As a REALTOR, part of me wants to see the gov’t do something about escalating prices. But the other side of me has investors who are paying too much for homes, then being forced to pass it on to renters with higher initial rents. Capping increases will help, yes, but what about the high starting rent? And these investors aren’t foreigners, their Toronto investors coming to Hamilton. Conrad Zurini (Remax) said today on radio that Hamilton has been undervalued for years and that some of these prices are accurate. But the banks don’t agree since they don’t appraise them for the amount we’re paying in bidding wars.
What’s the answer? Anybody’s guess. We’ll see what they actually do. In the following article, the gov’t is hinting at dealing with REALTOR practices (big surprise), as well as foreign investment. I don’t think they’re aiming in the right direction. Shouldn’t banking practices be brought into play also? After all, they are the industry making the most money in this environment.