By I. Aagaard, Guest Contributor
Hi there:
I’m back! Me, with the previous Sustainable Affordability and MISSING: National Housing policy in Federal Elections! contributions. This time I’m here with a suggestion: That tenants collectively approach Ottawa and Queen’s Park for financial help so that we, too, can do our part in saving or creating jobs during these tough times. After all, if GM and Chrysler, to name a few, can get help from Messrs. Harper and McGuinty, then why can’t we?
Think about it! If our respective governments are prepared to help bail out big companies that are poster boys for a capitalist society, then why can’t we, the renters of this province, get similar help? After all, why should poor tenants who make a lot less than the good folks at GM, etc. subsidize someone who’s already got their big homes? And this, just because of corporate greed and incompetence or unwillingness to ‘read’ the markets and move with the times!
Imagine our governments helping us by taking care of the down payment. We can take care of the rest. We pay rent now, so we can relatively easily convert that monthly amount to a mortgage payment. Right? After all, ‘sustainable affordability’ would play a bigger role, as we’d have more control over our housing expenses. And we would have a chance to build up some equity. That should help us become less of a burden on society when we hit our twilight years. We could perhaps look to more ‘Granny Flats’ and other independent housing arrangements for seniors needing only limited help, rather than the current model of Senior Housing that is often quite expensive and, it seems to me, has profit for a few as its main raison d’être!
And the bail out given to us would directly affect our economy in a positive manner by saving or creating local jobs. Imagine the number of construction jobs that would be saved, perhaps even created, if all the tenants who dream of owning a house or condo suddenly could afford to do so – with a little help from “above”. The jobs we can help save or generate, would be construction jobs and ‘Green Jobs’, as new homes would be built to new environmental standards and older homes retrofitted to “be green”.
Okay, so the big losers in this would be the current rental property owners and developers. But how many are they, compared to the number of tenants? Just how much do they put into the local economy? And how much do they currently benefit from various tax breaks and tax shelters?
I don’t have numbers and, frankly, numbers don’t interest me anyway. What really matters to me are tenants’ rights. And how we view housing and our right to a decent and affordable place to live. Do we view it as a right or a privilege?
I know not every tenant wants to be responsible for owning their own home, but I bet you a lot do. And if my limited sense of economics serves me right, I’d say that the sooner one owns property (i.e. has paid off any mortgage held), the sooner one would have money available for discretionary spending – which generally is seen to benefit the economy!
And we will be sitting on equity – our own home. Equity that can help us when we are too far into our senior years to manage on our own! We sell and move into senior residences and, with the money from our home, we can even afford to help pay for our care. Without the equity, we are at greater risk of becoming more of a burden on society. Or worse, Seniors Residences will increasingly become “holding cells” for the old, weak and weary!
So, let’s all ‘light a fire under tenants’ rights’ and ask our respective governments for some bailout money of our own!
East York Tenants Group 
Very interesting article and comments expressed regarding safeguards for ownership for at least a period of time sounds like a good idea. Seeing that I have not thought about this from a long-term basis I do not have any suggestions to add.
I do think that tenants should consider their future and think what can be done to improve their economic situation in the years ahead. How can our youth be encouraged to think far ahead to guarantee a better financial future than their parents have today??
Thanks for sharing.
LAH
Following up with my earlier comment . . . . .. .it just occurred to me that this idea of ‘sustainability in housing needs and housing policy etc.’ ought to be addressed within the context of the explosive population growth. The rapid growth in population is placing quite a strain on all resources, not only housing. We can’t solve all the problems around us . . . seems that we are only able to deal with what’s happening in our own little corner.
Interesting article but, as another viewer wrote, there should be conditions and safeguards. Instead of helping with the downpayment another option could be to assist tenants who wish to purchase a home by providing a first-time buyer tax incentive. I seem to recall this option was available years ago. The tax incentive would apply to homes of modest value and the purchaser would have to own the home for a specific period of time or face a tax penalty if they want out. For example, a 10% – 15% tax credit on the purchaser’s annual tax return would probably be as much as the downpayment needed to secure the purchase. That tax credit could go toward paying down the mortgage or to get rid of other pressing debts. That incentive would be a great help to tenants who are first-time buyers.
Don’t really have a comment on the article that was given above, but i think i can be accurate in saying that it is never going to happen. The landlords will fight it aggressively & the “little guy” does not have the voice that large corporations have.
I am a regular visitor to your site and as a tenant I always learn something new and interesting about housing issues in your articles. This is a very interesting article and obviously written with a long term view as to how the ongoing challenges for affordable housing can be met . . . right into our ‘twilight years’. I do have some questions . . . . will there be conditions or safeguards with regard to government helping tenants with the downpayment toward the purchase of a house or condo? Will speculating tenants see this as an opportunity to buy a house or condo and sell it quickly in a hot market to realize a quick profit? Shouldn’t there be a condition or requirement that buyers own the house/condo for a specific period of time? Given the horrible mortage meltdown across the border will there be safeguards to ensure that potential buyers can afford to carry the mortgage? The need for a sustainable affordability housing policy will always be there so long as social and economic inequalities persist. Very stimulating and enlightening article and lots of great ideas for our politicians to mull over!
RR