Make home ownership affordable, OREA campaign to urge election candidates
You can read this article for yourself by going here:
well here we go again, and this is the exact reason I believe Stephen Harper got voted out. Conservatives aligning themselves with the realtors, whether it be real estate investors, developers whomever it’s these silly alliances that are costing conservatives. The moment conservatives align themselves with with OREA is the moment they’ve lost touch with average voter. The real estate industry in Ontario in Canada is so regulated as is and yet look at the disaster it caused? I mean let’s be honest here, people complain about the free market all the time but the free market could have credit this mess on it’s own.
If this real estate disaster was created by the free market, personally I wouldn’t care, I still don’t care, but if the free market was responsible for these high prices at the very least Leftist, would have an argument to make. But no this current real estate disaster we’re experiencing in Toronto is a government creation and most of the advices that lead to the regulations came from organizations like the Ontario Real Estate Association. Here’s the thing a lot of people don’t understand about regulations. Regulations are often draft by the private sector. The main reason for government regulations is to create a monopoly that government believes it can control.
To give you an example, Unions are usually responsible for minimum wage hikes. The reason unions push for minimum wage hikes is that it raises the barrier of entry to get into a particular industry. So one of the main reasons the restaurant industries are usually the last to go when it comes to small businesses is because restaurants avoid minimum wages by hiring family members or close friends. How this relates to the real estate industry is when regulations revolving around the real estate industry are drafted, the creators obviously know the loopholes when drafting, but they also can’t control is the financial sectors. They all know this going in, but what often happens are the unexpected events, as an example when the housing boom in Canada began, there weren’t many subprime lenders in the market.
The reason Canada didn’t have many subprime lenders was because interest rates were a lot higher, so a lot of Canadians didn’t even qualify for subprime loans, also the condo boom in Toronto hit people by surprise also, in the 1990’s as example condos often turned into rentals because they were hard to sell, now for some reason… I don’t know maybe it’s the combination of CMHC and subprime loans, along with foreign capital because you know interest rates are low everywhere meaning a quick flip of property isn’t that bad an idea especially when you know you can buy and hold.
The regulators never saw all this coming but somehow they want us to believe that if we give them one more chance they’ll do it right the next time… Conservatives if you align with this nonsense you’re going to be on the hook when it comes crashing down and talks of a bailout commence. I keep telling Canadians hyperinflation or deflation is a reality.
This lack of supply was created by the regulations, there are thousands of empty condo units all over Toronto, there are thousands of empty condo units all over Vancouver, the news keeps telling, these empty units are owned by rich people who visit once a year, this is another lie, these units remain empty because speculators foreign and domestic have found a place to hide their money from taxes, from drugs from a number of things. When the government creates an atmosphere where everybody knows the Canadian banks will be bailed out in a crash speculators have a basically created their own piggy bank, and the truth is many of them have no problem selling for a loss because it’s borrowed or tax sheltered money anyway.
The game being played by the Ontario Real Estate Association is they’re going to try to convince Canadians that they will solve the housing problem and who knows maybe Canadians will fall for this nonsense, but we’re getting closer to a crash and when the crash happens the BoC is going to have to decide to raise or lower rates, and the politician in charge is going to have to bailout the banks and change some policies, my guess has always been that when the crash happens amortizations will extend to 100 years, maybe 50 years but that’s my guess, and it’s things like this that irritate me the most because we didn’t need the government in the real estate market in the first place. Now what they’ve done is ruined Toronto, those condos are going to age and maintenance is going to become an issue for many of them, Ontario already has a shortage of elevator repair men, some of these condos are about 40 floors with leaky windows. It’s a disaster and it’s a government incentivized disaster.
Anyway Conservative politicians you’ve been warned!
Interesting times ahead.