Alberta's refusal to adopt proposed tariffs sparks debate surrounding Canadian oil. Toronto's condo market faces a significant downturn, with sales hitting 28-year lows amid rising property taxes. Speculation arises about Mark Carney's potential bid for prime minister. Discussions also cover the geopolitical intricacies of Canadian oil exports and the ramifications of potential tariffs on the economy. The impact of melting Arctic ice on shipping routes and internal trade barriers highlights the evolving landscape of energy dynamics and market stability.
Alberta's refusal to support Trudeau's proposed tariffs highlights ongoing tensions in Canadian oil policies amid market volatility.
The Toronto real estate market is facing significant challenges, with new condo sales at a 28-year low due to high property taxes and oversupply.
Experts express concerns about potential prolonged stagnation in the real estate sector, reminiscent of the economic downturn experienced in the late 80s and early 90s.
Deep dives
Neighborhood Holdings Overview
Neighborhood Holdings offers a compelling investment opportunity targeting individuals seeking regular income solutions with appealing returns to diversify portfolios. With a target net yield of 8-10%, the firm has demonstrated nearly a decade of consistent performance, presenting monthly income to investors while minimizing the volatility associated with public markets. Unlike traditional banks that lend up to 95% loan-to-value, Neighborhood focuses on providing temporary financing to quality borrowers at a much lower loan-to-value ratio, averaging less than 60%. This strategy helps them maintain a lower risk profile while effectively supporting borrowers in transition who may struggle to meet typical lending requirements.
Market Turbulence and Strategies
Listeners will find the current state of public markets turbulent, underscoring the challenge of finding reliable investment options amidst volatility. Neighborhood Holdings distinguishes itself through its transparent operations and investor alignment, ensuring that investor interests are prioritized. By partnering with banks and brokers, they effectively connect with creditworthy borrowers while other mortgage funds may engage in riskier lending practices. The emphasis on residential borrowers, rather than on riskier ventures such as construction or bare land, allows for a stable investment approach focused on sustainable growth.
Toronto Condo Market Crisis
The Toronto condo presale market has reached a 28-year low, reflecting a significant downturn in new home sales and a stark contrast to the previous booming real estate market. High interest rates have led to declining rents, and population growth has slowed to a halt, creating an oversupply of units currently under construction. Industry experts express concern about the fate of numerous tradespeople who rely on continued construction activity, as a complete shift in the market dynamics threatens their employment. As the sector shifts from hypergrowth to potential stagnation, confusion arises over when these newly completed units will impact overall housing availability.
Rising Property Taxes in Toronto
Toronto's mayor, Olivia Chow, has proposed substantial property tax increases, with a cumulative rise of 24% over the past three years, making it increasingly challenging for homeowners amid stagnant market conditions. These tax hikes may further dissuade potential buyers and investors from entering the property market, exacerbating the existing struggles faced by both residential and commercial real estate sectors. As property values flatten or decline, the question arises regarding the sustainability of funding government operations through increased taxes on already burdened citizens. This scenario illustrates the complexities faced by urban governance in managing financial stability while providing necessary public services.
The Future of Canada's Real Estate Market
Experts believe the current trends within the Canadian real estate market, particularly in Toronto, may lead to prolonged stagnation reminiscent of the late 80s and early 90s. There's a growing recognition that high inflation, fluctuating interest rates, and increased construction costs have resulted in a disconnect between resale prices and new construction pricing. With investors uncertain about future appreciation and rents, a significant portion of the market may hesitate to re-enter until clearer signals emerge about an economic recovery. Policymakers and industry stakeholders are encouraged to adapt to this shifting landscape and explore innovative approaches to stimulate market activity and foster economic resilience.
Alberta refuses to sign on with Trudeau's proposed retaliatory tariffs. Toronto new condo sales hit 28 year lows as property taxes surge. Is Mark Carney the next prime minister already? US CPI cools, bringing relief to the bond market.
