About pantheerk

I am Rajendra K Panthee. I completed PhD in Rhetoric and Composition Studies from University of Texas in December, 2014. I have been working as a full-time faculty in the Department of Writing Studies, Rhetoric and Composition at Syracuse University since August, 2015.

Post 1: Confessions of a Rogue Real Estate Agent: Who I Am and What I Do

Posted on March 7, 2025 by pantheerk

Dr. Rajendra Panthee

When you think of a real estate agent, you probably picture someone friendly, trustworthy, and eager to help you find your dream home. Well, let me introduce myself—I’m the agent who shatters that stereotype. I’m not here to help you; I’m here to help myself. My name doesn’t matter (let’s call me “Mr. Slick”), but my mission does: to turn your home-buying dreams into my commission checks.

How I Became a Realtor

I didn’t come to this field because I had a deep passion for real estate or a wealth of knowledge about property markets. No, I came because I saw people making money—lots of it. And I wanted a piece of that pie.

Now, you might think becoming a real estate agent requires hard work, studying, and passing rigorous exams. And in some places, maybe it does. But in some places? Let’s just say there are… shortcuts.

I was tired of working manual, low-paid jobs, so I chose the easy way out. Do not ask whether I bought test questions for a good amount of money or if someone else wrote the exam for me. Let’s just say I passed, and that’s all that matters. After all, in this business, it’s not about what you know—it’s about who you can convince.

My ‘Unique’ Communication Skills

You might also think that being a real estate agent requires excellent communication skills, a deep understanding of real estate rules, and city bylaws. Well, let me stop you right there. I didn’t come to this field because I’m a great communicator or a legal expert. I came because I saw an opportunity to make money—and I don’t need to know the rules to do that.

Sure, I might not be able to explain the intricacies of zoning laws or the fine print in a purchase agreement, but that’s not my job. My job is to make deals. And if that means convincing you to pay an unreasonable price for a property, so be it. After all, I’m not the one buying it—you are.

The Art of Making Customers

To build my clientele, I’ve mastered the art of being everywhere. I attend cultural programs, organizational events, and even sports tournaments. I’ll invite you to Tim Hortons or a local restaurant, casually bump into you on your daily route, and make you feel like I’m the best real estate guy out there.

But it doesn’t stop there. I’ve strategically positioned myself as a board of director or advisor in various community organizations. Why? Because it gives me access to you. You’ll see me at every event, shaking hands, smiling, and handing out business cards. I’m not just a realtor; I’m a community staple. And if that means I have to join every organization in town, so be it.

The Support System: My Community Leaders

Realtors work in pretty much the same way, but I’m lucky because doing business in my community is incredibly easy. Why? Because my community leaders help me advertise me as a great realtor. As long as I keep them happy, they’ll keep promoting me.

Now, you might think that being a realtor comes with some level of accountability. After all, there’s a governing body that’s supposed to keep us in check. But here’s the thing: I don’t have to worry about criticism from my community for my potential unethical and unskilled practices. If someone complains about my manipulative tactics, my community leaders will blame you for not doing your research instead of blaming me.

The Nepalese Student Example & Its Inference

Take, for example, the educational consultancies that brought so many Nepalese students to Canada by selling them illusions. Did you hear anything against those consultancies when Nepalese students suffered financial hardships due to a lack of jobs and other resources? No. But you’ve seen my community leaders always talk about helping international students here in Canada, right?

My community leaders are very powerful, and they know how to make everyone happy. Do you remember when they asked the Nepalese embassy to issue a notice warning students and their parents to come prepared? They did this because the promises made by these consultancies were, well, lies.

The exemplary personalities in my community do the same thing. They can’t risk losing their chances of being recognized as an exemplary personality and invited as chief guests to deliver keynote speeches by criticizing these social wrong doings. Everything operates this way in my community, and there’s no need to worry—unless you’re on the receiving end of these manipulations.

But here’s the kicker: when the hardships faced by international students came to light and people and students themselves complained about their struggles, the community leaders didn’t blame even a bit to the educational consultancies for selling false dreams because they all had their own businesses to protect. Instead, they blamed the students for not doing enough research and preparation before coming to Canada. And the same logic applies to you. If you complain about my potential unethical and unskilled practices, my community leaders will say, “You should have done your research before entering into a deal.”

