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Canada bans foreign home buyers for two years

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Re: Canada bans foreign home buyers for two years

#461

Post by strikelaserclaw »

3qz wrote: post #111

The country is ruined for non owners and it will never get better. The only options left are moving to the prairies or living in a neo-feudal shithole. This is only being introduced so they can officially give up after pretending to fix anything. Quality of life has almost nothing to do with income anymore so it’s impossible to work for a better future. Being born 5 years later is the difference between tax free, 6 f…

Essentially young people will probably need to migrate and start a fresh in some underdeveloped city. I'm a millennial and this seems like it will be the case for me too. The older generations essentially rode a big wave to prosperity, our generations will essentially be riding the wave as it is collapsing, while not quite as bad as the great depression generation, millenials, gen z, alpha will need to build a new. It is futile to compare our lives to boomers who essentially had it pretty easy.

Re: Canada bans foreign home buyers for two years

#462

Post by s1artibartfast »

belval wrote: post #371
s1artibartfast wrote: post #313

Earlier quoted context omitted.

The bank won't offer if you can't pay, at least in the US these days. But we have 30 year fixed mortgages, I think Canada is shorter

In a sense you are both right, you just don't set the threshold at the same place. The bank will look at how much you earn and how much you owe and say "We can pre-approve you for $X at Y%". They consider that you can pay that rate and they are most likely right. Now if you do take $X, you have effectively leveraged your entire earnings, which for most people is a pretty bad idea because stuff happens and you can end…

In the US, most lenders will do between 36 and 43% of your earnings pre-tax. Assuming you pay another 25 to 30 in taxes, this should be half of your disposable income, leaving 50% or cars food Etc.

For a $5,000 mortgage, that's a $5,000 a month buffer

Re: Canada bans foreign home buyers for two years

#464

Post by howinteresting »

alex_sf wrote: post #400
throwaway894345 wrote: post #362

Earlier quoted context omitted.

What's stopping Canada from increasing its housing stock? Surely Canada has plenty of space for its 30M citizens, right? (Yes, I understand that much of the territory is uninhabitable, but even still...).

There is plenty of housing for plenty of people in most parts of North America. The 'problem' is that what people _want_ is cheap housing in urban centers, a.k.a cool spots. Because that doesn't exist, we claim to have a housing shortage.

https://en.wikipedia.org/wiki/Economies_of_agglomeration

Re: Canada bans foreign home buyers for two years

#465

Post by datacruncher01 »

RocketOne wrote: post #201

Im one of those 'greedy' old farts who owns more than one home. We have one for ourselves and 5 rentals. Im starting to agree with those who are feeling priced out of the market. What would make me stop buying homes? A graduated tax would. If there were no sales tax on the first two, and then 15% tax on the third, 25% tax on the 4th, and going up by 10% for each subsequent house, it would definitely make me quit buyi…

I think what happens is then your wife goes through her 4 houses and then your kids, etc. It's a good idea though. I'd prefer all homes get high taxes and then give a homestead exemption to the one you live in for 6+ months out of the year at a normal tax rate.

Re: Canada bans foreign home buyers for two years

#466

Post by convolvatron »

asdfasgasdgasdg wrote: post #245
bko wrote: post #217

Earlier quoted context omitted.

The question is why does something like blind bidding exist in real estate? It could exist in all sorts of places but doesn't. Imagine blind bidding when interviewing for a job. Write down the number you'd be willing to do the job for. Someone came in with a lower number, please resubmit. These weird market distortions in real estate have underlying causes. A lot of them are based off patchwork rules and regulations…

The revenue equivalence theorem for auctions suggests it doesn't matter that much. Now, empirical testing has shown violations of this theorem, but the magnitude of the violations are not so huge as to really move the needle. Someone might be paying 10% more in a sealed bid first price auction than they otherwise would, but it's unlikely that it's more than that, and it may be a good deal less or none at all. No matt…

doesn't it effect the rate of cost growth?

Re: Canada bans foreign home buyers for two years

#467

Post by random314 »

alex_sf wrote: post #400
throwaway894345 wrote: post #362

Earlier quoted context omitted.

What's stopping Canada from increasing its housing stock? Surely Canada has plenty of space for its 30M citizens, right? (Yes, I understand that much of the territory is uninhabitable, but even still...).

There is plenty of housing for plenty of people in most parts of North America. The 'problem' is that what people _want_ is cheap housing in urban centers, a.k.a cool spots. Because that doesn't exist, we claim to have a housing shortage.

Imagine people wanting to live close to work, instead of 2 hours away.

Re: Canada bans foreign home buyers for two years

#468

Post by InCityDreams »

stevesimmons wrote: post #135
hallway_monitor wrote: post #110

Earlier quoted context omitted.

I saw an Australian sitcom where the house went up for auction. It was a proper live auction where everyone showed up to bid on the house. I was flabbergasted as I had no idea things were done in any other way than blind bidding as that is how it is always done here in the US.

In Melbourne, this is totally normal. Everyone stands in the street, prospective buyers, neighbours, and people starting their house search. The estate agent stands on the front step, acting as the auctioneer, using the rolled up "Section 32" document like a gavel. Typically the auctioneer draws out bids in $10-20k increments, then knocks it down with a "going once, going twice, going three times..." call. Just befor…

Specifying "No chain" sold my house in the uk real, real fast. / there are exceptions.

Re: Canada bans foreign home buyers for two years

#469

Post by MrMan »

la6472 wrote: post #386
Pet_Ant wrote: post #367

Earlier quoted context omitted.

Sorry, but if we want to address climate change and protect the environment, then we need to do this without sprawling outwards.

Nothing is better than sprawling outwards. Most of the white collar jobs can be done remotely , so commute is not needed. Most of groceries and other stuff can be delivered. A truck doing 100 deliveries is surely less traffic than everyone going to the supermarkets. And most importantly with sprawling outwards citizens can enjoy the outdoors and take care of their health. And even more importantly high density of pop…

this is objectively wrong. it may be the future but its not the way

Re: Canada bans foreign home buyers for two years

#470

Post by twofornone »

sofixa wrote: post #208
pembrook wrote: post #130

A quick look at the data suggests only about 2% of properties in Toronto and Vancouver are owned by overseas investors. Yes, housing is priced at the margin, but this won't do anything at all to prices over the long term. I'm sure this will be wildly popular politically, because people LOVE the idea that some foreign boogieman is the reason their children can't afford homes anymore. It's much easier to outsource your…

> Like all cities in areas with heavy-handed zoning regulations, abuse of historic preservation clauses, and filibuster-style city council meetings blocking new construction...the issue is one of supply. > It's the same problem in literally every developed country on earth right now. The problem with making generalisations is that you're often wrong. The French real estate market has problems, with prices rising in s…

>The problem with making generalisations is that you're often wrong

Generalisations are like models. They're not necessarily 100% correct or applicable but they can still be useful.

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