The CMHC, The Bank of Canada and RENT CONTROLS: N.S. premier designate says he’ll drop rent control when state of emergency lifted – August 28, 2021,

I’ll try t be quick in this post because this is a topic I’m very passionate about. One of the main problems in Canada today is the CMHC and the Bank of Canada, making the decision to prioritize MORTGAGES, which I often refer to as corporate welfare or corporatism.

Currently, interest rates in Canada are artificially low, not because the Canadian housing market ever crashed, but because the U.S housing market crashed in 2007-2008. Now, it’s important to understand that The Bank of Canada as well as the Canada MORTGAGE and Housing Corporation(CMHC) which sells MORTGAGE insurance, collude to keep interest rates low, because if interest rates are NORMALIZED the Canadian housing market will CRASH.

To better understand rental controls, you must first understand mortgages. Interest rates first and foremost should be a reflection of the economy which they’re currently not in Canada, by that I mean if interest rates were normalized in Canada, a person couldn’t get a million-dollar mortgage and buy $4000 per month.

In a normal interest rate environment, a million-dollar mortgage would cost about $10,000 per month at a bare minimum and therefore you’d have fewer tiny Canadian homes valued at $1 million dollars. Home prices for 1 bedroom condos in certain parts of Canada are often $400K+, what this does is it incentivizes developers to build condos instead of rental housing.

Because once a condo is built, rental prices are replaced with Strata/maintenance fees, something the provincial, federal and municipal governments have almost nothing to do with. To the best of my knowledge there is no such thing as “Strata Control”, what does exist are RENTAL CONTROLS and what a rental control does is it puts a cap on earning potential for everyone involved.

So because The Bank of Canada(BoC) and The CMHC are in the business of making sure mortgage prices do not go down, because Canadian taxpayers are on the hook if the housing market crashes, both the BoC and CMHC collude to make sure housing prices remain inflated, in fact, part of Erin O’Toole and Justin Trudeau’s platforms are to make sure mortgage prices remain high.

Erin O’Toole claims he will incentivize building rental housing, but, I think he forgets that rental controls are a provincial and municipal problem. Real Estate developers don’t care about incentives to build rental housing, the issue is once a renter moves in if they don’t pay, can the landlord kick them out? If the answer is no, well then the new rental housing being built has to price that cost into their building.

That’s often how and why these corporate welfare schemes are formed, it’s because of prior stupid Left-Wing laws that Canadians now feel entitled to, never being withdrawn. In the 1990s because of my credit history, I got 3 months free rent, when I signed a lease, why? Because there were no rent controls and all the landlords cared about was making sure they had a tenant that paid their rent.

Although my methods aren’t for everyone I love dealing with the private sector in my early years because we used intimidation and negotiation tactics, that’s I kept my rent low if I pay my bills and the piece of shit landlord wants to raise my rent, I’d use all the legal methods at my disposal to make him/her think twice about it.

I’d tell them look how good I keep your property, I pay you every month are you sure you want to kick me out for a tenant that might not do the same? It wasn’t until these stupid leftists and moronic supposed Right-wingers ran to the government for rent controls that people like myself lost our negotiation power.

Rental controls DESTROY the rental market and most of the people begging for rental controls often do not pay their rents on time. Furthermore, people who want rental controls are also quite destructive to private property and they’ll run to the government so that a landlord can’t kick them out.

Now if you’ll allow me to humanize landlords for a second, I’ll be the first one to tell you some landlords are HORRIBLE business people. If you search online for Real Estate investing course, you’ll find all of these people telling you why you should be a real estate investor, so when people with a low business IQ become real estate investors, they give the entire real estate investing community a bad name.

Real estate investing is a business, but some real estate investors imagine real estate investing to be a Stock, and the government rewards these real estate investing buffoons with artificially low interest rates, which makes rental housing more expensive because Condos are now built where rental housing should be.

In Toronto, 40% of the condo are EMPTY most of the year, I think the problem per capita might be worse in British Colombia, this happened because of rent controls, and the CHMC and BoC working together to prop up the Canadian housing market. Being that some people know what’s going on, they’re trying to have a conversation about it, but the WEALTH EFFECT is a powerful thing and these politicians don’t want to level with Canadians that in order to fix this housing problem interest rates are going to have to be NORMALIZED which means a massive DEFLATION housing valuations

N.S. premier designate says he’ll drop rent control when state of emergency lifted | globalnews.ca

Interesting times ahead!