Ganhos & Gastoss

The Hidden Costs of Converting Your Rentals to Airbnb

Paulo Rocha — Mon, 13 Jul 2026 15:05:43 +0000

The math used to be simple. You take a traditional rental property, list it on a platform like Airbnb or Vrbo, and watch your monthly cash flow multiply. For years, real estate investors used short-term rentals to beat rising interest rates and inflation.

But the landscape has completely shifted. Over the last two years, all three levels of government have introduced aggressive new rules designed to push housing back into the long-term market.

If you are currently converting long-term rentals into short-term rentals without a clear legal and tax strategy, you are walking into a financial minefield. Here are the most critical pitfalls you need to avoid to protect your wealth.

1. The 13% Sales Tax Trap on Your Future Sale

When you rent a property to a long-term tenant, the government views it as a residential home. When you sell a used residential home, you do not have to charge the buyer Harmonized Sales Tax (HST).

However, the Canada Revenue Agency (CRA) views a short-term rental exactly like a hotel or a motel. It is a commercial business. If you run your property as a short-term rental, it loses its tax-exempt residential status.

In a landmark decision affirmed by the Federal Court of Appeal in March 2025, a property owner was forced to pay over $77,000 in HST when they sold their condo. The owner had rented the unit to long-term tenants for nine years and only switched to Airbnb for 14 months before selling. The court ruled that because the property was operating like a hotel at the exact time it was sold, the entire sale price was subject to HST.

If your buyer refuses to pay an extra 13% on top of the purchase price, that massive tax bill comes directly out of your profits.

2. Paying Taxes Before You Even Sell

You do not even have to sell the property to trigger a massive tax bill. The CRA has a strict rule for when a property changes its primary use.

When you kick out a long-term tenant and furnish the unit for Airbnb guests, the property officially changes from residential to commercial use. The government legally views this switch as if you sold the property to yourself at its current market value.

This paper "sale" can trigger two immediate problems:

You could owe capital gains tax on how much the property has gone up in value since you bought it.
You may be required to pay HST on the value of the property out of your own pocket.

You could be hit with a six-figure tax bill from the CRA while you still own the house and have no sale proceeds to pay for it.

3. Zero Tax Deductions for Illegal Operations

Traditionally, landlords deduct expenses like mortgage interest, property taxes, insurance, and utilities from their rental income to lower their tax bill.

The federal government has recently introduced a punishing new income tax rule. If your short-term rental is operating illegally according to your local city bylaws, the CRA classifies it as "non-compliant."

If your rental is non-compliant, you are no longer allowed to deduct any operating expenses. You will be taxed on 100% of the gross revenue the property brings in. This single rule can easily turn a profitable investment property into a massive monthly loss.

4. The Reality of Local Bylaws

You cannot assume you are allowed to run a short-term rental just because you own the house. Municipalities are cracking down hard.

For example, the City of Brampton has completely banned investors from running short-term rentals in secondary properties. In Brampton, you can only run an Airbnb out of your principal residence (the home you actually live in), and even then, you are capped at renting it out for a maximum of 180 days a year.

If you try to quietly list an investment property online, the city will find out. They actively monitor booking platforms and rely on neighbors to report suitcases rolling up the driveway. The fines start at $500, escalate to $1,000 per offence, and the city will issue formal orders to shut you down. Because of the new federal rules mentioned above, getting caught by the city also triggers the CRA to deny all your tax deductions.

5. Voided Insurance Policies

A standard landlord insurance policy covers long-term tenants. It absolutely does not cover a revolving door of nightly guests.

If a guest starts a fire, causes a flood, or gets injured on your property, a standard insurance provider will investigate, see the Airbnb listing, and deny your claim completely. Operating a short-term rental requires a specialized commercial general liability policy. Without it, you are putting your personal savings and the property itself at total risk.

The Bottom Line

Real estate remains one of the best ways to build wealth, but the era of the unregulated side hustle is over. Before you convert another unit, you must check your local city bylaws to ensure you can legally get a license. Most importantly, sit down with a specialized real estate accountant to calculate exactly how these rules will impact your specific tax situation.

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The Great Divergence: Why Your Paycheck is Falling Behind

Paulo Rocha — Tue, 12 May 2026 00:48:38 +0000

It is a common conversation at kitchen tables across Canada: "I am working harder than ever, so why does it feel like I’m standing still?"

If you feel that way, you aren't imagining it. The math is backing you up.

Take a look at the chart below. While this specific data is from the US, we are seeing a nearly identical trend right here in Canada. It shows two lines moving in opposite directions, and that gap explains the modern economic struggle.

The Two Lines

The White Line (Wages): This represents total wages as a share of the economy. For 40 years, it has been in a steady decline.
The Green Line (Wealth): This represents the value of the stock market relative to the economy. It is currently sitting at historic highs.

Ownership vs. Effort

I have always been a firm believer in capitalism and the power of the markets. Capitalism is the greatest engine for growth we have, but we have to be honest about how the engine is currently tuned.

Right now, the system is rewarding ownership (the green line) far more than it rewards effort (the white line).

