Rising rents...

[cristycurves]

I'm glad for now that I'm living in Halifax and not TO. Housing and rent prices are scary......with no sign of lowering

Soaring rents may expose flaws in longtime economic theory: Don Pittis - Business - CBC News

 

[UnderTheRadar]

In the 70s, Canada accumulated alot of debt with their social programs. Our debt continued to increase and the only way we can ever hope of paying it off is if we bring new wealth into Canada. That new wealth has come from Chinese, Indian and Arab immigrants. They have needed to buy homes for their living arrangements in Canada, hence the massive increase in housing demand and the massive increase in prices.

It is a logical result of circumstances that have unfolded.

Without the Chinese, Indian and Arab immigrants and the money they are bringing over, we would be so bankrupt, it would be catastrophic.

There is no flaw in economic theory. Supply and demand determines prices. Bring over rich immigrants faster than housing supply can be built and you will have price increases.

Sure, you could demand that new immigrants move to Winnipeg versus Toronto, but if you did that, the best immigrants and the richest ones would choose the U.S. as a result.

 

[cristycurves]

Well it appears the real estate board doesn't agree that immigrants, nor foreign money, as being the reason for higher demands in housing, since they seem to make up less than 5% of purchases. some blame the green belt policy and lack of development.

What is Causing House Prices to Rise in Toronto?

and I can't think that intelligent immigrants are wanting to flock to the US, but what do I know, lol:sorry2:Hmmmmmm

 

[UnderTheRadar]

Well it appears the real estate board doesn't agree that immigrants, nor foreign money, as being the reason for higher demands in housing, since they seem to make up less than 5% of purchases. some blame the green belt policy and lack of development.

What is Causing House Prices to Rise in Toronto?

and I can't think that intelligent immigrants are wanting to flock to the US, but what do I know, lol:sorry2:Hmmmmmm

What are you talking about? You don't think people want to go to the U.S?

Are you using your emotions or reasoning to make that statement?

 

[User-L]

In the 70s, Canada accumulated alot of debt with their social programs. Our debt continued to increase and the only way we can ever hope of paying it off is if we bring new wealth into Canada. That new wealth has come from Chinese, Indian and Arab immigrants. They have needed to buy homes for their living arrangements in Canada, hence the massive increase in housing demand and the massive increase in prices.

,

Not quite. Many foreign home buyers purchase them for investment purposes only. That's the reason for the new tax in BC. Too many are buying homes that locals can't afford, keeping them vacant while property values rise, flip them for more money to the next guy who also keeps it vacant, and so on. I think there were something like 10,000 perfectly good single home dwellings vacant in Vancouver, while housing and rental units are so desperately needed.

 

[Robintheboywonder]

The blame should go to the landlords that found a loophole that allows them to double their rent if so they require.

 

[UnderTheRadar]

The blame should go to the landlords that found a loophole that allows them to double their rent if so they require.

The landlords should be able to double or triple their rents if they see fit.

Profit sends a signal to producers that they should invest their monies in the same venture. This then creates an influx of new supply and prices eventually fall.

People made money in real estate before hand, but now the government wants to stop current owners from selling and making capital gains? Not fair at all.

 

[Fuggedabouditt]

After leaving my condo/apartment, I looked in to buying a house or condo, a new condo was being built and I researched the builder and added about 6 months to anticipated closing and was ready to thrown down the deposit when I read what the policy was, basically within a year, they wanted about 80k (in installments) before they would consider the unit secured. As much as I liked the condo and the area, I opted out for other reasons, but the installment plan seemed ridiculous and out of reach for the average person.

I did the math and put in to consideration my age and I just didn't want to be locked in to a 25 year amortization and even though real estate is a good investment, the headaches of past home ownership is something I didn't want any longer; this would've been my 5th house. So I opted to rent and the landlord/homeowners have looked after all of the repairs at their cost. I've been lucky to have good landlords but they're also lucky to have me as a tenant as I look after the property like it was my own. They haven't raised the rent since I moved in, we agreed on this based on a multi year occupancy.

The housing market has swelled so much, it's ridiculous and I don't know how people can afford to purchase a home on a single income let alone an average dual income. The people who can are doing exactly what the article says, flipping or renting out until they want flip. This creates a huge market for those that can't afford downpayments.

 

[Fuggedabouditt]

The landlords should be able to double or triple their rents if they see fit.

Profit sends a signal to producers that they should invest their monies in the same venture. This then creates an influx of new supply and prices eventually fall.

People made money in real estate before hand, but now the government wants to stop current owners from selling and making capital gains? Not fair at all.

And this creates a home ownership glut and adds to poverty and homelessness. This also creates a need for affordable housing that the government is partially responsible. The government obviously sees the collateral damage this glut has and is trying to put a stop to it before it starts costing them. Not exactly investor friendly but it's society friendly.

 

[papasmerf]

Seems to me that 30 years ago....50 bucks got you a lot more with the ladies.

Hell ten years ago 150 got you more.

Seems that inflation combined wit expenses has brought that number up.

I have to wonder if Landlords have expenses and they, like the ladies need to charge more.

 

[Polaris]

I take a very negative view of this situation.

It is a sign of decay of Ontario, maybe even Canada.

What is the solution here? There is none. All anyone wants to do is point fingers. Then the 1% stays silent.

Affordable housing is a pipe dream. Unless you move to the sticks, that is what affordable housing use to be.

Nowadays, affordable housing, is suppose to be good place, good location, low price.

Before, when you cannot afford the rent, you move somewhere more affordable. Today, when you cannot afford the rent, the government insists on something. What that something is, we don't know. They will meddle for no solution.

Downtown Toronto for example, is expensive to rent. Is it the role of government to make downtown Toronto not expensive to rent?

I would say no. People could move to the sticks, to somewhere more affordable.

However, the Liberal government says they will address the problem. Usually by rent control.

Does rent control make developers build more rental units, or does it make rents go down? The answer is no to both.

No new rental units are being built in great numbers and rents remain high. And demand from rental units remain high. This problem cannot be solved currently.