Ontario, Canada releases new rental agreement lease form to cut down on tenant-landlord disputes – May 1, 2018

If you want to read this article in full click the link below:
http://www.cbc.ca/news/canada/toronto/standard-lease-agreement-ontario-form-1.4643405

Now, I’ve been writing the same thing over and over again for the past I don’t know 5 years now when Stephen Harper was running the country. Here’s the thing, when Stephen Harper took over the economy from a decade+ Liberal rule, Stephen Harper didn’t change much. He lowered taxes, created a tax free savings account, but basically Harpers government left everything as is under Harper the real estate boom came into fruition, I write about the late Jim Flaherty trying to warn everybody about the disaster ahead but nothing was done to stop it.

Now my argument has always been if there was a real estate crisis created by the free market I would have nothing to say, but the real estate boom in Canada, namely in Toronto and Vancouver were caused by the Federal and provincial governments. Rental controls are a government creation, and real estate investor knows that you want to be reasonable with your rent prices, just like how grocery stores don’t want to raise their prices too high, real estate investors, the smart ones anyway should have the same approach, because if you raise rent prices too high and don’t provide a service you’re going to get discontentment, you’re going to get people skipping rent and trashing your apartment building. The apartment I lived in had to replace windows almost every other week because they raised rents on some people who were forced to move out and well let’s just say those people weren’t too happy.

Now the moment the government steps in and creates rules, especially rules about money well, developers start to look at the rental market differently and for obvious reason will not build rental units and instead build condos. Condos are a lot less risky and most of the risk of building a condo is past onto the real estate investor who in turn passes the risk onto the renter in terms of higher prices, which in turn causes a lot of condos to be empty, which in turn creates a lack of supply in the rental market, which in turn gives realtors the excuse they bring to the government claiming that there’s a lack of supply, which there will be because well the government incentivized the condo market.

To make matters worse in Canada we have CMHC which is an insurance to real estate investors that the Canadian taxpayer will bail everybody out before the real estate market crashes. All of what I described is a creation of the Canadian government. None of these high prices would have been possible without the government of Canada. The reality is that most of the condos that were built in Canada wouldn’t have been built or would have been built differently if the government didn’t create more incentive to build condos. Now with that said this is why I thought Doug Fords move to work with OREA(Ontario Real Estate Association) was a bad move and that’s why Wynne is trying to capitalise to make it seem like she’s for the poor.

I’m sorry Canada this economy is set to collapse, I have to be honest and say I have no idea why the Canadian dollar is so high right now. I’m baffled to be honest, because in my opinion when I look at the fundamentals of the Canadian economy along with interest rates in should cost Americans 65 cents to purchase 1 Canadian dollar.

Interesting times ahead.