00:03:23.540Oh, it's brutal. I mean, look, at the end of the day, what is this?
00:03:27.160It's a bailout, right, for developers or home builders or whatever you want to call it.
00:03:31.480But look, if the government goes through with this, taxpayers are getting soaked.
00:03:34.900and look uh i've got four main issues with this there's probably more but let's just start with
00:03:39.660four number one taxpayers shouldn't be bailing out developers okay this is taxpayers money right
00:03:47.000why does the government think it can take money from struggling canadians who can't afford homes
00:03:51.260many canadians barely afford to keep up with their own rents and then to take that money and give it
00:03:56.520to some developers like come on right uh we don't have all the information but it sounds like the
00:04:01.940government is going to try to buy up what about up to 2200 condos in vancouver that currently
00:04:07.420aren't being sold it could end up costing taxpayers just for that uh like 1.5 billion dollars that's
00:04:13.880some of the estimates i've been hearing but number two okay the government is intervening in the
00:04:20.100marketplace as prices have been falling and as prices would have come down because these uh
00:04:26.740developers, these home sellers, they would have to lower prices. Number three, you see government
00:04:32.740taxes, regulations, fees, charges already making homes in Canada more expensive. And number four,
00:04:38.740Mark, as you're talking about, the incentives in this are brutal, right? Number one, you can expect
00:04:44.280politicians in other parts of the country, not just Vancouver, to now want a deal for developers
00:04:49.860in their own provinces potentially. But number two, what type of incentive does this give to
00:04:55.360other developers across Canada, right? Hey, don't worry if you can't sell your condos,
00:05:00.560right? We'll just come in and potentially bail you out as well. So awful incentives at play here.
00:05:06.920Yeah, exactly. I mean, it's buyer beware in terms of if you're a speculator, you want to speculate
00:05:12.840in the real estate market. Many of them did very well. I'm sure they bought extra homes and speed
00:05:18.480boats and Lamborghinis when times are good. But when times are bad, well, you take your lumps
00:05:26.140if they don't want to, because they're friends of the government, friends of Mr. Carney. Some of
00:05:32.620them have held fundraisers for the Liberal Party. And so I guess you get a break and, you know,
00:05:39.420you get to be shielded, bubble wrapped against the effects of the market when it hurts you.
00:05:44.580But what I don't understand is, I mean, if you're that concerned about affordability, as the government claims to be, then why not let the price fall in the marketplace?
00:05:54.260You know, why not let those condos go for what the market demands?
00:06:09.400But the fact that they're intervening here at a time when affordability isn't such an issue, I mean, this is, to me, seems like a perfect opportunity to let the market bring those prices down naturally and give people a break.
00:06:24.640So, you know, rather than paying 1.2 for a condo in Vancouver for whatever, 500 square feet or whatever you might get on a good day, you know, let the price come down and let affordability arise as a product of market action rather than sticking your nose in and propping up, essentially propping up the housing values, which are overly inflated.
00:06:51.180Nothing about this makes sense from my vantage point.
00:06:54.880No, I mean, it doesn't make sense to me either economically, right?
00:07:18.480So essentially you have privatized profits and then socialized cost, right?
00:07:23.460Where, look, if a developer or a home builder or whatever you want to call them,
00:07:28.880if they're not selling because they want to sell at a higher price, too bad, too bad, right?
00:07:34.540If people aren't willing to buy at that higher price, well, that's too bad for you.
00:07:38.480You shouldn't be getting a taxpayer handout from these governments, from these politicians, right?
00:07:43.900To your point, if they can't sell with the higher price, they have to lower the price, right? And that would bring the price of homes down, right? What might be bad for these condo sellers or developers would be good for homebuyers and for renters, right? Because you have more competition that would drive the price of homes down or the price of these condos down.
