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Don't forget that property prices were also inflated by foreign buyers looking for a safe place to put their money outside their governments' reach, and that th
by Mikeb85 9y ago
Don't forget that property prices were also inflated by foreign buyers looking for a safe place to put their money outside their governments' reach, and that this practice was encouraged by the outgoing government (probably the current one as well).
Also, another issue is that you can cause a housing market crash and financial crisis by abruptly increasing the rate when household debt is at a high.
- refurb 9y agoForeign ownership was pretty limited in Canada. I think the highest level was in Vancouver proper and it was ~10%. Housing prices went nuts in Canada because Canadians felt they were being priced out and "real estate always goes up".