Even Adam Smith in the classic text “the wealth of nations” recognized that income in the form of rents and rentierism are non productive, if not negatively effecting the economy if taken too far. As he had seen with the landed aristocracy, whom produced nothing.
Doing airbnb and doing long term rental are very different, so I bet not all 100k units will be converted into full rentals. I would say dealing with a tenant is way more complicated and risky than airbnb, especially when the LTB is at full capacity.
Short-term rentals should be completely banned in any city with a sub-5% rental vacancy rate. Having it allowed with restrictions just makes enforcement way more complicated.
@@TookAHikeNowWhat $50000 fines? The city of Vancouver struggled to get the fine to $500. Policing owners abusing primary residence exception? the host just has to check the mail. You might think HOA's would cooperate but money rules, HOA's are totally unreliable for enforcement. The airbnb regulations are a hopeless failure BC.
At first thought they would be competing with hotels / B&B's etc not become a part of the housing mess which is a failure of gov policy or success of lobbies too early to tell as still a slow moving train wreck ! Housing has not crashed still or Minsky moment delayed lol
BC is trying but , as far as my perspective as a residence of downtown Vancouver is concerned, it's not working at all. It's a disaster - 1. 'Primary residence' is not an appropriate limitation for downtown Vancouver, any couple can own two 'primary residences' and not reside in Vancouver at all. All an airbnb hosts need to do is check the mailbox! It's actually easier to falsely claim primary residence on an airbnb then on a long term rental apartment. 2. the fines are insanely low, roughly a single night of airbnb costs. Also, CHMC is now part of the federal governments effort to increase Canada's GDP by inflating realestate.
Landlords should get out of landlord if if they don’t want to deal with tenants. Boo hoo. Sell the unit so families can buy. Landlords can do something productive.
Please continue with presenting the facts and layout when philosophy influences them. If you want to prioritize then have a tax and regulatory policy that encourages the builders of businesses and housing and not scalpers who want to skim the cream which is popular at the moment.
Agreed. As long as the tax does not lift up the price of homes like how taxes and building fees now contribute to over 30% of the cost to build a new home.
he's not presenting facts. He's cherry picking an insignificant 'problem' to crap on STRs, while ignoring actual problems like mass immigration, interest rates, inflation caused by Turd creating huge amounts of money etc. What John is doing is called propaganda.
I had no idea Air BnB was THAT prominent in the GTA. 100K homes is crazy. The province should just put a cap on the number of units. Like 1-2% of properties can be eligible. Every two years they can evaluate all of the properties. The ones with the lowest ratings or renting conditions get the boot and are replaced by better offerings. Obviously Air BnB is no where near the main reason why we have a housing shortage but it is a small piece of the puzzle that needs to be addressed.
The 100K is for Canada, not the GTA. And this is not all Airbnbs, just STRs that are not someone's principal residence The numbers in Toronto are actually not that high because Toronto requires all airbnbs to be someone's principal residences, so the ones that Stats Can identified in Toronto are actually operating illegally.
@@john_pasalis I don't understand why knowledgeable people like you are still on this 'supply side' argument; Canada has kept/outpaced the USA for housing starts for the past decade and hit ath this year. The supply side narrative relies on very recent trends, prior to 2022 population growth vs. starts was (like the usa) healthy. It is only with recent (absurd) population growth that supply side projections have become seemingly problematic. If we go back to 2019 numbers there is no real issue? And recent immigrants, the driver of population growth, have very low median incomes ~30k, i.e. a non-factor for housing prices...
@@user-le2hu1ct4t they don't want Canadians to turn on the real cause of the problem... housing speculators. Housing speculators purposely remove supply from the market to cause supply level constraints and push up valuations The immigration is more a problem for the rental supply, which makes it easier for speculators to occupy homes that might have sat empty and increase their egregious profit margins..
Is it? You even admit it's not the reason for the shortage, and yet you want it "addressed"? And by addressing, you mean not respecting private property, which is a literal pillar of Western society. The government creates housing problems, and you turn to... the government to fix it? LOL This idiotic anti business, hatred of success mindset has already been tried in NY. Result? Nothing gained, other than hotel prices shooting up since their competition was removed by the government. Canadians are hopeless.
