Apr 24th, 2017 – 3 Comments

When it comes to long term care for seniors in Ontario there are currently 25,000 seniors on waiting lists for care at a time in their lives when they are most vulnerable.

About the Author

Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality – and a true believer in the happiness-inspiring powers of capitalism.

Read the author's full profile.

Further Research

Read more about Commentary.

HomeLast week as the Government of Ontario announced that they were prepared to invoke The Fair Housing Plan, a 16 step program to “cool ” the housing market in the Golden Horseshoe. I was scheduled  the opportunity to deliver an address to The Private Capital Markets Association of Canada Conference and decided to use the opportunity to voice my analysis of the proposals. In my comments I suggested that  if you looked past the spin that has been foisted on the public about fairness it was clear that the proposed measures were a direct assault on those with substantial investments in real estate.

Homeowners, property owners, and seniors have real skin in the game. Through sacrifice, diligence, and courage they have built assets through their efforts. No one gave them their properties, and they didn’t steal them. They worked to provide housing for themselves, their families, and in the case of rental properties the public.  Those that own property will  see the value of their holdings reduced as a result of the Fair Housing Plan which claims to help  those looking to become homeowners, but at lower prices, or renters, but at lower cost.

My analysis of the situation is that property owners are being punished for having sacrificed to scrape together a downpayment and the courage to strap on debt. The Fair Housing Plan panders to a minority while trampling on the property rights of the majority.

When you look at the other side of the conflict what is evident is that career politicians who have been terrible with assigned tasks are now looking to exploit rising home prices and rents to their advantage. By manufacturing a crisis centred on home prices and the cost of rental accommodation they have positioned themselves in the media as white knights striving for fairness in the property market. I asked when has fairness ever been part of the evaluation when it comes to real estate?

Real estate like any market is ruled by the basics of supply and demand. Greater demand in concert with limited supply drives higher prices. Fabricating issues about access to home ownership and rental accommodation because prices have risen and wrapping them with a tidy bow called fairness will result in another policy failure that those with investments in real estate will have to pay.

I could go on about things like the green energy debacle,The Orange Air Ambulance scandal , and cancelled gas plants, but since we are on the subject of housing lets examine Toronto Community Housing and Long Term Care Facilities for Seniors.

Toronto Community Housing (TCH) has to rank as one of the largest slum lords in North America. Last week just ahead of the Fair Housing Plan announcement TCH informed the market that they would be taking 7,500 units out of service because they were in such bad shape and the cost of repair exceeded the value. With a waiting list of applicants for affordable accommodation numbering over 170,000 and inadequate resources to maintain the portfolio of units under administration you would have to agree that management of the TCH has been an abysmal failure.

When we examine the situation that seniors that need long term care there are currently 25,000 on waiting lists. This at a lime in their lives when they are most in need of care and when they are most vulnerable. The waiting list is expected to grow to 50,000 in the next 5 years. This is again another example of over promising by career politicians who time and again have proven themselves to be terrible with assigned tasks.

I advised the members of the Private Capital Markets Association of Canada that what was needed is to fire the incompetent incumbents and give another group a chance to see if they can do better. If you are a homeowner, a property owner, or a senior and you fail to throw these bums out in 2018 you will have failed yourselves and your families.

Make it a profitable day and happy capitalism!






Categories: Commentary
Content © Relentless Economics - Charts courtesy Stockcharts.com - Employees Entrance - Optimization Media