because nobody knows for certain how someone is using the home they bought.
I believe Teranet's methodology is based on land title data testing to see if the same person owns more than one property.
The Bank of Canada's methodology is based on credit report data 2/
I believe it's effectively just a test to see if more than one mortgage appears on a credit report.
The methodology I'm using for our brokerage's research is different - but too involved to explain here.
Every methodology has its own limitations. 3/
For Teranet and the BOC, if a first time buyer buys a home and decides to rent it rather than live in it, both organizations would likely classify them as a FTB vs investor.
They should be classified as an investor!
All measures are imperfect but better than nothing /
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Rob was friendly and did his best to convince me that my understanding of their business wasn’t accurate
He even offered to share more info including video testimonials of their happy “owner-residents” with the hope I might change my mind and see what they are doing is great 2/
I gave it some thought.
Researching Key’s business model is not a top priority for me right now but I did figure Poloz deserves a fair shake.
So I followed up with them to say I only needed one thing, the contract owner-residents sign with Key. 3/
"our analysis finds that many Canadians are buying homes as investment properties—that is, in addition to their principal residence—and the importance of this phenomenon has grown.
Expectations of a capital gain can make homes a very attractive asset for investors." 2/
"A sudden influx of investors in the housing market likely contributed to the rapid price increases we saw earlier this year.
In such a case, expectations of future price increases can become self-fulfilling, at least for a while." 3/
The biggest lie policy makers are telling us is that the reason people can’t afford a home is because their NIMBY neighbours are preventing homes from being built.
This person has been spamming me with this same nonsense for a week, so let’s explore it 1/
The duplicitous money hungry realtor is of course an easy target, but I feel @cbcmarketplace didn’t ask any agents what it’s like working with FSBO sellers to get a different perspective.
Since defending realtors will lead to some trolling, I’ll start with a reminder that I was one of few people in my industry who supported FSBOs being listed on the MLS back in 2010 and fought with the @CompBureau to make sold data public 2/
Now, I’ll offer you my experience dealing with For Sale By Owner (FSBO) sellers from when I was selling more actively.
The first and biggest problem was that it was incredibly hard to schedule an appointment to see FSBO properties. 3/
A 🧵 on how real estate investors impact the housing market and why policy makers should be more concerned.
While there is no single cause for high house prices, real estate investors can have an outsized impact on the way up and down….1/ movesmartly.com/articles/are-i…
Avg home buyers & real estate investors have very different (heterogeneous) beliefs about the future direction of the housing market which affects their behaviours and leads to very different market outcomes
When prices are rising, real estate investors are more optimistic that prices will keep rising rapidly in the future which is why investors are typically willing to pay more for a property than an end user. 3/