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<blockquote data-quote="NoMoreTO" data-source="post: 1460099" data-attributes="member: 13996"><p>Yes. Farms in region of Ontario have been being bought more and more by corporations. In Manitoba, corporations are buying up huge swaths of land. The Teachers pension fund here in the province is known for being quite saavy and are now buying up farms.</p><p></p><p>A farmer explained it to me:</p><p>- Typical Return on Investment for a Farm is 1.5-2.0% (not including capital gains) </p><p>- The typical individual buyer takes on a mortgage at 3.5% interest, meaning that he has to gap the difference by either supporting the investment with other farm income, refinancing older farm properties, or off farm income (job).</p><p>- Investment funds already place large amounts of money in low risk asset classes, government bonds would be an example, yielding only 2% in many cases, but secure. They simply sell these and put them into farmland - CASH. </p><p>- On the other hand you have ETFs which when people buy, they basically just have to go out and allocate the funds into farms - further pushing the prices up.</p><p></p><p>I don't think we'll see a squeeze on real estate, but the WEF promise of "<em>you'll own nothing and be happy</em>" does linger in the background. To me that is how they would do it, just make housing so expensive no one can buy one. Then tax the properties upon death so that they children are almost unable to purchase. We are seeing this in farm real estate in the US with Joe Bidens pushing of "unrealized gains".</p></blockquote><p></p>
[QUOTE="NoMoreTO, post: 1460099, member: 13996"] Yes. Farms in region of Ontario have been being bought more and more by corporations. In Manitoba, corporations are buying up huge swaths of land. The Teachers pension fund here in the province is known for being quite saavy and are now buying up farms. A farmer explained it to me: - Typical Return on Investment for a Farm is 1.5-2.0% (not including capital gains) - The typical individual buyer takes on a mortgage at 3.5% interest, meaning that he has to gap the difference by either supporting the investment with other farm income, refinancing older farm properties, or off farm income (job). - Investment funds already place large amounts of money in low risk asset classes, government bonds would be an example, yielding only 2% in many cases, but secure. They simply sell these and put them into farmland - CASH. - On the other hand you have ETFs which when people buy, they basically just have to go out and allocate the funds into farms - further pushing the prices up. I don't think we'll see a squeeze on real estate, but the WEF promise of "[I]you'll own nothing and be happy[/I]" does linger in the background. To me that is how they would do it, just make housing so expensive no one can buy one. Then tax the properties upon death so that they children are almost unable to purchase. We are seeing this in farm real estate in the US with Joe Bidens pushing of "unrealized gains". [/QUOTE]
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