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At least 20% of Canadian MPs own rental and investment real estate amid housing crisis – National

At least 65 Canadian MPs own rental or investment property, according to their declarations to the federal Conflict of Interest Commissioner.

However, that number may actually be much higher because 91 MPs have not yet completed their disclosure process or the Office of the Conflict of Interest Commissioner has not yet released their documents.

This is all legal and all MPs disclosing assets have fulfilled their obligations under Canadian conflict of interest laws to report their assets to the federal Conflict of Interest Commissioner.

Yet their revelations come at a time of growing scrutiny and frustration over the role of property investors in the country’s housing affordability crisis.

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About a third of Liberal ministers own rental and investment properties: records

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Among the 91 MPs whose revelations are yet to be made public are Liberal MP Taleeb Noormohamed, who was criticized in the last election for flipping dozens of properties, and Tory leadership candidate Pierre Poilievre.

According to available records, at least 42 Liberal MPs own rental or investment real estate, such as rental or investment properties, real estate holding companies, vacant land, recreational properties, or income or significant interests in real estate brokerage houses.

Of those 42, 30 are not part of the cabinet, while 12 are the cabinet members whose holdings were previously reported by Global News last week.

In total, according to publicly available data listed on the registry, these 30 Liberal MPs own a total of 38 properties listed as being for rental or investment purposes. They also disclosed a range of other real estate assets, including ownership of real estate holding companies, income from real estate brokers, or “controlling” or “significant” interests in brokerages.

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The 42 Liberals who disclosed rental or investment properties represent 26% of the caucus.

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By comparison, at least 16% of the Conservative caucus – 19 MPs – said they own rental or investment property, including vacant land, rented farmland, residential rental properties or commercial rental properties as well as companies. of real estate portfolio.

The largest landowner by far is Tory MP Marty Morantz, with a total of 21 properties.

Morantz disclosed joint ownership of five residential rental properties in Winnipeg, Manitoba, as well as 12 multi-unit residential rental properties in the same city.

He also disclosed co-ownership of two multi-unit residential rental properties in Edmonton, Alberta, and two commercial rental properties also in Winnipeg.

Conservative MP Mike Lake revealed co-ownership of two rental properties in southwestern Ontario, as well as sole ownership of a rental property in Ottawa and a rental duplex in Edmonton.

Alistair MacGregor was the only NDP MP to disclose co-ownership of a rental property on Vancouver Island, while Matthew Green disclosed sole ownership of a real estate holding company.

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Rhéal Fortin of the Bloc Québécois revealed sole ownership of a rental property in Saint-Sauveur, Que., while no Independent or Green MPs have disclosed any rental or investment real estate assets to date.

Figures do not include MPs who hold multiple mortgages if they have not indicated these as being for rental or investment purposes. Nor do they include MPs like the NDP’s Alexandre Boulerice who revealed that his wife, but not him, owns a rental property in Montreal.

At least 20% of Canadian MPs own rental and investment real estate amid housing crisis – National

Flipping houses for big profits shuts some buyers out of the market

Flipping houses for big profits shuts some buyers out of the market – March 31, 2022

“In our current cultural context, it’s okay for someone to buy another house and treat it like a rental property. It’s a huge part of Canadian culture these days,” said Paul Kershaw, Founder of Generation Squeeze.

He noted, however, that when politicians talk about financialization – the tendency to view real estate as an investment vehicle rather than a place to live – they omit part of the conversation by focusing on commercial players like businesses, pension trusts and real estate. investment trusts.

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“It also happens more at the level of the ordinary, everyday person.”

According to analysis by the Bank of Canada earlier this year, home purchases by investors have exceeded those of first-time homebuyers or even repeat buyers during the COVID-19 pandemic.

Investors account for one-fifth of home purchases in Canada, according to this analysis, while the share of purchases by first-time home buyers hit a new low last year.

Will the anti-rollover tax and ban on foreign buyers help?

Canadian governments at all levels are facing mounting pressure to act as the country grapples with a major housing crisis that is causing soaring home prices, soaring rents and dwindling hopes for a hard-hit generation. affected by the financial crash of 2008, the COVID-19 pandemic, and now the current frenzy.

Too often, wages — and savings — simply can’t keep up.

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Coupled with the skyrocketing cost of living, the problem of unaffordable housing and its impact on millennials and young Canadians has collapsed into the political realities of NIMBY-ism and the financialization of Canadian real estate.

Financialization is a term increasingly used to refer to investors who buy real estate – typically residential real estate that might otherwise serve as starter homes or affordable rental housing – and then treat them as financial assets to generate income. profits, either through resale or through increased rents.

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Skyrocketing house prices in Canada are an ‘intergenerational injustice’, says Freeland

Deputy Prime Minister and Finance Minister Chrystia Freeland called soaring house prices fueled by the financialization of housing an “intergenerational injustice” earlier this month.

Prime Minister Justin Trudeau also pointed to the trend.

“We are going to crack down on the financialization of the real estate market,” Trudeau said April 8 during a press conference on the budget promises. “Houses are not meant to be assets for wealthy investors, they are meant to be homes where families can raise their children.”

He also added, “When foreign investors and companies use housing as an asset, it drives prices higher and higher and puts homes out of reach for the middle class.”

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But when asked on Tuesday what he would say to the 30% of his ministers – and dozens of his caucus members – who also use real estate as an investment, he appeared to defend them.

“I think there are a lot of people across the country who have rental properties as part of their retirement plans, as part of their life. A lot of Canadians need to rent,” he said.

“What we’re repressing is the fact that there are foreign investors and big corporations buying houses in Canada and then just letting them sit and jacking up the prices so they become more and more more expensive and use them as an asset. income class for people who have a lot of money.

At least 20% of Canadian MPs own rental and investment real estate amid housing crisis – National

Budget 2022: Will the federal government be able to respect housing affordability?

Budget 2022: Will the federal government be able to respect housing affordability? – April 8, 2022

The federal Liberals promised measures in the budget, such as an anti-rollover tax for residential properties resold within 12 months, as well as a two-year ban on foreign buyers and a homebuyers’ bill of rights.

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These had formed a central plank in the party’s campaign platform in 2021, amid a race that saw one of their own candidates under scrutiny for flipping properties.

CityNews reported in August 2021 that Taleeb Noormohamed, who won the riding of Vancouver-Granville, had “bought and sold at least 21 homes within a year of buying them since 2005.”

The NDP later released a statement suggesting Noormohamed had earned $5 million since 2005 on the sale of 41 properties in the province, citing BC Assessment property sale records.

Global News asked Noormohamed on Tuesday whether he had sold properties he had owned for 12 months or less, or bought properties he had no intention of living in since his election.

A spokesman for Noormohamed said he had done neither and would approve the publication of his disclosures submitted to the conflict of interest commissioner once the process is complete.

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