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Canada bans most foreigners from buying homes

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Re: Canada bans most foreigners from buying homes

#451

Post by scarface74 »

philliphaydon wrote: post #444
scarface74 wrote: post #440

Earlier quoted context omitted.

Do you think everyone in your perfect world would be able to or should buy a home no matter what their circumstances? Including the recently divorced single guy who found odd jobs, the ex convict trying to get his life together, etc? The guy with the cheapest room was paying less than $4200 a year all utilities included. Did I do him a disservice? Are you saying that renters shouldn’t exists or do you think no one sh…

Providing a service doesn’t change that you’re contributing to a problem. You really sound like you don’t want people to own homes. You would rather houses be expensive so you can provide a service to more than to a few or to people who don’t want to own a home etc.

I sold my investment properties over a decade ago.

But you didn’t answer the questions.

Should everyone who wants to live in a house be forced to buy no matter what stage of life they are in?

What shouid the people do who can’t afford to buy?

Re: Canada bans most foreigners from buying homes

#452

Post by BenFranklin100 »

cycomanic wrote: post #402
QIYGT wrote: post #332

Earlier quoted context omitted.

> Because today houses are not for living in. They are investments. The only reason homes can be considered investments is that governments limit supply so much that prices are forced to increase.

If it is just a matter of supply and demand, how come that increase in house prices have outpaced population growth by huge margins in many places? I mean look at places like, e.g. Germany which has a pretty stable population (it would be contracting if it wasn't for immigration), but house prices increased significantly over the last 10 years, pretty much throughout most of the country.

There are several reasons; here’s a few, some US specific:

1. While the overall population may not have increased significantly in some countries, people have been migrating to cities from rural areas. This influx puts price pressure on urban housing. The US, for instance, likely has enough housing overall, it’s just spatially misallocated. A derelict, vacate home in Detroit doesn’t help someone in SF.

2. Many forms of denser housing are now illegal or have been torn down. Boarding houses are gone for instance. Boarders now compete for studios or one bedroom apts.

3. Smaller family sizes. It’s no longer common for a six person family to live in a three bedroom house. This used to be commonplace. Those six people are now two couples with a child each.

4. Related to point three, governments have made it illegal to reconfigure or replace larger homes with smaller homes more appropriate for smaller families or empty nesters. Think of the retired Boomer living in the 6 bedroom single family home, or the childless couple in a three bedroom condo with two of bedrooms being an office or guest room. Closely related, people often demand more space than they did 80 years ago.

5 This a big one: higher urban wages. After decades of wage stagnation, wages have been going up, especially in places like SF, NYC, and Boston. This is a GOOD thing. Not so good, is that these same places have kept their housing supply relatively static, forcing those with good jobs to compete amongst themselves for housing. The old joke: VC $$$ ——> Startup —-> Developer ——> Landlord, has a lot of truth to it.

Re: Canada bans most foreigners from buying homes

#453

Post by BenFranklin100 »

BenFranklin100 wrote: post #452
cycomanic wrote: post #402

Earlier quoted context omitted.

If it is just a matter of supply and demand, how come that increase in house prices have outpaced population growth by huge margins in many places? I mean look at places like, e.g. Germany which has a pretty stable population (it would be contracting if it wasn't for immigration), but house prices increased significantly over the last 10 years, pretty much throughout most of the country.

There are several reasons; here’s a few, some US specific: 1. While the overall population may not have increased significantly in some countries, people have been migrating to cities from rural areas. This influx puts price pressure on urban housing. The US, for instance, likely has enough housing overall, it’s just spatially misallocated. A derelict, vacate home in Detroit doesn’t help someone in SF. 2. Many forms…

One clarification:

“The old joke: VC $$$ ——> Startup —-> SOFTWARE Developer ——> Landlord, has a lot of truth to it.”

Re: Canada bans most foreigners from buying homes

#454

Post by ethbr0 »

scarface74 wrote: post #381
ethbr0 wrote: post #369

Earlier quoted context omitted.

