I was very tempted to just play devil's advocate here, but then I come to think there might be more than that. So...
"Now people have these huge mortgages where your ability to start a business is hampered by your ability to get a financial buffer to take this year or 2 off."
How will they manage? By learning to adapt, which will be a critical ability in their careers as entrepreneurs. Say, they can start modest, with modest allocation of time instead of lavishing with both time and money to only hit the ground if they fail. Also, they may identify the opportunity of having around them this market of deep pocket potential clients! ...or may not, we'll see. The idea is, wealth is coming in, and people complain instead of finding ways to take advantage of it. I know that this isn't as easy to do in other domains as it is in real estate, but still.
"How can a daycare buy a million+ dollar house and expect to make money paying that back on having 30 local kids being looked after."
By raising the price of the provided services accordingly! The city is getting stuffed by each passing day with rich kids. What are you waiting for?
"When people are tied up in these ever increasing loan/income ratios there will be less spending on dining, holidays, hobbies etc."
I think those people can ask more for their services in order to get in an enjoyable zone or leave the city entirely if they can not. A life of struggle is not one worth living when you have a choice.
I think this is true, but it's also the case that businesses that cater to the very rich are doing very well. My wife works for a luxury retailer who's Vancouver location is seemingly supporting the entire company with it's sales. Revenue has basically tripled over the past 4-5 years.
"Now people have these huge mortgages where your ability to start a business is hampered by your ability to get a financial buffer to take this year or 2 off."
How will they manage? By learning to adapt, which will be a critical ability in their careers as entrepreneurs. Say, they can start modest, with modest allocation of time instead of lavishing with both time and money to only hit the ground if they fail. Also, they may identify the opportunity of having around them this market of deep pocket potential clients! ...or may not, we'll see. The idea is, wealth is coming in, and people complain instead of finding ways to take advantage of it. I know that this isn't as easy to do in other domains as it is in real estate, but still.
"How can a daycare buy a million+ dollar house and expect to make money paying that back on having 30 local kids being looked after."
By raising the price of the provided services accordingly! The city is getting stuffed by each passing day with rich kids. What are you waiting for?
"When people are tied up in these ever increasing loan/income ratios there will be less spending on dining, holidays, hobbies etc."
I think those people can ask more for their services in order to get in an enjoyable zone or leave the city entirely if they can not. A life of struggle is not one worth living when you have a choice.