So, don’t ask me what happens to those who complain against entrepreneurs like us. Let’s just say it’s not pretty.

A Note to the Realtors from My Community

Let me make one thing clear: I know my reach is mostly limited to my community. My communication skills, or lack thereof, and a few other quirks keep me grounded here. But that’s fine by me. Once I shake hands with someone from my community, they’re my client—no exceptions. If any other realtor dares to show them property, well, let’s just say we’ll have a little chat on your way back from the showing.

And don’t get a headache when my clients pay what you might call an “unreasonable” price for a property. They’re happy with my cash-back offers and my generous lending terms when they fall short on the down payment. Sure, the interest rates might be a tad high, but hey, I’m here to help—myself, that is.

So, to my fellow realtors: tread carefully. My clients are my territory, and I don’t take kindly to poachers.

Conclusion

At the end of the day, I’m not here to play the hero or follow some moral compass. I’m here to make money, and I’ve found a system that works—for me. If you’re not careful, you might just find yourself on the wrong side of my deals. So, do your research, ask questions, and maybe think twice before shaking my hand. After all, in this game, the only person looking out for you is you.

(A Quick Note to Readers: This post is written in a satirical and humorous tone. While it may highlight some uncomfortable truths about the real estate world (and beyond), it’s all in good fun. My next real estate related post will be on how I hook people for my deals. You won’t want to miss it!)

The Story Behind My Profile Picture: A Reflection on Identity, Authenticity, and Oddities

Posted on March 1, 2025 by pantheerk

As a professor who teaches writing courses—whether first-year composition, technical writing, or professional writing—I place a strong emphasis on genre and genre analysis. Genres, after all, are not just types of texts; they are dynamic responses to social and communicative needs. They shape how we interact with the world, from sending a text message to writing an email to a boss, from Instagramming to expressing grief at a funeral. Each genre reflects social hierarchies, historical contexts, technological advancements, and cultural norms. My Facebook profile picture, an artifact that might seem simple at first glance, is a perfect example of how genres and artifacts can encapsulate personal, social, economic, and even political dimensions of our lives.

The Oddities That Make It Perfect

Let’s start with the oddities. This picture was taken at home by my children, not in a studio by a professional photographer. The lighting isn’t perfect, the background is my living room, and my height—something I’ve always been conscious of—is unmistakably visible. At times, I’ve felt the urge to change it. Friends have suggested, more than once, that I replace it with something more polished, more “professional.” But every time I consider swapping it out, I stop. Why? Because this picture, with all its imperfections, feels like the truest representation of who I am.

The oddities in the photo are a reflection of my life. I’m a professor at a prestigious university in the U.S. and at a college in Canada, yet I chose to get an Ontario realtor license during the COVID-19 pandemic, a time of global uncertainty. The picture was taken in June 2020, just after I earned my Ontario Real Estate License. It was a moment of professional achievement, but also a moment of personal reflection. I didn’t go to a professional photographer for several reasons: the pandemic restrictions, my financial prudence, and perhaps most importantly, my desire to present myself as both a professional and a down-to-earth person. The result is an image that captures my duality—a scholar and a realtor, a professional and a family man, someone who critiques societal flaws while embracing his own imperfections.

A Response to Social Expectations (Carolyn Miller’s Genre Theory)

Carolyn Miller’s theory of genre as social action helps explain why this picture works. Genres, she argues, are not just templates but responses to recurring social situations. My profile picture responds to the genre of professional headshots, but it also challenges it. Traditionally, a professional headshot is polished, formal, and often impersonal. Mine, on the other hand, is homegrown, authentic, and deeply personal. It reflects the social changes brought about by the pandemic, when many of us had to adapt to new ways of working and presenting ourselves. It also reflects my cultural values as a Nepalese individual—values that emphasize humility, modesty, and resourcefulness.

The picture also responds to the expectations of my dual roles. As a professor, I’m expected to project intellectual authority; as a realtor, I’m expected to be approachable and trustworthy. This image strikes a balance between the two. The suit signals professionalism, while the home setting and the involvement of my children add a touch of warmth and relatability. It’s a visual negotiation of my multifaceted identity.

