It seems the GTA overheated housing market (i.e. bubble) is about to have a sharp knitting needle poked into it. All levels of government are talking of taxes to stop speculation in this “… just plain stupid ..” real estate market. As a Libertarian, I am not fond of governments sticking their oar into a free market, but this market is being gamed by outside forces. The entire real-estate industry has always been near the Pay Day Loan world in my view, but in the GTA right now, this is getting stupid. The Ontario Government did announce a bunch of measures, which may help?
I keep hearing arguments that there are ethical real-estate folks out there, and I have no doubt that there are some, but when this much money is being thrown around, the unscrupulous come running. Making 2% (or higher) on a million dollar sale, is motivation enough for some.
I note that no solution being suggested has any regulations being put on the real-estate industry? Rules and regulations in this area might be more useful, as well as an ethics watch dog in the area might help too.
Rent controls sound like a good idea, but increasing government control of the rental market worries me as well. Government regulation isn’t going to fix things, if anything it will create a more cumbersome system. Landlords will simply hire consultants to find ways to get around regulations.
The bubble has even come to Ottawa, with nutty folks speculating in the Ottawa market. I get calls daily from real-estate folks wanting to help sell the Big Cajun Hacienda (I didn’t know I wanted to sell it). Sure I might make good money selling my house, but where would I live? The only fun stories I have seen are of folks moving from YYZ to YOW, and being able to buy their new house for cash, except that might be what is causing Ottawa’s market to heat up?
As I have said, money is not the root of all evil, but it is the cause of a lot of stupid decisions.
Maybe Marijuana legalization is coming just in time, so we can all mellow out about this whole thing?
I missed a chance to be at a Financial Smart Guy Brunch (formerly known as the N.C.F.B.A), sounds like it was a rip-snorting event. I am glad my absence was noted, although the commentary about cloud chasing (while true) was not necessary (see the tweet further on). Some great new investment ideas were discussed including:
- The Blue Chip Winery Fund
- Giant Cash Bonfire Fund
- The Ultra Super Cool Ponzi Group
- Horizons Medical Marijuana Life Sciences ETF
- Thor High Growth with Ultra Stability Fund
Guess which ones are real. I would also think that Bernoulli would win in a Thunderdome Cage Match with Kahneman (but I think they may have been pulling my leg on that one).
A Money Thought
I guess there is such a thing as bad press ? I suppose it is good they remembered me.
— Preet Banerjee (@preetbanerjee) April 15, 2017