Our tax system was built decades ago when the white line was dominant. We fund our society primarily through income taxes—taking a slice of the paycheck. But as that slice of the pie gets smaller, the government eventually runs into a math problem.

The Coming Tax Shift

We saw a glimpse of this reality recently in Canada. The government attempted to increase the capital gains inclusion rate to tap into that "Green Line" wealth. While that specific plan didn't pass, the motivation behind it isn't going away.

Governments everywhere are realizing they can't fund a 21st-century country solely on the backs of a shrinking wage share. At some point, the tax model has to change because you can't get enough blood from a stone.

The Ganhos e Gastos Reality

At Ganhos e Gastos, we talk a lot about the importance of saving and investing. We know it is getting harder to do. When your wages are a smaller part of the economy and the cost of living is rising, finding that extra bit of money to invest feels like an uphill battle.

However, this chart shows why it’s no longer optional.

If you rely 100% on a paycheck, you are tied to a shrinking line. To find true security in today’s world, you have to find a way to move some of your energy into the "Green Line." You have to become an owner of assets, not just a provider of labor.

The gap between wealth and wages is wider than it has ever been. Understanding that gap is the first step toward making sure you and your family aren't left on the wrong side of the math.

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RRSP vs. TFSA: What makes the most sense for your money this year?

Paulo Rocha — Sat, 07 Feb 2026 03:08:01 +0000

We often hear that we "should" put money into an RRSP to get a tax refund. However, the truth is that the best choice depends heavily on your current income and your plans for the future.

The Basics: Different ways to grow

RRSP (Registered Retirement Savings Plan): Tax is deferred. The government gives you a tax benefit today, but you will pay tax when you withdraw the money in retirement.
TFSA (Tax-Free Savings Account): Tax is never charged on earnings. You do not get an immediate discount on your Canadian income tax, but all the profit the money earns is yours to keep and can be withdrawn without paying any taxes to the government.

The impact of your income bracket

The RRSP is a much more powerful tool when your income is at the highest point of your career. Consider this comparison:

If you earn under $50,000: A $10,000 RRSP contribution could result in a tax benefit of about $1,500.
If you earn over $250,000: That same $10,000 contribution could yield a benefit of about $5,000.

For those in their early career years, it may make more sense to focus on the TFSA now and save your RRSP "room" for when your earnings are higher, thereby maximizing your refund in the future.

Beware of the "Emergency Trap"

Many families make the mistake of putting all their savings into an RRSP before they are financially stable. If an emergency arises, such as a car or home repair, and you need to withdraw that money, you will have to pay tax immediately on that withdrawal.

In this case, the TFSA is the winner because it allows you to access your money at any time without tax penalties.

When to use both?

If you have already filled your TFSA limit, which in 2026 is $7,000 (with a total cumulative limit of $109,000), the RRSP becomes the ideal next step even if you are not yet in the highest income bracket. Having money grow protected from taxes is always better than leaving it in a standard bank account.

The Big Picture

Remember that these accounts are only one part of your retirement. Your plan should also consider:

Workplace pensions.
Government pensions and benefits.
The value of your home and your family business.

The goal is to cut through the noise and focus on what truly matters for your long-term financial stability. Choose the strategy that best protects your hard work today and secures your tomorrow.

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2025: The Lost Year (And the 2026 Question Mark)

Paulo Rocha — Thu, 29 Jan 2026 01:32:00 +0000

We started 2025 with a nervous sense of uncertainty, and to change things up a bit, we are starting 2026 with a complete lack of a map.

If last year felt like a "lost year" for real estate, it is because we spent twelve months waiting for a turnaround that never really showed up. Last January, I looked at what 2025 might hold in my post: 2025 Real Estate Market: What Can We Expect?.

Looking back, we got the lower interest rates we wanted, but the "rebound" stayed on the sidelines. Now, as we head into 2026, the honest truth is that we just don’t know yet if things will finally move.

Rates are Down, but the Market is Stuck

This week, the Bank of Canada kept interest rates at 2.25%. While that sounds like good news compared to where we were two years ago, it hasn't sparked a buying frenzy. With the Canadian dollar sitting at $0.74 USD and new trade tariffs affecting our economy, people are being very careful with their money.

We aren't guessing about interest rates anymore. Now, we are guessing if the economy is strong enough for people to actually feel comfortable taking on a mortgage.

Why Everyone is Still "Waiting and Seeing"

Here is the reality of what we are seeing right now:

The Condo Standoff: In places like Toronto, there are more condos for sale than people want to buy. Sellers are still hoping for 2023 prices, but buyers are looking at the economy and saying, "No thanks."
Job Security Matters: Unemployment is at 6.8%. It doesn't matter how low the interest rate is if you’re worried about your job.
Fewer Renters: With new rules cutting down on the number of international students and permits, the rental market has cooled off. For investors, the math just isn't as easy as it used to be.

The Bottom Line

In a market this confusing, being patient is a strategy. 2026 might eventually find its footing, but for now, it is okay to stay on the sidelines. We all want the market to recover, but trying to act like everything is back to normal right now is just wishful thinking.

