NDP Housing Platform 2019 – ‘The housing crisis is out of control’ The fatal flaw with their housing platform – August 30, 2019,

I thought advertising on Social media wasn’t allowed during the elections, but for whatever reason, I was sent the following advertisement on Facebook.

Below

The housing crisis is out of control
People can’t afford to wait until 2020. Add your name to support action on housing now – including half a million new affordable housing units:

When it comes to housing, Trudeau’s Liberal government has pulled the rug out from under Canadians. They campaigned on a housing plan, but have wasted time and held back funding for years instead of fixing the problem.

Average rents are up in every province and families are struggling to stay housed in communities where they live and work. With 1 in 5 households spending more than 50% of their income on housing, Canadians can’t afford to wait any longer.

We’re calling for immediate action to:

Add half a million new units of quality affordable housing over the next 10 years
Help renters who are at the breaking point before it’s too late with a rental subsidy in the 2019 budget
Take the pressure off first time buyers as they transition to homeowners by doubling the Home Buyer’s tax credit
It’s time to unlock the housing crisis. Add your name to show your support for Jagmeet and our NDP Team as we fight for the solutions people need now.

The housing crisis is out of control – NDP.ca

Now, obviously I didn’t sign up to receive this, but Facebook thought I’d be a good candidate, so I’m going to give my 2 cents on the NDP housing platform.

The NDP housing platform is actually going to cause housing prices to rise because firstly they haven’t addressed:

how they plan to address sellers of real estate lowering their selling prices?

and…

they also don’t explain how a “rental subsidy in the 2019 budget” will stop landlords from raising rents?
What good is a Home Buyer’s tax credit if the price to buy a home gets even more expensive? When the Crown Corporation known as the Canada Mortgage and Housing Corporation(CMHC) began selling mortgage-backed securities and being a mortgage insurance company, they forget that their existence would force real estate prices up, more buyers of real estate, higher prices, it’s common sense, adding to the disaster is the Bank of Canada(the BoC) who have lowered the cost to borrow money, of course, the end result of this is higher real estate prices, but compounding this problem are rental controls, the government can’t stop a private rental apartment from raising their listing price, the government can only create rental controls that prevent landlords from raise rents above a certain price threshold after a tenant has already moved in.

People like me have aid end rental controls because rental controls prevent competition, however being that rental controls exist in almost every province in Canada, CMHC being a real estate fund helps to fuel Condo development overbuilding rental housing. Now, sure the government can build housing, the problem with the government building housing, however, is the maintenance of that housing. In Toronto, as an example, a large number of government housing projects put an extensive financial strain on the municipal and provincial governments. Government employees have to maintain these Government projects and if they don’t often these community housing projects will be destroyed, by supposedly poor people who need a place to live.

Government housing is financed by the private sector, so in order to maintain these government housing projects, the Government often has to raise taxes, one of the reasons the government wanted to get more middle-class people into the housing market was to free up housing for the poor, well that CMHC experiment has clearly failed and being that the NDP is supposed to be a socialist political party for the poor, at the very least, they should address the failures of current government policies related to the CMHC.

If you’re an NDP supporter please ask your political party for more specifics in their housing plan. Because the money has to come from somewhere and if their real estate redistribution scheme involves no market fundamentals, ask them for specifics of how they plan to achieve their aims in the LONG TERM!.

Interesting times ahead!