Why I Can’t Change It

I’ve tried to change this picture many times. I’ve browsed through other photos, considered retaking it, and even experimented with editing tools. But each time, I come back to the same conclusion: there’s no other picture that represents me as fully as this one. Its imperfections are part of its charm. The slightly awkward pose, the homemade quality, the visible height—they all tell a story. They remind me of where I was in June 2020, navigating a global crisis while pursuing a new career. They remind me of my children, who took the photo and are an integral part of my life. They remind me of my values—authenticity, humility, and a willingness to critique societal norms, as I did in my blog post on the dark side of Nepalese cultural entrepreneurship in Canada.

Friends who suggest changing the picture mean well. They want me to present the “best” version of myself. But what they don’t realize is that this is the best version of me—not because it’s flawless, but because it’s real. It captures my priorities, my circumstances, and my identity in a way that no studio photo ever could.

The Significance of Artifacts in Representing Broader Issues

Artifacts like this profile picture are not just personal; they are deeply connected to social, economic, historical, and political contexts. Scholars like Charles Bazerman and Amy Devitt have emphasized how genres and artifacts mediate social interactions and reflect broader cultural and institutional practices. Bazerman, for instance, argues that genres are tools for navigating complex social systems, while Devitt highlights how genres evolve in response to changing social needs. My profile picture, as an artifact, embodies these ideas. It reflects the economic constraints of the pandemic, the historical moment of global disruption, and the social expectation to present oneself professionally while staying authentic.

Moreover, the picture speaks to the politics of representation. In a world where social media often encourages us to curate idealized versions of ourselves, this image challenges the norm. It’s a statement about embracing imperfections and resisting the pressure to conform to societal standards of perfection. It’s also a critique of the commercialization of professional identity—why spend hundreds of dollars on a studio photo when a homemade image can tell a richer story?

A Reflection on Identity and Society

This picture is more than just a representation of me; it’s a reflection of my family, my society, and my time. It was taken during a historical moment—the COVID-19 pandemic—when traditional norms were upended, and authenticity became more valuable than perfection. It reflects my cultural background, where humility and modesty are prized, and my professional environment, where credibility and approachability are essential. It even reflects my role as a critic of societal practices, as someone who values truth over sugar-coated narratives.

In a world where social media often encourages us to curate idealized versions of ourselves, this picture stands as a testament to the power of authenticity. It’s a reminder that our imperfections are what make us unique, and that the best representation of ourselves is often the one that tells the fullest story.

Conclusion: Embracing the Oddities

So, here it stays—my profile picture, with all its oddities and imperfections. It’s not just a picture; it’s a statement. It says that I am a professor, a realtor, a husband, a father, and a critic of societal flaws. It says that I value authenticity over polish, and that I’m proud of who I am, even if I don’t fit conventional molds. It’s a picture that responds to social expectations while staying true to my identity. And for all these reasons, I can’t imagine replacing it.

In the end, this picture isn’t just about me. It’s about all of us—our struggles, our triumphs, and the ways we navigate the complexities of life. It’s a reminder that sometimes, the most meaningful artifacts are the ones that aren’t perfect, but are perfectly us.

Exploiting Sentiment: The Dark Side of Nepalese Cultural Entrepreneurship in Canada

Posted on February 21, 2025 by pantheerk

Dr. Rajendra Panthee

The lights dim at Massey Hall in Toronto, and the crowd erupts in cheers as Amrit Gurung, the lead singer of the iconic Nepali band Nepathya, takes the stage. For the Nepalese diaspora in the Greater Toronto Area (GTA), this is more than just a concert—it’s a nostalgic journey back to their homeland. The event is billed as a celebration of Nepali culture and heritage, a rare opportunity to reconnect with their roots. But behind the scenes, questions linger: Is this truly about cultural preservation, or is it a carefully orchestrated business strategy? Worse yet, are these events a cover for more insidious activities, such as human smuggling? As the Nepalese community in Canada grows, so too do allegations that some entrepreneurs are exploiting cultural sentiment for profit, leaving many to wonder where the line between celebration and exploitation lies.

