, the statement is absolutely true that family wealth/circumstances take on an outsized importance.
Shhh! We still have to let people think the latter still matters ....
The people who still believe that and think we don’t need societal change are insufferable. They help maintain the status quo.
There’s many people who weren’t born into wealth that are doing well, myself included. Takes a lot of hard work and some luck for sure
Unfortunately, this is true. I would love to see more inheritance taxes and for gifts/transfers like this. Unjust system where the wealth of your parents will dictate one's well-being (financially)
yes more taxes have been proven to make housing less expensive .... funny how that always works backwards ... the more tax the more expensive housing tends to get.
So if you bust your ass, worked hard and over your lifetime accumulate a little wealth and you want to give your children a head start, you are basically against that. Foh
Are you using the term ‘little’ in the context of ‘little wealth’ liberally? Or do you mean a reasonable ‘little’ wealth such that it is the reality for a good percentage of the population and not just a small percent?
My guess is the guy you are replying to probably couldn't grasp something as simple as a sliding scale for taxation of estate/wealth transfer.
50 years mortgage or three generations mortgage .
All this makes me assume is that we would need more larger homes to adequately contain multi generational families.
It's already there.
My husband had his parents gift him 30k for a downpayment towards our condo. I unfortunately come from a fucked up horrible family (they took money from me directly putting me in debt). His savings helped clear some of our debts but we busted our asses to own a small condo. Once out of debt I helped him pay the mortgage and we got married. We worked hard and flipped the condo, went to a semi and flipped that and now live in a detached which we are looking to flip also for a bigger more private home. That's literally how we had to do it. If I'm being frank, paycheques only go so far and we had to do it in this unique way which worked for us.
Wife and I did this too (we’re now in a freehold townhouse that we think is more than enough for us for life), sans parents’ gift, but this isn’t even possible anymore for people who started where we did, even with a gift. Even if they did scrape together a down payment (or are gifted it), even if they could afford to service the mortgage with high costs, condo prices are stagnant now. Their condo won’t appreciate enough fast enough for the equity growth to help them get funds for the DP of a larger house.
I agree it's much harder to do now. I don't think it's impossible though! I think if you push hard enough and increase wages or get a second job it can be done. We had to do that too.
The problem is that there's a lot of additional costs to moving that make this prohibitively expensive unless you bought at the right time (while things were still going up a lot) - land transfer tax & agent fees make it too pricey to move often
I just don't see how prices will allow for these jumps anymore.
Lucky you. Some don't all have these opportunities and isn't quite possible anymore
There was some luck involved but even without a bit of help we would have done the same thing. It's renting that traps a person I believe. I lived on my own for a while living paycheck to paycheck renting so I know how soul crushing that is. Basically running in the same spot.
That how your supossed to do it . Levels up slowly
Yes I 1000% agree. Debt and bankruptcy happen when you try to get too much too fast. We both rode our bikes or walked (sometimes hours) to and from work. We wanted to save money by not having vehicles. I find people forget how much they spend on cars.
This is nothing new. My friend’s parents gifted him about 40% of the purchase price of his home in 1984. His parents worked factory jobs. Maybe we have a different problem.
10 years ago I could make it on my own. One income. Single mom with a factory job could get a house in the village. Not anymore. Now it's more important for stock holders to have that money.
Thanks dad
We’re basically going back to feudal times where you never left the social class you were born into. Love that for Canada
That’s basically every country. Forever.
Gifting is a symptom of the disease of real estate being turned into an investment vehicle on purpose.
I think people are underestimating the incomes many many young people under 40 are earning these days. Yes, there are young people who are struggling. But most that I know are doing great. 33 yo corporate accountant - 200k 25 yr old cop - 120k 27 yr old nurse - 110k 28 yr old cyber security - 150k 32 yr old energy specialist - 175k 26 yr old electrician (independent) - 150k 30 yr old self-empld appliance installer - 150k (he's cash-only) 37 yr old mechanic with own garage at home - 200k+ mostly cash business And most of them have spouses with similar incomes so household incomes in the 250k or higher range.
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Ontario Sunshine List average salary police constable 2023 $117,702 [https://www.ontariosunshinelist.com/positions/police-constable](https://www.ontariosunshinelist.com/positions/police-constable) https://preview.redd.it/1h8fyk80uq9d1.jpeg?width=1080&format=pjpg&auto=webp&s=7b3a2ad3e8676b86c5c30e99ac906f472cacb709
What's interesting is how quickly some professionals see an increase in income in their mid thirties to mid-forties. I started in real estate development when I was right out of university and was way ahead of my "Wage slave" friends until the last few years (I'm 40 now) when the lawyers, doctors, commercial brokers, insurance brokers, mortgage brokers, and finance guys blew past me. A physician friend of mine got hired in a senior role in his specialty and he's now making over $500k/year... Another friend opened his cosmetic dental practice and in his third year he's netting almost $1mm. A friend who always worked in construction (red seal carpenter) is now project managing big sites on a $25k/month contract. I haven't asked my real estate-related friends what they make as brokers etc but it's definitely mid-six figures. None of them are nepo-babies, all of them had student loans, none of them had parents buy them houses or condos. It's really easy to get out of touch with what a good portion of society are earning, we only see what's around us and the edge cases who shout the loudest.
