2 ms·
Canadians take sides on housing market, divided in desire for prices to rise
- aurizon 6y agoCanada has created a ratcheting mechanism that ends with the satisfaction of rent seekers. Consider, interest rates are 2-3%, but returns on housing are far higher. Why? People MUST have a residence, so many are herding together with bunks so a 2 bedroom has 2 bunks in each bedroom = 4 people x 2 = 8 people diving rents. Often married +2 kids etc etc. As lomg as they keep a low profile and do not party hard they fly under the radar. Many have no cars. How to fix? Easy. declare rentals a business, thus the cities will add a business tax. The business tax ruins the positive rent seeking feedback by extracting money and making the rentals uneconomic. If they sell to an owner who lives there = no business = no business tax. This will cause an inexorable decline in the rent seeking aspects and a growth in owners who live there. You can exempt owners who live there from paying a business tax of they rent out a bedroom.