For Nepalese immigrants living thousands of miles from home, cultural events are more than just entertainment—they are a lifeline to their heritage. Whether it’s a concert by a beloved artist, a spiritual tour by a revered monk, or the premiere of a newly released Nepali movie, these events offer a sense of belonging in a foreign land. They provide a space where the Nepalese community can come together, share stories, and pass on traditions to the next generation. For many, attending these events is not just a choice but a duty—a way to ensure that their culture thrives even in the diaspora.

However, not all cultural events are created equal. Behind the scenes, some Nepalese entrepreneurs in Canada are turning these gatherings into lucrative business ventures. Event organizers often sponsor concerts, movie screenings, and spiritual tours, using them as platforms to promote their own businesses. Tickets are sold at premium prices, food and merchandise are marketed aggressively, and sponsorships are secured from local businesses. While these events do provide a taste of home, they are also carefully designed to maximize profits. For some organizers, cultural preservation is not the primary goal—it’s a means to an end.

The Nepathya concert at Massey Hall is a prime example of this duality. Promoted as a celebration of Nepali music and culture, the event was marketed as Nepathya’s last international tour, with organizers claiming that lead singer Amrit Gurung was retiring. This narrative tugged at the heartstrings of the community, drawing large crowds and generating significant revenue. Respected figures like Dr. Kunjar Sharma were requested to write glowing reviews, lending credibility to the event. Community members eagerly shared their best wishes for the success of the Nepathya Concert on social media, expressing their gratitude to the organizers to be the part of what seemed like a historic event.

But the story didn’t end there. This year, Nepathya is busy on giving a series of performances in Australia, contradicting the organizers’ claims about the band’s retirement. This has left many attendees feeling misled. When I raised concerns about the organizers’ tactics at a small gathering, I was met with resistance. One friend, whose acquaintance was involved in organizing the event, dismissed my criticism, highlighting the complex web of personal and professional relationships that often shield these practices from scrutiny.

Beyond the exploitation of cultural sentiment, there are darker allegations at play. Some community members claim that these events are used as a cover for human smuggling. According to these allegations, organizers bring individuals to Canada under the guise of being part of an artist’s entourage. Once in the country, these individuals allegedly overstay their visas and apply for refugee status, with the help of legal practitioners who profit from the process. Well-established community members and board directors of Nepalese organizations are often used to promote these events, lending an air of legitimacy to what may be illicit activities.

One such case involved the Nepalese Community Network of Canada (NCNC), an organization that found itself embroiled in controversy over its alleged association with a fraudulent Filmfare Awards event. The organizers of the event approached the then-General Secretary of NCNC, Bhumi Ghimire, an innocent individual who was unaware of their hidden motives. They requested him to send an email about the event to the broader community, which he did in good faith. However, when the event was later exposed as a potential front for illegal activities, the General Secretary became a scapegoat.

Santa Rajbhandari, a well-known figure in the Nepalese community and then-President of NCNC, who has hosted artists from Nepal in his home, has raised serious concerns about these practices. In a Facebook Post dated July 9, 2024, Rajbhandari warned against the exploitation of cultural programs for personal gain. He accused some Nepalese individuals in Canada of not holding regular jobs and instead relying on organizing cultural events to make a living. According to him, these individuals raise large sums of money from community members under the guise of promoting Nepalese culture, while their true intentions are far more self-serving.

However, Rajbhandari himself is not immune to criticism. Community members have expressed skepticism about his motives. His role in hosting artists and organizing events has led some to question whether he is truly acting in the community’s best interests or if he, too, is benefiting from these activities. At a recent community program, Rajbhandari’s comments about others being involved in bringing artists and raising money were met with laughter and disbelief, highlighting the lack of trust in his claims.

Adding to the controversy is Hari Siwakoti, another prominent figure in the community. Siwakoti has been vocal in defending the organization of events like the Filmfare Awards, which have been criticized for their alleged ties to human smuggling and vested interests. On his Facebook wall, Siwakoti has dismissed critics, claiming that those who raise concerns are simply jealous. He has boldly stated that he and his group will continue to organize such events, regardless of the backlash.

However, many community members view these Filmfare Awards as anything but genuine. They argue that the events are primarily motivated by financial gain and serve as a cover for illegal activities, including human smuggling. The lack of transparency and the involvement of individuals with questionable motives have further eroded trust in these events.

