this post was submitted on 15 Aug 2024
153 points (98.7% liked)
Canada
7185 readers
326 users here now
What's going on Canada?
Communities
🍁 Meta
🗺️ Provinces / Territories
- Alberta
- British Columbia
- Manitoba
- New Brunswick
- Newfoundland and Labrador
- Northwest Territories
- Nova Scotia
- Nunavut
- Ontario
- Prince Edward Island
- Quebec
- Saskatchewan
- Yukon
🏙️ Cities / Local Communities
- Calgary (AB)
- Edmonton (AB)
- Greater Sudbury (ON)
- Halifax (NS)
- Hamilton (ON)
- Kootenays (BC)
- London (ON)
- Mississauga (ON)
- Montreal (QC)
- Nanaimo (BC)
- Oceanside (BC)
- Ottawa (ON)
- Port Alberni (BC)
- Regina (SK)
- Saskatoon (SK)
- Thunder Bay (ON)
- Toronto (ON)
- Vancouver (BC)
- Vancouver Island (BC)
- Victoria (BC)
- Waterloo (ON)
- Winnipeg (MB)
🏒 Sports
Hockey
- List of All Teams: Post on /c/hockey
- General Community: /c/Hockey
- Calgary Flames
- Edmonton Oilers
- Montréal Canadiens
- Ottawa Senators
- Toronto Maple Leafs
- Vancouver Canucks
- Winnipeg Jets
Football (NFL)
- List of All Teams:
unknown
Football (CFL)
- List of All Teams:
unknown
Baseball
- List of All Teams:
unknown
- Toronto Blue Jays
Basketball
- List of All Teams:
unknown
- Toronto Raptors
Soccer
- List of All Teams:
unknown
- General Community: /c/CanadaSoccer
- Toronto FC
💻 Universities
💵 Finance / Shopping
- Personal Finance Canada
- BAPCSalesCanada
- Canadian Investor
- Buy Canadian
- Quebec Finance
- Churning Canada
🗣️ Politics
- Canada Politics
- General:
- By Province:
🍁 Social and Culture
Rules
Reminder that the rules for lemmy.ca also apply here. See the sidebar on the homepage:
founded 3 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
The problem occurs when house prices tumble from an influx of sales, and the 32% (In NZ) of your population that are paying their mortgage off on their primary residence are potentially plunged into negative equity on rising interest rates.
Once you’re there, you’re kind of fucked. You can sell, but you’ll still owe the bank money, so you can’t buy/downsize. You can’t even change banks. You’re a risky customer, so you get higher interest rates. All you can do is hope the market rebounds or declare bankruptcy.
So you’re risking fucking over 30% of your nation (and arguably the most productive segment of your country as they’re earning money to pay that mortgage), to appease a fraction of (as not every renter can/wants to buy. Eg, students, temporary immigrant workers etc) the 30% of renters that are being fucked over by high house prices.
Not to mention, all the renters you’ve displaced into an even more competitive rental market.
But that’s not to say the solution is to shrug your shoulders and let the landlord class continue to punch down.
It would be expensive, but you could guarantee (current) mortgages for primary residences in cases of financial hardship. Buy mortgagees out and turn the houses into state housing, renting them back to the previous owners at fair prices.