What do you think? Are you waiting for rates to drop even more, or is it the job market that has you worried? Let me know in the comments!

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Why Smart People Make Bad Money Choices

maint ezoNetworks — Tue, 13 May 2025 20:37:09 +0000

Esta publicação também está disponível em português aqui.

If It’s Just Math, Why Are So Many Smart People Still Broke?

On paper, money should be simple: spend less than you earn, pay off debt, save a little, and build wealth over time.

But if it’s that simple… why are so many smart people still drowning in credit cards, car loans, and overdraft fees?

Here’s the truth: personal finance is 80% behavior and only 20% head knowledge.

You Can’t Out-Math a Spending Problem

Let’s say you’ve got $10,000 in credit card debt at 20% interest. Your bank offers you a line of credit at 9%. From a math perspective, it’s a no-brainer — you transfer the balance, save a ton in interest, and pay it off faster.

Right?

Not so fast.

Studies show that 88% of people who transfer debt to a lower-interest loan end up with even more debt. Why? Because interest rates weren’t the issue — spending was.

When the core problem is behavior, swapping out the debt tool doesn't fix it. It's like switching from beer to wine thinking it'll help you drink less. It won’t. It just feels different.

Discipline Over Deals

Most people don’t need a better deal — they need better habits.

You can’t solve a debt problem if you’re still spending more than you make. You can’t budget if you don’t track where your money’s going. And you definitely can’t build wealth if every paycheque is gone before it hits your account.

The hard part isn’t knowing what to do. The hard part is doing it — consistently, even when it’s boring.

What This Means for You…

If you're thinking about shifting debt around to save interest, pause and ask yourself:

Have I actually stopped adding to the debt?
Do I have a real plan to pay this off — in writing?
Is this about fixing the problem or just buying time?

There’s no shame in making money mistakes. We all do it. But don’t let quick fixes distract you from long-term change.

For many Canadians, the pressure to “look good” financially — new car, big house, helping family — can be heavy. But no one sees the monthly statements. No one feels the stress but you.

So forget what others think. Focus on what’s real.

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The Road to Wealth Building Begins With a Book, Not a Bank Account

Paulo Rocha — Mon, 28 Apr 2025 17:35:56 +0000

When most people think about building wealth, they picture savings accounts, investments, real estate, or starting a business.
But what if we told you that the real first step isn't financial at all?
It’s something much simpler — and much more powerful.

It starts with your habits.

Before you can save consistently, spend wisely, or invest confidently, you have to build the daily habits that make those actions possible.
And one of the best ways to start shaping those habits is by picking up the right book.

Why Atomic Habits Is a Wealth Building Book — Even If It's Not About Money

James Clear’s Atomic Habits isn't a traditional personal finance book.
It doesn’t talk about budgets, investments, or interest rates.
Instead, it talks about something even more foundational: how small changes in your daily routine can lead to massive results over time.

When you think about wealth building — whether saving for your first home, investing for retirement, or creating a side business — success rarely comes from one big move.
It comes from small, consistent decisions made day after day, month after month.

Good financial habits are built the same way:

Saving a little from every paycheque.
Avoiding impulse spending.
Investing regularly, even when the amounts feel small.
Continuing to learn and adjust over time.

Atomic Habits teaches you exactly how to build these patterns into your life — step by step.

What This Means for You

If you want to build real, lasting wealth, the first investment you need to make isn't money — it's time.

Time spent learning how to create better habits.

Reading books like Atomic Habits is a simple but powerful first step.
It can help you build the discipline, mindset, and structure that will eventually support all your financial goals — whether that's paying off debt, buying a home, investing for retirement, or growing your savings.

Small daily actions, when repeated over time, create massive long-term results.
That’s the real "compound interest" of life.

A Simple First Step

You don’t need thousands of dollars to get started.
You don’t need a perfect financial plan on Day 1.

You just need one book, one new habit, and one small commitment to yourself.

And from there, step by step, you’ll build something much bigger.

The post The Road to Wealth Building Begins With a Book, Not a Bank Account appeared first on Ganhos & Gastoss.

Understanding the Rule of 72

Paulo Rocha — Sat, 26 Apr 2025 17:23:27 +0000

When it comes to growing your savings or investments, time and interest work together in powerful ways. But you do not need to be a financial expert or mathematician to get a quick sense of how your money can grow.
One simple formula — known as the Rule of 72 — can help you easily estimate how long it will take for your money to double, or how quickly a debt could grow if left unchecked.

In this article, we will explain what the Rule of 72 is, how it works, why it matters, and how you can apply it to your financial decisions.

What is the Rule of 72?

The Rule of 72 is a quick mental formula used to estimate the number of years it will take for an investment or debt to double in value, based on a fixed annual interest rate.

The formula is straightforward:

72 ÷ Interest Rate = Years to Double

For example, if you invest your money at an annual return of 6%, you can estimate that it will take approximately 12 years for your investment to double:

72 ÷ 6 = 12 years

This simple calculation gives you a practical way to understand the effects of compounding interest without needing a financial calculator or complex spreadsheets.

