The Rental Markets In Canada, have some serious challenges in the future, Raising interest rates doesn’t guarantee landlords higher rents, it may lead to Sketchy Tenants, who skip paying rent – May 29, 2022,
So I was listening to some people in the rental markets, saying that they expect to collect higher rents in the future, as borrowing costs increase, and although this is true, I think landlords are ignoring, what Justin Trudeau did to the Canadian economy with all of his additional regulations on the private sector. Long before Justin Trudeau became the Prime Minister of Canada, the Canadian government was ALREADY big.
I can’t blame everything on Justin Trudeau, because for example CMHC getting involved in mortgage back securities, dates back to 1999, you know back when Justin Trudeau was wearing blackface so many times that he can’t remember. We can’t ignore that the provinces many of which embraced rent controls, created housing shortages in the 1990s, and the then Federal Government, looking to stimulate growth in housing decided to make an aggressive push to make more Canadians homeowners.
Because British Columbia has long embraced NDP(Democratic Socialism) leadership, their housing market was the first to experience rapid price inflation, why? Because the NDP government had ALREADY been taxing more private sector businesses than most parts of Canada to build housing, government permits here, tax businesses there, regulate this tax that. Meaning that the COSTs to build housing would be more expensive in British Columbia, so before Toronto’s real estate market took off, Vancouver’s housing market experienced rapid PRICE growth.
Now in other parts of B.C they’ll argue that they didn’t experience the same sorts of gains as did Vancouver, but the values of their properties still went up, because of the Federal Government. I bring this up because these gains occurred LONG BEFORE Justin Trudeau declared war on Fossil fuels. Justin Trudeau’s war on fossil fuels is the main reason why consumer price inflation is running rampant in Canada.
I like to point out that Donald Trump who became President of the United States early on in Justin Trudeau’s term as Prime Minister was the best thing to happen to Trudeau. Although Donald Trump did a lot of spending, Trump did not overly regulate U.S Oil and Gas. The U.S is Canada’s largest trading partner, and because of PRIOR environmental laws that existed in Canada, long before Justin Trudeau, Canada, relies on the United States and other countries to send us a finished petrol product.
Now, because Oil trades on the FUTURES markets in U.S dollars, and U.S oil production via Joe Biden is being overly regulated, there is a shortage of competing factors willing to send Canada petrol-based products at low prices. What I’m getting at are higher costs of living, which ultimately will equate to a lower standard of living, for WORKING class Canadians, many of who, these landlords will be reliant on to pay off their mortgages.
It’s Those Evil Profit-Driven Landlords and Not Trudeau Raising The Cost of Living, The Government Needs to Do Something About It Those Evil Landlords
I’m sorry if the prior paragraphs, were hard to understand, but I’m trying to keep this post as short as possible. In a nutshell, THE COST OF LIVING is NOT coming down in Canada. If you watched the video I point to in this post, you’ll notice that the Left-wing media is already trying to create a scapegoat for their beloved Trudeau. It’s that EVIL LANDLORD raising my rents and I feel justified in destroying their property, not paying my rent on time, or voting for a tyrannical politician who will promise me that rents will not go up.
If you’re involved in real estate or selling some sort of ESSENTIAL service, do not ignore, the market conditions being created by the government. You might understand how economics works, but the average Canadian, LEFT or RIGHT wing does not. When prices go up, most people INSTICTIVELY blame the private sector. Good luck breaking down Free market capitalism to an emotional person, who is broke and looking for someone to blame.
Blame Trudeau, you might same, and they’ll reply, Trudeau isn’t raising my rents, you and you evil capitalists are raising my rents. I’m letting you would be real estate investors, know, that this is what typically happens when consumer price inflation threatens to lower people’s standard of living, these VOTERS will seek out a scapegoat and you and your rental property, may inadvertently find themselves with a new relationship with the State.
Justin Trudeau is a very talented drama teacher, I’ve listened to his speeches, if I knew nothing about economics, I’d believe him, he’s a very convincing good looking man. Nineteen Eighty-Four is a great read for times like these because people like what they imagine are EASY solutions. Being that most people involved in real estate investing are indeed in debt, you’re compromised, unless ofcourse you sell while you can?
By the way, I’m not telling any of you to sell, I’ve been arguing that interest rates could go NEGATIVE, once it becomes obvious that without Austerity measures, it’s unlikely consumer price inflation will stop. Now, don’t get me wrong, consumer price inflation might not hit everywhere, sometimes, as an example, a local business might OUTSOURCE instead of producing locally, or maybe some businesses will liquidate, meaning sell off their inventory at a discount and remake their business model and/or go bankrupt.
consumer price inflation doesn’t happen in a straight line, people will adjust, it’s just that the adjustments, might take some time. The great depression lasted 10+ years, and a reminder it started when wage earners wanted the government to play a more active role in price-fixing. a reminder that there was a DEMAND at the time for Franklin D. Roosevelt(FDR).
Herbert Hoover had only suggested the private sector NOT cut wages, during an economic downturn and this is one of the reasons why the Private Sector at the time stopped hiring. FDR created a FEDERAL minimum wage and Social Security, which was in huge demand at the time. During an economic downturn people especially those ignorant of the economic consequences, want EASY answers, and they’ll wait decades and wars just to have their cake and eat it too!
As a landlord, you should understand that raising rents, comes with additional COSTS! Yes I get it, you’re mortgage costs might rise with interest rates, but your customers can turn to the government to do something to PUNISH you. So this is something, you’ll want to consider prior to getting excited about raising your rents.
Interesting times ahead!