The gains are not evenly spread across Canadians, the agency noted, meaning they reflect the financial success of few households.
  • Pasta Dental@sh.itjust.works
    0·
    10 months ago

    I don’t get the rich getting richer in the title, how does owning a home (for the vast majority of people, on a mortgage) make someone rich? About 65% of the Canadian population are homeowners. 65% of the population owning 90% of the wealth isn’t that surprising or that wrong. What’s truly wrong is numbers like 1% of the population owning 30% of the total wealth in the US.

    It’s always the homeowner boogeyman when in reality the problem comes from the government spending money wherever and not applying strict foreign home purchasing laws that keep increasing home prices. People who own one or two houses are not rich and are very unlikely to drive a Porsche, and even there, if it is an individual who owns that property, that person will have to pay their fair share of taxes on their income and property taxes.

    • eezeebee@lemmy.caEnglish
      0·
      10 months ago

      Imagine paying over $1000 for rent every month, except that if you decide to move, you (theoretically) get that money back, and (likely) even more.

      Now imagine that same $1000 going to someone else and you never see it again.

        • eezeebee@lemmy.caEnglish
          0·
          10 months ago

          I’m not disagreeing with your comment btw. I was speaking to your question about the title.

          In the eyes of a renter, homeowners are rich. It’s (unfortunately) an amazing investment with a very high barrier to entry.

          • CanadaPlus@lemmy.sdf.org
            0·
            10 months ago

            Funny enough, real estate preforms worse than just an index fund, usually. The difference is that a mortgage makes not regularly paying in much more difficult.

            But yeah, the underclass tends to rent.

            • LeFantome@programming.dev
              0·
              10 months ago

              The other differences are leverage, tax sheltering, and the low cost of borrowing. How many people can borrow $1,500,000 at 5% to buy an index fund in a tax shielded account?

              Also, don’t forget that you get to “invest” your rent money when you buy a home.

              Real estate returns are higher.