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2%. But how much of that 2% has been in the last 5 years? I heard it was up to 1/3rd of all properties sold.
by justaman 4y ago
2%. But how much of that 2% has been in the last 5 years? I heard it was up to 1/3rd of all properties sold.
- pembrook 4y agoCanadian MLS says 600,000 properties sold each year. Over 5 years that'd be roughly 3,000,000 homes. 1/3rd of that would be 1 million homes sold to foreign investors. There's only 1 million people globally (including Canadians) with a net worth over $10 million. That means every single one of them would have bought a Canadian home in the last 5 years. I mean Canada is nice and all, but does that seem plausible?
- chucksta 4y agoseems very plausible individuals or small groups are buying multiples, especially if the purpose is to store or move money.
- pembrook 4y agoEven if 2% of global HNW individuals bought a home in Canada in the last 5 years (and 2% sounds high to me), they'd each have to buy 50 Canadian houses per person to reach that 1,000,000 number.
- chucksta 4y agoSo 10 houses a year per person of the %2? That still sounds very plausible for high net worth investors, again especially if the purpose is to move/wash/hide cash, which my understanding is, generally is one of those 3 for overseas investments. If they are washing or hiding, they don't care as much about the profit, so it makes sense they would be buying in larger numbers if they can.
- data-ottawa 4y agoThis sounds like trying to measure a stream by sampling a lake. It’s entirely possible that people with high liquidity were buying and selling multiple properties while people with low liquidity were staying put. That would naturally mean more wealthy people are buying (and selling), and foreign owners are likely much wealthier than the average Canadian home owner.