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Investors account for 30 per cent of home buying in Canada, data show
91–100 of 207 posts
Re: Investors account for 30 per cent of home buying in Canada, data show
#92> 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…
If there’s an affordability housing crisis at the level of Canada, where home prices are so wildly out of whack relative to median incomes, it’s IMO entirely reasonable to ban the purchase of investment properties in the single family homes market for anyone . This will never happen because of the political backlash, but housing as a speculative asset is fundamentally insane and corrosive to societies. Housing afford…
In this proposal, who gets to own the houses that are rented?
Re: Investors account for 30 per cent of home buying in Canada, data show
#93Re: Investors account for 30 per cent of home buying in Canada, data show
#94This is creating an artificial Tulip bulb crisis where people could live instead of these rent-seeking vampires either letting them idle or renting them on Airbnb. Pass a law that homes must be occupied by the owner at least 10% of the time or property taxes go up 900%. Creating a class of land barons and serfs doesn't bode well for the future of humanity.
You realize you are advocating for a massive regressive tax on renters right? Where are people going to live if they are not in a position to or don’t want to buy a house?
Re: Investors account for 30 per cent of home buying in Canada, data show
#95I 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.
I do wonder what country, besides Japan, will be the first one to 'break' and realize that, when you restrict supply in the face of rising demand, prices rise. The current situation is sustainable for as long as voters keep voting in NIMBY politicians. Something may give, but something may not. https://www.mcsweeneys.net/articles/i-will-do-anything-to-en...
The problem is that it's a location supply problem, rather than a housing supply problem. People all want to live in the same locations, that are already full of houses.
Re: Investors account for 30 per cent of home buying in Canada, data show
#96I wish the country I live in had the same as many Asian countries; you can only buy if you have a passport of the country or if the building is owned by more than 50% of passport holders.
Re: Investors account for 30 per cent of home buying in Canada, data show
#97I 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.
If you read the article, there are already restrictions on purchases. This 30% pertains to people that have taken out a mortgage on a property, when they already have an existing property mortgage. What case is there for restricting that?
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Re: Investors account for 30 per cent of home buying in Canada, data show
#98> 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…
If there’s an affordability housing crisis at the level of Canada, where home prices are so wildly out of whack relative to median incomes, it’s IMO entirely reasonable to ban the purchase of investment properties in the single family homes market for anyone . This will never happen because of the political backlash, but housing as a speculative asset is fundamentally insane and corrosive to societies. Housing afford…
I suspect the complexity with this approach, is these "investors" are also the source of the majority of rental inventory in the country. As far as I know we don't build rental buildings anymore, it's all condos with 30-80% of the units going to investors who then rent them out.
Also there are situations like, the buyer who buys a run down house to rebuild or do major renovations that would need accounting for in any sort of ban. Or the condo developer who spends millions buying 3-10 houses and turning them into a condo tower for hundreds of people to live in.
Re: Investors account for 30 per cent of home buying in Canada, data show
#99> 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…
So this includes all landlords too? If I buy a second house, do it up, and rent it, I am an “investor”? While I can see how the delta in this metric is suggestive, it is not clear how it affects the available housing stock (rent+buy). What I think people actually care about is unoccupied investment properties, where someone buys and leaves it vacant. Apparently a lot of Chinese capital is parked in this way due to th…
> ‘So this includes all landlords too? If I buy a second house, do it up, and rent it, I am an “investor”?’
Of course. The second house is purely an investment to you.
I don’t imagine anybody particularly loves being a landlord. It’s sometimes messy compared to owning a stock. If you could get a better return with less risk from some other investment, you’d put your money in that instead. But residential real estate in cities happens to have an appealing risk/return profile that’s not directly correlated with stocks, so there are good reasons why both small and large investors buy housing.
Re: Investors account for 30 per cent of home buying in Canada, data show
#100This is creating an artificial Tulip bulb crisis where people could live instead of these rent-seeking vampires either letting them idle or renting them on Airbnb. Pass a law that homes must be occupied by the owner at least 10% of the time or property taxes go up 900%. Creating a class of land barons and serfs doesn't bode well for the future of humanity.
Just build more houses. North America is big. Stop fighting over scraps.