Ontario real estate tax curbs foreign buyers

You can read this article in full for yourself by clicking the link below:
https://www.thestar.com/business/real_estate/2018/04/25/foreign-buyers-dwindle-after-ontario-launches-real-estate-tax.html
Imagine the foreign buyers that we keep reading about were actually domestic buyers using foreign capital? Imagine those domestic real estate investors were not only buying to hold, but buying to flip and buying to rent out. Imagine these domestic real estate investors using foreign capital were noticing a shift in banking policies as central banks started to realise their profits were at risk, not just from newly created taxes but from flawed fundamentals.

The Canadian real estate market differs from the United States housing market because our real estate market here in Canada is far more regulated, there are plenty more government agencies watching and “protecting” the financial sector here in Canada. A lot of the protections to the financial sector in Canada were created in the late 90’s, during these times nobody ever dreamed interest rates would fall near zero, in fact back then the fear was interest rates might rise. So many of the the protections and insurances like CMHC were created to protect new homeowners, actually I should say the insurances were created to protect the banks using Canadian taxpayers as the collateral.

What Canadians forget is that our glass steagall act which allowed banks to also be insurance companies disappeared some 10 years ago, which actually allowed all of this craziness to begin. Let’s be honest here it’s worked up till now and who knows, because Canadians are so ignorant about the financials of their country and have no issues with allowing the cost of living to increase, this nonsense might continue. But what’s happening now is a peak, and I don’t think for the most part Canadians see the economic collapse that’s facing us ahead.

Well let me not use the words collapse because some people see fire and brimstone, that’s not the type of collapse I’m referring too, the type of collapse I’m referring too, is credit and the ability to get credit disappearing. That’s painful, it means people having to use the money they actually worked to buy the stuff they need, all this occuring while paying down the debts they already owe. That’s what people are missing with all this, it’s not about a collapse or crash it’s about the reality check.

Because the credit market in Canada is so regulated a lot of the people in debt aren’t poor, they’re Canada’s working class, the working class paying the most taxes. The Liberal government has already promised tax payers everything, free this, free that, high wage this, tax the rich that. everything is tapped out. To make matters worse, we’re now the government is trying to make things “fair”? Is it fair that some people are smarter than other people? Is it fair that some Canadians saved while others got into debt? Is it fair that the only way the government can get out of this mess is hyperinflation or deflation.

Canada is reaching the stage of pick your poison, hyperinflation or deflation? Deflation is a crash, hyperinflation is the devaluing of the Canadian dollar. Personally I think Canada is going opt for Hyperinflation. If American fed continues to raise interest rates the loonie is going to slide, Canada already looks less attractive than America as an investment with all of our current regulations. If the BoC continues to do nothing while the Federal reserve raises rates to compete with gold and bitcoin well… Canada will be opting for hyperinflation. Notice the talks in April 2018 of Gas prices going up… So environmentalists, but most private and public sector workers have to drive to go to work. A lot of canadians are also driving gas guzzling vehicles.

I can go on and on about this stuff, all I will say is if the market has reached it’s peak the only way to continue this disaster is to hyperinflate the loonie. If the bank does raise rates well you just created a situation where a lot of people may not legally qualify for their mortgages when they’re set to renew. Pick your poison canada