Economy 53,144 Posted December 21, 2017 Share Posted December 21, 2017 https://www.google.ca/amp/business.financialpost.com/real-estate/foreign-investment-in-toronto-vancouver-housing-below-5-pct/amp Many things have been tried to cool the housing market for hears across Canada especially in Toronto and Vancouver including a foreign investors tax 1 argument was that foreign investors was causing prices to spike by taking away supply and so a forein buyers tax was added. The problem was Canada did not keep tabs om forein sales in the past Analysts claimed up to 15% to 20% of condos could be forein owned but no real data was collected. So last year Canada decided to start collecting data Turns out only 3.4% of real estate is owned by foreigners and most of those investors rent out their units anyway. Recent data also suggested vacancy rates are less than 1% in Toronto In other words once again the latest attempt to cool the market (8th time Government intervenes) via taxes may fail as foreigners make up a small portion of market. The 9th attempt to to fix the issue involves a stress test to make borrowers have to qualify for rates 2% above what they are actually offered, and a $40 Billion Government plan to build 100,000 affordable units over next decade. Link to post Share on other sites More sharing options...
Economy 53,144 Posted December 21, 2017 Author Share Posted December 21, 2017 @Woolfsmck @Luc @juicyjuicy @VANTABLACK Regulations arent doing squat anymore. I think we need a free market in real-estate with a little less regulation to encourage faster construction Annual immigration will be increased by another 100,000 people a year... Yet vacancy rates are below 1%... they trying to make people live in the streets? The government will build 100,000 units over next decade... thats only 10,000 a year. Thats adding less than 5% to private construction levels (housing starts around 220,000 units for 2017) No down-payment rules, stress tests, forein taxes or reduced amortization periods will fix that EDIT: Despite foreign buyers tax just implemented and the new 2% higher rates stress test rules prices are expected to rise another 6.8% in 2018 https://www.google.ca/amp/s/www.thestar.com/amp/business/real_estate/2017/12/13/toronto-region-home-prices-forecast-to-rise-68-next-year.html Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted December 21, 2017 Share Posted December 21, 2017 It looks like Canada's population growth is out pacing the housing... immigration is clearly the culprit. Which would explain the low numbers of "foreign investment"...new citizens are bringing their bank role and settling in. like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
Economy 53,144 Posted December 21, 2017 Author Share Posted December 21, 2017 6 hours ago, Woolfsmck said: It looks like Canada's population growth is out pacing the housing... immigration is clearly the culprit. Which would explain the low numbers of "foreign investment"...new citizens are bringing their bank role and settling in. It may be a little much. To put into perspective, the USA has 9X Canadas population but accepts only close to 3X the annual immigrants 1% of population is added annually by immigration... Its good to bring skills, talant and trying to manage aging population but trying to keep up with housing and infrastructure is a challange It also doesnt help that almost all the growth is happening in 3 or 4 major urban areas: Toronto, Vancouver and Calgary to Edmonton region Of course a few other cities in other Provinces get some growth too but thats where the bulk is Even some other large cities like Montreal are not growing super quick. Maybe immigrants have a thing against french Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted December 21, 2017 Share Posted December 21, 2017 Yeah, but the US has a much more spread out place to settle,. Where Canada appears to get the bulk in the English speaking cities like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
Economy 53,144 Posted December 22, 2017 Author Share Posted December 22, 2017 On 2017-12-21 at 11:01 AM, Woolfsmck said: Yeah, but the US has a much more spread out place to settle,. Where Canada appears to get the bulk in the English speaking cities Well Montreal would be the only major french speaking city But even outside Quebec... most growth is still happening in specific regions Most of Canada is too empty and un-exiting and aint nobody want that so theres only so many options to go with Link to post Share on other sites More sharing options...
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