Post by
HermannHaller on Mar 28, 2022 10:03am
New government intervention?
Article from last week on BNN suggests that some of the weakness in residential REITs is due to fears about new goverment measures. I don't understand this. Can someone explain to me how an owner of residential apartment buildings (many already under rent control) could be responsible for driving up home prices?
https://www.bnnbloomberg.ca/residential-reits-in-canada-lag-as-trudeau-weighs-investor-curbs-1.1742571
Ultimately, even if Cdn govt tried something, MRG has half of its assets in US, so should be partially protected.
Comment by
nini2022 on Mar 29, 2022 9:10am
I'm also having a hard time how any measures would negatively impact apartment REITs. These REITs are providing more "affordable" level units....harming their business would just mean less incentive for new lower/mid-tier apartments.
Comment by
Capharnaum on Mar 29, 2022 11:40am
I think they imply that rent control measures could be put in place, which would "hurt" the residential REITs.