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🔴🏡🏘️IS the Government’s new sweeping proposal on Short-term Rental Restrictions (Airbnb & Vrbo) a GOOD IDEA❓❓
🔴Many supporters of the bill including BC Housing Minister Ravi Kahlon certainly think so. Ravi and others on his side argue that short-term rentals are a primary contributor to the lack of housing and state that there are currently 28,000 short-term rental units that could easily be turned into long-term housing. The idea is that greedy landlords and investors have driven the cost of rent up because they have taken so many units out of the long-term rental supply. Once these homes are unlocked, the argument goes, that should add to the supply and therefore reduce the cost of rent.
🔴Critics of The Proposal state that it is a heavy-handed order that will not only be ineffective at making a dent in the overall lack of housing but will also add unnecessary pain and financial turmoil for thousands of short-term rental owners. Many who oppose this legislation state that the government coming in and changing the rules of the game for landlords and investors is inherently unfair and immoral. They claim that most of these owners have sunk the majority of their net worth into these investment homes as their sole source of income and with interest rates as high as they are, all of these homes would have severe negative cash flow if converted back into a long-term rental. For example at 7% interest rate many luxury Airbnb properties if converted into a long-term rental would have a shortfall of anywhere from $2,000 to $10,000 per month. Most people would agree this would be untenable and if put in this position one would easily risk bankruptcy and this housing market.
🔴 While I can appreciate that some, even possibly including Ravi Kahlon, might be well intentioned with this proposal, I vehemently oppose it. This proposal hardly puts a dent in the 3.5 million homes needed to be built before 2030 in Canada (CHMC). Furthermore the penalty is imposes is Harsh and immediate on thousands of landlords / investors. Many of these owners will no doubt suffer harsh consequences including bankruptcy. For the gov’t to… (DM ME on IG FOR FULL VERS😉 📲) or email email@example.com