TSX:ERE.UN - Post by User
Post by
DanielDarden123on Feb 23, 2023 4:16pm
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Post# 35301897
Rent Controls
Rent ControlsAre actions by desperate politicians who are trying to appease renters in the short term. In the medium and long term they negatively affect new supply, and without less demand, cause rent to ultimately rise more than they would have without controls. This is simple economics which has caused me to take a long term position here recently at discounted prices.
While interest rates are rising one should be aware that the fixed mortgages are staggered, thereby causing the blended rate to rise slightly with each renewal. This rise should be offset by improving NOI and the appreciation of property over time as supply dwindles under the rent controls.