Tax Free Canada

If you are wondering if your house will drop in value. Should you selll now? Wait to buy? Consider this..... Inflation...Everyone wants Inflation... Some want it more, some want it less, but everyone wants it.... If you own a house and have a mortgage, inflation will bring up the value of the house without increasing the value of the mortgage. A $60 monthly payment on a mortgage was a lot 40 years ago. If you are waiting to buy a house, you don't want the cost to go up....Until you have bought. The Bank of Canada's mandate is to keep inflation at 2% per year. Not zero!!! This is because inflation is required to keep an economy moving forward. Deflation is recessionary and the Bank of Canada, The other Banks, and the Government will do anything they can to prevent deflation. This would include spending several billion dollars in as of yet not collected tax dollars. The government of Canada is willing to put you further in debt to prevent deflation. Pumping billions of dollars into the economy always causes inflation to some degree. This should make it very clear, that no matter what happens in the short term, housing prices will continue to rise in the long term. I believe that within a few years, we will see some sharp examples of inflation. The Bank of Canada has already tightened the rules on mortgages twice in the last year because they understand that the billions of dollars that were recently pumped into the economy are going to cause inflation to far surpass their 2% mandate. They want to tighten further because they don't want the inflation to go out of control, but at the same time they are cautious not to strangle the economy. Even when inflation far exceeds their mandate, they only want to curb it back to the 2% because if they roll it back it again would be recessionary. Housing prices are largely based on what people can afford to pay for them. As inflation continues to rise over the next few years, starting with the cost of living and followed by the demand for increased wages, the amount people can afford to spend on housing will increase, and the cost (or value) of the housing will increase.