Aviation and the 2021 Election

[Mach1]

The final graphic.

Sorry...it's the only way I could put the whole article in here.

[complexintentions]

Canada's been a socialist haven for ages. They're just stopped pretending anything else anymore. Must suck a bit a bit to be Jagmeet when the Libs out-Commie the NDP hahah! And now Justin and Jag are in bed again for another 2-4 years. Think the money taps were open before now? You haven't seen anything.

Unfortunately, it always ends the same way. It's never different this time.

dt210920.gif (108.76 KiB) Viewed 1269 times

[digits_]

Canada's been a socialist haven for ages. They're just stopped pretending anything else anymore. Must suck a bit a bit to be Jagmeet when the Libs out-Commie the NDP hahah! And now Justin and Jag are in bed again for another 2-4 years. Think the money taps were open before now? You haven't seen anything.

Unfortunately, it always ends the same way. It's never different this time.





dt210920.gif

Yeah, look at all those other failed 'socialist' states in Europe where 5 weeks vacation is the norm, people can afford to own houses on minimum wage, healthcare is affordable even without insurance and you don't risk getting kicked out of your home at retirement because property taxes are linked to your level of income.

Yuck!

[goldeneagle]

To sit here and pretend that low interest rates don’t inflate housing prices Or affect affordability is wild.

Demand affects affordability, interest rate affect prices.

It's not hard to see how this works. Take a look at some hard and fast numbers.

A 500,000 mortgage with 25 year amortization at a 1.9% rate equates to a monthly payment of 2093 dollars. Over the life of the mortgage principle payment equates to 500,000, and there will be 128,000 paid out as interest, total cost of the purchase was 628,000

A 360,000 mortgage on a 25 year amortization at a 5% interest rate equates to a monthly payment of 2093 dollars. Over the life of the mortgage principle payments total 360,000 dollars, and interest payments total 268,000, for a total payout of 628,000

If an average household can afford a 2100 dollar payment, they will be in the market for a 500K home today, and average homes will be priced at that level with today's rates. If/When rates go up to 5%, that same buyer will only be able to afford 360, and average house prices will eventually settle to that number because that's what the buyers can afford.

What is most interesting, doesn't matter if it's 500 at 1.9 or 360 at 5.0, in both cases that home will cost you 628.

Low interest rates cause sticker prices to go up because folks can borrow more for the same payment. Higher rates cause sticker prices to go down, because folks can borrow less for that payment.

[complexintentions]

Canada's been a socialist haven for ages. They're just stopped pretending anything else anymore. Must suck a bit a bit to be Jagmeet when the Libs out-Commie the NDP hahah! And now Justin and Jag are in bed again for another 2-4 years. Think the money taps were open before now? You haven't seen anything.

Unfortunately, it always ends the same way. It's never different this time.





dt210920.gif

Yeah, look at all those other failed 'socialist' states in Europe where 5 weeks vacation is the norm, people can afford to own houses on minimum wage, healthcare is affordable even without insurance and you don't risk getting kicked out of your home at retirement because property taxes are linked to your level of income.

Yuck!

Oh please. I live in Europe and what you're saying is nonsense. Which country or countries are you referring to? Let me guess...Scandinavia? Completely different culture, where people are willing to pay 25% VAT and actually pay it because they trust the government - not like Canada where everybody's doing everything they can to avoid paying their taxes. 40% of Canadians don't even pay ANY tax net of government programs. As far as embracing socialism, you better believe the former Soviet states have zero interest in going back to collectivism, comrade. Do tell, which country are you saying it's possible to buy a house on that country's minimum wage? lol

Sorry, but there's no such thing as a free lunch. But it's a nice escapist fantasy to believe that things are so much better somewhere else. Good luck with that 1.5 trillion dollar debt, I'm just grateful I won't be contributing a dime towards it.

[digits_]

Oh please. I live in Europe and what you're saying is nonsense. Which country or countries are you referring to? Let me guess...Scandinavia? Completely different culture, where people are willing to pay 25% VAT and actually pay it because they trust the government - not like Canada where everybody's doing everything they can to avoid paying their taxes. 40% of Canadians don't even pay ANY tax net of government programs. As far as embracing socialism, you better believe the former Soviet states have zero interest in going back to collectivism, comrade. Do tell, which country are you saying it's possible to buy a house on that country's minimum wage? lol

Sorry, but there's no such thing as a free lunch. But it's a nice escapist fantasy to believe that things are so much better somewhere else. Good luck with that 1.5 trillion dollar debt, I'm just grateful I won't be contributing a dime towards it.

Of course Scandinavia has a different culture, that's the whole point. If they had the same culture, chances are they would have the same political system and the same policies as well.

In France, Germany and Belgium you should be able to afford a house on minimum wage, especially if you have a partner who is also on minimum wage. France is another good example of social rights and vacation policy etc. You don't think people in those countries try to avoid taxes? Of course they are. and of course they should. If there are multiple options, taking the least taxed one is always a good idea!

Not sure what Soviet states have to do with this. We're talking about a more socialist approach, not communism, which is fundamentally different. This is another classic symptom of North American politics: you are discussing a subject, and immediately an unrealistically extreme situation is being injected in the conversation and moves the discussion away from the original topic.

