Greetings Friends,

Aloha, from rainy Parkdale and yet another Quar!

Things just seem to continue their path towards a nonsensical, Never-Neverland: Quarantining of the healthy, March Break in Mid-April, ballooning government debt + sky-rocketing housing prices (no connection there, eh); and all the while more than 50% of Canadians teeter on insolvency! Please consider using the link at the bottom of this email to donate to our wonderful, neighbourhood foodbank!

Here at Ontario Assets we feel blessed, as we are deemed “essential” by these same benevolent overlords. During this year’s chaos, we have been so lucky to guide many savvy Canadians to invest their hard-earned money into tangible, real assets and also to them help create the valuable housing, secondary suites, and rental units that are all desperately needed.

Congratulations to our multiple buyer clients for having offers accepted this past month! It was a busy and tight market but we purchased some great properties. Way to go for taking action! Can’t wait to see your projects progress in the coming weeks/months!

If you haven’t yet, please check out some of our new interviews + videos on our OA YouTube channel. (Don’t forget to hit that LIKE and subscribe!)

Below I’ll outline the signals we are using to make 2021 a fantastic year for our clients… and keep reading til the end to see yet another way our government is going to make a bad problem worse!

Random Opinions: 

What a dog and pony show!

Our government’s newest attempt to cool Canada’s real estate market is (again) by increasing the mortgage stress test!; the changes come into effect on June 1, 2021. Oh, how they love to pull the same broken levers over and over and over and over…

This will only hurt those with lower incomes and/or entry-level home buyers. I noted this when the initial stress test was introduced also, however this new increase will only make the dream of home ownership even harder to achieve.

When this announcement is widely understood, how do you think this will affect the already crazy hot real estate market? Do you suspect many buyers to rush out to buy properties before these changes take place? I do.

Or perhaps they’ll simply wait and risk not being able to qualify for the same financing? They won’t.

Again, these changes will mostly impact buyers who are on the borderline of qualifying for a mortgage (or those who would have “moved up”, thus freeing up entry-level housing.)  So, don’t expect a noticeable decrease in market prices as a result of these changes.  At best, we may see a slight cooling or levelling only.

I expect the hotness of the market to continue however! Even with low interest rates (which can’t be raised without bankrupting our federal government) and the massive quantitative easing which is bloating all assets (as bad money chases out good money), the real problem that desperately needs to be addressed, is the LACK OF SUPPLY and increasing, historic demand.

Our projected immigration numbers are huge:

• The federal government has already announced approximately a 30% increase to new immigrant entrants quotas to 430,000 each year until 2024-2025.
• Plus international students, another 60,000+ per year.

All of whom will be looking for a new home/apartment. However, we are already short many THOUSANDS of units/homes. Until our government finally decides to address market demand + supply imbalances (and ludicrous bureaucratic, red-tape for building housing), I expect real estate prices to continue moving even higher.

Time will tell…and the politicians probably blame it on someone or something else anyway.

Now, go out and get some exercise, vitamins + sunshine!

Oh, what a wonderful world!