RE:Tick tockautofocus111 wrote: This could be a problem
>>>The agreement between Trudeau’s governing Liberals and the New Democratic Party says the government will act on the “financialization of the housing market by the end of 2023.” No details were given, but in last year’s election the Liberal platform pledged to review the tax treatment of large corporate owners of residential properties such as real estate investment trusts to “curb excessive profits.” Such a move, if implemented, has the potential to impact publicly-listed real estate firms including Canadian Apartment Properties REIT, Minto Apartment REIT, InterRent REIT and Boardwalk REIT.
https://financialpost.com/real-estate/liberal-ndp-power-pact-promises-to-tackle-housing-costs-may-target-reits
Auto thanks for posting that. Certainly makes sense when we see the sector sold off.
Too bad the Libs and NDP can't figure out the true sources of housing inflation: Foreign Money Laundering in Canadian RE and ZIRP, combined with aggressive immigration of wealthy families ready to buy up productive Canadian assets; detached homes and condos have become the vehicle of choice, along with farms and other steady, low-margin businesses.
Canada is for $ale, and we can thank the govt for not taking appropriate measures to ensure wages and inflation keep pace with each other. Liberal's are printing and spending, now looking to take more from corporations to fund the spending spree. Vote buying is not a sustainable pursuit. Eventually a recession comes and we will see who's swimming naked in the high seas.
Some near-term solutions to curb RE inflation would be:
1. Limit non-Canadians to the ownership of no more than ONE family residence
2. Increase tax on empty homes owned by non-Canadians
3. Introduce a forced "holding period" of 36-60 months for non-Canadians
4. Eliminate capital gains exemptions for non-Canadians
You would be surprised how implementation of some measures targeting the "frequent" buyer/seller will slow transactions and cool off the frantic activity in housing. REITs were not an issue a decade ago, and they don't seem to be today.
At some point the risk-takers need to get slapped and the savers must be rewarded.