I ❤️ Boomers.

Taxing the gains on a principal residence as an investment lacks "critical analysis."

As opposed to the idea of taxing the investment gains of anyone that doesn't own a home, including a generation unlikely to ever own.

That's just good business for old folks. Image
2/ Here. Keep tax exemptions on the profits of homes.

Just let our generation know where we can opt of paying for your CPP.
Boomers: Tax people that work! They don't contribute to society like we do. We had to buy a home for a nickel, and worked twelve jobs in a day. It took just as long to save a downpayment too!

It took your generation 25 years? You bought your starter home at 45?
Want to know how badly Canada screwed up? The lighter the color, the fewer the young homeowners.

Toronto is left, and Vancouver right. They're almost hollowed out of the demographic that spends the most disposable income.

Canada created two massive retirement villages. ImageImage
The worst part is the people on the outside that commute into the city? They also have to subsidize all of those older homeowners.

They subsidize the lack of property tax revenue.

They subsidize healthcare.

They subsidize CPP.

In exchange, they get higher income taxes.
Anyway, that's how we end up with an army of young people that secretly want austerity, and just won't say it out loud.

Doug Ford has a huge lead in Ontario. Young people are happy with the cuts, because what's the point of services they'll never use? Image

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Stephen Punwasi

Stephen Punwasi Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @StephenPunwasi

16 Mar
"The government is trying to microchip you with vaccines."

Bruh. Have you tried to use a government website? There's no way they can build that kind of tech.
Imagine if Canada tried to microchip people with vaccines.

*two weeks later*

Everyone receives an email saying their microchips have been locked, please call in to have it reenabled. Everyone's on hold for 8+ hours to reactivate.
Imagine if the 🇺🇸 tried.

“We wrote the system in COBOL, a language no longer used in computing, and can’t find anyone to finish it.”
Read 4 tweets
11 Mar
I hate real estate as an investment. Some people call me anti-developer.

One of my best friends is one of the biggest real estate developers in America.

Here's what we candidly discuss in terms of housing affordability and supply, that most will never understand.

<thread> 👇🧵
2/ First, let's talk about developer motivation.

When do developers build rentals? When it's most profitable.

When do developers build homes for sale? When it's most profitable.

It's never because they have a deep desire to build housing. Glad that's out of the way.
3/ How do you determine what will be more profitable?

Rentals are based on the gross yield they receive. Since rents are tied to income growth, it can only grow as fast as an economy.

Now selling a house? That grows as quickly as people can borrow money.
Read 10 tweets
10 Mar
Canada floods the mortgage market with cheap cash to create tons of homebuyers.

... just ahead of new anti-money laundering rules they were pressured to adopt

... right before beneficial ownership registries become mandatory...

... during a money laundering inquiry. 🧐
2/

On the upside:

- give money launderers warning they won't be able to hide in homes in a few months

- let homebuyers borrow more money during the warning period

- your money laundering expert witness "disappears" during a inquiry

Laundering stats will be nice and low!
3/ I'm not discounting the stars have aligned for incompetence, but this is amazing stuff.

The federal government also disassembled the financial crimes unit in Ontario. We have money for "whatever it takes, for as long as it takes" ... except this

thestar.com/news/investiga…
Read 5 tweets
23 Feb
Okay, quick lesson so you'll understand the economy better than politicians.

The velocity of money is the rate at which each dollar travels through the economy, captured in GDP.

A high velocity economy is what benefits the most people, and is the gold standard.

<thread> 🧵👇
2/ In a high velocity economy, every dollar you spend ripples through the economy quickly.

Let's say you go to a restaurant, and buy a sandwich. That $10 (it was a pricey sandwich) goes to the shop, who spends it on at the grocery store, who spends it at a wholesaler, etc..
3/ This is a high velocity transaction. Each dollar you spent had an impact throughout your local economy.

At some point (2000), Western economies got tired of increasing GDP by velocity. Instead, they decided they were going to try to grow it by *credit*
Read 5 tweets
22 Feb
Let it fail.

Government intervention makes it worse. Prices rose across Canada *because* of the government.

They thought prices would fall 30%, and tried to stop it by pumping billions into the market.

The idiots overestimated the pandemic though, and sent prices soaring.
2/ If the government "saves" the market once more, Justin Trudeau's legacy will be ruining the lives of 2 generations.

This isn't a political exaggeration. The setup is similar to the cause of Japan's hikikomori.
3/ Hikkomori are middle class kids become socially withdrawn from society. They live with their parents, and don't rarely leave the home.

Why? Because what's the point. You can't make enough to have a life, or afford a home. That's for rich kids, that have a safety net.
Read 6 tweets
19 Feb
A VC once told me to invest in anything that can be used for *legal* money laundering.

Not to make money from the launderers, but because the launderers will hide activity in businesses, boosting the likelihood of legit businesses hopping on.

Heck of an investment thesis.
2/ It turns out the whole gig economy was a great use case.

Renting a room that goes for $100/night in a hotel for $2,000/night on a short-term rental site doesn't set off any red flags, or capital currency controls.

It also isn't subject to laundering regs. 🤣
3/ Also incredible how simple the operations are.

Person A buys a house, and rents it.

Person B gets people to rent from abroad. Don't show up, just pay.

Person A uses the revenue to secure more assets, and expand operations. Brings a new meaning to ghost hotel.
Read 8 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!