The Nepalese community in Canada is deeply divided along political and ethnic lines, and these divisions often exacerbate the controversies surrounding cultural events. When allegations of illegal activities surface, groups affiliated to different political parties and their sister organizations back home and ethnic groups frequently engage in mudslinging to deflect blame and protect their own interests. Similarly, people from different ethnic groups blame one another, using these allegations as a way to save face and avoid accountability.

This politicization of the issue not only deepens existing divisions but also hinders efforts to address the root causes of the problem. Instead of working together to find solutions, community members often resort to finger-pointing and infighting, further eroding trust and cohesion within the diaspora.

The controversy doesn’t end with Nepathya. Earlier this year, organizers attempted to bring Ani Choying Dolma, a renowned Nepali artist, to Canada for a musical/spiritual tour. The event was aggressively promoted, with organizers urging community members and artists in Nepal to spread the word. However, the tour was eventually canceled, leaving many to wonder about the true motives behind it.

Now, the focus has shifted to an upcoming concert by Deep Shrestha, a beloved Nepali singer. The event has already sparked debate, with ticket prices set at $30.00 in Calgary and $100.00 in Toronto—a disparity that organizers attribute to the inclusion of food in the latter. One of my Facebook friends, Hari Adhikari, posted two Deep Shrestha program tickets, one for Calgary and another for Mississauga on February 14, 2025 and asked why the ticket price was so much different in these two locations. And my another Facebook friend, Nabin Yakthungbaa, replied to him to ask those people who are involved in this business. Critics argue that these high prices are exploitative, particularly for a community that already faces financial pressures. The aggressive promotion of the event, coupled with the lack of transparency about its purpose, has only fueled suspicions.

Another common tactic is the screening of newly released Nepali movies, which takes place almost every weekend in Canada. Organizers often frame these screenings as a way to support the Nepali film industry and preserve cultural heritage. However, the high-ticket prices and emotional appeals to attend with entire families suggest a different motive. Many community members feel pressured to participate, fearing that they will be seen as disloyal to their culture if they don’t. This emotional blackmail, coupled with the financial burden of attending these events, has left many feeling exploited.

The growing skepticism within the Nepalese community is hard to ignore. On social media, individuals like Punya Sagar Marahatta have openly criticized these practices, accusing organizers of human smuggling and the creation of fake refugee claims. He wrote a Facebook Post on February 11, 2025 on Fake Refugees. Punya Sagar also touches on the exploitation of Nepali artists who are brought to countries like Canada under the guise of cultural exchange or humanitarian aid. He compares these artists to moths that are drawn to the light, suggesting that they may be unaware of the larger schemes at play. He expresses concern that these artists, who have earned their reputations through hard work and talent, could be tarnished by association with such exploitative practices. He calls on their well-wishers to warn them about these dangers. His post concludes with a hopeful note, as Punya Sagar mentions the arrival of respected Nepali artists like Promod Kharel, Deep Shrestha, and Suman Karki in Canada. He expresses a cautious optimism that these artists will not fall victim to the same exploitation. This serves as a call for greater awareness and responsibility among both the artists and their supporters, urging them to remain vigilant against the manipulation of sentiment for personal or financial gain.

Punya Sagar’s piece is a powerful critique of the exploitation of sentiment, particularly in the context of humanitarian aid and cultural exchange. By highlighting the dangers of manipulation, complicity, and cultural exploitation, he calls for greater awareness, responsibility, and vigilance. His writing serves as a reminder that noble sentiments, if not carefully guarded, can be twisted for personal or financial gain, and that it is the responsibility of all—artists, supporters, and society at large—to resist such exploitation.

As the Nepalese community in Canada continues to grow, so too must its commitment to ethical entrepreneurship. Organizers of cultural events must be transparent about their motives and financial practices, ensuring that profits are reinvested into the community rather than used for personal gain. Non-profit organizations should play a greater role in organizing these events, offering free or low-cost options to make them accessible to all.

Community members, too, have a role to play. By critically evaluating the intentions behind these events and holding organizers accountable, they can ensure that cultural celebrations remain true to their purpose. Only then can the Nepalese diaspora in Canada truly thrive, preserving its heritage without falling victim to exploitation.

