5 ms·

I don't think you need to look far to figure out that foreign cash purchases are coming from... foreign rich people who realize that housing is the best long-te

by judge2020 5y ago

I don't think you need to look far to figure out that foreign cash purchases are coming from... foreign rich people who realize that housing is the best long-term investment possible.

hnburnsy 5y ago
>Canada’s Business Immigration Program, specifically the investor stream, is a primary cause of the housing crisis, according to Gordon. This “cash for citizenship” program has allowed wealthy individuals (net worth $1.6 million or higher) to come to Canada. https://the-peak.ca/2016/05/vancouvers-housing-crisis-caused-by-foreign-money-and-government-report-says/ https://the-peak.ca/2016/05/vancouvers-housing-crisis-caused...
- judge2020 5y ago
  My comment is just about how 'unknown' the funds are. I think https://news.ycombinator.com/item?id=28004444 https://news.ycombinator.com/item?id=28004444 is a better comment thread for criticizing this practice.
- pstrateman 5y ago
  That program hasn't existed in years.
  - redstripe 5y ago
    Doesn't it still exist in Quebec?
    - soperj 5y ago
      no
- forkLding 5y ago
  Don't think this program exists anymore, searching around found Business Immigration Program but its for people who want to start startups but they also have to have like a designated VC fund or designated angel investor group or designated incubator. Source: https://www.canada.ca/en/immigration-refugees-citizenship/services/application/application-forms-guides/guide-5759-application-permanent-residence-business-immigration-program-start-business-class.html https://www.canada.ca/en/immigration-refugees-citizenship/se...
hellbannedguy 5y ago
Canada, and the USA, need to make buying our land harder, especially for foreigners. In the USA, all it takes to buy a house is money. A wealthy person sitting anywhere can buy a home with a email, and a few clicks, or a phone call. All it takes is money. If a person can't legally live in the home he bought, why are we selling it to them? I know the answer, but don't like it. I don't know of any other country that makes buying our land so dam easy. (I only know U.S.A. realestate, but care about Canadians.)
- exporectomy 5y ago
  New Zealand did that a couple of years ago. House prices continued to skyrocket as if nothing had happened. It's local people who keep buying them and paying through the nose.
  - catmanjan 5y ago
    Imagine if a rich king comes to a small village and insists on buying a loaf of bread from the baker for $100 rather than a penny Now the butcher knows the baker is hungry and has $100, so he ups his prices to get the most value But the butcher needs knives and the blacksmith knows he can afford more now too The kings left town but the damage has been done, will probably take some time for things to go sane again
    - mixmax 5y ago
      they call it inflation...
      - nemo44x 5y ago
        It’s inflation in part but low interest rates drive it more.
  - xenadu02 5y ago
    AFAIK they left a huge loophole: an NZ company can buy all the property it wants and foreigners can start or buy stakes in these companies.
probably_wrong 5y ago
It's not just rich people, unless by "rich" you mean "people with savings". I looked at the investments my bank made with my savings, and IIRC a chunk of it was invested in real estate companies. So I, a middle-class person who cannot afford a house, am giving money to my bank who is giving it to real estate companies to buy more apartments. And given how much apartment prices have risen, it seems like my bank made the right call for its customers.

I don't think you need to look far to figure out that foreign cash purchases are coming from... foreign rich people who realize that housing is the best long-term investment possible.

hnburnsy 5y ago

>Canada’s Business Immigration Program, specifically the investor stream, is a primary cause of the housing crisis, according to Gordon. This “cash for citizenship” program has allowed wealthy individuals (net worth $1.6 million or higher) to come to Canada. https://the-peak.ca/2016/05/vancouvers-housing-crisis-caused-by-foreign-money-and-government-report-says/ https://the-peak.ca/2016/05/vancouvers-housing-crisis-caused...

judge2020 5y ago
My comment is just about how 'unknown' the funds are. I think https://news.ycombinator.com/item?id=28004444 https://news.ycombinator.com/item?id=28004444 is a better comment thread for criticizing this practice.
pstrateman 5y ago
That program hasn't existed in years.
- redstripe 5y ago
  Doesn't it still exist in Quebec?
  - soperj 5y ago
    no
forkLding 5y ago
Don't think this program exists anymore, searching around found Business Immigration Program but its for people who want to start startups but they also have to have like a designated VC fund or designated angel investor group or designated incubator. Source: https://www.canada.ca/en/immigration-refugees-citizenship/services/application/application-forms-guides/guide-5759-application-permanent-residence-business-immigration-program-start-business-class.html https://www.canada.ca/en/immigration-refugees-citizenship/se...

hellbannedguy 5y ago

Canada, and the USA, need to make buying our land harder, especially for foreigners. In the USA, all it takes to buy a house is money. A wealthy person sitting anywhere can buy a home with a email, and a few clicks, or a phone call. All it takes is money. If a person can't legally live in the home he bought, why are we selling it to them? I know the answer, but don't like it. I don't know of any other country that makes buying our land so dam easy. (I only know U.S.A. realestate, but care about Canadians.)

exporectomy 5y ago
New Zealand did that a couple of years ago. House prices continued to skyrocket as if nothing had happened. It's local people who keep buying them and paying through the nose.
- catmanjan 5y ago
  Imagine if a rich king comes to a small village and insists on buying a loaf of bread from the baker for $100 rather than a penny Now the butcher knows the baker is hungry and has $100, so he ups his prices to get the most value But the butcher needs knives and the blacksmith knows he can afford more now too The kings left town but the damage has been done, will probably take some time for things to go sane again
  - mixmax 5y ago
    they call it inflation...
    - nemo44x 5y ago
      It’s inflation in part but low interest rates drive it more.
- xenadu02 5y ago
  AFAIK they left a huge loophole: an NZ company can buy all the property it wants and foreigners can start or buy stakes in these companies.

probably_wrong 5y ago

It's not just rich people, unless by "rich" you mean "people with savings". I looked at the investments my bank made with my savings, and IIRC a chunk of it was invested in real estate companies. So I, a middle-class person who cannot afford a house, am giving money to my bank who is giving it to real estate companies to buy more apartments. And given how much apartment prices have risen, it seems like my bank made the right call for its customers.