Episode 171 – Ron Butler – Housing Market Crisis – Is it Hopeless?

“We know there’s sensible options; just try something. We go years studying things. We go years having commissions. We go years having more studies after the studies. We change our minds about what to do. Just build it! Just do something, take action.” – Ron Butler

  • [0:42] Patrick introduces his next TEDM guest, Ron Butler.
  • [02:20] Ron and Patrick open up their conversation with Ron sharing what his life is looking like these days semi-retired from day-to-day operations and what his intention is in the mortgage brokerage space through their business.
  • [6:24] Ron offers his perspective of the current Canadian real estate market, nonsensical housing prices (aka “bat shit crazy” housing prices), unsustainably low mortgage rates now aggressively on the rise in record breaking time.
  • [12:57] With little likelihood of housing prices coming down soon, and prolific government mismanagement, when Ron observes the key factors at play right now, there is good reason for why things are where they are.
  • [18:14] So when variable rates went from 1.5% to 5.7%, why did the payments not change, and why would that take someone with such a long history in the mortgage brokerage business by surprise?
  • [21:07] Ron weighs in on the ever-growing debt, the fastest growing sector in Canada and the slowest. Quite an eye-opener!
  • [27:46] With a lack of optimism about how to solve the issues created by the current government policies, Patrick turns it over to Ron who discusses climate change, energy production, and real solutions we must consider that get dismissed for political and monetary gain.
  • [33:37] From the perspective of mortgage lending, experience in business, and insights from friends in political consultancy, Ron shares his view of the squeeze for entrepreneurs and small-medium business owners to have a successful go. Ron and Patrick further discuss the realities of politics over policy and adopting the popular narrative, whether a politician believes in it or not, to win votes.
  • [41:13] Economies cycle and politicians come and go, but conspiracies aside, what makes this time in politics feel so urgent and on the edge in Canada?
  • [47:28] Build baby, just build! Patrick highlights the incredible number of regulatory measures that have been taken to crush demand on real estate and that’s only one half of the issue. Ron expands on the supply crisis in Canada particularly in the face of monumental immigration. While immigration is necessary, it would behove those making the decisions to prepare the infrastructure to support both new and established citizens of the country. Already there is a huge lack of supply, but it’s only compounded by the number of obstacles, red tape, and poor policy to bring new builds to fruition.
  • [58:04] This is fixable! Ron and Patrick discuss simple solutions of taking initiative, try out new ideas to eliminate layers of unnecessary bureaucracy, become creative and incentivize to benefit of the both the builder and consumer. Less fixation on studies, and analysis for appeasement; more action and innovation.
  • [65:56] Perspective. Canada vs. the US. Business owners vs. bureaucracy. Glass half full vs. glass half empty. Opportunity within the chaos.
  • [77:14] Yes, there needs to be more accountability to move this housing crisis forward. Ron offers his thoughts on the positive outcomes a change in government may have if they are devoted to the cause, and make aggressive steps to cut down on the bureaucracy toward solutions.
  • [80:29] It’s time to lighten things a little and bring on the rapid fire! Apple vs Android; favourite swear word and we’ll see you next Tuesday; favourite type of music; favourite movie; as a voracious reader Ron can’t pick a favourite but shares what he’s reading now; favourite inspirational quote.
  • [83:33] Ron’s gratitude and how fortunate he feels.

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