2008-09-18

If You Need the Governement to Buy a Home, You can't Afford it!

"Applicants are not required to have a downpayment" (Home Ownership Program, Government of New Brunswick).

To simplify the current financial crises, too many people who couldn't afford houses bought one. Buying a house is a risky endeavor. Prices go up, prices go down. Your ability to pay your mortgage will vary: cost of oil, salary vs. inflation, etc...

So why for the love of goodness are we subsidising the buying of houses. New Brunswick subsidises new home buying to families making less than $35,000. Should families making 35 grand or less be buying new homes? No.

The federal government allows people to dip in to their RRSP to buy a house, tax free.

Now the Conservatives are promising $700 to people buying their first home. Hopefully that is an empty promise, because it is bad public policy.

We should also get rid of the tax holiday given to the few people able to turn a profit on their homes. Even the Americans don't allow you to make a million bucks tax free on your house.

Canada is still subsidising houses on the front end. The United States is now subsidising houses on the back end. Dolling out 600 billion dollars this year ($2000 per every American) to bail out, and take over, the mortgage industry. $2000 is almost half my yearly rent!

Let's recap, Americans are subsidising house buying which is responsible for the average American's sky high oil consumption. The American dream should be a dream, because when everybody attains it, it quickly turns into a nightmare.

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