This is a really positive approach to help take the incentive that exists to monetize housing which has contributed to the affordability challenges we face today. I love the thoughtfulness of phasing in the policy over 5 years to give real estate investors that made financial decisions within the existing rules time to plan their next steps. It isn't fare to change the rules when someone took advantage of the rules they had when they made the decisions.
This is a really smart proposal. Unfortunately it requires people to prioritize national productivity and the long-run good of the country over real estate wealth, and we’re all caught in a tulip bubble delusion/transitional gains trap whereby nobody in Canada now knows how to back out, so we can only go deeper into the housing bubble eating everything.
I never would have guessed that in retrospect I’d wish for a 2008 housing crash in Canada like they had in the States. Instead, our vaunted stability through that time just led to an even bigger bubble from 2009-2022.
Feedback loops require outside intervention to break. Smart policy could be that intervention, but like you I suspect that Canada is going to learn this lesson the hard way.
This is a really positive approach to help take the incentive that exists to monetize housing which has contributed to the affordability challenges we face today. I love the thoughtfulness of phasing in the policy over 5 years to give real estate investors that made financial decisions within the existing rules time to plan their next steps. It isn't fare to change the rules when someone took advantage of the rules they had when they made the decisions.
This is a really smart proposal. Unfortunately it requires people to prioritize national productivity and the long-run good of the country over real estate wealth, and we’re all caught in a tulip bubble delusion/transitional gains trap whereby nobody in Canada now knows how to back out, so we can only go deeper into the housing bubble eating everything.
I never would have guessed that in retrospect I’d wish for a 2008 housing crash in Canada like they had in the States. Instead, our vaunted stability through that time just led to an even bigger bubble from 2009-2022.
Feedback loops require outside intervention to break. Smart policy could be that intervention, but like you I suspect that Canada is going to learn this lesson the hard way.