BC's $1.45 Billion Condo Purchase Plan, Explained

Today we're talking about the joint federal-BC housing announcement, including a $1.45 billion plan to buy up unsold condo inventory, and a $3.2 billion program to subsidize municipal development charges. I go over why the condo purchase plan could have made sense as a way to acquire non-market housing, but why the rent-to-buy details that have since come out change that, why cutting the Community Housing Fund to help pay for it makes things worse, and why subsidizing development charges rewards cities that let themselves become over-reliant on them in the first place. Chapters: 00:00 Intro 00:41 Cost Breakdown 01:32 Buy It or Build It 02:53 Waiting for a Price Correction 03:56 Rent or Resell 05:31 Rent-to-Buy Scheme 09:28 2006 Mortgage Rules 10:19 Financing Structure 11:46 Community Housing Fund 13:35 Rent-to-Buy Analysis 14:29 Ethics Committee Review 15:25 Brookfield Connection? 17:23 Development Charge Subsidies 18:05 Effect on Housing Forms 18:57 DCs vs. Property Tax 20:21 Conclusion Sources: PM Carney remarks on BC housing joint venture https://www.pm.gc.ca/en/news/speeches... Press release on Canada-BC housing plan agreement https://www.pm.gc.ca/en/news/news-rel... Canada’s condo supply is about to fall off a cliff https://financialpost.com/real-estate... John Ivision mentions $3 billion to buy condos https://nationalpost.com/opinion/john... Eby says plan won’t work in Vancouver https://www.timescolonist.com/local-n... Eby says they don’t even have to do it https://www.biv.com/news/economy-law-... CMHC release on development charges https://www.cmhc-schl.gc.ca/observer/... CMHC Development Charges and Fees Survey https://www.cmhc-schl.gc.ca/observer/... BC scraps affordable rental program https://www.cbc.ca/news/canada/britis... Toronto condo market hits rock bottom https://financialpost.com/real-estate...