DUE DATE : 11/15/2012
DATE HANDED : 11/15/2012
Summary:
As many real estate developers in Toronto had refused to give information in the last market survey about new investors who buy a condo and resell before the taxation (Assignments), made by the firm Urbanation, the government is aiming to do more intervention in order get this information which is important for the understanding and forecast of the future in this field, that can be dangerous if unknown (Pigg).
Business Topic:
a) Concepts, definitions or business terms.
Assignments are units bought in the preconstruction phase by investors who intend to flip them to new buyers at a significant markup before having to come up with final closing costs, including land transfer taxes (Pigg).
CMHC: Canada Mortgage and Housing Corp (Pigg).
b) A brief explanation of how this article relates to the topics by referring material from the article to the concept in the text.
The article talks about the new investors, which are called Assignments by the author. As the information about them is still unknown because many developers did not answer the information in the research on this field, the government and policy companies are worried about the future of the industry which can be harmful for the real state sector. As a result, the government is planning to have an involvement o it in order to gather more information (Pigg).
This article relates to two topics which I studied this semester that are “The Role of Government in Business” (Hill 54), and “Managing within the Dynamic Business Environment” (Hill 2).
The first topic is related to the article when the government is planning to do an intervention by using new policies to get information about the Assignments. In order to respond and help the business needs and survival, the government has the right to create laws and provide services that will create a good environment or protect it.
The second topic can be found on the article when it says that the new investors can have consequences on the future of the segment. I accordance to the book we studied,