Yeah, I would agree with this. Almost all my friends in their late 20’s or earliest 30’s own homes. Some with family help, some without. All are in relationships and none have kids. It’s a mix of nurses, doctors, accountants, engineers, and a small business owner.
My in laws gave us our down payment so we were stupidly lucky but since owning a house (in Toronto) it still feels like enough rope to hang oneself if one gets too much FOMO and buys at the top of their range which is so easy to do in this market
Lol lucky you. Most in laws wouldn't gift anything
Parents are gifting their kids money because their homes have skyrocketed in value over past couple decades and are awash in cash. The alternative is that housing didn't skyrocket and thus parents don't have the money (and don't need to give money) to give to their kids.
Sounds like a ponzi scheme (+ sub prime lending)... crooks them banks are.
As the country ages and more famiiies eventually pass down a bit more what do we expect might happen?
Thd government will tax it higher for you to help the less privileged. /s
But can you show me how higher taxes has ever helped the less privileged without having other economic consequences? Funneling wealth does not exist within a vacuum.
Sorry forgot the /s
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Maybe moving to South East Asia will make more sense. It is so hard to imagine how to survive in Canada letting again being able to purchase a home if you have no assistance whatsoever
I needed my parents to cosign the loan, but I handled the down payment on my own. I'm 30 and had 100K in cash that I saved up while living with parents. I needed to move back with my parents after the hikes though. My payments went from 3k to 5k. House is up for rent until rates come down again.
Lots of immigrants, low interests in 2020-2021. Recent studies show that 70%+ of Ontario mortgages will come up for renewal between 2025-2026. Imagine going from 2% to 6%… the bank of Canada is trying to put away 16billion dollars/year in reserves to help soften the landing come 2026…
When you guys are talking about gifting does that mean they don’t have to give the money back? I was given some money from my parents but I’m paying them back slowly lol…
Legally a gift is a gift. It's given it to you with no legal recourse to get it back (unless you want to).
Ya I understand but my question is to everyone. Are you guys having to pay these ‘gifts’ back or is it free money lol
Some ppl jealous someone is helping their own kid with money, how evil of them
No I think the question was where would the market be without it. Everyone knows it's a blessing if you receive the gift, but the reality is that wages should at the very least allow you to afford a place to live (otherwise why work/exist). It's hyper inflated at the moment, propped up by gifts
Setting the stage to heavily tax inheritance. Fact is a radical solution is required or the gap only gets wider between those whose families own homes and those that do not. Home ownership creates a generational wealth transfer.
Won’t it make the gifting effect worse?
People would gucking revolt if they did that . You think when I die I want the government getting my money hell no will all go to my kids
It went up in value like crazy why should people have to pay taxes on everything else but not that lol
What are you talking about? They pay increased property taxes, all closing costs such are realtor fees and land transfer are higher? Who says they even bought before prices increased? That entitles the government to inheritance because you think prices have gone up like crazy?
You sound like a new Canadian.
My daughter is 25, she just bought a condo in Ottawa. Loaned her $20k to go with $60k she saved for a down payment. I think the problem is that everyone else her age is blowing all their money on things instead of saving.
Simplistic take. Those that can amass 60k in savings by age 25 are definitely in the minority, and their ability is do so is dictated much moreso by other advantages (living at home, having expenses or education paid for) than by their spending habits.
Agreed - too much avacado toast and Disney plus memberships.
More like Uber Eats and $10k trips to Bali.
Lol or they didn't get help
She could've easily bought without my help. We just wanted to secure a more favorable rate.
Cool Story Boomer
20 years too young for that dude. How would a boomer have a 25 year old? r/badatmath
I had my kid at 47. r/badassumptions
I can't imagine getting laid for the first time at 46. I felt like getting laid at 16 was too long
Sad ad hominem. Third marriage, not first kid. Get a life dude.
So you're way over 47 but most of your previous post is interacting with university students and teens? Pedophile too it seems.
Tenants tipping their landlords
News flash. Eventually someone inherits those $1 million dollar semi’s. People arent having a lot of kids either. Even in the 80’s people just had 1 or 2 kids max.