[oldncold]

digits. you are forgetting 1 very important fact which is: there are 550 million tax payer in Europe to pay the tab on their programs. vs. 15 million in canada additionally you know that the entire western Europe landmass would fit into province ontario and a bit of quebec. European model of delivering. programs here is logistically challenged in the of times best in canada but now due to radical environmentalism. pushing shutting down 20% gpd to pay for those programs.
omg next our housing crunch is being by made worse by the fed. policy of not matching immigration # s. to available housing stock and newbuilds resulting in worsening slums in bigcity neighbourhoods and pushi for even more social suppports

unless there feds

[digits_]

digits. you are forgetting 1 very important fact which is: there are 550 million tax payer in Europe to pay the tab on their programs. vs. 15 million in canada additionally you know that the entire western Europe landmass would fit into province ontario and a bit of quebec. European model of delivering. programs here is logistically challenged in the of times best in canada but now due to radical environmentalism. pushing shutting down 20% gpd to pay for those programs.
omg next our housing crunch is being by made worse by the fed. policy of not matching immigration # s. to available housing stock and newbuilds resulting in worsening slums in bigcity neighbourhoods and pushi for even more social suppports

unless there feds

Absolutely, there are differences. And I don't agree with the anti oil/anti Alberta stance the government seems to be taken. But that doesn't mean a move towards more socialism would be detrimental to Canada or lead to communism or other such nonsense. It's a choice, with pro and cons. But it's a legitimate choice, and I'm sure it could be done.

One change that would be good for tourism, would to increase minimum vacation allowance from 2 weeks to 4 weeks. More time for people to travel and spend their money, and it will not significantly affect job performance. Not so much a big effect for pilot jobs, but it would make a huge impact on the average office job or service job.

[goldeneagle]

To sit here and pretend that low interest rates don’t inflate housing prices Or affect affordability is wild.

A banker once explained it to me in simplistic terms. You want to know the average price of an average home in some area, it's simple to calculate. Take the average household income, calculate what mortgage it can support at current interest rates, and that will be the average price of an average home.

Now look at some simple numbers from an online mortgage calculator.

500,000 mortgage taken out today at 1.9% interest rate and 25 year amortization will generate a monthly payment of 2093 dollars. Over the life of the mortgage it will incur 128,000 in interest costs, for a total out of pocket to make the purchase of 628,000.

360,000 mortgage taken out with a 25 year amortization at 5% interest rate will generate a monthly payment of 2093 dollars. Over the life of the mortgage it will incur 268,000 in interest costs, for a total out of pocket cost of 628,000.

Note how the total cost of buying that home is exactly the same in both cases, on the first case you end up out of pocket by 628K, and in the second case the same amount. The difference is simply the sticker price of the house, and implied 'cost of the house'. Reality is, in both cases, the house cost the same, your cost to purchase was 628K, what was different, was the sticker price.

Interest rates cause the sticker prices to go up and down, but in the end the total cost of the purchase is the same. The real difference, does the seller get the money, or the bank ?

If the average household income in an area can support a 2100 dollar monthly payment, sticker prices of an average home will run in the 500,000 range with interest rates at 1.9%, and they will settle down to 360,000 should rates go up to 5%. It's simply supply and demand economics.

[‘Bob’]

Sorry, but there's no such thing as a free lunch. But it's a nice escapist fantasy to believe that things are so much better somewhere else. Good luck with that 1.5 trillion dollar debt, I'm just grateful I won't be contributing a dime towards it.

Isn’t that what you are doing? Believing that things are so much better where you are?

Aren’t you in the UK? Didn’t their debt just go over two trillion pounds? And I can’t remember, is a pound higher than a Canadian dollar?

[Inverted2]

Debt means nothing anymore. Like the family 2 houses down with a 600,000 mortgage or the federal government and their trillions. They just kick the can down the road and let somebody else worry about it at a later time.

[loudmouth]

To sit here and pretend that low interest rates don’t inflate housing prices Or affect affordability is wild.

A banker once explained it to me in simplistic terms. You want to know the average price of an average home in some area, it's simple to calculate. Take the average household income, calculate what mortgage it can support at current interest rates, and that will be the average price of an average home.

Now look at some simple numbers from an online mortgage calculator.

500,000 mortgage taken out today at 1.9% interest rate and 25 year amortization will generate a monthly payment of 2093 dollars. Over the life of the mortgage it will incur 128,000 in interest costs, for a total out of pocket to make the purchase of 628,000.

360,000 mortgage taken out with a 25 year amortization at 5% interest rate will generate a monthly payment of 2093 dollars. Over the life of the mortgage it will incur 268,000 in interest costs, for a total out of pocket cost of 628,000.

Note how the total cost of buying that home is exactly the same in both cases, on the first case you end up out of pocket by 628K, and in the second case the same amount. The difference is simply the sticker price of the house, and implied 'cost of the house'. Reality is, in both cases, the house cost the same, your cost to purchase was 628K, what was different, was the sticker price.

Interest rates cause the sticker prices to go up and down, but in the end the total cost of the purchase is the same. The real difference, does the seller get the money, or the bank ?

If the average household income in an area can support a 2100 dollar monthly payment, sticker prices of an average home will run in the 500,000 range with interest rates at 1.9%, and they will settle down to 360,000 should rates go up to 5%. It's simply supply and demand economics.

There's a big difference though in the time needed to save for a down payment for a 500k mortgage and 360k mortgage. My current barrier to entry isn't my income, it's the fact that if I want to buy a townhouse that costs 750k I need at minimum 40-60k in the bank. Ideally more so I have a buffer for anything that may come up.

I could care less if I pay $2500 a month with a 5% interest rate or $2500/mo with a 1.5% interest rate. Difference being I'll be in a property a lot faster with the former if it causes prices to drop.