Canadian News: Rental housing has collapsed, governments abandoning subsidies for rental construction! – July 21, 2019,
Do you know why I’m annoyed by the modern-day Leftist? It’s because they know full well what’s going on and they refuse to speak about it openly. Buried near the middle of a Huffington Post article titled: Canada’s Mortgage Borrowers Are Moving To The Back Alleys Of The Market I find the following statement:
Now, leftists have known about this for DECADES, Canadian Leftists are stupid, I speak to many of them I read their material and I even follow some of them, but they’ve become so evil that it’s really beginning to tick me off.
Now recently Daniel Tencer someone I’ve written about before wrote the following article:
In the article because in my personal opinion many of these Leftist media outlets are bought and paid for, the final conclusion of the CCPA article wasn’t to prevent CMHC from providing mortgage insurance or selling CMHC to the Private Sector so the taxpayers wouldn’t be on the hook for a crash, no, the CCPA solution was the following:
the blame lies with a continuing lack of apartment building construction, the CCPA concludes, urging governments to do more to bring rental buildings online.
The government clearly created this problem, Canada has an insured housing market, if you’re unsure of what’s causing housing price inflation consider asking yourself why the Bank of Canada is pushing for PRIVATE MORTGAGE-BACKED SECURITIES and why nobody is buying!
I don’t know much about the real estate bubbles in other countries, different countries have different methods, but Canada’s housing bubble is a giant bubble that everyone knows better get addressed soon because it’s hurting the poor the most. What I don’t understand about Leftist, what confuses me is that they’re supposedly supposed to be for the poor? I’m the Right ringer, why am I the one having to volunteer my time to write this information.
The Government doesn’t want to build housing because maintenance for government apartments is extremely expensive, plus Government people don’t think like business people. In Toronto there was an apartment building with more than 20 stories that had serious elevator problems, well what’s often the case with the government is that when they’re building an apartment building they often assume that a private company that built an elevator as an example will be solvent years down the line. In the private sector companies go bankrupt all the time or they might change their designs, hire and fire staff, discontinue parts, etc. Companies will often go bankrupt purposely after signing a government contract and here’s the truth, there’s nothing the government can do about it. This is why there are certain things the government should stay out of.
Now, of course, tenants should have rights, but once the government gets into Insurance, wage and price controls, you create a whole new monster that’s going to cause a whole lot of problems in the future if it isn’t corrected soon. There’s a cultural problem in Canada, where a large segment of Canadians think that the government can solve all problems. The government is the cause of the real estate problem. Again I highly consider you read the following article,
Why? Because it exposes the truth of why not only real estate but also why rental prices are so high in Canada. It doesn’t say it explicitly, but you’ll quickly understand that PRIVATE mortgage-backed securities are an investment most investors avoid like the plague, because of the amount of risk it carries
It’s currently the year 2019, in the article above when talking about CMHC the following was stated: The Canada Mortgage and Housing Corp.’s Canada Housing Trust has been buying insured mortgages from financial institutions and using them in Canada Mortgage Bonds for nearly 20 years
The CMHC is a Federal Crown Corporation which makes it a State-owned operation, why this is important is from an investors perspective the Canadian housing market is an extremely safe bet because built into it is the idea that if there’s a market crash the Federal Government will step in and BAIL OUT the BANKS, which is ultimately a bailout for the investors.
Now, who suffers in all of this? The poor and middle class of course. In a free enterprise or capitalistic housing market where the government doesn’t create insurance or incentives for investors to invest prices will fluctuate, going up and down similar to stock market prices, and the fear that prices aren’t guaranteed to rise creates the opportunity not only for homebuyers to buy homes cheap but it also serves as an incentive for the construction of rental housing. Because the main reason for the construction of rental housing collapsing revolves around more incentives to build Condos.
It’s quite simple if you think about, if you were an investor would you build a condo or a rental housing if the Federal government offered you more incentives to build rental housing, while at the same time the provincial and municipal governments via things like rental controls disincentivized rental housing? If an elevator breaks even if it was the fault of the tenants, the landlord can’t raise rental prices to pay for the costs, whereas if a Condo has the exact same problem maintenance fees can go up. Currently, as far as I know, there is no such thing as Maintenance control fee? I’ve seen maintenance fees in Toronto high rise buildings where for 2 bedrooms the maintenance fees are almost the same price as a person paying for rent.
Making matter worse, Condos can be a place where people can dump laundered or illegal money. This topic really sickens me so I’ll stop writing now.
Interesting times ahead!