this post was submitted on 15 Aug 2024
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B.C. landlords allowed to impose massive rent hikes after mortgage payments spike (bc.ctvnews.ca)
submitted 5 months ago by girlfreddy@lemmy.ca to c/canada@lemmy.ca
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Two B.C. landlords whose costs have skyrocketed – due to their variable-rate mortgage – have been allowed to impose huge rent hikes on their tenants to offset their financial losses.

In a recent ruling, an arbitrator with the province's Residential Tenancy Branch approved increases totalling 23.5 per cent over two years for each of the landlords' four rental units.

That's on top of the 3.5 per cent annual increase previously approved by the B.C. government for 2024.

"The landlords experienced dramatic interest rate increases which have made managing the property unsustainable," reads the ruling, which was published in May.

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[–] girlfreddy@lemmy.ca 13 points 5 months ago (1 children)

Or who would want to buy it if it's a loss?

If it doesn't sell, fine. Then maybe people will stop buying up housing to have rental income. And while I understand why people do it, I in no way agree with it ... because it's only wealthier people who can afford to do it. The average person is priced out.

So let those who bought at low-now high interest rates lose their shirts, as it seems that's the only way prices will come down ... because every level of gov't hasn't done sweet fuck all to stop (or even hinder) the practice.

[–] xmunk@sh.itjust.works 10 points 5 months ago (1 children)

It'll sell at some price point. Property isn't a guaranteed growth investment and we should stop treating it like one.

Also, only a fucking idiot gets a variable rate mortgage.

[–] GaMEChld@lemmy.world 3 points 5 months ago (2 children)

Or variable rate interest should be illegal? That's kinda where I was going. People keep yelling about landlords when everything in general follows the path of least resistance. Cut the problem off as near to the source as possible.

[–] xmunk@sh.itjust.works 4 points 5 months ago

That's not unreasonable sounding... I'm not certain if there are any second order effects but it feels like a good consumer protection change.

[–] bob_omb_battlefield@sh.itjust.works 1 points 5 months ago (1 children)

Variable rate let's me take on the rate risk and pay (on average) less interest. Fixed interest means the bank prices in the rate risk and you pay for that in a higher rate.

[–] GaMEChld@lemmy.world 1 points 5 months ago (1 children)

I understand what it is. I said make it illegal. It largely contributed to the housing collapse.

[–] bob_omb_battlefield@sh.itjust.works 1 points 5 months ago (1 children)

I don't think there was really much of a housing collapse in Canada...

[–] GaMEChld@lemmy.world 1 points 5 months ago

Well it caused a worldwide recession.