How Does the Rule of 72 Work?

The Rule of 72 works by approximating the effects of compound growth over time. Although it is not exact, it is remarkably close for most interest rates typically seen in savings, investments, and debts.

The higher the interest rate, the fewer years it will take for your money (or debt) to double.
The lower the interest rate, the longer it will take.

Here are a few examples to show how it works:

At a 4% annual return: 72 ÷ 4 = 18 years to double
At an 8% annual return: 72 ÷ 8 = 9 years to double
At a 12% annual return: 72 ÷ 12 = 6 years to double

This simple rule helps you quickly gauge the impact of different rates on your financial future.

How Can the Rule of 72 Help You?

Understanding the Rule of 72 can help you make smarter decisions when it comes to both growing your wealth and managing your debt.

1. Saving and Investing

If you are evaluating savings accounts, GICs, mutual funds, or other investments, the Rule of 72 can give you a rough idea of how long it will take to see your money grow.

For example, if you find a savings account offering 3% annual interest, you know it will take about 24 years to double your money (72 ÷ 3 = 24).
If you are considering an investment expected to generate 7% per year, it would take just over 10 years for your money to double (72 ÷ 7 ≈ 10.3).

This allows you to better weigh your options and set realistic expectations about the timeframes needed to reach your financial goals.

2. Understanding Debt Growth

The Rule of 72 does not only apply to savings and investments.
It also shows how dangerous high-interest debt can be, especially when only minimum payments are made.

For instance, if you carry a credit card balance with an 18% interest rate, the Rule of 72 tells you your debt could double in just 4 years (72 ÷ 18 = 4) if left unpaid.
Even with minimum payments, the majority of your payments may go toward interest, meaning the balance grows faster than you realize.

This highlights why aggressively paying down high-interest debt is often a key priority in good financial planning.

Limitations of the Rule of 72

While the Rule of 72 is a useful shortcut, it is important to understand that it is an estimate, not a precise calculation.
It works best for interest rates between roughly 4% and 15%.
Outside of that range, the approximation becomes less accurate, and more detailed calculations may be needed.

Still, for most real-world applications — whether evaluating investments, savings, or debt — the Rule of 72 offers a fast, reliable way to get a sense of your financial trajectory.

Final Thoughts

Financial literacy is not about memorizing complicated formulas. It is about understanding key principles that allow you to make better decisions with your money.
The Rule of 72 is a perfect example: simple enough to learn in a minute, powerful enough to apply for a lifetime.

Whether you are looking to grow your savings, invest for the future, or pay down debt, taking a few moments to use the Rule of 72 can help you see more clearly how interest and time will shape your financial journey.

At Ganhos e Gastos, we believe that small steps like this — learning simple rules, asking better questions, and understanding your options — are what empower everyday people to save more, keep more, and grow their wealth over time.

Esta publicação também está disponível em português aqui.

The post Understanding the Rule of 72 appeared first on Ganhos & Gastoss.

The Bank of Canada Paused Rates — Here’s What That Could Mean for Mortgage Rates and Housing Affordability

Paulo Rocha — Sat, 19 Apr 2025 12:06:38 +0000

The Bank of Canada (BoC) held its key interest rate steady at 2.75% this week. While this may seem like a routine move, it offers important signals about where the economy, mortgage rates, and housing affordability might be heading.

Here’s what you need to know.

1. Seven Rate Cuts Since 2024 — But That May Be Over

Since April 2024, the Bank of Canada has cut its policy rate seven times, bringing it down from 5.00% to 2.75%. These cuts helped ease borrowing costs and provided some relief to homeowners and homebuyers.

However, this week’s pause suggests that further rate cuts may be off the table for now — especially as other risks begin to take priority.

2. Housing Got Less Attention in This Report

In previous Monetary Policy Reports, housing was a frequent topic — mentioned more than 13 times on average. In the most recent report, it was only mentioned twice.

This doesn’t mean housing affordability is no longer a concern. It simply shows that the Bank is shifting its attention toward other risks that could have a more immediate impact on Canada’s economic outlook — most notably, global trade tensions and inflation.

3. Trade Risks Could Slow Down Key Areas of the Economy

If current tariff threats escalate, several major Canadian industries could be hit hard, including:

Auto manufacturing
Steel and lumber
Export sectors
Trucking and logistics

A slowdown in these areas would reduce overall economic activity. And if inflation rises at the same time, the Bank of Canada may be unable to continue cutting rates — making housing affordability an even greater challenge.

Earlier this year, Governor Tiff Macklem warned:

Tiff Macklem

-Governor-
-Bank of Canada-

A new crisis is on the horizon. If US tariffs play out as threatened, the economic impact would be severe.

This is part of why the Bank is treading cautiously, even as other pressures — like high housing costs — continue to grow.

4. The BoC Warned About Stagflation

Stagflation is when inflation stays high while the economy slows down.

