Investors account for 30 per cent of home buying in Canada, data show
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Investors account for 30 per cent of home buying in Canada, data show
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Re: Investors account for 30 per cent of home buying in Canada, data show
#2> The central bank defines an investor as a buyer who took out a mortgage to buy the property while maintaining a mortgage on another home.
In the US, a lot has been made about large investment companies buying up houses, but this is something different entirely:
> This category represents homebuyers with multiple mortgaged properties. This means investors are homebuyers who either:
> * purchase an investment property while maintaining their primary residence, or
> * purchase a new residence to live in while converting their existing residence into an investment property
Specifically, "investors" excludes anyone who didn't use a mortgage to purchase (e.g., all-cash buyers, any buyer with alternative financing). AFAICT, it would even exclude someone with a paid-off house who bought a new investment property with a mortgage.
[1]: https://www.bankofcanada.ca/2022/01/staff-analytical-note-20...
Re: Investors account for 30 per cent of home buying in Canada, data show
#3Canada has very little private land ownership.The Federal Gov hoards land and creates a severe shortage of land for individuals to purchase. They need to open up the billions of acres of accessible land to 1st time buyers and then to existing property owners. Especially in the Province of Ontario.
They also intentionally keep interest rates low so existing house/property owners can leverage their properties to buy more. Never allowing a 1st time house shopper a chance. You can't save enough for a down payment because the rate that housing goes up outpaces the rate of your earnings.
In my opinion any house in the same city other than your primary residence should have property taxes that are significantly higher, perhaps 3-4 x the current rate. Interest rates for any house that is not your primary residence and considered an investment property should also be much higher. The only exception I would make is if you have cottage/recreational property outside of cities, this type of property like a cottage would fall under the Primary residence category.
There is also that fact that the majority of Canadians in the private industry, especially in Tech are severely under payed and underemployed.
I'm not sure of the unintended consequences of my proposals, but they couldn't be worse than what is happening now.
Re: Investors account for 30 per cent of home buying in Canada, data show
#4I do wonder what country will be the first one to ‘break’ and implement restrictions on buying homes. The current situation is not sustainable, and soon something will need to give.
Re: Investors account for 30 per cent of home buying in Canada, data show
#5[flagged]
Re: Investors account for 30 per cent of home buying in Canada, data show
#6I do wonder what country will be the first one to ‘break’ and implement restrictions on buying homes. The current situation is not sustainable, and soon something will need to give.
Plenty of countries do, for ex in Asia see Thailand, Singapore, Indonesia, Vietnam, etc.
Re: Investors account for 30 per cent of home buying in Canada, data show
#7Canada has very little private land ownership.The Federal Gov hoards land and creates a severe shortage of land for individuals to purchase. They need to open up the billions of acres of accessible land to 1st time buyers and then to existing property owners. Especially in the Province of Ontario. They also intentionally keep interest rates low so existing house/property owners can leverage their properties to buy mo…
The federal government doesn't "hoard" land around areas where people would want to purchase a first home. The vast majority of crown land is not around any major urban centers.
Canadian tech workers make way above median income levels.
Re: Investors account for 30 per cent of home buying in Canada, data show
#8Canada has very little private land ownership.The Federal Gov hoards land and creates a severe shortage of land for individuals to purchase. They need to open up the billions of acres of accessible land to 1st time buyers and then to existing property owners. Especially in the Province of Ontario. They also intentionally keep interest rates low so existing house/property owners can leverage their properties to buy mo…
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Re: Investors account for 30 per cent of home buying in Canada, data show
#9> The central bank defines an investor as a buyer who took out a mortgage to buy the property while maintaining a mortgage on another home. In the US, a lot has been made about large investment companies buying up houses, but this is something different entirely: > This category represents homebuyers with multiple mortgaged properties. This means investors are homebuyers who either: > * purchase an investment propert…
Almost as if the large companies would like those unable to buy homes to misdirect their ire.
Re: Investors account for 30 per cent of home buying in Canada, data show
#10I do wonder what country will be the first one to ‘break’ and implement restrictions on buying homes. The current situation is not sustainable, and soon something will need to give.
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