End The CMHC Experiment: UBC professor told he must pay speculation tax for a second home – January 29, 2019
It’s time to say goodbye to the CMHC experiment, it clearly hasn’t worked as planned, maybe the intentions of the CMHC were good but in practice, like most corporatist experiments the results have turned out to be disastrous. I know, most Canadians won’t agree with me because a lot of Canadians dream of owning a million dollar semi-detached 2000 square foot home, with a small backyard a garage if they’re lucky and property taxes that cost almost the same amount of money as many people pay for rent each month.
With all due respect to the people of British Colombia, you have one of the worst Provincial governments in Canada, second to only Quebec, what keeps your economy afloat is the Foreign investment you’re trying to increase taxes on. As a person who understands the games the Chinese play, your speculation tax is going to hurt the domestic population more than it will hurt foreign and domestic speculators. I know with the Chinese they put homes in all types of names and then flip those homes until some idiot gets stuck with the inflated mortgage, the other Chinese of course purchase properties for their children who plan to do their studies in Canada.
Now, where does CMHC come in? Well, you see when all you have to do is put 5% or a say a small amount down on a property, more people qualify, many of whom are real estate flippers, real estate investors, individuals and entities who purchase properties for cash flow. Many of these so-called investors are stupid people, not business savvy in at all, however, the CMHC and the many Provincial governments are subsidizing these morons, who in turn provide the cushion for foreign investors. It’s important to understand that on their own, foreign investors can’t do much because their schemes would be easier to expose if CMHC was subsidizing the domestic population. However, it is what it is and this story that you can read below is only the beginning.
UBC professor frustrated after being told he must pay speculation tax for second home – Global News
What’s going to hurt Canadians the most will be the reality that these properties aren’t in actual demand. Similar to Ontario, British Colombia has a lot of empty, vacant properties. There’s nothing abnormal about vacant properties, it’s common in the United States, the issue is when people can no longer afford these properties, when people no longer want to pay for these properties, throughout the world this happens all the time, it’s just that it’s something Canadians, for the most part, haven’t experienced before. Well chances are it’s on its way and I keep trying to remind Canadians that our public sector is huge, NDP governments can pretend all they want that public servants aren’t reliant on the money produced by the private sector, but hey, that’s for another post.
If something isn’t done to address the problem of the Crown Corporation the Government agency known as the Canada Mortgage and Housing Corporation, these problems will only multiply. The BoC wouldn’t dare normalize interest rates now, even though the Canadian housing market didn’t crash, in fact, Stephen Poloz is waiting for the perfect moment to drop interest rates again in hopes to stimulate the economy. Why is this? Could it be that there are a lot of speculators in the Canadian housing market who otherwise wouldn’t exist had it not been for the CMHC insuring mortgages using taxpayer backed, mortgage back securities? LMAO!
Interesting times ahead