In a typical slowdown, the Bank of Canada would lower interest rates to stimulate growth. But if inflation remains elevated, lowering rates could make the problem worse. On the other hand, raising rates to fight inflation could further damage a slowing economy.

It’s a lose-lose situation — and the Bank is now openly acknowledging that stagflation is a real risk.

5. Housing Affordability Remains a Challenge

Even with rate cuts over the past year, housing affordability has not improved significantly for most Canadians. In some regions, home prices have come down modestly — especially in the condo market. But overall, homeownership remains out of reach for many.

Wages have not kept up with the rising cost of housing, and although mortgage rates have declined slightly, they are still high compared to the last decade.

The chart below illustrates the growing disconnect between real house prices and real disposable income in Canada:

Source: Macrobond, Macquarie Macro Strategy via National Post

Chart: Real House Prices vs. Real Disposable Income in Canada (Q1 1975 = 100)

As shown above, disposable income (black line) has risen gradually since the mid-1970s — but real house prices (red line) have surged, especially after 2000. By 2021, home prices had increased more than fourfold, while income had not even doubled.

This gap is central to the housing affordability crisis. Even with moderate rate relief, many Canadians still cannot afford to enter the housing market.

6. Uncertainty Is the Central Theme

The Bank of Canada repeated one word several times during its latest press conference: uncertainty.

Between trade tensions, unpredictable inflation trends, and an unclear future for rate policy, there’s no guaranteed direction. That makes planning harder — whether you’re looking to buy, renew, or invest.

As Governor Macklem put it:

Tiff Macklem

-Governor-
-Bank of Canada-

I think giving Canadians a false sense of precision would not be doing Canadians a good service.

This reflects the tone of the Bank’s current messaging: they’re cautious, non-committal, and highly aware of the complex challenges ahead.

Why This Matters

We don’t yet know where interest rates or home prices are going. But understanding how decisions from the Bank of Canada affect mortgage rates and housing affordability helps Canadians make better sense of what’s happening now — and what could be coming next.

The BoC isn’t making promises. In fact, it’s being very careful not to. That alone says a lot about the uncertainty we’re in.

The post The Bank of Canada Paused Rates — Here’s What That Could Mean for Mortgage Rates and Housing Affordability appeared first on Ganhos & Gastoss.

Election 2025: Housing Is at the Heart of Canada’s Political Debate

Paulo Rocha — Mon, 07 Apr 2025 11:52:23 +0000

If there’s one issue dominating political conversations in Canada right now — whether in the media or around our dinner tables — it’s housing.

With prices at historic highs, a serious lack of supply, and population growth continuing at a fast pace, it’s no surprise that Canadians are feeling the pressure.

As we head toward the 2025 federal election, the two main candidates — Mark Carney (Liberals) and Pierre Poilievre (Conservatives) — are offering very different solutions to deal with the crisis. In this post, we’ll break down their main proposals, how they could affect your life, and leave you with one key question: Who’s actually going to get homes built?

The Liberal Plan – Mark Carney

Mark Carney, former Governor of the Bank of Canada, is putting forward an ambitious proposal that he calls a "Modern Housing Marshall Plan" — referring to the kind of major government-led investment used after World War II. His plan relies heavily on public leadership and spending.

Key points:

A new federal agency (Build Canada Homes) to directly build housing, especially on public lands.

A new federal agency (Build Canada Homes) to directly build housing, especially on public lands.
$25 billion in support for factory-built, modular housing (faster and cheaper to produce).
Remove the GST (sales tax) on new homes under $1 million — but only for first-time buyers.
Bring back tax breaks for investors who build purpose-built rental housing (reviving the 1970s MURB program).
Major investment in non-profit, co-op, and Indigenous-led housing.
Support for skilled trades training and innovation in low-carbon building materials.

Cities that fail to increase housing construction will lose access to federal funding.
Bonuses for cities that exceed building targets.
Eliminate the GST on new homes up to $1.3 million — for all buyers, not just first-time purchasers.
A new tax rule that allows older Canadians to reinvest real estate profits into building more housing without paying capital gains tax (modeled on the U.S. 1031 exchange).
Unlock 15% of federal land for housing within 18 months.
Tie federal transit funding to housing density approvals — more homes = more funding.

$25 billion in support for factory-built, modular housing (faster and cheaper to produce).

A new federal agency (Build Canada Homes) to directly build housing, especially on public lands.
$25 billion in support for factory-built, modular housing (faster and cheaper to produce).
Remove the GST (sales tax) on new homes under $1 million — but only for first-time buyers.
Bring back tax breaks for investors who build purpose-built rental housing (reviving the 1970s MURB program).
Major investment in non-profit, co-op, and Indigenous-led housing.
Support for skilled trades training and innovation in low-carbon building materials.

Cities that fail to increase housing construction will lose access to federal funding.
Bonuses for cities that exceed building targets.
Eliminate the GST on new homes up to $1.3 million — for all buyers, not just first-time purchasers.
A new tax rule that allows older Canadians to reinvest real estate profits into building more housing without paying capital gains tax (modeled on the U.S. 1031 exchange).
Unlock 15% of federal land for housing within 18 months.
Tie federal transit funding to housing density approvals — more homes = more funding.

