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ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION

June 21, 2018 | Turn It Up

A best-selling Canadian author of 14 books on economic trends, real estate, the financial crisis, personal finance strategies, taxation and politics. Nationally-known speaker and lecturer on macroeconomics, the housing market and investment techniques. He is a licensed Investment Advisor with a fee-based, no-commission Toronto-based practice serving clients across Canada.

Tim Hudak is scary. The right-winger served for years as a Con MPP and cabinet minister in Ontario (for Mike Harris). As leader of the party he was single-handedly credited with losing a big election to the Libs who then went on to be crushed eight years later by Doug Ford. By promising to create a million jobs in that campaign he was less than credible. By promising to punt 100,000 provincial employees, he was terrifying. Way back then (2014) people didn’t want slash-and-burn politicians. Today despots are in.

Well, Tim went on to become CEO of the Ontario Real Estate Association, which lobbied hard for Ford, fought for an end to the land transfer tax and apparently has assumed some kind of seat near the throne. Could be big implications for the housing market. After all, early Ford pronouncements were to scrap the foreign buyers’ tax, then to pave over the greenbelt (that one was later rethought).

So, next Wednesday some of this may become clearer – as Hudac’s cartel tells its members in a live stream, “How Premier Ford will Affect Realtors and Home Ownership.” Here’s the promo:

And here’s the pitch, which was sent to all of the house-floggers in the province on Thursday:

For the first time in 15 years, the Liberal party no longer holds power at Queen’s Park.

Next week, a new majority government led by Premier Designate Doug Ford will officially take the reins of power.

On June 27th, join me for a live video webcast to discuss what the new government means for you, your business and the thousands of Ontarians who buy and sell homes every year.

Save the date in your calendars and don’t forget to tune in.

Date: Wednesday, June 27th 2018
Time: 11:00 a.m.
What: How Premier Designate Doug Ford & The New Progressive Conservative Government Will Affect REALTORS® And Home Ownership
Where: www.orea.com/livestream

So, what will be announced? And why would the big reveal of government action not be coming from the government (which won’t yet be sworn in), as opposed to an industry lobby group? Have the Ontario Cons decided to do what their federal partners did back in 2009, and try to goose the economy by stoking house lust?

That would include not only ditching the Greater Golden Horsehoe anti-Chinese-dudes tax, but also revoking Toronto’s right to charge double land transfer tax (it adds about $26,500 to the cost of the average house) or at least giving first-time buyers a big rebate. The realtors also want the creation of PRECs – personal real estate corporations – allowing individual agents to have corps to defer tax, income-split with family members and smooth out cash flow while avoiding tax at the same rate paid by employees. And during the election, these guys lobbied hard for slashing regulations, zoning restrictions, lot levies and other government requirements that add big bucks to the cost of houses. They even formed the “Ontario Realtor Party.” Seriously.

And here’s the pitch, in one simple, heart-rending video of dewey-eyed, house-horny moisters cruelly denied the ability to mortgage their futures and plunge into home ownership at the apex of price, and risk. Alas.

Well, like in BC, lots of people will applaud this. The desperation for real estate never ends. The departing Libs learned that late, and their Spring 2017 measures served to depress the market, kill sales and drop prices. Combined with rising mortgage costs and the stress test, properties in some areas of the GTA lost a quarter of their value in a few months – the first fissure in nine years.

But, next Wednesday, I’d say that all ends. Good job, Tim.

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June 21st, 2018

Posted In: The Greater Fool

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