You didn’t ask “why do people choose to Airbnb in Canada?” The reason isn’t because it’s more profitable. Actually, for many , it’s NOT more profitable after you add expenses and consider vacancy. The reason many in Canada Airbnb is because the laws heavily protect tenants. Tenants who now understand it takes 1 year to be evicted for non payment. They also understand they can extort their landlord for “cash for keys”. Bottom line, landlords are frightened to rent their home long term. They use Airbnb to protect their rights and interests as property owners
One may suggest the answer here is the Canadian hotel industry isn’t always satisfying those who like to travel, and the tourism component of a city can inject a lot of cash to small businesses rather than non productive government employees
As an investor perspective, I wouldnt rent my investment property out for long term when the whole Ontario rental law is a joke to landlords. Be like Alberta with no control and if someone doesnt pay rent you can kick them out right away, then maybe I will jump back in to the landlord game.
Ahem, “CMHC is a Crown corporation governed by a Board and responsible to Parliament through a Minister.” - gov of Canada website…WTF!! tax payer funded crown corporations have no business advocating for Airbnb investors, or developers or any other self interested lobby groups, etc. What’s equally tragic is that the CMHC website says “we strive to ensure more Canadians have access to what they deserve: a home they can afford that meets their needs”.😂🤨 …i say fire the deputy chief economist and replace the Board!
I believe that short term rentals should NEVER have been allowed for condos, etc., in any of our cities. And I was so super happy when short term rentals were eliminated in the building where I currently own. But they were allowed or rather, not restricted and now the government has changed their minds in the guise of helping the end user find a home and/or add stock of homes available for long term rental use. This is what the government does - allows people to swarm in and buy tons of properties and then destroys the practice without any concern for those who were previously allowed to purchase and use them as they wanted. Again, the government allows and then takes away if it helps them politically. And John, for this post, again, you're a little too commie for me. Do you really think this government believes in housing as a human right? Really? What are they proposing to help this situation? What action have they taken without having to take it from independent investors? So going after people with AirBnB's is a small fix? BS!!! And how many condos and homes are currently on the market and not selling for end users to purchase that adding another 100k of these units will help you sell them and solve the housing shortage, affordability, etc? Whatever the government touches creates an insane risk to investors. They knew what they were doing when they allowed everyone in as a future landlord and they knew they could shut off the spigot as soon as it made political sense for them because housing and its affordability is front and centre in every election cycle - always. Eliminating the small investor from investing in real estate is not and will never be the solution to Canada's housing problem. To close, I follow everything you do and aside from this topic which you strongly believe in and where I strongly disagree with you, I think you are one of the best and smartest to comment on everything regarding the real estate industry!
Because cmhc doesn’t want their 5 percent mortgage backed securities to fail. And the politicians are themselves invested and have egregious conflict of interest. Ie freeland, jagmeets wife and Pierre polievre to name a few
Imagine if the Government came out and built 100,000 low-cost housing for people who desperately need it-who are living on the streets, seniors, low wage workers, etc. what a big deal that would be. It is A LOT of homes!
I don’t see the big issue. No one wants to rent a hotel for $300 a night. Is there a problem if I want to rent my home for a short term rental and on the other end someone wants to pay me? Air bnb makes sense! My daughter and her friends get air bnb all the time for birthday gatherings and it works great and is very convenient!
LMAO… a little late to the party. Need to let it collapse. Was clearly aware of this 18 years ago. Expectation is that this real estate slowly degrade as an investment as economy declines.
Airbnb only accounts for less then 1 percent of the housing market. Theres bigger problems. Airbnb is so minimal let people rent out there properties as long as there managed properly.
Yeah but in the usa yiu cant rent then stay for free. Cant have your cake and eat it. Until the LTB enforces evictions within 30 days then let landlords collect their rent from air bnb.
Thanks you for speaking up about this. Investor class is destroying the country.
Even Adam Smith in the classic text “the wealth of nations” recognized that income in the form of rents and rentierism are non productive, if not negatively effecting the economy if taken too far. As he had seen with the landed aristocracy, whom produced nothing.
Doing airbnb and doing long term rental are very different, so I bet not all 100k units will be converted into full rentals. I would say dealing with a tenant is way more complicated and risky than airbnb, especially when the LTB is at full capacity.
Precisely.
All investors and rental properties should be vetted for mortgage fraud before they can be REGISTERED as a LEGITIMATE landlord
Short-term rentals should be completely banned in any city with a sub-5% rental vacancy rate. Having it allowed with restrictions just makes enforcement way more complicated.
@@TookAHikeNowWhat $50000 fines? The city of Vancouver struggled to get the fine to $500. Policing owners abusing primary residence exception? the host just has to check the mail. You might think HOA's would cooperate but money rules, HOA's are totally unreliable for enforcement.