Remove the GST (sales tax) on new homes under $1 million — but only for first-time buyers.

A new federal agency (Build Canada Homes) to directly build housing, especially on public lands.
$25 billion in support for factory-built, modular housing (faster and cheaper to produce).
Remove the GST (sales tax) on new homes under $1 million — but only for first-time buyers.
Bring back tax breaks for investors who build purpose-built rental housing (reviving the 1970s MURB program).
Major investment in non-profit, co-op, and Indigenous-led housing.
Support for skilled trades training and innovation in low-carbon building materials.

Cities that fail to increase housing construction will lose access to federal funding.
Bonuses for cities that exceed building targets.
Eliminate the GST on new homes up to $1.3 million — for all buyers, not just first-time purchasers.
A new tax rule that allows older Canadians to reinvest real estate profits into building more housing without paying capital gains tax (modeled on the U.S. 1031 exchange).
Unlock 15% of federal land for housing within 18 months.
Tie federal transit funding to housing density approvals — more homes = more funding.

Bring back tax breaks for investors who build purpose-built rental housing (reviving the 1970s MURB program).

A new federal agency (Build Canada Homes) to directly build housing, especially on public lands.
$25 billion in support for factory-built, modular housing (faster and cheaper to produce).
Remove the GST (sales tax) on new homes under $1 million — but only for first-time buyers.
Bring back tax breaks for investors who build purpose-built rental housing (reviving the 1970s MURB program).
Major investment in non-profit, co-op, and Indigenous-led housing.
Support for skilled trades training and innovation in low-carbon building materials.

Cities that fail to increase housing construction will lose access to federal funding.
Bonuses for cities that exceed building targets.
Eliminate the GST on new homes up to $1.3 million — for all buyers, not just first-time purchasers.
A new tax rule that allows older Canadians to reinvest real estate profits into building more housing without paying capital gains tax (modeled on the U.S. 1031 exchange).
Unlock 15% of federal land for housing within 18 months.
Tie federal transit funding to housing density approvals — more homes = more funding.

Major investment in non-profit, co-op, and Indigenous-led housing.

A new federal agency (Build Canada Homes) to directly build housing, especially on public lands.
$25 billion in support for factory-built, modular housing (faster and cheaper to produce).
Remove the GST (sales tax) on new homes under $1 million — but only for first-time buyers.
Bring back tax breaks for investors who build purpose-built rental housing (reviving the 1970s MURB program).
Major investment in non-profit, co-op, and Indigenous-led housing.
Support for skilled trades training and innovation in low-carbon building materials.

Cities that fail to increase housing construction will lose access to federal funding.
Bonuses for cities that exceed building targets.
Eliminate the GST on new homes up to $1.3 million — for all buyers, not just first-time purchasers.
A new tax rule that allows older Canadians to reinvest real estate profits into building more housing without paying capital gains tax (modeled on the U.S. 1031 exchange).
Unlock 15% of federal land for housing within 18 months.
Tie federal transit funding to housing density approvals — more homes = more funding.

Support for skilled trades training and innovation in low-carbon building materials.

A new federal agency (Build Canada Homes) to directly build housing, especially on public lands.
$25 billion in support for factory-built, modular housing (faster and cheaper to produce).
Remove the GST (sales tax) on new homes under $1 million — but only for first-time buyers.
Bring back tax breaks for investors who build purpose-built rental housing (reviving the 1970s MURB program).
Major investment in non-profit, co-op, and Indigenous-led housing.
Support for skilled trades training and innovation in low-carbon building materials.

Cities that fail to increase housing construction will lose access to federal funding.
Bonuses for cities that exceed building targets.
Eliminate the GST on new homes up to $1.3 million — for all buyers, not just first-time purchasers.
A new tax rule that allows older Canadians to reinvest real estate profits into building more housing without paying capital gains tax (modeled on the U.S. 1031 exchange).
Unlock 15% of federal land for housing within 18 months.
Tie federal transit funding to housing density approvals — more homes = more funding.

The thinking behind the plan: The federal government becomes an active player — coordinating with provinces and cities, investing directly, and working with the private sector to ramp up construction. The goal is to make the market fairer without leaving it entirely to private interests.

The Conservative Plan – Pierre Poilievre

Pierre Poilievre sees the housing crisis as a problem caused by too much bureaucracy and not enough accountability at the local level. His plan is built around removing obstacles and pressuring cities to build faster — with less government involvement overall.

Key points:

Cities that fail to increase housing construction will lose access to federal funding.

A new federal agency (Build Canada Homes) to directly build housing, especially on public lands.
$25 billion in support for factory-built, modular housing (faster and cheaper to produce).
Remove the GST (sales tax) on new homes under $1 million — but only for first-time buyers.
Bring back tax breaks for investors who build purpose-built rental housing (reviving the 1970s MURB program).
Major investment in non-profit, co-op, and Indigenous-led housing.
Support for skilled trades training and innovation in low-carbon building materials.

