Canada to ban foreigners from buying homes
bloomberg.com
Canada to ban foreigners from buying homes
1–10 of 817 posts
Re: Canada to ban foreigners from buying homes
#2It will be interesting to see what happens but I don't think it will do much as most of the people buying property are Canadians. And New Zealand, which has a similar policy, has skyrocketing house prices right now:
https://www.globalpropertyguide.com/Pacific/New-Zealand/Pric...
Re: Canada to ban foreigners from buying homes
#3There’s an exception for students and a lot of other loopholes here. I think it’s an excuse to give up after 2 years with “proof” that it was a bad idea.
Re: Canada to ban foreigners from buying homes
#4There’s an exception for students and a lot of other loopholes here. I think it’s an excuse to give up after 2 years with “proof” that it was a bad idea.
Those exceptions -- for people who live and work in Canada but aren't citizens -- look to me like basic requirements for this to have any chance at being a reasonable policy. Excluding noncitizen permanent residents from home ownership would be a great way to make sure approximately zero high income (thus high tax) people want to migrate to Canada.
Re: Canada to ban foreigners from buying homes
#5What about companies?
Re: Canada to ban foreigners from buying homes
#6The Canadian economy is almost entirely dependent on real estate[0][1]. It's almost a certainty that the Liberal government would never hurt that sector in any meaningful way. I'm guessing that they're run the numbers and they know this won't have any real effect (other than political points scoring).
Most of the RE demand comes from immigration (in CA, currently more than 1%/year) - look at any country that has high immigration and you'll see huge appreciation in RE (CA, AU, NZ, etc).
You will also see a huge decline in birth rates in those same countries.
[0] https://en.wikipedia.org/wiki/Economy_of_Canada#Key_industri... [1] https://betterdwelling.com/canadas-economy-hits-a-new-record...
Re: Canada to ban foreigners from buying homes
#7I don’t know the specifics on Canadian real estate market and the specifics of the problems there, but based on my understanding of the problems facing your neighbors to the south - I feel like it’s almost an attempt to appease citizens by blaming the issue on “foreigners” (always a move that is popular with politicians) to redirect attention from the much more likely cause - massive investments made by hedge funds, private capital, REITs which does not appear to be addressed at all?
Thought I do agree that a non-primary-resident investment, whether from citizens, foreigners, or capital should be greatly limited overall and these rules should only loosen to direct investment towards areas that are in dire need of an influx of capital for redevelopment. That is - if it’s not distressed, and it’s not going to be your primary residence - GTFO, you should be last in line to buy.
And I say that as former landlord. I just believe that if I was looking to make some money - I could probably do just fine under these conditions. I don’t see an issue of buying a distressed property needing a rehab, and I think doing so benefits everyone.
I am getting real tired of society getting ever more dystopian just so that someone can make a buck.
https://www.fool.com/investing/stock-market/market-sectors/r...
Re: Canada to ban foreigners from buying homes
#8This is nothing but pandering for votes before an election for those who don't understand this won't have any significant impact on affordability of houses for Canadians.
There's a reason why we still also pay the highest telecommunications bills in the world - industrial complexes have captured our government, and even it's far worse that that; regulatory capture.
Edit to add: 3 points down to 0 points; downvotes are an embarrassment to civil and critical conversation, and you should be embarrassed if you use them.
Re: Canada to ban foreigners from buying homes
#9There’s an exception for students and a lot of other loopholes here. I think it’s an excuse to give up after 2 years with “proof” that it was a bad idea.
Those exceptions -- for people who live and work in Canada but aren't citizens -- look to me like basic requirements for this to have any chance at being a reasonable policy. Excluding noncitizen permanent residents from home ownership would be a great way to make sure approximately zero high income (thus high tax) people want to migrate to Canada.
And force couples to buy in one (the citizen)'s name, etc.
Re: Canada to ban foreigners from buying homes
#10What about companies?
Or a Trust at a bank.
I don't think foreigners can buy land in Mexico either, but you can open trust at a bank in Mexico and the trust can own the property.