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Many of those investors are non-Canadians and it has led to many years of extreme housing unaffordability in major cities like Vancouver and Toronto. Pricing ca

Many of those investors are non-Canadians and it has led to many years of extreme housing unaffordability in major cities like Vancouver and Toronto. Pricing caps are not the answer, but it shouldn't be profitable for foreigners who have never been to Canada to displace Canadians out of affordable living.

ttyprintk 5y ago
What we’ve seen in USA is the arrival of foreign investors who can’t get into Canada (because of ties to crime) entering high-end real estate to park their money. In particular, going from one shell-company-friendly administration to a shell-company-skeptical one has motivated foreign investors to move quickly while shell companies are still allowed.
rthomas6 5y ago
The answer is a high tax on the unimproved value of land (Georgism). Makes land speculation and investment unprofitable, and property values to drop overall, so homes also become more affordable.
- mirntyfirty 5y ago
  I think that while a home is empty the taxation should be increased.
  - vetinari 5y ago
    That's a great way to ensure that rental properties won't be renovated until they fall apart.
    - inglor_cz 5y ago
      Not the OP, but why? If you only start taxing the property if unoccupied for more than, say, 3 months in a year, it gives the landlord a lot of opportunity to renovate between tenants.
      - vetinari 5y ago
        Last time (=2021) I renovated a property, it took 6 months. And I had to wait with the start until higher temperatures in the spring, so the heating could be turned off (it was renovated as well). The property was vacant for 12 months in total. --- Basically, anytime a "gooddoer" wants to make a regulation for "gooddoing", they shoot themselves in the foot and make the life for all parties harder in the process.
dingdongdang12 5y ago
jevoten 5y ago
> it shouldn't be profitable for foreigners who have never been to Canada to displace Canadians But that would go against the current zeitgeist where countries are reduced to economic platforms, that owe their citizens nothing except making them compete against the whole world.
Tiktaalik 5y ago
Vancouver already addressed this issue with a foreign buyer tax and speculation tax. Problem is of course that local investors simply fill the void left by the foreign ones! haha. Vancouver housing has continued to spike even after these taxes were introduced. I still think introducing these demand side policies was a good idea and necessary, but the impact of these policies has been pretty mild. Other jurisdictions shouldn't expect radical change if they implement similar anti-foreign buying regulations.
- empressplay 5y ago
  Southwest BC has been hit pretty hard by remote-working easterners deciding to move west due to the pandemic, and restrictions flying south. For example in Victoria the average price for a house has gone up 40% in the last six months alone(!) Crazy stuff.

ttyprintk 5y ago

What we’ve seen in USA is the arrival of foreign investors who can’t get into Canada (because of ties to crime) entering high-end real estate to park their money. In particular, going from one shell-company-friendly administration to a shell-company-skeptical one has motivated foreign investors to move quickly while shell companies are still allowed.

rthomas6 5y ago

The answer is a high tax on the unimproved value of land (Georgism). Makes land speculation and investment unprofitable, and property values to drop overall, so homes also become more affordable.

mirntyfirty 5y ago
I think that while a home is empty the taxation should be increased.
- vetinari 5y ago
  That's a great way to ensure that rental properties won't be renovated until they fall apart.
  - inglor_cz 5y ago
    Not the OP, but why? If you only start taxing the property if unoccupied for more than, say, 3 months in a year, it gives the landlord a lot of opportunity to renovate between tenants.
    - vetinari 5y ago
      Last time (=2021) I renovated a property, it took 6 months. And I had to wait with the start until higher temperatures in the spring, so the heating could be turned off (it was renovated as well). The property was vacant for 12 months in total. --- Basically, anytime a "gooddoer" wants to make a regulation for "gooddoing", they shoot themselves in the foot and make the life for all parties harder in the process.

dingdongdang12 5y ago

jevoten 5y ago

> it shouldn't be profitable for foreigners who have never been to Canada to displace Canadians But that would go against the current zeitgeist where countries are reduced to economic platforms, that owe their citizens nothing except making them compete against the whole world.

Tiktaalik 5y ago

Vancouver already addressed this issue with a foreign buyer tax and speculation tax. Problem is of course that local investors simply fill the void left by the foreign ones! haha. Vancouver housing has continued to spike even after these taxes were introduced. I still think introducing these demand side policies was a good idea and necessary, but the impact of these policies has been pretty mild. Other jurisdictions shouldn't expect radical change if they implement similar anti-foreign buying regulations.

empressplay 5y ago
Southwest BC has been hit pretty hard by remote-working easterners deciding to move west due to the pandemic, and restrictions flying south. For example in Victoria the average price for a house has gone up 40% in the last six months alone(!) Crazy stuff.