Quote:
Originally Posted by FunkyColdMedina
(Post 8682465)
Honestly, my vote would go to whomever had the strongest stance on combating foreign investment and levelling the playing field (real estate-wise) for Canadian citizens. As well as taking a tougher stance on immigration fraud, PR residency requirements, and in general creating tougher borders.
Call it small-minded but I'm able to pay for school without taking on debt and/or borrowing from the bank of Mom & Dad, I am studying and doing a co-op in a field that is 90% likely to get me a good job after graduation, and the only real "struggle" I think I will face is buying a house in today's inflated market.
But it's hard to choose as they all seem pretty wishy-washy with their "promises" and policies. Harper says if he is re-elected, he will look into whether Canadians are being held at a disadvantage in the real estate market. My question is, why didn't he do this for the last 7 years....? If he started taking a firm stance on foreign investment back in 2006, a lot of the problems we face in Vancouver, Toronto, et al., would be nonexistent. Then there's the matter of the immigrant investor program, which to me was a huge fucking joke... |
I will make the assumption that you, like many others, have never really considered the macro economic impact of the housing market that we have seen over the last ten years.
The reality is this, if the gov did not fan the RE flames for the last decade, we would likely have experienced an extended period of limited growth or potentially even recession. Finance, real estate, and construction together make up nearly 25% of our GDP... if there was no housing bubble, what would be filling the void?
By "increasing the effectiveness" of the CMHC (40 year + Zero down mortgages) and cutting the overnight lending rate the Gov. made home ownership much more affordable (on a monthly payment basis anyway lol). The banks could now approve mortgages for people they would not have traditionally approved mortgages for as CMHC protects them from any significant financial losses. What did this do? Well obviously it got builders slapping houses/condos together at an alarming rate, this created thousands of jobs, consumed massive amount of raw materials, and supported a huge manufacturing base.
The gov knows that if mortgage rates were to revert to the mean tmw there would be a lot of people in deep shit, luckily Canada can keep rates depressed for many years to come as our debt to GDP ratio is the best of any G7 country which provides a financial insulation of sorts for the country. (Lower debt to GDP means you can borrow at a lower costs, less risk = lower bond yields)
It's not that the Gov doesn't realize what's going on, they facilitated it, and until some other economic segment can pick up the slack, don't expect any serious regulation to come in that would put downward pressure on home prices.
So what's it all mean, right now homebuyers are like "damn I don't make enough money"... if the housing bubble never happened it would probably be more like "damn I don't have a job".
It's a brief and ugly explanation... but it's all there.
Edit: BTW Manic, you know that harperman news about guy getting put on leave is almost a month old now right?