While getting FHA 203(k) might be easy, the details are a pain in the ass. I got one to get a new roof on my first house. Imagine all the usual shitty mis-communication and last-minute paperwork of dealing with a mortgage agent... plus last-minute fun with contractors, who are used to answering on a very different schedule. E.g. "Oh, I need 2 more competitive quotes for the same work in the next 2 days, even though y…

Opposite anecdote: I walked into a model home, talked to the builder, chose a plot of land in the community, chose a floor plan with the options I wanted and had a brand new house built on it within 6 months. I did that twice… Both times in metro Atlanta.

Ironically, this was in metro Atlanta as well. I'd note that it was for reno work (roof and some deck) rather than new build.

I'd hope the new build market is a little more professional.

Although I saw a couple strip-to-frame-and-rebuild houses worked on and then failed code (word on the street was improper framing nailing, ouch) near another house in Kirkwood, so I guess there's dipshits the world over.

Re: Canada bans most foreigners from buying homes

#455

Post by yumraj »

rcme wrote: post #406
yumraj wrote: post #404

I'm genuinely curious, as to why a country, any country, should not limit home purchase to residents (note I'm saying residents and not citizens). What benefit does it provide to a country or its residents if home purchase is opened to foreign residents?

It increases the demand for real estate, which increases the price of real estate. This benefits those who own real estate. Many residents own real estate, so they do benefit from the policy.

I’ll actually argue that it artificially inflates the price beyond the means of those who do not own yet and even those who own but are priced out of upgrading to a better home/location, by bringing in investment money from outside.

Housing is a necessity, and should be limited to residents, IMHO at least.

Re: Canada bans most foreigners from buying homes

#456

Post by yumraj »

loeg wrote: post #419
yumraj wrote: post #404

I'm genuinely curious, as to why a country, any country, should not limit home purchase to residents (note I'm saying residents and not citizens). What benefit does it provide to a country or its residents if home purchase is opened to foreign residents?

How does someone become a resident if they can’t buy a place to live? This is a chicken and egg problem that is similar to banning foreign purchases entirely.

I believe very few new immigrants start by buying, most start by renting first.

Also, I doubt that buying a house is a condition to becoming a resident in most countries.

Re: Canada bans most foreigners from buying homes

#457

Post by lazide »

snerbles wrote: post #385
lazide wrote: post #366

Earlier quoted context omitted.

Car collectors don’t turn around and rent cars. Thought car rental companies do - and they definitely impact prices for vehicles.

Some car collectors absolutely do rent out their vintage cars, for a variety of purposes including film, ad shoots, events, etc.

And an occasional mansion owner rents out a mansion for everything from movies to porn shoots.

That doesn’t impact the normal market though.

Re: Canada bans most foreigners from buying homes

#459

Post by mixmastamyk »

seanmcdirmid wrote: post #307
fatbird wrote: post #231

Earlier quoted context omitted.

Yeah, I wasn't fully clear. I'm talking about Canada, where Chinese investment is only 4%, contrary to perception that "Chinese money" is the source of our troubles. 4% is still a significant impact, but it's pretty much pure racism that singles out the Chinese as the primary driver.

Aren't Chinese investments relatively restricted to Vancouver and Toronto areas? If that 4% is focused, it could have huge impact in those areas.

One third of Vancouver according to this post:

https://news.ycombinator.com/item?id=34226812

Re: Canada bans most foreigners from buying homes

#460

Post by lwansbrough »

bboygravity wrote: post #436
QIYGT wrote: post #337

Earlier quoted context omitted.

> There seems to be a general lack of political will for big projects in the west. We don't need big projects. If popular US cities like Seattle and San Francisco simply allowed people to build 5-story apartment buildings in all the space that's currently set aside for single-family detached homes, you'd see people building millions of small projects to easily meet the demand.

And also the city would turn into a horrible place to live with tons of pollution and congestion. Similar to large Asian cities where you can barely breathe, the noise is unbearable and it's a mission to get from one part of the city to another. Nevermind issues like "can our sewage pipes handle it?".

Gosh, how do you reckon bigger cities manage it? Oh right, they just do. And you aren’t the last one in the door, so stop gatekeeping new entrants before you’re forced to stop.
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