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Justin Trudeau Vows Two-Year Ban on Foreign Home Buyers in Canada Election

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Re: Justin Trudeau Vows Two-Year Ban on Foreign Home Buyers in Canada Election

#41

Post by kenned3 »

baybal2 wrote: post #27
lwansbrough wrote: post #17

Nice, this will curb the unacceptably high 4% of home buyers who are foreign who are definitely responsible for driving the market prices up. It certainly couldn't be driven up by the fact that if you ask virtually any person under 40 if they will purchase a home once they can afford one they will say yes. If only there was a way you could put more than one home on a single lot so you could actually meet demand witho…

I lived in Vancouver for 6 years. > Nice, this will curb the unacceptably high 4% of home buyers who are foreign who are definitely responsible for driving the market prices up. These 4% are driving up prices of the most elite real estate, and crowding out rich elite upper-middle-class Canadians, who invest in real estate, and live in big cities (read Toronto, and Vancouver.) That's the real problem for them. So, the…

they also use this to jump to the head of the line for their PR.

https://www.cic.gc.ca/english/helpcentre/answer.asp?qnum=653...

Re: Justin Trudeau Vows Two-Year Ban on Foreign Home Buyers in Canada Election

#42

Post by mixmastamyk »

lwansbrough wrote: post #17

Nice, this will curb the unacceptably high 4% of home buyers who are foreign who are definitely responsible for driving the market prices up. It certainly couldn't be driven up by the fact that if you ask virtually any person under 40 if they will purchase a home once they can afford one they will say yes. If only there was a way you could put more than one home on a single lot so you could actually meet demand witho…

Four percent can have a larger effect when combined with scarcity from other factors. This is just one constituency that comes last due to their lack of voice. And probably working as it should.

Re: Justin Trudeau Vows Two-Year Ban on Foreign Home Buyers in Canada Election

#43

Post by rmk »

Looking at the similar moves by politicians in the US (e.g, a package of bills to incentivize housing development by eliminating single-family zoning passed in California), Hong Kong (some measures to help people afford property by increasing land supply) and elsewhere, I can't help but think that the millennials are finally coming into their own as a political constituency.

Re: Justin Trudeau Vows Two-Year Ban on Foreign Home Buyers in Canada Election

#44

Post by [deleted] »

dontparticipate wrote: post #10

Maybe I don't know enough about how this works in Canada in particular, but will this do anything? I thought a lot of the issue was from housing as an investment vehicle, and not specifically foreign investment. And are foreign investors really buying the real estate directly, or are they purchasing REITs and the trusts are buying them on their behalf (laundering the "foreignness" of the investment)? And, as always,…

[deleted]

Re: Justin Trudeau Vows Two-Year Ban on Foreign Home Buyers in Canada Election

#45

Post by kenned3 »

rkk3 wrote: post #3

Serious question. With the borders closed have there even been many foreign home buyers?

They are using housing to jump the queue for immigration : https://www.cic.gc.ca/english/helpcentre/answer.asp?qnum=653...

it gives them a place to flee later in life. many of the houses bought by foreigners are vacant and have never been occupied.

For a gimps into this, look at Meng Wanzhou’s Vancouver mansions

How many mansions does a chinese national need in Vancouver?

Re: Justin Trudeau Vows Two-Year Ban on Foreign Home Buyers in Canada Election

#46

Post by SantalBlush »

krickkrack wrote: post #31
epa wrote: post #22

Earlier quoted context omitted.

It has been an issue in the Canadian market for 20 years now and has had a material impact on housing prices in certain big markets.

I understand that this is the narrative, but show me what markets specifically. Even if ownership is 10%. That means 90% of homes that are bought and sold are NOT to foreigners. The fact is that inflation has eroded away the value of $$ and houses that should cost $50,000 now cost $700k.

When supply isn't moving much, a 10% increase in quantity demanded is a lot. That would make a big difference in a market.

Re: Justin Trudeau Vows Two-Year Ban on Foreign Home Buyers in Canada Election

#47

Post by indemnity »

rubayeet wrote: post #19

Foreign ownership of houses comprises only small % of the housing market [1]. The measures promised (but all political parties, not just Trudeau) have been applied in New Zealand and their housing market still remain white hot. The root cause is low supply of houses in Canada, the red tape around land / property development keeps construction of housing slow and costly. [1] https://www150.statcan.gc.ca/n1/pub/11-626-…

Correct. Due to the pandemic and these restrictions, foreign buyer presence in NZ is slim to nil, yet appreciation this year is 30%+. Supply is coming, but slowly due to supply chain constraints and lack of labor due to border restrictions. The relaxed interest rate environment due to pandemic support has no doubt contributed also.

Re: Justin Trudeau Vows Two-Year Ban on Foreign Home Buyers in Canada Election

#50

Post by rkk3 »

kenned3 wrote: post #45
rkk3 wrote: post #3

Serious question. With the borders closed have there even been many foreign home buyers?

They are using housing to jump the queue for immigration : https://www.cic.gc.ca/english/helpcentre/answer.asp?qnum=653... it gives them a place to flee later in life. many of the houses bought by foreigners are vacant and have never been occupied. For a gimps into this, look at Meng Wanzhou’s Vancouver mansions How many mansions does a chinese national need in Vancouver?

> They are using housing to jump the queue for immigration :

That is a link to a startup visa program...

> it gives them a place to flee later in life. many of the houses bought by foreigners are vacant and have never been occupied.

> For a gimps into this, look at Meng Wanzhou’s Vancouver mansions

So Vancouver is expensive because a Billionaire's daughter has a 4m USD and a 11m USD Mansion ?

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