Greater Fool

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can't reply to the throwaway dude as HN threading is nuts so replying here. Low interest rates allows banks to more efficiently financialise housing (that is to say price housing at the optimal point to extract as much economic rent as possible). You get to spread your repayments over a long time and end up paying lots of lovely interest. Higher rates (and therefore more wage inflation) quickly erodes the debt whilst putting a ceiling on the asset price bounded by wages at the time you sign the mortgage deeds. The west has been utterly captured by banks. We've seen politicians walk rates down to zero to allow the asset price bubble to continue to extract value from labour. This is the issue. It's not off-topic for this - all families are working two jobs for the banks. ps also dude as you are in Canada (so am I): http://www.greaterfool.ca/ Vancouver is nuts. Calgary: timber

I suggest you read this blog: http://www.greaterfool.ca Why do you feel a need to buy a house? You can always rent and right now renting is far cheaper in Toronto than buying if you include buying and selling costs (realtor commissions, land transfer taxes).

Actually, one of my favorite blogs is http://www.greaterfool.ca ;) I'm familiar with the greater fool theory. But people buy commodities, currencies and financial instruments on this expectation of increased future valuation. There could be a case made that the greater fool theory is in effect for bitcoins, but it can't be said that it is the case simply because people expect higher valuation in the future.

Lone Person in Toronto has median of 22k http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/famil107d-e… Lone Person in Toronto treated as Family (single parent) has median of 39k http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/famil107c-e… I noticed that you put down 300$ into savings, but later, at end of month, you claim that there 0$ left, as if savings evaporated. Other numbers As per housing / condo market I totally agree. Toronto and Vancouver are way overpriced. To anyone interested on Canadian housing market I recommend checking out http://www.greaterfool.ca/

You're right about the Canadian housing market; There are those predicting it is in a bubble, the most vocal of whom is a former government MP blogging at http://greaterfool.ca . The funny thing is that even after watching the carnage in the US housing market, people here don't believe it. I hear countless homeowners talking about housing is the best investment you can make, prices won't fall, it is different here, etc, etc.

Relevant: “ This has the potential to destroy the livability of every major community, create two classes of citizens, cement a wealth divide, disenfranchise an entire cohort, create structural household debt, make shelter unaffordable and hobble the economy as billions a week flow into vaporous housing equity. In short, it’s an epic policy failure. It’s time those who have greased the wheels – realtors, central bankers, political leaders and our federal housing agency – stand accountable.” https://www.greaterfool.ca/2021/03/26/we-are-watching/

> If the US market is only close to overheating, Canada lags behind that. Looking at this chart, I can't see how Canada is lagging anyone. Not even sure if this includes the 30% rise in Toronto (our largest city) this year. http://www.greaterfool.ca/wp-content/uploads/2017/06/CANADA-US.png?x64…

Winter: http://www.greaterfool.ca/wp-content/uploads/2015/05/Winter-modified.p…

In a bubbly, Ponzi scheme way. Last one in is left holding the empty can. I used to read this blog back when I was watching for the crash that never was. (Doesn't appear to have happened in Canada either) He had an interesting tax story from a few days ago too about inheriting property. http://www.greaterfool.ca/2014/05/19/gross-me-up/

http://www.greaterfool.ca/2010/08/24/market-update-6 (Granted, Garth Turner is extreme, but he does not make things up.)