Cities that fail to increase housing construction will lose access to federal funding.
Bonuses for cities that exceed building targets.
Eliminate the GST on new homes up to $1.3 million — for all buyers, not just first-time purchasers.
A new tax rule that allows older Canadians to reinvest real estate profits into building more housing without paying capital gains tax (modeled on the U.S. 1031 exchange).
Unlock 15% of federal land for housing within 18 months.
Tie federal transit funding to housing density approvals — more homes = more funding.

Bonuses for cities that exceed building targets.

A new federal agency (Build Canada Homes) to directly build housing, especially on public lands.
$25 billion in support for factory-built, modular housing (faster and cheaper to produce).
Remove the GST (sales tax) on new homes under $1 million — but only for first-time buyers.
Bring back tax breaks for investors who build purpose-built rental housing (reviving the 1970s MURB program).
Major investment in non-profit, co-op, and Indigenous-led housing.
Support for skilled trades training and innovation in low-carbon building materials.

Cities that fail to increase housing construction will lose access to federal funding.
Bonuses for cities that exceed building targets.
Eliminate the GST on new homes up to $1.3 million — for all buyers, not just first-time purchasers.
A new tax rule that allows older Canadians to reinvest real estate profits into building more housing without paying capital gains tax (modeled on the U.S. 1031 exchange).
Unlock 15% of federal land for housing within 18 months.
Tie federal transit funding to housing density approvals — more homes = more funding.

Eliminate the GST on new homes up to $1.3 million — for all buyers, not just first-time purchasers.

A new federal agency (Build Canada Homes) to directly build housing, especially on public lands.
$25 billion in support for factory-built, modular housing (faster and cheaper to produce).
Remove the GST (sales tax) on new homes under $1 million — but only for first-time buyers.
Bring back tax breaks for investors who build purpose-built rental housing (reviving the 1970s MURB program).
Major investment in non-profit, co-op, and Indigenous-led housing.
Support for skilled trades training and innovation in low-carbon building materials.

Cities that fail to increase housing construction will lose access to federal funding.
Bonuses for cities that exceed building targets.
Eliminate the GST on new homes up to $1.3 million — for all buyers, not just first-time purchasers.
A new tax rule that allows older Canadians to reinvest real estate profits into building more housing without paying capital gains tax (modeled on the U.S. 1031 exchange).
Unlock 15% of federal land for housing within 18 months.
Tie federal transit funding to housing density approvals — more homes = more funding.

A new tax rule that allows older Canadians to reinvest real estate profits into building more housing without paying capital gains tax (modeled on the U.S. 1031 exchange).

A new federal agency (Build Canada Homes) to directly build housing, especially on public lands.
$25 billion in support for factory-built, modular housing (faster and cheaper to produce).
Remove the GST (sales tax) on new homes under $1 million — but only for first-time buyers.
Bring back tax breaks for investors who build purpose-built rental housing (reviving the 1970s MURB program).
Major investment in non-profit, co-op, and Indigenous-led housing.
Support for skilled trades training and innovation in low-carbon building materials.

Cities that fail to increase housing construction will lose access to federal funding.
Bonuses for cities that exceed building targets.
Eliminate the GST on new homes up to $1.3 million — for all buyers, not just first-time purchasers.
A new tax rule that allows older Canadians to reinvest real estate profits into building more housing without paying capital gains tax (modeled on the U.S. 1031 exchange).
Unlock 15% of federal land for housing within 18 months.
Tie federal transit funding to housing density approvals — more homes = more funding.

Unlock 15% of federal land for housing within 18 months.

A new federal agency (Build Canada Homes) to directly build housing, especially on public lands.
$25 billion in support for factory-built, modular housing (faster and cheaper to produce).
Remove the GST (sales tax) on new homes under $1 million — but only for first-time buyers.
Bring back tax breaks for investors who build purpose-built rental housing (reviving the 1970s MURB program).
Major investment in non-profit, co-op, and Indigenous-led housing.
Support for skilled trades training and innovation in low-carbon building materials.

Cities that fail to increase housing construction will lose access to federal funding.
Bonuses for cities that exceed building targets.
Eliminate the GST on new homes up to $1.3 million — for all buyers, not just first-time purchasers.
A new tax rule that allows older Canadians to reinvest real estate profits into building more housing without paying capital gains tax (modeled on the U.S. 1031 exchange).
Unlock 15% of federal land for housing within 18 months.
Tie federal transit funding to housing density approvals — more homes = more funding.

Tie federal transit funding to housing density approvals — more homes = more funding.

A new federal agency (Build Canada Homes) to directly build housing, especially on public lands.
$25 billion in support for factory-built, modular housing (faster and cheaper to produce).
Remove the GST (sales tax) on new homes under $1 million — but only for first-time buyers.
Bring back tax breaks for investors who build purpose-built rental housing (reviving the 1970s MURB program).
Major investment in non-profit, co-op, and Indigenous-led housing.
Support for skilled trades training and innovation in low-carbon building materials.

