House is not an asset in Canada; it's a liability

Hey guys, welcome to Frontline and Chai. Thank you for tuning into my channel. So today I'm going to tell you why buying a home in Canada is not an asset but a liability. So all those guys who come here, you know, and immediately think they're going to buy a home instead of paying for a rent, you have no idea the hidden truth which I'm going to expose, all the hidden truth. Stay tuned and sit with a cup of chai. So number one is high mortgage. So when you come to Canada, you immediately cannot buy a home because of of the, um, because of your credit rating. Your credit history has not yet been formed, so immediately you cannot buy a home because you do not— unless you have— you come in with the entire cash, which is about $1 million. That's the basic. So if you come in with the $1 million and pay cash and buy a house, then it's fine. You're that rich, then it's fine. Otherwise, you have to wait for your credit history to build up about 1 to 2 years. And then what you do is, then by the time the house is pricing— house market is very volatile in Canada, okay? So what happens is that if you have— at the moment you have to have a down payment of at least 5%. So you gather the down payment and you save up for your house. By the time the house Prices have gone up, you know, they're going up day by day. So once the house prices has gone up, you have to— you're saving to, you know, kind of race against time to catch the house pricing. Now, what happens is that the mortgage is very high, right? So you are both of you working. I'm talking about an ideal situation. Both of you are working. You're young people. You need a space for your children, and you you are you've come here with a good salary package. One of you is working very good, and one of you is looking for a job. Or maybe both of you are working in the IT industry is one of the greatest industries in Canada. Okay, so both of you've got a good job. In spite of that. You will be hand to mouth, living hand to mouth with the kind of mortgage that you have to pay every month. With children, you have to— you will be living hand to mouth. So you'll be living paycheck to paycheck, right? It's because the mortgage rates— mortgage is so high and interest rates are going— have been going up so badly for the past couple of years, ever since COVID Now the interest rate has been arrested a little bit, but it's still high. So people cannot afford the mortgage and they are selling off houses at a loss, at lower value than what they bought it in. They're selling their houses off now in the market. The market is so bad. Okay, the housing market is becoming from bad to worse, so it's a bad idea to invest in a house. That's the financial part of it. Now what happens is that Canadian houses are smaller compared to in USA. USA, the land is bigger. So a big sprawling house in USA may cost around $500,000. A similar— not even similar, like half the size of square, the covering area size in Canada would cost you around $1 million. So you don't have spaces all around you. You have barely a front yard and a back yard. It's a waste of to invest in my— which is why people are going to USA because they want to live in a good house. Though USA— the situation in Canada, you check out my other video, the situation in Canada, um, is almost becoming like the— like it's not that bad as USA, but safety situations in Canada are also deteriorating. Canada is becoming unsafe for Day by day. So this is— these are basic things. Small spaces. The rooms are so small that if you have a 3-bedroom, it's like 1 bedroom has been divided into 2. So that kind of a space, room space, you have so little room space, okay, to live over there. And backyard, you're talking about backyard and front yard, children playing in backyard. That's about 2 months of the entire year you get to use your backyard. July and August, those are 2 basic months, and people buy houses with swimming pools. That's crazy. What were you thinking? You paid so much extra for a swimming pool which you're going to be using only twice, 2 months a year. That's it, for summers. And rest of the month there, it's, it's different kinds of winter. Like, it's very— it's a snowfall winter, it's the spring, spring winter, it's the fall winter. You cannot get into the water unless you have a heating, heated pool, indoor pool inside your house. Okay, that can be done if you want to, but it's crazy idea to buy a house with a swimming pool outside. And who would be benefiting? Your friends. You're buying a house for your friends to show off to your friends and invite friends and have a barbecue on your house. Okay, so, uh, number, uh, there's another point which is very important is that in a house in Canada you have to basically do everything. You have to go underneath your, um, yeah, in your basement to find out if there is some kind of a problem in the plumbing. You have to go over that on top of the— climb on top of the roof to find out if there is anything in the roofing. Okay, some places it is covered, the prices, the costs are covered by the community maintenance. It is included in the maintenance. But in most places, if you own a single house, you have to do that, all that yourself. And anything happens to the room, it's $10,000. straight down your pocket. How rich can you have to be? Do you have to be to own a house and maintain it? So a house becomes a liability, not an asset, because when you finally plan to sell off that house, you are selling it at a loss. You're not selling it at the price that you expected to. Even if you sell it after 5 years, you have to renovate the— because the houses are built of wood over here, so they get rot. They start rotting in places because of obvious reasons— damping and this and that. The wood is a very, very kind of a— not a very dependable material. Like back home you use brick and concrete and stones. Here wood is a very deteriorating material. It just, it doesn't stay for that long, right? So what happens is that you have to change the floor, you have to rebuild the entire thing, and you have to renovate the house to look— make it look beautiful. You are spending probably $100,000 on renovating the house, and then only you can get the price that you expect to get. And finally, when you get rid of the house, you are like, oh. And people are actually— they downgrade themselves after a point of time. They cannot— you You cannot maintain, you cannot work all your life. You become old. You cannot work all your life to shovel the snow. And you have to keep your— the front of your house, like the path that is in front of your house, clean without any snow or ice. So when it's snowing, it's ice. You have to run out and shovel that part out in that snow. Because if anybody falls, Then they can sue you in that snow. If anybody breaks a leg, they can sue you. So you have to go out and shovel the snow in that snowfall, in that blizzard night. Even if in the morning you see snow piled up on your sidewalk, you have to go out and shovel the snow, and then only you are— you can— like, that's another thing. There's another thing. I'm not numbering them because I forget the sequence of numbers. Most of my videos. So this another thing is garbage disposal. It's such a pain to dispose of garbage in this when you are in a house. Like you have to have recycled in one thing and this compost in another garbage. So if you by chance if there is a mix up or you throw something in some other which is not meant to be, you will be. Disbarred from taking— they won't take your garbage. So then you have to apply to the committee, community, and the Peel Region, and then you have to tell them, apologize for this and that, and then only they will take away our garbage. It's a madness to live in a house. I am sorry, but it's really becoming a liability to— I'm looking at it objectively. Becoming a liability to live, to live in a house and to own a house in Canada. Thank you for watching, guys. Please subscribe to my channel. I bring you such interesting and very, very offbeat topics on Canada and India, and my— I don't mince my words. Bye-bye.