Tax money for a house ?

[maryjane48]

i will post link later or if someone wants to feel free . now i have seen people post about tax m9ney being spent on stuff that does not affect them . so what gives clark the right to give my tax money for people that shouldnt be buying a house in first place ?

[GrooveTunes]

i will post link later or if someone wants to feel free . now i have seen people post about tax m9ney being spent on stuff that does not affect them . so what gives clark the right to give my tax money for people that shouldnt be buying a house in first place ?

a majority.

[Leifer]

so what gives clark the right to give my tax money for people that shouldnt be buying a house in first place ?

You understand that there is a fairly significant difference between *giving* and *loaning*?

[LANDM]

And you also realize that the government gives money to huge amounts of people, private groups, special interests etc. And this is hardly unusual.
I don't agree with it, but it is the norm.

[Gypsylady]

What gives you the right to deny people the right to buy their first home,also like one post said majority.

[flamingfingers]

Why Premier Christy Clark's interest-free housing loans could keep the NDP in opposition for four more years
by Charlie Smith on December 16th, 2016 at 7:32 AM
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Premier Christy Clark has submarined her opponents and confounded housing experts with another major intervention into the real-estate market.

Christy Clark pledges new loan program for first-time buyers means more young people can afford a home in B.C.

But will it pay off big-time in the next B.C. election, scheduled for May 9, 2017?

Yesterday, the premier announced that first-time buyers can borrow up to $37,500 interest-free for five years for a down payment on their first home. After that point, the homeowner would have to start paying interest.

Davidoff maintained that it would lead to higher housing prices because it will increase demand in a supply-constrained market. As a result, the interest-free loans will fatten the bottom lines of developers.

Similarly, Christy Clark's announcement also appeals to low-information voters, who are sometimes so busy raising kids that they tune out provincial politics until shortly before going to the polls.

No politician ever wants to admit publicly that he or she is giving away public money to woo low-information voters.

But these policies can prove to be very potent tools on Election Day, particularly for populist politicians who never underestimate the gullibility of the public.

http://www.straight.com/news/846021/why ... ition-four

[Hurtlander]

It's never a good idea for the government to enable people to go deeper in debt buying something they probably can't afford.

[maryjane48]

It's never a good idea for the government to enable people to go deeper in debt buying something they probably can't afford.

thats my point . but all you folks who said your okay with it thats fine . but i better not see a peep about money g9ing to first nations ot helping addicts . and i will take note of who said its all good .

[Leifer]

but i better not see a peep about money g9ing to first nations ot helping addicts . and i will take note of who said its all good

*sigh*
Ok I will try to help you MJ (Although seems like a waste of time).

give
verb (used with object), gave, given, giving.
1. to present voluntarily and without expecting compensation; bestow:
to give a birthday present to someone.

loan
noun
1.the act of lending; a grant of the temporary use of something:
the loan of a book.

[Hurtlander]

What happens five years down the road when someone is just barely making their monthly mortgage payment and aren't able to start making their payments on the $37,000.00 government loan ?

If enough people aren't able to buy their first home because of high prices, eventually the market will correct itself and home/ condo prices will come down to more affordable levels. The government shouldn't be interfering.

[flamingfingers]

Reminds me of the subprime lending mess south of the border!!

[Atomoa]

http://globalnews.ca/news/3130685/terri ... y-experts/

‘Terrible policy’: B.C. housing incentives widely panned by experts

It’s not every day economists agree on something but on Thursday, there seemed to be a clear consensus among Vancouver economic and housing experts that the B.C. government had made a wrong turn.

Thursday morning, Premier Christy Clark announced her government would use income from growing property transfer taxes to effectively get into the mortgage loan business.

“It’s a pretty bad idea. It is counter-productive and if you give people more purchasing power, they will be able to bid up the prices of the homes that they’re looking at, and that price increase will eat up any benefit from the subsidy. The same people who were going to compete for a home at $500,000 are still going to be competing for that same unit, but at a higher price. They’re just going to compete away the benefit. The only people who gain are existing homeowners or developers who benefit from these higher prices.

“This is not going to improve affordability anywhere in the market and if anything will make it worse, for sure in the lower end and possibly creeping up above that $750,000 [cut-off price]. Different parts of the government’s policies really don’t fit together. They claim to want to promote affordability but they want higher prices. Well, higher prices are the opposite of affordability, so it just doesn’t fit together at all.

BC Government is offering subprime mortgages. Gee what can go wrong?

This is giant cheque to the real estate industry with our tax dollars. 40K a unit to developers.

Government just said that yesterday 1/3rd of all the new mortgages in Canada were given to people who wouldn't qualify for them under the new stress-test rules. This is the exact opposite policy of what everyone in Canada is currently trying to do - lessen the damage when the bubble pops.

[Smurf]

Hurtlander wrote:

It's never a good idea for the government to enable people to go deeper in debt buying something they probably can't afford

Exactly. Down payments are set the way they are for a reason. Giving them, loaning them or whatever part of the down payment is completely idiotic. There can be nothing but trouble come from this.

I remember years ago in Manitoba where some large builder in Winnipeg came up with the brilliant idea to sell directly to the buyer and somehow only charge for the home and the builder carried the cost of the land for I believe 10 years, then you had to pay it off. Made the house much cheaper. The idea was that you had 10 years to SAVE the money to pay off the land. There were a number of houses lost at the end of the 10 years because the people did not save any money and could not afford to pay. I can see the same thing happening here, especially if rates go up. This could end up being a lot more disaster than help.

[Atomoa]

I can see the same thing happening here, especially if rates go up. This could end up being a lot more disaster than help.

As long as the bubble doesn't pop before the election (see : Vancouver home prices falling) Christy is using tax dollars to artificially prop up the highly bloated real estate market as much as she can.

Literally her election chances ride on houses getting more expensive.

[maryjane48]

fanny may and fanny mac tried it, we saw how 2008 turned out