Real estate bidding | What if takeover bids were public? | The Press
According to the university experts in this article, if there is mandatory disclosure, then the home owner will receive less for the sale of his home. This will benefit the buyers. There are 2 participants in every home sale, the home owner and the buyer. Mandatory Price disclosure is very one-sided and regulates against the home owner to the benefit of the buyer in the transaction. If the university experts were selling their house, would they not want to receive the most from the sale? I cannot believe that they would like to receive $50,000. to $120,000. less for the sale of their home. We all need money to pay the bills, buy the next property or provide for our grandchildren.
However, I think something has to be done to stop the craziness. I’m worried about first time home buyers for whom crazy high prices can be discouraging, even with low interest rates. I’m worried about those who can afford to buy at the moment but will end up with high city taxes later and might experience a rude awakening at their mortgage renewal date when mortgage rates go up.
Right now, there are 3 ideas that have been discussed in the media.
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Mandatory Price Disclosure – Quebec Solidaire political party
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OSFI (Bank Regulator) is proposing to raise the mortgage stress test level to 5.25 per cent (from 4.79%) or two percentage points above the market rate, whichever is higher for buyers trying to qualify for a mortgage.
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Capital gains tax on the sale of the principal residence – various federal political commentators
Below is the OACIQ’s take on the current housing situation:
“The overheating of the housing market is the result of various factors that are beyond the control of the OACIQ, including low interest rates, the supply of properties for sale that is lower than demand, the soaring cost of materials, new behaviors and needs created by the pandemic, including teleworking.”
What problem are we trying to solve? Is the problem supported by data of some kind? Can the solution to the problem be modeled based on the problem to be solved?
Mandatory price disclosure may or may not be a solution to all this, but there has to be discussions among the industry players in order to extrapolate about the impacts of the current situation in 5 years, and to brainstorm on solutions to minimize them.