00:08:07.340and in fact in the vancouver condo market i was just doing a little bit of research
00:08:10.780that competition has already helped the price of condos go down and then the government intervenes
00:08:17.100with a taxpayer bailout potentially more than a billion dollars that just provides a horrible
00:08:23.600incentive right because think about what this incentive shows uh you know future developers
00:08:29.240other developers hey go build the home try to sell it for an extremely high price if nobody's
00:08:35.940willing to buy it, ah, it's okay. The government will step in and give you a bunch of taxpayer
00:08:40.160cash. It's brutal. Let's be real. Crime is up. Repeat offenders are released on bail. Police
00:08:47.520responses are slower than ever. And in many places, law abiding citizens are expected to
00:08:53.520just hope nothing bad happens. That's not good enough. And that's why I'm very pleased today
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00:09:02.320I actually own one myself. I bought one before we ever had this deal with Burna. So what is Burna?
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00:09:29.560here's why it matters you don't need a firearms license you don't need a background check there's
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00:09:41.120where you have to defend yourself use the link in the description or visit junomarketplace.com
00:09:45.580slash berna for special offers make sure that you're prepared it's better to be safe than sorry
00:09:51.400yeah all you have to do is have a couple of fundraisers for your local liberal candidate and
00:09:56.540you know, invite the prime minister, invite Mark Carney and, you know, get yourself some
00:10:02.580handshaking done and networking. And if the market goes south, that's all right. He'll come through
00:10:09.140and save you. I mean, it's just a horrible look. There's nothing good about this. And now I think
00:10:16.700they're weighing the backlash of which there's some, but I have no doubt that they're looking
00:10:21.520at Toronto, because, of course, I'm sure Doug Ford has some friends who are also developers
00:10:27.180left holding the bag on a bunch of, you know, toxic investments in the condo market.
00:10:33.740They'd love to get some relief, have the government come in and do it there. After all,
00:10:39.540because now you've set the precedent. I mean, you can't just say, well, this is only for
00:10:43.720Vancouver, you know, nobody else. Well, Toronto's like, yeah, hello. What about us? And then
00:10:49.080Montreal says, hey, you know, we've got some, in Calgary, you know, all these markets have
00:10:55.420condos on available that are overpriced because of what we've seen in the real estate market over
00:11:02.120the last couple of years. And the idea that we're going to be bailing all of them out,
00:11:07.720I mean, it starts off with 3.2 million or so, and we could be well into 10 or 15 billion by the time
00:11:16.240to smoke clears, who knows? Do you think that Ontario is also maybe looking at this? And what
00:11:24.020would be your message to Premier Ford? Do I think other politicians in other provinces
00:11:29.940also want a taxpayer handout? Unfortunately, right? I mean, this is the other incentive I
00:11:35.800was talking about, right? I mean, you're going to have these other politicians in cities,
00:11:40.320potentially mayors, I don't know, maybe even premiers in other provinces who are looking
00:11:44.620at what the government just announced in British Columbia in Vancouver, where taxpayers are
00:11:49.220essentially going to buy up a whole bunch of unsold condos. Yeah, I think that creates a
00:11:53.920pretty horrible incentive where you're going to have potentially other mayors, other councillors,
00:11:58.360premiers in other provinces are going to be like, hey, where's my taxpayer bucket of cash,
00:12:02.580right, for developers here? I think it's a horrible, horrible incentive that the government
00:12:06.720has created. But look, I even think this problem goes further than just the bad incentives,
00:12:12.340which we both talked about um mark i think this also goes down to who fundamentally owns the money
00:12:18.660this is taxpayers money that the government is taking and giving to developers essentially right
00:12:24.300it is essentially a bailout for developers or home builders or whatever you want to call it right
00:12:29.700they these home builders these developers should be forced uh to if they don't want to sell at a
00:12:36.020high at the higher price okay they suffer losses or they're forced to lower their prices so people
00:12:41.820and sell the condo at a price people can actually pay and afford, right? Look, it shouldn't be up
00:12:48.960to taxpayers to essentially bail out bad decision making or higher price condos, right? This is
00:12:55.800taxpayers' money. So as bad as the incentives are that we've talked about, as bad as the whole
00:13:00.440economics around this is, I also think this is a fundamental issue that the government shouldn't
00:13:05.240be taking other people's money to essentially bail out developers or home builders in whatever
00:13:10.800city across Canada. Yeah. And I wonder how much of this is political in terms of the government
00:13:17.500wanting to give the impression that the economy is strong. And, you know, with they always say
00:13:23.980that, well, where our economy is coming back, you know, we're in good shape or number two in the G7
00:13:30.760or whatever their talking point is for the day. I mean, if that starts to fall flat because
00:13:39.320real estate values collapse by another 30%, all of a sudden the government can't really make the
00:13:46.860case that your life is good. I mean, think of who supported Mark Carney, right? The elbows up crowd,
00:13:52.020a lot of boomers who bought their house decades ago, paid them off, paid it off and have seen0.87
00:13:57.840their investment grow substantially. You're sitting on a home that you paid 150,000 for many
00:14:05.100decades ago, and it's worth a million and a half, two million, you know, you feel good because
00:14:11.100you're a millionaire. And now all of a sudden, the market says you're not a millionaire anymore,
00:14:16.440because the value of your home just fell. You know, it's, it's been a frothy real estate market.
