Another Disaster Created By The CMHC: East-end Toronto arts organization on verge of becoming ‘homeless – May 12, 2019,

Reports keep surfacing about money laundering all over Canada, part of the reason for money laundering comes from the BoC keeping interested rates artificially low, because if Bank of Canada Interest rates go up a whole lot of Canadians will find their access to credit shrink, which could not only cause the price of a mortgage to rise but can also trigger a housing crisis. But worse than the currency manipulation is the Canada Mortgage and Housing Corporation which subsidized this mortgage stimulus which in reality is hurting commercial real estate the most.

If you come to Toronto, blocks, and blocks of Commercial real estate is being replaced with Condominiums, now again, they’re not being replaced with rental housing, no, they’re being replaced with expensive condominiums. I should point out that it’s not like every condo being proposed is being bought, there’s a common theme in Toronto that poorer parts of Toronto are still having a hard time getting condo units sold off, why? Because it’s unaffordable, which is an indication that there’s a lot of money laundering going on or that the prices aren’t really reflective of actual market demand.

What’s happening in downtown Toronto really is disgusting and the truth of the matter is that it’s really going to cause some major inconveniences in the future. When you go to a lot of these sections of the GTA which are experiencing an economic boom, there’s an eeriness to it, a blandness, don’t get me wrong there are nice areas in the GTA which will hold their value over time, but there are also a lot of other areas that won’t have much of an identity as many of its residents will be inconvenienced by development.

CMHC intervention into a market that would have been fine without them is making a lot of businesses homeless. Sure this is only Art, some may argue, but the truth is a lot of smaller businesses have been shutting their doors and relocated, which is giving Toronto that Corporate feel, by that I mean you’re seeing a lot of big-box retailers occupying spaces that used to be homes to small and medium-sized businesses in some areas while in others they’re being replaced condos. Why this can become problematic is in the event that those big box stores are forced to close, which is happening at an alarming rate because of the internet and rising business-related costs, it becomes very hard to replace them. Eaton Centre as an example had to go through serious renovations when the Eatons store shut down.

Expensive commercial spaces do a lot of damage to a neighborhood or an area whose customers may not exist to the level it may have anticipated. It’s very common for businesses in Vancouver to go bankrupt very quickly because they may have assumed that because an area was filled with Condos that it would have a huge surplus of customers, many businesses in Vancouver learn the hard way that a lot of condos are empty or owned speculators or foreigners who show up once or twice a year. In Toronto, a lot of the people who go downtown don’t necessarily live downtown and a lot of the Condos all over the downtown core are empty and making matters worse a lot of the people who go downtown do their best not buy anything because prices downtown are inflated.

When small and medium-sized businesses start disappearing for condos, it should be a worrying sign. The article below writes about an East-end Toronto arts organization on the verge of homelessness, but the truth is most businesses, don’t contact the media when they’re closing their doors. Malls all over the GTA are losing tenants, it’s not that those commercial tenants aren’t being replaced, but businesses are now struggling more than ever to remain solvent and that should be worrying because fewer consumer options equate to higher consumer prices. Now, for the most part, this was avoidable if CMHC stuck to rental housing instead of insurance for mortgages. Canadians better pray that America doesn’t have a recession, because of our debt levels and cost of living, we’ve maxed out public sector spending and our private sector is shrinking.

East-end arts organization on verge of becoming ‘homeless,’ councillor calls on city to help – CBC

Interesting times ahead.