The Missing Middle with Mike Moffatt and Sabrina Maddeaux MURBs & The Housing Plot Twist No One Saw Coming
Aug 6, 2025
The hosts dive into a quirky comparison between cheesy Jean-Claude Van Damme movies and Canada's rental housing crisis. They discuss the 1970s tax strategy, MURBs, as a possible solution to skyrocketing rents. The conversation touches on the challenges small investors face and the psychological misconceptions about the housing market as a guaranteed money-maker. They also explore the implications of reintroducing the MERB tax provision to boost rental stock, while examining the financial perks of operating rental apartments.
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Mike's Time Cop Anecdote
- Mike Moffatt shares a nostalgic memory of loving the sci-fi movie Time Cop, which involves time travel and stock market profiteering.
- This inspired his housing market time travel scenario about profiting from future home price increases.
Barriers to Building Rentals
- Building apartment buildings hasn't been financially feasible for small investors due to high costs and red tape.
- Most mom-and-pop investors found it easier to buy existing homes to rent rather than develop new rental apartments.
MERB Tax Deferral Incentive
- The MERB (multi-unit residential building) tax provision gives investors valuable tax deferrals on expenses of new rental apartment buildings.
- This deferred tax benefit incentivizes investment in new small scale rental construction.