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BoC's Next Interest Rate Announcement . . .
September 7, 2023
11:18 am
Loonie
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Sorry; I didn't realize people had previously commented on the (in)appropriateness of the premiers as I hadn't read all the thread, but I appreciate further comments.

On the question of the suitability of lands other than the Green Belt for development:

The media quickly eliminated this information, but in a detailed statement broadcast on CBC radio when she released her report, the Ontario Auditor-General said that there was a whole other team of staff in the Housing ministry who had been working on identifying new sites, and that they had identified a number of suitable areas for housing development, such as in nearby Richmond Hill, where infrastructure already exists and could be added to. The team devoted to disrupting the Green Belt seem to have been added specifically to do so and there appears to have been no cross-consultation. I imagine that there is more info on this in the A-G's report, but I have not read it.
All of this is in addition to the fact that the Green Belt is there to protect us for the future and was carefully delineated; we can't afford to squander it.

September 7, 2023
11:28 am
mordko
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Theory is just that. Reality requires permits. Which are given (or not) by local authorities.

People in effluent neighborhoods are very good at fighting new housing projects. They are the ones who vote in municipal elections. https://www.yorkregion.com/news/richmond-hill-residents-fight-proposed-behemoth-hall-street-development/article_b0fa7e2e-d3f3-51fc-b4a9-a07ab563dfff.html

September 7, 2023
12:02 pm
AltaRed
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'effluent' is actually more appropriate than what I think you meant (affluent).

September 7, 2023
2:59 pm
Loonie
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The loudmouths always get the attention. I've also heard from people in Richmond Hill that they don't see it as a problem and welcome increased tax base.

This reminds me of a situation in England. I have a number of relatives there. They don't all know each other. Some write to me and tell me, "we are a small country; we can't possibly take in any more people"; others write to me and tell me "we have lots of room; some people just don't like change and don't want to let anyone in".

I restrain myself from pointing out to the first group that England exported millions of its population to other countries and blithely took them over from their indigenous populations. If not, their descendants would still be there occupying space that they say doesn't exist.

Change is inevitable.

September 7, 2023
3:28 pm
mordko
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The question is “what kind of change?” Construction in Richmond Hill isn’t inevitable. I was in Oakville when the locals organized to kill a gas power plant proposal. Boy, did they do a good job… Everyone liked using electricity but reduction in house prices… Not so much. Politicians have to be responsive. Industrial projects across the country are getting killed. NIMBY rules.

Its not just Canada. Los Angeles is turning into a city of extremes. You are either very wealthy or homeless. The wealthy vote Democrat while killing new housing projects. They already have houses and like the unobstructed views. Young actors can no longer afford LA which is bad for Hollywood and the overall local economy but that’s the way its gonna be.

Canadian politicians of every colour can promise lots of new construction in built up areas. Promising is easy. I have not seen anyone succeed. And its not exactly new. Toronto has a remarkable number of single home dwellings, going back over a century. Not usual for a large city. Building up rather than spreading would make sense but… Prices might drop regardless, if politicians stop forcing banks to extend amortization periods and/or the economy tanks.

September 7, 2023
6:14 pm
Loonie
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You make a lot of assertions, and much of what you say is questionale, but, realistically, too big to get into all that here.

I will just say one thing from personal experience. My area of Toronto is mostly 100 year old homes with narrow lots, and every nook or cranny is being replaced by high rise density, despite local opposition. Around the corner from me, even a small garage was severed and converted to a tiny house. On my street, several home owners are converting their garages to granny suites as recently approved bylaws allow this. Even the school yards are much more densely used and increasingly inaccessible to residents. It's getting harder and harder to park on my street. A playing field has recently been allocated for the exclusive use of a publicly funded school during school hours. Our local branch libraries are so full that you often can't find a seat.

Homes and stores surrounding a subway station that is being upgraded have been expropriated and will be replaced by a 20-something storey high rise that these people can't afford, again despite local opposition. And this is by no means over. This trend has been going on for at least 20 of the 36 yrs I've been here. It doesn't matter whether local people want it; it's going to happen anyway. And, in the meanwhile, property values will not suffer because of it; more likely, they will increase.

September 8, 2023
4:50 am
Bill
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A reasonable move for CB to hold rates for now, takes a while for rates to impact, we're at more "normal" rate levels now so let's see how things develop.

Interest rates are just one factor, if they were determinitive Argentina wouldn't have inflation over 100% and interest rates to match.

September 8, 2023
4:55 am
savemoresaveoften
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Bill said
A reasonable move for CB to hold rates for now, takes a while for rates to impact, we're at more "normal" rate levels now so let's see how things develop.

Interest rates are just one factor, if they were determinitive Argentina wouldn't have inflation over 100% and interest rates to match.  

Can’t compare Argentinian peso to Canadian dollar. Argentina’s inflation is due to their currency devaluation and their CB tries to Jack up interest rate to counter, which always fail, when a country’s currency is just something no one really cares for multiple reasons.

September 8, 2023
5:32 am
mordko
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Loonie said
You make a lot of assertions, and much of what you say is questionale, but, realistically, too big to get into all that here.

I will just say one thing from personal experience. My area of Toronto is mostly 100 year old homes with narrow lots, and every nook or cranny is being replaced by high rise density, despite local opposition. Around the corner from me, even a small garage was severed and converted to a tiny house. On my street, several home owners are converting their garages to granny suites as recently approved bylaws allow this. Even the school yards are much more densely used and increasingly inaccessible to residents. It's getting harder and harder to park on my street. A playing field has recently been allocated for the exclusive use of a publicly funded school during school hours. Our local branch libraries are so full that you often can't find a seat.

Homes and stores surrounding a subway station that is being upgraded have been expropriated and will be replaced by a 20-something storey high rise that these people can't afford, again despite local opposition. And this is by no means over. This trend has been going on for at least 20 of the 36 yrs I've been here. It doesn't matter whether local people want it; it's going to happen anyway. And, in the meanwhile, property values will not suffer because of it; more likely, they will increase.  

Your last sentence holds the key. Its not a good thing. The exact opposite.

Of course there is always construction. Always has been. Its a huge place. The issue is that new housing starts are nowhere near enough to meet demand. So, prices stay unaffordable for young people who are forced out if they want a family, slowly killing Toronto. When you have to pay 900K for a 2-bedroom condo, youngsters with decent jobs are priced out. Not sustainable for a city. In the mean time the homelessness is visibly escalating at a pace which is striking for someone like me who isn’t in the city every day.

September 8, 2023
11:24 am
Loonie
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There is nothing new in post #69, and the focus keeps changing, so I'm not going to prolong this sidetrack.

September 9, 2023
12:10 am
RetirEd
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Credit use drives inflation. When borrowing for things that people believe will escalate faster than the inflation they contribute to (as with real estate and cryptocurrency at times - with no guarantees), there is strong impetus to borrow, buy and inflate. So I have a lot of tolerance for the suppression of credit-buying, particularly in consumer credit.

I'm bemused at how the credit card companies have been rather timid in increasing their interest rates charged to suck... er, I mean consumers.

RetirEd

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