The Reason Why New Montreal Condo Investors Are Losing Money – November 4, 2018,
If the future of Canada appears to be socialist the province of Quebec is way ahead of the game and I mean way, way ahead of the game. I began reading about a Montreal being the next Vancouver and Toronto and when I read it I laughed to myself and said no way in hell that would happen. Even refugees don’t want to stay in Montreal. I think some of the illegal migrants that left the United States because of the Trump presidency, a vast majority of them come into Canada via the Quebec border, the moment these people get processed a vast majority of them get the hell out of there, this even includes some of the French-speaking Haitians.
Quebec has been struggling for years to attract immigrants to their province, but most people don’t want to voluntarily go there and it has little to do with the speaking Quebecois and more to do with the depression that it socialism. Most people don’t choose socialism, they settle for it, humans don’t like collectivism, if they have to accept it, they, of course, will, but given the chance, everybody wants capitalism, the only time people don’t want capitalism is when they don’t understand or can comprehend how it works. In the minds of most people capitalism is a swear word, they look at it as exploitation, as one person exploiting another person ignorance.
As a capitalist myself I find it hilarious when someone exploits my ignorance, as long as my rights aren’t violated and I have the freedom I could care less how much money another person makes. What irritates me, however, is when the protector of my liberties and freedoms, the government starts to pick winners and losers, via bailouts, subsidies, tax breaks for one group of people, welfare for another, crown corporation monopolies etc. that’s what irritates me. But this story out of Montreal that you can read below, this story makes me smile, because for me, what I’ll say is what moron couldn’t see this coming.
New Montreal condo investors losing money – The Canadian Press
In Montreal, rents are pretty low in comparison to Toronto or Vancouver and the reason for this is that most of the housing built in Montreal is built based on DEMAND! Allow me to point out that I’m writing this December 2018, because I’m not sure that in a few years that things might change.
In Toronto and Vancouver majority of the Condo’s built aren’t based on domestic demand, Toronto currently has enough Condos to house New York City but… that would mean that the condos were built based on domestic demand, which they’re not. The Toronto Condo boom which will be found out in when it inevitably crashes is built on speculative demand, flipper and foreign investment demand, which is why when you come to Toronto, you’ll notice that there are an abundance of Bachelor and 1 bedroom Condos! They’re all over Toronto and a lot of them are empty, or being used for Airbnb, used by prostitutes, drug dealers, hotels and motels but they’re primarily being used to flip. It’s no secret here, but you’d only know if you went out a lot and talk to people, something I do frequently.
NNow, people won’t just come out and say they’re using their condo for this and that, what will often happen is if you’re looking for a place to rent or a place to stay, there’s always a guy or a gal who knows someone with a place you can rent out, but you have to pay with cash. This exists in Toronto primarily because unlike Montreal we have a government subsidized free for all, so when a condo is built, nobody checks to see if the units in the condo will accommodate the needs of that particular municipality, this is why I don’t blame Doug Ford for wanting to cut city council.
Now, in Quebec their housing situation is a bit different, the benefits of being in Quebec is that their population isn’t growing that much, which equates to no real demand in housing, also in socialist regions people are pretty cheap, because the atmosphere is different, socialist tend to care more about enjoying life and less about paying ridiculous amounts of money for what they deem as essentials. People forget that in socialist regions if a housing situation like Toronto happened in Quebec there would be a mutiny out for the politicians’ heads who caused it.
Getting rich isn’t part of the socialist culture, if real estate investors think that they’re going to do to Montreal what they did to Toronto, well, we’ll see, I think it’s unlikely and if Montreal is their only hope to realize large profits well I guess the crash is going to happen faster than expected. What I’m finding interesting is CMHC’s roll in all of this.
I’ve often said that CMHC is one of the most destructive Crown Corporations in Canada, next to Canada Post and the CBC, a problem they were supposed to help solve is now such a huge problem that they’re having to publish articles about investors losing money. Now, think about that for a second, their job (CMHC) was supposed to help Canadian families qualify for a home, but being that this mission has failed a vast majority of Canadians and there really is no reason for them to exist we’re only hearing about them when something goes drastically wrong. Something wrong like investors losing money.
As I pointed out above if a city or a province is having trouble growing, they’re going to have a real estate problem, it’s common sense, what’s also common sense is that the housing being built in most parts of Canada isn’t meeting the domestic demand. Now, obviously, this is hard for CMHC to see or to comprehend because all they do is look at the numbers and as long as mortgages are being paid, why should they care about the demands of the people? 3 and 4 bedrooms aren’t being built in Toronto to meet the demand so whenever they are built they’re paid for at inflated prices, which of course is where the bachelor, 1 and 2 bedroom condos get their rental prices from(inflated prices).
If I purchase a condo at an inflated price, it’s only right that I pass that cost onto the renter right? It’s not like CMHC caused these prices to be inflated in the first place right? This problem is getting exposed in Montreal because unlike Toronto, there’s little to no chance Montreal’s population will grow at a pace of Toronto. In Toronto, the excuse made for all these empty condos being built is that Toronto is growing. Buy now because if you don’t you’ll have to pay a higher price later. This scam can work in Toronto and even in Vancouver because their populations are growing, it’s unlikely that it will work in Montreal because Montreal is a very regulated city and as soon as an entrepreneur is hit with their tax and regulation Quebec reality, if given the option to do so most self-employed people will get the hell out of Quebec as soon as possible.
This type of environment doesn’t make for good real estate, if anything Quebec should be Canada’s California, but the Montreal Expos baseball team and the Quebec Nordiques hockey team left Quebec because the atmosphere was very unfriendly to business and as much as people want to blame the government the truth is we’re too blame, we allowed this stuff to happen and many of us are too complacent to do anything about it. To you morons out there wanting to invest or build new real estate in Quebec, now? All I can say is…Good luck with that!
Interesting times ahead