Cities that fail to increase housing construction will lose access to federal funding.
Bonuses for cities that exceed building targets.
Eliminate the GST on new homes up to $1.3 million — for all buyers, not just first-time purchasers.
A new tax rule that allows older Canadians to reinvest real estate profits into building more housing without paying capital gains tax (modeled on the U.S. 1031 exchange).
Unlock 15% of federal land for housing within 18 months.
Tie federal transit funding to housing density approvals — more homes = more funding.

The thinking behind the plan: Cut the red tape, hold municipalities accountable, and let the private sector lead the way in solving the housing shortage.

What’s Really at Stake?

Despite the very different approaches, both parties agree on one thing: Canada needs to build a lot more housing — fast.

Where they differ is how they plan to make it happen:

Topic	Liberals (Carney)	Conservatives (Poilievre)
Role of Government	Very active – direct investment	Minimal – reduce red tape
Buyer Incentives	First-time buyers only (< $1M homes)	All buyers (< $1.3M homes)
Non-profit / Social Housing	Major priority	No clear proposals
Investor Incentives	Tax breaks + modular housing support	Capital gains deferral for reinvestment
Municipal Pressure	Cooperation & support	Penalties and rewards
Use of Federal Land	Managed by new public agency	Unlock 15% immediately

So... Who’s Actually Going to Get Homes Built?

That’s the big question.

If you’ve got kids trying to buy a home, if you work in the trades, or if you simply want to see real solutions — these plans affect you.

Do you want more government investment, more public housing, and stronger coordination across the country?
Carney’s plan may speak to you.

Do you believe the private sector can build faster if government just gets out of the way?
Poilievre’s approach might be more convincing.

What Do You Think?

Leave a comment and share your thoughts.
Which of these plans feels like it could actually work?

Ganhos e Gastos — where we talk about money, housing, and the choices that affect our Luso-Canadian community.

Esta publicação também está disponível em português aqui.

The post Election 2025: Housing Is at the Heart of Canada’s Political Debate appeared first on Ganhos & Gastoss.

2025 Real Estate Market: What Can We Expect?

Paulo Rocha — Fri, 03 Jan 2025 03:09:40 +0000

2025 Real Estate Market: What Can We Expect?

After two years of slow activity, many are hoping 2025 will be the turning point for the real estate market. However, while there are signs of recovery, such as lower interest rates and favorable policy changes, significant challenges remain on the horizon.

Let’s take a closer look at what could drive the market forward and what might hold it back.

Why 2025 Could Be a Positive Year for Real Estate

Interest Rates Are Dropping
The Bank of Canada has lowered rates from 5.00% in June to 3.25% in December. These reductions are expected to continue in 2025, improving borrowing conditions and helping to ease affordability challenges for buyers.
Built-Up Demand
The last two years saw many buyers and sellers hold off on their plans, creating pent-up demand. This could drive more activity in the market as confidence grows and conditions improve.
Support for First-Time Buyers
Changes to mortgage rules, like extending maximum amortization from 25 to 30 years, provide a much-needed boost to first-time buyers, making it easier for them to enter the market.

Challenges That Could Slow the Recovery

Economic Concerns
Unemployment rose to 6.8% in November, higher than expected. With economic growth slowing, uncertainty could impact consumer confidence and real estate decisions.
Changes in Immigration Levels
Immigration has driven housing demand in recent years, but student visas and permanent resident permits are expected to decline sharply in 2025, potentially reducing demand in urban centers.
Toronto’s Condo Market Troubles
The condo market in Toronto is facing significant challenges, with values falling and unsold units increasing. Even completed sales are struggling to close due to lower-than-expected valuations. This has left developers with excess inventory and stalled new projects, which is impacting jobs in the construction industry.
External Pressures from the U.S.
President Trump’s proposed 25% tariff on Canadian exports could heavily affect the economy. Combined with U.S. tax cuts and deregulation, Canada’s competitiveness may be further diminished, leading to economic and employment challenges.
The Weak Canadian Dollar
A falling Canadian dollar, now at $0.69 compared to $0.74 in July, limits the Bank of Canada’s ability to reduce rates further. A weak currency also contributes to inflation, which complicates economic recovery efforts.

What This Means for the Real Estate Market

The 2025 real estate market presents a mixed picture. While there’s potential for recovery, economic uncertainty, policy adjustments, and external pressures demand a cautious approach.

Buyers may find opportunities as interest rates drop, but economic risks warrant careful planning.
Sellers could see increased activity due to pent-up demand, but market-specific conditions will play a big role in pricing strategies.
Investors need to closely monitor immigration policies, economic trends, and the weak dollar, which could impact returns on investments.

Looking Ahead

While 2025 has the potential to bring much-needed momentum to the real estate market, success depends on the ability to navigate both opportunities and challenges. Staying informed and adaptable will be key for anyone participating in the market—whether as a buyer, seller, investor, or industry professional.

What’s your take on 2025? Will it bring the rebound we’ve been waiting for, or will the challenges overshadow the opportunities? Share your thoughts!

The post 2025 Real Estate Market: What Can We Expect? appeared first on Ganhos & Gastoss.