00:14:23.280And now reality is going to hit you, you know, like a boot in the butt, you know, and so all0.80
00:14:30.320of this coming out and the government is trying to pretend that that's not happening. And by0.95
00:14:35.300throwing government money, throwing tax dollars into the buyout of these condos and other, who
00:14:42.340knows, may extend it to other properties. You know, they want to pretend like, you know, we're still
00:14:48.140rich. You know, you're still out there. You're richer than you think, you know, over there with
00:14:53.360your home in Cabbage Town. I think that's part of it because you know what the wealth effect is,
00:14:59.280right? If your home is worth a lot of money, it's paid off while you feel rich, and I guess you feel
00:15:05.900good about the state of the country, and you might as well vote liberal another day. If you feel that
00:15:10.780all of a sudden your investment has collapsed 30%, 40% in one year, meantime, your assessments are
00:15:18.660still up there because, you know, the municipalities and so forth have yet to catch up with the real
00:15:24.740assessment of your home. You know, you're going to start getting a little grumpy. You know, you're
00:15:28.560to start looking at the government. These guys are doing a lousy job. And I think that they know
00:15:33.640there's a backlash coming. There's a reckoning coming for these guys when it dawns on Canadians
00:15:40.960from one end of the country to the other, that things are not going so well. And the real estate
00:15:45.780and the values of their real estate has a strong sense of whether or not the economy is going well
00:15:52.080or not what do you think hey uh i can't believe i have to say this out loud but a strong economy
00:15:59.280a healthy economy doesn't need a government bailing out developers with taxpayers cash
00:16:06.240right like can't believe you got to say that out loud state the obvious um but you know like that
00:16:12.320is a good indication of hey guys things aren't going so great right now uh if the government
00:16:19.040is stepping in with taxpayers' money to bail out developers and home builders, right? Pretty good
00:16:23.900indication that things aren't going so well. Let me cut through some more spin here from the
00:16:28.700government, okay? Because the government is essentially trying to say like, oh, this is for
00:16:33.080housing affordability, which is crazy because if you wanted home prices to go down, you would let
00:16:39.360home prices go down, right? You wouldn't intervene into the market as the condo prices are falling
00:16:47.740or would have to fall right so if the government really wanted home prices to go down it would let
00:16:51.840home prices go down and that's what would have to essentially happen um if you had all these
00:16:57.080you know home builders holding on to these condos well they would have to drop their prices so that
00:17:02.280they can actually sell the units right that's what would happen but here's the thing folks at
00:17:06.520the end of the day government is not the solution government is the problem okay you look at all the
00:17:13.020different regulations fees charges taxes that are driving up the cost of homes here in canada
00:17:18.980it's insane right i've seen studies showing that these types of housing regulations these
00:17:24.420added costs from government whatever you want to call it are increasing costs uh for homes in
00:17:29.820canada in some places by hundreds of thousands of dollars a report i saw on the vancouver housing
00:17:35.900market as you look at these housing regulations adding extra costs uh by like 600 000 bucks
00:17:42.120onto the price of a home in Vancouver, right?
00:17:44.860So like newsflash, government, these politicians,
00:17:48.840these bureaucrats, they are not the solution.