Justin Trudeau’s War on Fossil Fuels Are Creating Systematic Problems With Canada’s Real Estate Market: $12,000+ a month mortgages and Accelerating Homelessness – December 19, 2022,
If you have the ability to purchase a million-dollar home, are not considered a millionaire? I assume, because the people in the story I point to below are so-called “visual minorities,” that the CBC imagined that these greedy pursuers of profits need taxpayers’ sympathy for overpaying for homes that are not only rampantly losing their asset value but also seeing spikes in debt servicing costs.
Back when inflation targeting wasn’t a thing, most people knew the RISKS in purchasing a house or condo that wasn’t completed. The entire real estate market revolves around debt; most of the developers, the builders, and everyone in the process of building homes and condos likely went into debt to do it. Hence, their entire business model is interest rate sensitive, so when you decide to get involved in these schemes as a real estate investor, you know the risks involved.
The higher the purchase price, the higher the monthly payments. This is one of the reasons why many of us said the FEDERAL GOVERNMENT should stay out of the housing markets. It’s called a housing MARKET for a reason. Marketsgo up and markets go down, I think a year ago, the Bitcoin MARKET priced Bitcoin at $60,000USD; well as of the date I’m writing this, Bitcoin is valued a little below $17,000.
That’s how the market works, and it does work, and does it work because as home prices crash, oddly enough, there’s a rising homelessness problem in Canada? Hmmm, could it be that the federal government’s involvement in the housing market created pricing DISTORTIONS? What separates my writings from everyone else’s is that I focus on the Canada Mortgage and Housing Corporation (CMHC), which is a FEDERAL crown corporation, that’s provides mortgage insurance backed by Canadian taxpayer dollars.
Via the CMHC som Canadians were able to buy a home or condo with $0 down, the pricing distortion problems are so bad in Canada that the Federal government introduced DOWN PAYMENT LOANS.
Now because not every Canadian qualifies for these down payment loans or mortgage insurances from the Federal government, these schemes are actually the Federal Government picking winners and losers. The winners being those who qualify and the losers being the people who are forced to RENT.
Because you have to remember that as asset prices rose, a lot of homeowners took out equity and because the equity in their homes was basically free money, these people then bought second and third homes; some even built a real estate empire via the CMHC, and this ofcourse led to a lot of real estate product entering the Canadian market fueling on a specific type of real estate demand.
Publish Your First eBook Today Click Here For eBook Designing and Ebook Publishing all in one
Canada is flush with condos where purposed rental housing should be; why? Because why should a developer deal with PROVINCIAL and municipal rent controls when it can build condos for real estate FLIPPERS? So a lot of purposed rental housing wasn’t built, and to make matters worse, Jusitn Trudeau and his federal government have an immigration policy that will flood Canada with migrants that might not only not struggle to find a job, they might struggle to find a place to live, because Trudeau created a SYSTEMATIC problem.
Now, to be fair to Trudeau, he didn’t create the real estate problem, but he did accelerate it with his war on fossil fuels which by the way, is nothing more than a wealth redistribution scheme. Even if you’re one of those idiots who believe in man-made climate change, there are other ways to deal with it, then straddling the economy with price controls.
Click Here To Make Money Doing Surveys Sign Up Is 100% Free Make US Dollars Daily Anytime You Want Advertisers Want Your Opinions
Price controls and recessions tend to go hand and hand, and to solve this problem, typically, currency debasement is inevitable, but before currency debasement, there must be a new PRICE DISCOVERY, which is why the Central Bank is stuck in a position in which it must continue to raise rates to fight CONSUMER price inflation.
The CMHC and other branches of the Federal Government created an ASSET bubble, thereby allowing the private sector to create money that it wouldn’t have created otherwise. We have a lot of idiots in the Canadian real estate market, who imagine themselves as smart. In this world of immorality, it wouldn’t surprise me in the least if these real estate investing morons are bailed out in the form of Canadian dollar debasement to save this top-heavy real estate market.
Click Here For Attraction Dating Secrets based on Science
The problem with bailing out the millionaires in real estate is that it will not fix the growing homelessness problem because there isn’t enough new stock on the market to drive rental prices down, meaning that the government will likely attempt to throw more money at the homelessness problem, by trying to get these homeless people into properties that initially weren’t built for that purpose.
I hope you see the systematic problem Justin Trudeau caused with his war on fossil fuels. Canada has a “carbon tax,” I’m not sure what the end goal of this carbon tax is, but it better start baring fruits because if this is the new normal, we’re only getting started with how bad things are going to get.
‘Perfect storm’ of inflation, high prices driving more into homelessness: advocates | thestar.com
Interesting times ahead