The Nepalese community in Canada stands at a crossroads. While cultural events offer a vital connection to their heritage, they also present opportunities for exploitation. By addressing these challenges head-on, the community can ensure that its celebrations remain meaningful and transparent. The road ahead may be difficult, but with greater accountability and a commitment to ethical practices, the Nepalese diaspora can continue to honor its culture while building a brighter future for generations to come. (Note: Please note that this article is based on research. Its intention is not to tarnish the image of an individual or an organization. There are many issues in Nepalese Canadian community that need to be discussed in order to correct and move forward being united, and it is one such attempt. It is A BEGINNING OF A CONVERSATION, NOT THE END. Your comments/feedback on the content of the discussion are always welcome!)

Imposition of Tariff by Donald Trump Led to Trade War

Posted on February 2, 2025 by pantheerk

On February 1, 2025, President Donald Trump announced significant tariffs targeting Canada, Mexico, and China, citing concerns over illegal immigration and fentanyl smuggling. The U.S. will impose a 25% tariff on Canadian and Mexican imports, and a 10% tariff on Chinese goods, effective Tuesday. (reuters.com)

In response, Canada and Mexico have announced retaliatory tariffs on American goods. Canadian Prime Minister Justin Trudeau unveiled counter-tariffs affecting $155 billion worth of U.S. products, warning Americans of potential job losses and increased costs. Mexican President Claudia Sheinbaum also declared retaliatory measures, emphasizing the importance of cooperation over conflict. (pbs.org)

Economists and trade analysts have criticized these actions, predicting economic downturns, job losses, and higher costs for American households and businesses. Critics argue that the tariffs violate the U.S.-Mexico-Canada Agreement (USMCA) and risk destabilizing the integrated North American economies. (apnews.com)

President Trump acknowledged that Americans might experience “some pain” from these measures but asserted they were essential to “make America great again.” He emphasized the need to address economic emergencies like illegal immigration and fentanyl smuggling. (apnews.com)

Financial markets have reacted to these developments, with significant declines following the tariff announcements. Major companies, including Amazon, Google parent Alphabet, and Palantir Technologies, are expected to report earnings this week, which may further influence market dynamics. (investors.com)

The situation remains dynamic, with potential for further economic and political repercussions as the involved nations navigate this escalating trade conflict.

For a visual summary of these events, you might find the following video informative:

Sources

How Much Is Our Interest Rate After Bank of Canada’s January, 2025 Interest Rate Cut?

Posted on February 1, 2025 by pantheerk

The Bank of Canada has reduced the interest rate to 3%. This means the Bank of Canada’s rate is now 3%. However, the Bank of Canada only lends to banks, not to individuals. Therefore, there is the Commercial Bank Prime Rate, and banks set their rates based on the Bank of Canada’s rate. As a result, the Commercial Bank Prime Rate is now 5.2%. The Home Equity Line of Credit (HELOC) rate ranges between 5.2% and 5.7%. If you are paying more than 5.7%, you can negotiate with your bank to lower the rate.

Variable rates are available at a discount of 0.65% to 1.15% from the Bank Prime Rate. These rates range from 4.05% to 4.55%. The advantage of variable rates is that the penalty is only 3 months’ interest.

Fixed rates have also decreased. The 5-year fixed rate is between 3.99% and 4.24%, while the 3-year fixed rate is between 4.04% and 4.19%. These rates are available for renewals, transfers, and refinancing.

So, go to the market, negotiate the rates, and try to lower them. If you have received a renewal notice, you can reduce the rates. Negotiate with your bank, try to lower the rates, and if necessary, even threaten to leave the bank. This is important to do.

Mortgage Debt and Housing Crisis

Posted on December 19, 2024 by pantheerk

Another reason of housing bubble is mortgage debt! When interest rates were historically low during the Covid-19 period, people easily qualified for mortgages. And, many buyers were in the real estate market and bought homes. When everyone wanted to buy, house prices went up. Do you remember house prices from the end of 2021 to May 2022? People say that house prices can never rise to that point. Do you think the value of the house has gone up since you and your partner bought a house to live in? If you think so, you are wrong. As speculators saw the potential to make money in that hot real estate market, they bought many houses not to live in but to sell them later to make money. For example, you may have seen some houses in your neighborhood sell multiple times in a short period of time. Have you even heard of real estate agents involved in fixing home prices through artificial bidding at that time? Did you hear about some real estate client suing real estate agents for bidding wars? I have heard and read about them all. Were all those things there when the real estate market was hot?

