Canada bans foreign home buyers for two years
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Re: Canada bans foreign home buyers for two years
#2According to the government's announcement linked to in the article, the actual proposal is subtly but importantly different:
"imposing a two-year ban on foreign capital coming into Canada to buy residential real estate".
Re: Canada bans foreign home buyers for two years
#3According to the government's announcement linked to in the article, the actual proposal is subtly but importantly different: " imposing a two-year ban on foreign capital coming into Canada to buy residential real estate ".
There are countries which prohibit foreign ownership of real estate. However capital controls typically prevent money from leaving, rather than entering. It will be interesting to see how this trend plays out.
Re: Canada bans foreign home buyers for two years
#4So why don't they build more homes?
Re: Canada bans foreign home buyers for two years
#5So why don't they build more homes?
They can’t build them fast enough.
Re: Canada bans foreign home buyers for two years
#6So why don't they build more homes?
Not enough land. ;-)
Re: Canada bans foreign home buyers for two years
#7Source article (without full-page subscription modal which disables scroll until interacted with):
https://apnews.com/article/business-chrystia-freeland-justin...
Re: Canada bans foreign home buyers for two years
#8I would have thought that the pandemic and travel restrictions would have effectively “banned foreigners from buying homes” for 2 years.
If home prices haven’t fallen during pandemic, then the reason why prices are high is not because of foreigners.
The government is trying to point to a scapegoat rather than trying to get to the root cause.
Re: Canada bans foreign home buyers for two years
#9So why don't they build more homes?
It could be that there is a sufficient amount of housing (built or being built), but that it is often not occupied on account of just being an asset in a wealthy person’s portfolio. In this case it could be seen as wasteful to build more, and too much of an oversupply could lead to an economic collapse if it’s on a big enough scale.
The other possibility is that they are building more homes, and want them to be purchased by people who will live in them.
Note: not a Canada expert and tbh the “they” in question is a bit undefined here
Re: Canada bans foreign home buyers for two years
#10So why don't they build more homes?
My question for you (and I think about this myself) is how much would someone need to pay you for you to go into home construction?