Quote: Originally Posted by spaminator
LIE-berals have issued so much Fake News it is now contradicting itself!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!
Here is an older article reminding us that LIE-berals completely failed to devise any sensible solution to the Vancouver housing market mess And they dd not do well in Toronto either! With some comments of my own in brackets):
Hunger for substance could nix BC’s ‘mirage’ home buyer plan
By Tom Parkin, Postmedia Network
First posted: Sunday, January 08, 2017 06:41 PM EST | Updated: Sunday, January 08, 2017 06:46 PM EST
B.C. Premier Christy Clark is betting everybody loves free money — and won’t think much more about it.
Last month, her B.C. Liberal government announced a $700 million plan to pay five years of interest on up to $37,500 in mortgage debt for first time home buyers.
It sounds like a plan every politician has to love. So it took some courage for B.C. NDP Leader John Horgan to oppose it. He’s trusting the intelligence of voters to realize it’s a mirage. Home buyers will be the plan’s victims, not its beneficiaries.
But will his stand pay off?
(Clearly the mirage money offer did not win favour! In 2 short years BOTH Clark and Horgan are gone! With the NDP now running the show! Cdns have become very wary of govt that offers anything for “free”! This years deficit is CLEARLY next years tax rate increase!)
(And isnt it odd- as soon as federal LIE-berals took sufficient heat over their indifference to white collar crime and became motivated to do something and dispatched CRA auditors and RCMP to begin chasing laundered money and foreign tax cheats- the Vancouver housing market pretty much stalled out! Rapidly slowing sales and no more wild price increases!!!!!! )
Housing prices are already jacked-up by low interest rates. Currently, a $1,000 weekly mortgage payment can borrow about $250,000 more than at more typical rates.
Now, if one buyer could borrow $250,000 for free, it’d be an advantage over other bidders. But when all buyers have the same access to the same cheap credit, it’s a mirage. All equally armed with cheap credit, buyers bid-up prices to a new equilibrium. What’s saved with lower interest rates is spent in price inflation.
(And of course its all just standard socialist bait and switch garbage! Pay now or pay later- PLUS INTEREST! Its just LIE-beral sleight of hand with the bills- in hope of making suckers of voters!!!!)
Now the B.C. Liberals plan to dump free credit on top of cheap credit. They estimate 42,000 people will take the money. If home buyers borrow an average additional $30,000, the plan will pump a $1.3 billion credit surge into the housing market.
Premier Clark suggests $1.3 billion in free credit will help young and working class families buy their dream. But if she doesn’t understand the housing market, her economists do. New credit will bid-up prices. New buyers will need to load up on more debt to get the same house.
(Yes- this is just the usual feel good LIE-beral announcement that actually resolves NOTHING!!!!!!!!!!!!!!!!!!)
Even most current home owners won’t benefit. Higher prices will make them feel richer. But their houses haven’t changed. They’re not living better. A seller who then buys back into the same inflated market gets no benefit.
(LIE-berals LOVE that paper profit! If your house is more valuable then they can CHARGE MORE real estate tax and earn themselves MORE GRAVY- which IS the point of the exercise!!!!!!!!!)
The $1.3 billion bulge will flow through financial institutions to land developers, landlords and real estate agents. It’s no surprise the B.C. home builders association, the Vancouver real estate board and the Urban Development Institute love the B.C. Liberal plan.
It’s bad politics — a few months before an election, using public money to rally private economic interests. A $1.3 billion credit bonanza imposes its own pro-government message discipline. Mostly of the cheerleading variety.
Real estate agents will get paid a percent of bigger sale prices. Landlords can benefit by refinancing higher-priced property, taking gains and pushing up rents. Financial institutions will extend more credit, with five year teaser rates paid for with $700 million in public money.
(And LIE-berals will rake off higher rates of sales and income tax- meaning MORE GRAVY- WITHOUT the unpopularity that comes with simply raising taxes! After all, free money is BETTER than higher taxes isnt it?????????)
But the biggest slice surely will go to land developers. The cost of building didn’t increase. But the market price of a new house sure did.
The scheme transfers wealth from taxpayers to industry players, leaving homeowners with more risk.
(Shall we point out that home owners generally don’t donate to political parties- but that business people- such as developers often do!!!!!!!!!!!!!!!!)
When interest rates rise, housing prices may go down. But a home owner’s mortgage debt won’t. Higher rates on a bigger debt means a bigger mortgage payment hike. It means homeowners with less money to spend — and some who won’t be able to keep up payments. If there’s a bubble to the B.C. housing market, Clark’s adding to it.
(Oh but what happens to home owners next year is of no concern to a politician fighting for her career right now- as Clark was!!!!!!!!!!!!!!!!!!!)
The response to Horgan’s stand will be telling. Revolt at the pablum being spooned to voters — at their own risk and expense — would suggest a healthy hunger for substance in politics has returned.
Tom Parkin is a former NDP staffer and social democrat media commentator
(And of course- neither Clark nor Horgan survived the housing crisis and now B.C. is under the control of NDP airheads who think that trying to extort oil patch cash from Alberta might be a good idea! Blackmail NEVER ends well and it is wildly absurd of NDP to think they can openly harass the most important industry in Alberta while still getting a STEADY FLOW OF CHEAP GAS!!!!!!!!!!!!!!!!)
(The various messes faced by British Columbia epitomize all that is miss- giuded and self serving and hypocritical about LIE-beral policies- and by extention -the policies of the NDP and Greens- the muddle headed cousins of LIE-berals who lack the low guile and cunning to be proper LIE-berals!!!!!!!!!!!!)