Now let’s come back to today's topic! Another cause of the housing bubble or housing crisis is mortgage debt! When interest rates are low, people pay historically high prices to buy homes. Then, the government should control it and to control inflation in general and house prices in particular, the government raised interest rates. Then, what happens? Businesses slowed or stopped, people lost jobs and people found it difficult to buy food for their family members. And people found it difficult to pay their mortgages. Analysis by the Royal Bank of Canada shows that Canadian housing is less affordable/affordable than it has ever been. By 2023 Canada's non-financial debt will exceed 300% of GDP and domestic debt will exceed 100% of GDP, both higher than levels seen in the United States before the 2008 global financial crisis. And the mortgage loan increased! According to a report by the Canadian Mortgage and Housing Corporation (CMHC), Canadian mortgage loans totaled $2.16 trillion – up 3.4 per cent from the same period last year. High interest rates and uncertainty over the central bank's plans to cut key interest rates led to lower home sales and softer prices in many areas. This is the current situation. RSM Canada economist Tu Nguyen says it's not surprising that housing market activity has slowed. Imagine when more people can't pay their mortgages and the banks take over their property. Imagine when more people can't pay their mortgages and the banks take over their property. Then, there will be no house sales and there will be no new projects. This means the housing bubble may burst soon and the housing market will crash if Canadian government will stop protecting the housing market in future! (My next post will be on another reason of housing bubble!)

Interest Hikes and Housing Bubble Burst

Posted on December 17, 2024 by pantheerk

Another reason for housing bubble or housing crisis is interest rate hikes. If interest rates are low, housing bubbles often get even bigger. At lower rates people can buy larger mortgages, increasing demand and driving up prices. Buyers may take out risky loans, ignoring warning signs like rising interest rates or a shrinking economy. And then there’s the herd mentality. People see big money being made in the real estate market and so do other people. A real estate shopping frenzy ensues. When people are in a bubble they think the market will never change! For example, when the Bank of Canada cut interest rates during Covid in 2020, house prices skyrocketed by May 2022.

When there is too much inflation and house prices are too high, it needs to be controlled to cool down inflation and the housing market. The Bank of Canada raised interest rates in July 2017 for the first time in seven years, slowing the housing market as Canada’s biggest banks raised interest rates. And, the biggest interest increase comes in 2023. The Bank of Canada raised interest rates by 100 basis points in 2023 to curb inflation, the largest increase since 1998. The governor of the Bank of Canada said the increase was necessary to prevent high inflation from stifling. The governor had said that the interest rate will be reduced to 2 percent. On the other hand, according to economists, it was a gamble by the Bank of Canada, that inflation had factors other than the housing market (such as the war in Ukraine, supply chain issues and so on) that were beyond the Bank of Canada’s control. According to economists, this would certainly reduce inflation but not immediately. Whether or not it controlled the price of food, oil, it certainly controlled the housing market. The rising rates certainly affected those who took out mortgages for home purchases and took out new loans. According to economists, this would certainly reduce inflation but not immediately. Whether or not it controlled the price of food, oil, it certainly controlled the housing market. The rising rates certainly affected those who took out mortgages for home purchases and took out new loans. We can see that when the Bank of Canada starts raising interest rates from July 2022 and home prices start to cool. Yes, interest rate hikes in 2022 and 2023 have certainly cooled the market, although they have not burst the housing bubble. If interest rates rise sharply, it can become more expensive to get a mortgage, which can reduce demand for houses and condos. Now people are not ready to go to the real estate market! Yes, the housing market has definitely cooled but not cracked yet! The housing bubble has yet to burst and a housing crisis could happen at any time. (My next post will be on another mortgage loan!)

