A MUST READ! for foreigners and for Canadians who want to own homes in Canada.
There is more and more discussion these days about whether foreign purchasers are putting upward pressure on home prices and literally shutting out Canadian buyers from owning in their own neighbourhoods. Up until now, this is just a “theory” and the data is not really hard data, but rather “anecdotal” at best.
Now the Federal housing arm, CMHC is being asked to get specific about foreign ownership in Canada. How much is there? Is it purely speculative? Is our low looney attracting investment in a way that may not be “healthy” for our housing market?
The link I’ve provided below gives some fascinating and novel insights into how other countries treat foreign investment in their real estate markets. I believe this is going to be a popular subject in the coming weeks and months….and especially if, all of a sudden, we have a wave of Americans who are not Trump supporters, but who would like to have a foothold on both sides of our, as yet, no -walled border!!
Up until now, the concern as focused mostly around China, Russia and the Middle East, in terms of the recent spates of buying real estate in Canada…and particularly in Vancouver and Toronto.
What do YOU think we should do?? Should we
*”KEEP CALM AND CARRY ON”?
*Charge thousands in a flat fee to foreigners just for the privilege of offering on a Canadian property?
*Charge a land transfer tax specifically for foreigners?
*Charge a capital gains tax to foreigners?
*Restrict foreign purchasing to new construction only?
*Restrict areas like coastlines, or “tony” neighbourhoods from foreign ownership?
*Require that someone actually moves in! that the property is not “parked” and/or left empty?
Could any implementations/limitations like the above lead to any kind of untoward racial profiling? or tampering with a “free market economy”??
Read this article and then let me know your opinion, which, as you know, I value highly!!
If you (or someone you know), are looking for a Realtor who cares MORE about focusing on you, your concerns, goals and the successful purchase or sale of YOUR unique home, than they care about their volume of transactions and awards, please let me know the best way for me to connect, as I would love to offer my highly personal service. Contrary to that old expression, not only IS this business, but it IS personal! And, please, I encourage you to ask me any questions you may have about this post. I value your input and appreciate the time you took to read it.
Eve Willis says:
This is a great article with informative perspectives from around the world combined with questions to consider re foreign sales measures/suggestions for all of us to consider and to get our minds in motion. Thank you.
Jill says:
Thank you for your comments. Much appreciated and it certainly gives us some food for thought. It is important the government does not take a “sledge hammer” approach (if any!). For one thing, we do not want to damage the majority of markets who are struggling to become more balanced. For another, we simply do not KNOW the degree of foreign ownership in this market because we do not track the data. And foreign ownership in itself is not a bad thing…it’s when speculation and parking foreign currency is the motivation that can be harmful…not immigrants wanting to raise their children and contribute to our economy and diversity. Recent “guestimates” are that foreign ownership in this country does not exceed 5%….thank you again for your interest!!