Canada temporarily banning foreign investors from buying homes to cool housing market
The government is taking other measures amid record home prices.
www.al.com
Will this tank the market?
Canada banning foreign buyers
- Thread starter Bored2022
- Start date
www.al.com
Will this tank the market?
Depends. All they have to do is create a trust and have the trust buy the property. Now it isn't a foreign investor...Canada temporarily banning foreign investors from buying homes to cool housing market
The government is taking other measures amid record home prices.
Will this tank the market?
One acquaintance told me he has seen a whole floor of 1 or 2 bedroom condos bought up by one chinese foriegn national. Not a resident. Then the floor turns into student housing for chinese students. With LV bags and other finery.
It seems that a generation or two of buying goods made off shore, by a labour force earning 5% of what would be earned here generates significant buying power that ends up warping our housing market and partially biting us in the behind.
I'm sure there are other factors, but this one does not help our situation.
It seems that a generation or two of buying goods made off shore, by a labour force earning 5% of what would be earned here generates significant buying power that ends up warping our housing market and partially biting us in the behind.
I'm sure there are other factors, but this one does not help our situation.
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If you believe the stats, only about 5% of deals are done by foreign buyers. I think they should look at banning companies that buy a lot of these properties to rent out. That's constricting the supply significantly and inflating the price for both rental and sales.
TBH, there are several issues at work in the housing market, and I don't really know how we can make them more affordable. There are few solutions that won't fuck up the entire market. I remember Jim Flaherty as finance minister made it harder to get a mortgage back around 2007/08, but it really didn't do a hell of a lot. I know some friends who've seen the value of their homes jump by $1M in under a decade. That's fucked up and unsustainable!!!
TBH, there are several issues at work in the housing market, and I don't really know how we can make them more affordable. There are few solutions that won't fuck up the entire market. I remember Jim Flaherty as finance minister made it harder to get a mortgage back around 2007/08, but it really didn't do a hell of a lot. I know some friends who've seen the value of their homes jump by $1M in under a decade. That's fucked up and unsustainable!!!
My buddy is a property manager for well well funded Guys from India. They set up corporations in Canada for their buying, and if some new laws make things challenging, they will list my buddy as head of the corp. Canadian born citizen.
This is just smoke and mirrors.
This is just smoke and mirrors.
Exactly there is many ways to go around the ban.
What I would do is heavily tax empty houses and empty condo. Housing should become a right and not just a speculative item to make money on. You buy a house or a condo but leave it empty? You give 25k per year in tax... This would neglect the gain buyers expect to make.
As things go right now my retirement home will be in a small remote village in mexico. Hopefully near the sea. Because once I sell my house I won't be able to buy anything else anyhow...
Not sure what you mean. They already did it with one of their companies to get around the 15% foreign buyers tax.
That is the underlying issue ..it's that housing is financialized ...no govt is going to change the system ..making more supply won't fix the issue because the investors will just scoop it up ...
So the focus needs to be to discourage the demand for housing for financial gain and building supply specifically for housing (apartments), which requires convincing people that renting is acceptable
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Part of the issue is that the beneficial owners are not identified ... Beleeive the fed govt is working on it so that it's nation wide ...that said, BC already has it and it hasn't helped with prices even though it was implemented late 2020
British Columbia beneficial ownership registry launching November 30, 2020 - Osler, Hoskin & Harcourt LLP
On September 20, 2020, the Land Owner Transparency Act (LOTA), was brought into force by the Province through an Order in Council, fulfilling the gove...
www.osler.com
In many American popular states like Florida, Arizona, etc... Capital firm are buying 1/3 of all houses on the market. They go 30% over asking price and do not visit the house. They put up everything for renting. This will soon happen in Canada. Making the divide between the riches and middle/poor classes even higher.BNN Bloomberg – Canada Business News, TSX Today & Interest Rates
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If nothing is done we are heading for future generation of slave renters ...
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I don't think so I think many of the Foreign buyers are now considered new CanadiansCanada temporarily banning foreign investors from buying homes to cool housing market
The government is taking other measures amid record home prices.
Will this tank the market?
I am not an expert in this area. This is the kind of shit I think of, but I certainly don’t claim to have the answers here.
Start with taxation. If you are using housing as a vehicle to increase your wealth, it needs to be taxed.
Start confiscating the illegal stuff. Unregistered Air b&b…. Drug houses…. (This one should be popular) and the rentals escorts use.
Stricter rules for use of residential property. It’s zoned “residential” for a reason. We already have hotels and motels.
Cease and desist all new immigration until we have a 10% vacancy rate in the 3 major cities… and for god sakes put a committee together with reps from all 3 levels of gov’t to start actually managing supply and demand once immigration opens back up, as we need immigration.
The Provinces need to put a task force together to start investigating the misdeeds of realtors. Licences need to be taken away, and fines levied. They are the most corrupt cock suckers I have ever seen, and I’m willing to bet the fines alone would pay for the dept, and the staff Xmas party. (Truth be told…. The entire industry needs to be upended with a new way to buy and sell)
Stop allowing realtors to say… “we have another offer, but we can’t disclose the amount”.
Start with taxation. If you are using housing as a vehicle to increase your wealth, it needs to be taxed.
Start confiscating the illegal stuff. Unregistered Air b&b…. Drug houses…. (This one should be popular) and the rentals escorts use.
Stricter rules for use of residential property. It’s zoned “residential” for a reason. We already have hotels and motels.
Cease and desist all new immigration until we have a 10% vacancy rate in the 3 major cities… and for god sakes put a committee together with reps from all 3 levels of gov’t to start actually managing supply and demand once immigration opens back up, as we need immigration.
The Provinces need to put a task force together to start investigating the misdeeds of realtors. Licences need to be taken away, and fines levied. They are the most corrupt cock suckers I have ever seen, and I’m willing to bet the fines alone would pay for the dept, and the staff Xmas party. (Truth be told…. The entire industry needs to be upended with a new way to buy and sell)
Stop allowing realtors to say… “we have another offer, but we can’t disclose the amount”.
ainnt going to do squat.
low inventory atm, with a population wanting to buy homes. higher mortgage rates will slow the multiple offers and price extremes. perhaps a slow growth compared to the outrageous growth that happened.
without more new housing being built on a much more massive scale then at current rates growth will continue. new housing would take years of political maneuvering to achieve this to a point where housing could be affordable and or see a price correction.
unless interest rate go up significantly towards double digits I dont see any significant correction.
low inventory atm, with a population wanting to buy homes. higher mortgage rates will slow the multiple offers and price extremes. perhaps a slow growth compared to the outrageous growth that happened.
without more new housing being built on a much more massive scale then at current rates growth will continue. new housing would take years of political maneuvering to achieve this to a point where housing could be affordable and or see a price correction.
unless interest rate go up significantly towards double digits I dont see any significant correction.