Short Housing Supply: A Contributing Factor of Housing Bubble in Canada

Posted on December 4, 2024 by pantheerk

Canada, especially Greater Toronto Area (GTA), has a lack of housing supply! No matter where land for the first time as immigrants or live in general, they want to settle down in GTA since Toronto is the financial capital of Canada and there are more job and enterprenual opportunities than other places in Canada. According to Financial Post, “Among the G7m Canada has the lowest average housing supply per capita with 424 units per 1,000 people, which places the country behind the United States and the United Kingdom. France, by comparison, leades the G7 at 540 units per 1,000. The pandemic, which allowed households to accrue record savings and saw unprecedented stimulus measure, stoked the country’s hot housing market and has pushed it into frothy territory over the past two years”. CMHC warned back in 2022 that Canada will need 5.8 million new homes by 2030 to tackle affordability crisis (CBC News). Yes, they like to build more houses, however, there is a complex time-consuming approval process. According to Amborki, it can take eight to ten years to go from acqiring undeveloped land to building houses. Most importantly, it is very hard to get land in or close to Toronto area.

Canadian government has done something for the housing affordability. And, it has recently (from April 1, 2023) announced First Home Saving Account (FHSA) and it is a registered plan allowing you, as a prospective first-time home buyer, to save for your first home tax-free (up to certain limits). And, it has prohibited on the purchase of residential property by non-Canadians Act. And, it has initiated a vacancy tax at federal, provincial and municipal in some cases. No matter what the government is doine, it shows that it is easier said than done.

Experts say that Canada is sitting on the larguest housing bubble ever! And they believe that bursting of the bubble is inevitable. Even is the economic crisis in US in 2008, Canadian housing market did not crash. It only went to -9.2% low and it recovered quickly. They say that Canadian housing market has not seen that correction yet. After the recession in 2008 the banks around the world lowered the interest rates to very low as a result, it became very easy to get a mortgage and buy a house until 2022.

As a result, many investors took that money and invested in the real estate because the investment in the real estate had a track record of generating income from the investment. As a result, on the one hand there are houses that belong to investors that are empty, on the other hand there not enough houses for other people to live. As a result, when those people who do not have homes want to buy one, there are not enough homes available in the market. Property prices in the market are skyrocket, when so many people want to buy a property. Rapidly rising prices of assets lead to volatile prices. As a result, a huge bubble has been created for a long time and especially after covid-19! Experts say Canada is living in the biggest housing bubble ever! And they believe that the bursting of the bubble is inevitable. (My next post will be in interest rate and housing bubble!)

Speculators and Housing Bubble in Greater Toronto Area (GTA)

Posted on December 3, 2024 by pantheerk

Let's start with the first factor of housing bubble for today. The number one biggest driver of the housing bubble is speculators' speculation. Don't you ever wonder why home prices in the GTA are so high? If you think about housing prices here, one of the reasons why house prices are so high in the GTA is because of those speculators. Speculators buy properties not to live in or rent out, but to sell quickly and at high prices to make huge profits. A simple example is the fact that realtors have lots of houses in the GTA at a time when it is difficult for many Ontarians to buy a house! When speculation causes people to feel that home prices will rise indefinitely, this can lead to a bubble as people continue to buy homes at increasingly high prices for an investment purpose.

The same has been happening in the Greater Toronto Area (GTA) for a long time now. Speculators are banking on the fact that their home values will continue to rise. One of the reasons Canadian homes are so expensive is because of speculators' valuation practices. The Canadian government comes up with various control measures to prevent this (such as the previous foreign buyer tax increase and the current higher tax on earnings over two hundred and fifty thousand) from time to time, however, they easily find flaws in the government's efforts, and it is difficult to completely control or prevent it. Yes, many immigrants have come and are coming to Canada, and they all prefer to settle in the GTA. Everyone in the GTA needs a house to have a roof over their head and raise their family for sure . Because of this the GTA housing market is heating up by the day. It cannot always be hot, and it needs to be cooled. The housing bubble created by this fever will one day burst, and it must burst to control the unruly real estate market. Honestly speaking, many people want to see this market crash so they can afford to buy a house! And it's also true that the current housing situation is worse than a housing crash. However, this should not be an accident because its consequences are beyond imagination. (I'll talk about the second factor in the housing bubble in my next post!)

Housing Bubble and Buying a Property in Canada