The airbnb regulations are a hopeless failure BC.
Go cry elsewhere. Airbnb to stay
At first thought they would be competing with hotels / B&B's etc not become a part of the housing mess which is a failure of gov policy or success of lobbies too early to tell as still a slow moving train wreck ! Housing has not crashed still or Minsky moment delayed lol
sean fraser and marc miller should be in jail.
To be fair, they’re just following directive from Trudeau. And we voted for him, 3 times.
BC is trying but , as far as my perspective as a residence of downtown Vancouver is concerned, it's not working at all.
It's a disaster -
1. 'Primary residence' is not an appropriate limitation for downtown Vancouver, any couple can own two 'primary residences' and not reside in Vancouver at all. All an airbnb hosts need to do is check the mailbox! It's actually easier to falsely claim primary residence on an airbnb then on a long term rental apartment.
2. the fines are insanely low, roughly a single night of airbnb costs.
Also, CHMC is now part of the federal governments effort to increase Canada's GDP by inflating realestate.
Great video, my understanding BC is coming harder on Airbnb. This crackdown is overdue.
as a resident of downtown Vancouver I am 100% confident the crack down is not working.
It was all show- they aren’t enforcing
Landlords should get out of landlord if if they don’t want to deal with tenants. Boo hoo. Sell the unit so families can buy. Landlords can do something productive.
why is the taxpayer even having to guarantee the
sub-prime mortgage garbage via CMHC that banks profit from creating?
Please continue with presenting the facts and layout when philosophy influences them. If you want to prioritize then have a tax and regulatory policy that encourages the builders of businesses and housing and not scalpers who want to skim the cream which is popular at the moment.
Agreed. As long as the tax does not lift up the price of homes like how taxes and building fees now contribute to over 30% of the cost to build a new home.
he's not presenting facts. He's cherry picking an insignificant 'problem' to crap on STRs, while ignoring actual problems like mass immigration, interest rates, inflation caused by Turd creating huge amounts of money etc. What John is doing is called propaganda.
I had no idea Air BnB was THAT prominent in the GTA. 100K homes is crazy. The province should just put a cap on the number of units. Like 1-2% of properties can be eligible. Every two years they can evaluate all of the properties. The ones with the lowest ratings or renting conditions get the boot and are replaced by better offerings.
Obviously Air BnB is no where near the main reason why we have a housing shortage but it is a small piece of the puzzle that needs to be addressed.
The 100K is for Canada, not the GTA. And this is not all Airbnbs, just STRs that are not someone's principal residence
The numbers in Toronto are actually not that high because Toronto requires all airbnbs to be someone's principal residences, so the ones that Stats Can identified in Toronto are actually operating illegally.
@@john_pasalis I don't understand why knowledgeable people like you are still on this 'supply side' argument; Canada has kept/outpaced the USA for housing starts for the past decade and hit ath this year. The supply side narrative relies on very recent trends, prior to 2022 population growth vs. starts was (like the usa) healthy. It is only with recent (absurd) population growth that supply side projections have become seemingly problematic.
If we go back to 2019 numbers there is no real issue? And recent immigrants, the driver of population growth, have very low median incomes ~30k, i.e. a non-factor for housing prices...
@@user-le2hu1ct4t they don't want Canadians to turn on the real cause of the problem... housing speculators.
Housing speculators purposely remove supply from the market to cause supply level constraints and push up valuations
The immigration is more a problem for the rental supply, which makes it easier for speculators to occupy homes that might have sat empty and increase their egregious profit margins..
LMAO … only way to fix this is to make it unprofitable to use single family homes in REITs.
Is it? You even admit it's not the reason for the shortage, and yet you want it "addressed"?
And by addressing, you mean not respecting private property, which is a literal pillar of Western society.
The government creates housing problems, and you turn to... the government to fix it? LOL
This idiotic anti business, hatred of success mindset has already been tried in NY. Result? Nothing gained, other than hotel prices shooting up since their competition was removed by the government.
Canadians are hopeless.
I will not invest my money in long-term rentals because of rent control.
CMHC = bankster bailout & bonus welfare fund
Bang on lol
The CMHC lost its way a long time ago. It's all about supporting investors and the government's coffers, not the middle-class.
Dont forget the banks who are the major players lol CMHC is their tool primarily
You didn’t ask “why do people choose to Airbnb in Canada?” The reason isn’t because it’s more profitable. Actually, for many , it’s NOT more profitable after you add expenses and consider vacancy.
