Ontario Moves To Cap Rent Increases!!!

[Thomas Beyer]

[quote user=TangoWhiskey]Several very experienced Albertan investors have talked about people who overpaid for buildings in 2008 and are now stuck. Since rent control (perhaps) forces a higher cap rate and lower building values, it might reduce the risk of big fluctuations in building valuation


that is true .. much like socialism .. only a few win and then only small .. but almost everyone else loses .. a great equalizer !



As stated earlier, like unions, rent control helps those that are in the system, i.e. have a place to rent as it keeps their rent low, but it suppresses supply, and thus forces rents up for available units i.e. the upwardly mobile !

 

[stlandlords]

Spinning a cap of 2.5% (no matter what the real inflation rate) as something positive is silly.



The Ontario Liberals are using the 2012 3.1% as "justification" for the cap. They neglect to mention the 2011 increase is only 0.7%



Ontario Liberals are left-wingers, taking lots of NDP votes. Investing in Ontario under this government is extremely risky. What comes next?

 

[Thomas Beyer]

[quote user=stlandlords]Ontario Liberals are left-wingers .. What comes next?
Right wingers ?



Although we don't really have that in Canada. Not even the so called "conservatives" have balanced the books, adjusted civil servants salaries or pensions downwards, or reduced # of civil servants, or cut business subsidies ..

 

[Tony Miller]

The two best statements I've read so far today!



"Good, bad or indifferent I measure the value of my tenants by their monthly contribution to my bank account."



"I know and like all my long term
tenants but frankly would be very happy to see them all move out
tomorrow in exchange for more money."

 

[stlandlords]

There is a clear choice in Ontario.



While the Liberals want more "tenant rights", more free legal aid lawyers free to (all) tenants to fight landlords, to cap rent increases, landlord licensing, more taxes, more debt, more welfare, more union pay increases...



The PCs want a freeze on public union pay, less red tape, push people on welfare to get working, and more "landlord rights" such as a legal damage deposit, a more efficient eviction process for non-payment (instead of the current average of 3 months), allowing private bailiffs to enforce evictions (instead of having to wait 1-6 weeks for the gov't "sheriff"), and more.



Ontario voted last October 6th.



Liberals won. A minority, yet still a victory after 8 years of socialism. Now the Liberals are gearing up for the next election, going even further Left to keep the NDP at bay. Hence, the amending the RTA to cap rent increases as one of their main priorities after winning re-election. Get ready for more anti-landlord changes.

 

[housingrental]

Stlandlords - What are your thoughts as to future potential changes in Ontario?

 

[stlandlords]

More landlord licensing.



Longer eviction process.



More false tenant applications against landlords paid for by our tax money (Legal Aid lawyers will take the tenants side).





If you want to know more email me at [email protected]

 

[stevegwhite]

[quote user=Hutchym]All,



Therefore making the investment only worth what it can Cash flow.







In my experience with just getting into investing in the past three years with record low rates, investments are rarely calculated on what it can cash flow. That's mostly theory that the owners of 50+ properties I've looked at don't understand or care about. They won't sell for below what they have in their minds and you can take whatever numbers make financial sense and it won't matter. Low rates hurt on two accounts, first the seller doesn't want his cash parked at .75% interest on whatever capital gains he's not hit with and second, low rates have brought out a lot of rookie investors who scribble a few numbers on a napkin, assume they'll make a go of it and increase the price of units. This is definitely true throughout the GTA and many parts East, which has thrown the cap rate calculation out the window.



Most truly good and fair deals are either scooped up before the casual investor finds them or are out of reach for many with the new 20% down rule.



Once interest rates go up 3% you'll see a flood of properties that landlords squeezed into and can't handle the rising costs. 2018 will be a great year! Save your pennies!

 

[housingrental]

2018 is a long time away - why do you guess so long? I'm curious to hear your thoughts. Thanks