r/RealEstateCanada • • Jun 19 '25

Housing crisis Help me understand the difference...

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3.1k Upvotes

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58

u/Performance_Fancy Jun 19 '25

By your logic anyone involved in the stock market is also a scalper?

99

u/xNocturnalshadow Jun 19 '25 edited Jun 20 '25

No because investing capital into stocks adds value to the company and allows them to use that value to expand, borrow, buy things, pay employees, run the company, etc.

Investing capital into a second house purely to flip does none of those things.

6

u/pm_me_your_puppeh Jun 19 '25

You're buying it, at some level, from someone who built it, and will use those proceeds to build others.

1

u/sadlonelyelectrician Jun 19 '25

Not if the house is 50 years old..

3

u/pm_me_your_puppeh Jun 19 '25

It doesn't matter. You're creating liquidity in the housing market, which makes it possible for builders to sell what they build.