Price controls create shortage of things, and rent controls are a price control. Now, you might think eliminating price controls will solve the problem, wrong, it gets worse in Canada, Canada also has an ENFORCEMENT problem.
So even with rent controls, some tenants in different parts of Canada REFUSE to pay rent, and Canada is known for SQUATTERS rights. The CBC hit piece above starts with what looks like a Middle Eastern man who clearly wasn’t born in Canada, along with his buddies participating in a RENT STRIKE, so if they’re not paying their rent, they’re basically squatters.
No mention of squatters rights in the video, which is the ROOT cause of fewer business professionals REFUSING to become landlords, or charging a PREMIUM to rent out their property.
If my position is confusing you, imagine you’re a 9-5 employee who bought an investment property on CREDIT, and you want to rent it out, but you’re hearing about all of these stories of people who rented out their homes to tenants who refused to pay and/or refused to leave when you asked them to, then you have to remember that these renters/squatters are also the beneficiaries of rent controls.
But, such and such city removed rent controls, you say, yes, but as you can see, a lot of tenants want to bring them back, meaning that if you rent your space while rent controls are lift, but your tenant has SQUATTERS rights, they might be able to remain in your property until another SOCIALIST politician is voted n and then reinstates rent control laws. These left-wing politicians might even make their rent control law retroactive, so the landlord may have to send you a check.
Once you observe this a small business person, you stay away from becoming a landlord and this is where the large corporations come in, because large corporations have the capital to use socialist laws against the socialists.
Socialists like to NATIONALIZE private property because if you allow a private sector, you have to allow LOOPHOLES to every law; now, what most socialist governments in Western countries do is they make using loopholes VERY EXPENSIVE, meaning that only the Uber rich can take advantage of them.
In many instances, these large corporations are looking for tax write-offs and might purchase a building for favorable tax treatment because their other business is accumulating a lot of capital, and they need something to offset it.
Furthermore the real estate game is one based on debt, so if the real estate entity has passed risk over to private banks and private investors, and the government comes after them, they’d be in a LEGITIMATE position to declare bankruptcy.
The CBC hit piece is obviously going after what it imagines is a SOFT TARGET, but in the end, this hit piece by the CBC proves why you should never allow CENSORSHIP, because if you consume that garbage by CBC as the only reality, well,, the only solution is to raise taxes on the “rich.”
The problem with housing in Canada, are the voting patterns, Canadians like to vote themselves unearned benefits, and by doing this, they’re creating SHORTAGES of things.
People tend to forget that the downside of capitalism is NOT inflation and higher prices, it’s actually DEFLATION and lower prices. Free market capitalism revolves around making things CHEAPER and better for consumers via competition, the Canadian housing market is more expensive because the voting public VOTED to make it more difficult to become a landlord.
If you don’t believe me, do yourself a favor and become a landlord or at the very least read about the Rights & Responsibilities for Landlords and Tenants, and don’t take a biased view, consider imagining if you were the landlord in that situation.