Happy Monday Morning! Last week we introduced the home flipping tax. A seductive new tax introduced by the BC Government that will hit evil speculators with a 20% tax on any profits derived from flipping a property within two years. Remember this new tax comes on top of the tax CRA already collects which, for any home flipped within one year of acquisition is deemed active business income, not capital gains.
OMG! Did any of these politicians take Econ 100? The market is the intersection of the supply and demand curves and any attempt to manipulate either curve doesn't work without unintended consequences. Laughingly the 2 examples I remember fron when I took the course 30 years ago were rent controls and minimum wage.
The only thing the market needs is time and the problems will sort themselves out. This requires a cyclical economy with up's and downs. No goverment wants a down on their watch and this is where it all starts (aka the money printing of 3 years ago).
I work in presales and I can honestly say this is spot on. I hope all developers are talking to our politicians and making aware the hurdles this new tax would bring.
Apt analysis. .. I'll add : The tenant /residential act, as it is written, is just one more reason many land owners are reluctant/fearful to rent out long term; They have no rights. The silly powers that be, should be amending the residential act to give reasonable power/rights to landlords, rather than none.
You got it Steve. Right on with this post. Between the RTB, rent controls, and a punitive permitting process in the COV, it’s killing investment and biting the hand that feeds.
OMG! Did any of these politicians take Econ 100? The market is the intersection of the supply and demand curves and any attempt to manipulate either curve doesn't work without unintended consequences. Laughingly the 2 examples I remember fron when I took the course 30 years ago were rent controls and minimum wage.
The only thing the market needs is time and the problems will sort themselves out. This requires a cyclical economy with up's and downs. No goverment wants a down on their watch and this is where it all starts (aka the money printing of 3 years ago).
Bunch of bafoons at the helm.
I work in presales and I can honestly say this is spot on. I hope all developers are talking to our politicians and making aware the hurdles this new tax would bring.
Apt analysis. .. I'll add : The tenant /residential act, as it is written, is just one more reason many land owners are reluctant/fearful to rent out long term; They have no rights. The silly powers that be, should be amending the residential act to give reasonable power/rights to landlords, rather than none.
Your best analysis. EVER.
You got it Steve. Right on with this post. Between the RTB, rent controls, and a punitive permitting process in the COV, it’s killing investment and biting the hand that feeds.
Xavier Milei said it best "you are the problem" ,referring to the W.E.F and all governments!
Fabulous article Steve and like you said , don`t let the truth get in the way of politics!
Evil ll speculators is that hate speech?
happy mnoaday Mornig!!!!!