Real Estate

Why doesn't the government just let the free market control housing prices?

  • Last Updated:
  • Oct 16th, 2017 1:56 pm
[OP]
Jr. Member
Jan 16, 2017
141 posts
63 upvotes

Why doesn't the government just let the free market control housing prices?

I don't understand why are the Liberals trying to make housing affordable to everyone? Why not just let the free market be in control of the housing market?

I am no econ major but what is the point of
  1. rent control
  2. foreign buyers tax
46 replies
Member
Jun 15, 2017
284 posts
126 upvotes
reesefitzmaurice wrote:
Oct 10th, 2017 9:59 pm
I don't understand why are the Liberals trying to make housing affordable to everyone? Why not just let the free market be in control of the housing market?

I am no econ major but what is the point of
  1. rent control
  2. foreign buyers tax
Rent control because they felt few tenants are exploited by some landlords by increasing rent abnormally.... so liberals thought it is wise and appropriate to exploit all tenants by charging high rent which is future proof...

Example if a one BR condo in downtown is around 1800-1900 before rules, and if some greedy landlords increased existing tenants $2300 ... liberals thought it is not good and to teach those some very few landlords.. thought it is wise to adjust it to 2000-2100 for all new tenants so that it will be balanced.
In a way to protect some of existing tenants, they screwed whole rental market...
Jr. Member
Jun 19, 2017
189 posts
349 upvotes
Because governments is ultimately on the hook for bailing out our financial system if it fails. Therefore government wants to make sure that the prices are supported by fundamentals, and have the right to take action. I as a taxpayer am not interested in bailing out speculators.
Newbie
Feb 11, 2016
73 posts
78 upvotes
reesefitzmaurice wrote:
Oct 10th, 2017 9:59 pm
I don't understand why are the Liberals trying to make housing affordable to everyone? Why not just let the free market be in control of the housing market?

I am no econ major but what is the point of
  1. rent control
  2. foreign buyers tax
The whole monetary system is made up by government. They tweak things to keep the economy chugging along and minimize / avoid bumps on the road to continuous economic expansion. Housing is just another piece.

Or that's the theory anyway..
Deal Addict
Feb 9, 2009
4659 posts
2338 upvotes
reesefitzmaurice wrote:
Oct 10th, 2017 9:59 pm
I don't understand why are the Liberals trying to make housing affordable to everyone? Why not just let the free market be in control of the housing market?

I am no econ major but what is the point of
  1. rent control
  2. foreign buyers tax
Trying to win votes... it always comes down to that.
Sr. Member
Oct 6, 2015
900 posts
436 upvotes
The elephant in the room is the CMHC. They've pumped so much credit unnaturally into the system that at least for many years, housing was an impossible-to-lose proposition. Now that this has run its course, prices are falling quite rapidly.
Sr. Member
Aug 19, 2016
867 posts
310 upvotes
Why not let utility companies run their course? Imagine a cup of water will cost as much as a brick (a house).
Deal Addict
Dec 27, 2006
1126 posts
292 upvotes
reesefitzmaurice wrote:
Oct 10th, 2017 9:59 pm
I don't understand why are the Liberals trying to make housing affordable to everyone? Why not just let the free market be in control of the housing market?

I am no econ major but what is the point of
  1. rent control
  2. foreign buyers tax
Are you ok with:

Homebuyers redemption plan
Home buyers renovation tax credits
Tax free cap gains
Ultra low interest rates
CMHC
BC. Home Owner Mortgage and Equity program
Etc
Deal Guru
User avatar
Nov 15, 2004
14279 posts
1551 upvotes
Toronto
Motoss wrote:
Oct 11th, 2017 12:01 am
Are you ok with:

Homebuyers redemption plan
Home buyers renovation tax credits
Tax free cap gains
Ultra low interest rates
CMHC
BC. Home Owner Mortgage and Equity program
Etc
Tax exemption for sale of primary residence
Artificial suppression of home sale data
Deliberate non-enforcement of bylaws that ban illegal apartments and rentals

Also, why are we even allowing non-residents to buy residential real estate here? Why can't we do what China does and place heavy restrictions on all foreigners who attempt to buy in the country?
Could HAVE, not could OF. What does 'could of' even mean?
Deal Addict
Feb 9, 2009
4659 posts
2338 upvotes
Piro21 wrote:
Oct 11th, 2017 12:16 am
Tax exemption for sale of primary residence
Artificial suppression of home sale data
Deliberate non-enforcement of bylaws that ban illegal apartments and rentals

Also, why are we even allowing non-residents to buy residential real estate here? Why can't we do what China does and place heavy restrictions on all foreigners who attempt to buy in the country?
hmmm we need immigration... they dont.

any other questions?
Deal Guru
User avatar
Nov 15, 2004
14279 posts
1551 upvotes
Toronto
Sanyo wrote:
Oct 11th, 2017 12:23 am
hmmm we need immigration... they dont.

any other questions?
Non-residents aren't immigrants. A foreign buyer's tax has no effect on an immigrant to this country.
Could HAVE, not could OF. What does 'could of' even mean?
Deal Addict
Feb 9, 2009
4659 posts
2338 upvotes
Piro21 wrote:
Oct 11th, 2017 12:25 am
Non-residents aren't immigrants. A foreign buyer's tax has no effect on an immigrant to this country.
Most of them buy for them to live eventually or their children to live (school, work etc) or to invest for tenants. Sure some just buy to speculate....

Already said to ban foreigners if you want... thing is Canada govt won't entirely give up the gravy train of foreign money
Newbie
May 2, 2017
61 posts
50 upvotes
I guess liberals need votes. If you really want to know, you can ask Wynne or Sousa through e-mail.
Deal Addict
User avatar
Dec 13, 2016
1070 posts
802 upvotes
Qrewpt wrote:
Oct 10th, 2017 10:39 pm
Because governments is ultimately on the hook for bailing out our financial system if it fails. Therefore government wants to make sure that the prices are supported by fundamentals, and have the right to take action. I as a taxpayer am not interested in bailing out speculators.
Thanks for the lolz.
Member
May 9, 2017
376 posts
409 upvotes
Qrewpt wrote:
Oct 10th, 2017 10:39 pm
Because governments is ultimately on the hook for bailing out our financial system if it fails. Therefore government wants to make sure that the prices are supported by fundamentals, and have the right to take action. I as a taxpayer am not interested in bailing out speculators.
They'll bail out financial institutions that lend to the speculators , not the speculators themselves, don't you think? Maybe that's what you meant.

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