The reason many in Canada Airbnb is because the laws heavily protect tenants. Tenants who now understand it takes 1 year to be evicted for non payment. They also understand they can extort their landlord for “cash for keys”.
Bottom line, landlords are frightened to rent their home long term. They use Airbnb to protect their rights and interests as property owners
8:13 I wish more people understood this is what is happening
One may suggest the answer here is the Canadian hotel industry isn’t always satisfying those who like to travel, and the tourism component of a city can inject a lot of cash to small businesses rather than non productive government employees
Can you link me to the video or article where the CMHC says this? Would like to share it
The links are in my blog article which you can find a link to in the video description
@@john_pasalis thanks
As an investor perspective, I wouldnt rent my investment property out for long term when the whole Ontario rental law is a joke to landlords.
Be like Alberta with no control and if someone doesnt pay rent you can kick them out right away, then maybe I will jump back in to the landlord game.
Ahem, “CMHC is a Crown corporation governed by a Board and responsible to Parliament through a Minister.” - gov of Canada website…WTF!! tax payer funded crown corporations have no business advocating for Airbnb investors, or developers or any other self interested lobby groups, etc. What’s equally tragic is that the CMHC website says “we strive to ensure more Canadians have access to what they deserve:
a home they can afford that meets their needs”.😂🤨 …i say fire the deputy chief economist and replace the Board!
Tool of the banks mostly lol
I believe that short term rentals should NEVER have been allowed for condos, etc., in any of our cities. And I was so super happy when short term rentals were eliminated in the building where I currently own. But they were allowed or rather, not restricted and now the government has changed their minds in the guise of helping the end user find a home and/or add stock of homes available for long term rental use. This is what the government does - allows people to swarm in and buy tons of properties and then destroys the practice without any concern for those who were previously allowed to purchase and use them as they wanted. Again, the government allows and then takes away if it helps them politically. And John, for this post, again, you're a little too commie for me. Do you really think this government believes in housing as a human right? Really? What are they proposing to help this situation? What action have they taken without having to take it from independent investors? So going after people with AirBnB's is a small fix? BS!!! And how many condos and homes are currently on the market and not selling for end users to purchase that adding another 100k of these units will help you sell them and solve the housing shortage, affordability, etc? Whatever the government touches creates an insane risk to investors. They knew what they were doing when they allowed everyone in as a future landlord and they knew they could shut off the spigot as soon as it made political sense for them because housing and its affordability is front and centre in every election cycle - always. Eliminating the small investor from investing in real estate is not and will never be the solution to Canada's housing problem. To close, I follow everything you do and aside from this topic which you strongly believe in and where I strongly disagree with you, I think you are one of the best and smartest to comment on everything regarding the real estate industry!
You got it buddy! We need to create another government body to manage all of this, and we can fund it with a sunshine tax. John for mayor everyone
that's how you get communism. Trust me, you want less gov't, not more.
Because cmhc doesn’t want their 5 percent mortgage backed securities to fail. And the politicians are themselves invested and have egregious conflict of interest. Ie freeland, jagmeets wife and Pierre polievre to name a few
this is the problem, owners rule, they will protect and inflate
Imagine if the Government came out and built 100,000 low-cost housing for people who desperately need it-who are living on the streets, seniors, low wage workers, etc. what a big deal that would be. It is A LOT of homes!
No $$$ for the lobbies here or very little lol
I don’t see the big issue. No one wants to rent a hotel for $300 a night. Is there a problem if I want to rent my home for a short term rental and on the other end someone wants to pay me? Air bnb makes sense! My daughter and her friends get air bnb all the time for birthday gatherings and it works great and is very convenient!
LMAO… a little late to the party. Need to let it collapse. Was clearly aware of this 18 years ago. Expectation is that this real estate slowly degrade as an investment as economy declines.
Hey. If investors stop buying new condos and houses. Your building ability will substantially reduced. Result = build way less new.
Not logic. If there was a free market there should be no zoning
Airbnb only accounts for less then 1 percent of the housing market. Theres bigger problems. Airbnb is so minimal let people rent out there properties as long as there managed properly.
I think we all know..
Who said we have housing shortage we only rent to immigrants people always pay the rent on time hard working people, no trouble like Caucasia
Talk about generational betrayal.
Yeah but in the usa yiu cant rent then stay for free. Cant have your cake and eat it. Until the LTB enforces evictions within 30 days then let landlords collect their rent from air bnb.
One word: lobbyists
Banks are the major players lol CMHC is their tool primarily lol nowadays