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The numbers don’t lie: The housing crisis is not caused by a supply shortage
(www.policyalternatives.ca)
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The amount of empty units is staggering, but they are not there for you and me, they are there for people to use as investment tool. It's just an asset to flip. It's disgusting, and this type of shit should be banned.
Ban flipping homes, property transfer can't happen for atleast 5 years after transfer unless you appeal to a board as there's always extenuating circumstances. If you own more than 2 properties you are taxed at a obscenely high rate
And add in an 'empty fee'. If a property sits empty for x amount of time, there's a significant fee added per month until it's sold or rented. Though people much smarter than me would have to figure out how to prevent rich assholes from just selling to each other to avoid the fee I suppose.
Bottom line, if you buy a place as an asset and the rental market dips below your liking, tough, rent it lower than you planned or get rid of it.
Who determines what is "empty" and how?
No one actively living in it. If it's vacant after x amount of time, it's priced too high. Lower the price to get someone in, or pay fees to keep it vacant. Basically, it should cost more than it's worth to keep if you're not going to rent it, creating incentive to price it affordably.
Yes, but how do you determine that? I'm not trying to be a smartass, but I am going through a divorce, and recently sold the house my wife and I lived in for the past 10 years. I moved out first, then after a couple weeks her lawyer informed mine that the house was vacant, so I shut off the a/c and the ring service to save money until it was ready for sale- then found out she hadn't actually moved out. I don't know if her lawyer just made a mistake, or if she lied to him, but either way they tried to claim that I was being "petty". Then it took her months to move her stuff out. At some point she did move to her mom's, but I don't know exactly when, but when I was cleaning out the refrigerator, I found stuff that had expired around the time I moved out, but that wasn't unusual for her so who tf knows. Point being, it's not always easy for someone to determine whether a property is lived in or not. Then of course you have the situation where someone goes away for say 3-6 months but intends to come back. Maybe it's a one-time thing, maybe it'll be every year, who knows? People will say whatever.
Sorry to hear about what you're going through, breakups are never a good time. I truly wish you well and hope you can get back on the track you want to be on.
There would certainly have to be a system in place, and special circumstances will always happen. Bottom line, it would primarily be meant for people or corporations who buy up a house/condo/apartment complex, and let it sit vacant until the market goes up and they get the rent they want or sell it for a good profit. If it sits vacant like that for say, 6 months, fees start accruing. Ideally the fees would be high enough that keeping it vacant would be a significant deterrent, thus forcing the person or company to either sell it, maybe at a loss, or rent it lower.
For example, there's a brand new apartment building near where I live that's been majority vacant for over a year since it was built. They want $3500 a month, and no one around here can afford it. I live in a province that has a cap on rental increases, and this company clearly doesn't want to rent at the high-end of affordable rate of around $2500 a month, and only be able to increase at 5% per year. They'd rather burn the money waiting for the market to go up to sell, other rentals to match what they want, or the cap to go away.
Another example would be someone/company with a lot of money buys a house to flip. During the reno the market dips so they'd be selling at a loss. Rather than rent it and have to deal with tenant laws, they have the money to wait it out as vacant for a year or two or more until the market goes back up. There's an argument to be made to exclude the reno time (though there would need to be systems in place to prevent abuse of the timeframe), but once it's liveable they have 6 months to rent or sell it before paying a monthly vacancy fee. If after 6 months they can't afford the fee and would have to sell at a loss, that's kind of the point. Pivot away from real estate (primarily dwellings) be investment vehicles.