Canadian Federal Politics Thread v5

[Azure]

Originally Posted by Monahammer

That's a rational way of looking at housing economics, but there are other levers the government could pull to actually combat it. CHMC at one point did actually build housing, for example. They could do that again.

Terrible idea.

If housing is to be owned by any public entity, it should be done as close to the situation as possible.

Provincially at the very least.

EDIT: What I don't understand is how a private corporation has no problem owning properties that rent out for $800 to $1500 per month, but a government run entity like Manitoba Housing can't even get buildings they own renovated so that they CAN be rented out.

[Slava]

Originally Posted by Jacks

People who just entered the market would be hurt by a big price drop. People who bought a long time ago or who's house is paid off shouldn't really care. You have to live somewhere, if you aren't planning to move then it doesn't matter how much your house is worth, unless you are using it for loan leverage I guess. It wouldn't bother me a bit if my house dropped 30% in value, if anything I would think about upgrading. The only other people who should care about it are folks looking to downgrade or cash out, not sure that is a large percentage of homeowners though. The people who would really care are real estate investors who are a big cause of the problem, too bad for them.

Other financial assets should work that way also (retirement savings), but in practice it’s not what happens. It’s rough on people psychologically when these assets drop, and it undeniably impacts their other spending.

[Winsor_Pilates]

Originally Posted by Jacks

People who just entered the market would be hurt by a big price drop. People who bought a long time ago or who's house is paid off shouldn't really care. You have to live somewhere, if you aren't planning to move then it doesn't matter how much your house is worth, unless you are using it for loan leverage I guess. It wouldn't bother me a bit if my house dropped 30% in value, if anything I would think about upgrading. The only other people who should care about it are folks looking to downgrade or cash out, not sure that is a large percentage of homeowners though. The people who would really care are real estate investors who are a big cause of the problem, too bad for them.

So boomers who already hold most of the country's wealth would be ok and young adults who have recently entered home ownership, are raising families and trying to save for some form of future would be F'd.
Good plan!

[GGG]

Originally Posted by Winsor_Pilates

So boomers who already hold most of the country's wealth would be ok and young adults who have recently entered home ownership, are raising families and trying to save for some form of future would be F'd.
Good plan!

If you want to solve affordable housing that is the only plan. ####ing over recent buyers is a requirement of any solution.

As Firebots post of the NDP plan shows no party has a real plan other than demanding other people build housing for them. No one has a real plan because it’s not politically palatable.

[bizaro86]

Originally Posted by GGG

If you want to solve affordable housing that is the only plan. ####ing over recent buyers is a requirement of any solution.

As Firebots post of the NDP plan shows no party has a real plan other than demanding other people build housing for them. No one has a real plan because it’s not politically palatable.

Could try Georgian taxes. Shift the tax burden to land not improvements - that immediately incentivizes higher density construction on existing urban land.

[GGG]

Originally Posted by bizaro86

Could try Georgian taxes. Shift the tax burden to land not improvements - that immediately incentivizes higher density construction on existing urban land.

I really like best use taxation. It would still increases cost for existing owners of non-best use properties which in turn will reduce cost of houses. New buyers without time in the market still screwed. Less so as SFHs would face increased taxation relative to condos and they are more likely held by people in the market longer.

I also don’t know if that would meaningfully change units built