RealEstate Bubble 6

The Finance department and the Finance Minister Jim Flaherty have definately put a damper on speculators who were partly responsible for a adding to the ” Real Estate Bubble ” Speculators make their money on leveraging their money on putting as little down as possible, and flipping out as soon as possible. They could care less about the rent roll or the general condition of the building.
 The decision to increase the down payment for a CMHC insured mortgage from as little as 5% to 20% will have a sizable impact. According to The deputy chief economist for TD Bank these speculative properties accounted for up to 15% of all new mortgages in Canada. That was really news to me, as it certainly has not been the case with my practice nor do I believe was the case for Real Estate in Peterborough in multifamily or commercial/investment properties.