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There's no data to back up the claim that "foreign investors" are contributing to Canada's issues in any significant way. It certainly does not explain explodin

by raydev 4y ago

There's no data to back up the claim that "foreign investors" are contributing to Canada's issues in any significant way. It certainly does not explain exploding house prices in small towns 2 and 3 hours outside of major cities, where vacancies are hitting record lows.

joshspankit 4y ago
The history of Canadian real estate being used to launder money is right out there. Look at the Panama and Pandora papers.. Currently: “For years, foreign money has been coming into Canada to buy residential real estate,” “This has fuelled concerns about the impact on costs in cities like Vancouver and Toronto and worries about Canadians being priced out of the housing market in cities and towns across the country.” These are direct quotes from our Prime Minister Justin Trudeau. In addition, he's hoping that a plan to ban foreigners from purchasing residential real estate will get him re-elected. There may not be hard data YET, but it's clear that what the govt sees is in line with what we the public see. As for what we the public see: - Foreigners flying in to major airports, then taking taxi cabs to small towns and remote properties with the intent to purchase. And we're not talking one or two, we're talking about enough that taxi drivers are talking about how concerned they are about the pattern - Properties that have been un-sellable for years suddenly being purchased by foreign investors sight-unseen as the market heats up in that specific area - Rental properties being taken off the market: first purchased, then renos started and never finished - Residential houses (including house hacks and house rentals) being taken off the market by being purchased and held (in the past these kinds of properties were owned by holding companies that had a vested interest in making sure they do not have any more transactions and therefore fly under the radar, but more recently people are buying and holding until a future time where they can sell for more): A for sale sign goes away but no one ever moves in. - Property values going down when a buyer purchases a property then fails to hire a property manager (resulting in the house falling in to disrepair). Turns out they had no idea that there are no local property managers and it's just communities of people doing favours for each other. As for how that explains > exploding house prices in small towns 2 and 3 hours outside of major cities, where vacancies are hitting record lows Foreign investors aren't looking at proximity to cities, they're looking at what areas 'are hot'. They're typically overpaying which urges everyone to overpay, and we still have all the expected real estate purchases: people who want to escape the city after earning their down payments, new home buyers, domestic investors (including speculators), and so-on. The result is higher and higher prices being paid for less and less properties. Vacancies have severely dropped because in multiple local areas that are on my radar (either I'm there, have talked to someone there, or have contacts there) mainly because the number of places to rent have been reduced.

by raydev 4y ago

joshspankit 4y ago

The history of Canadian real estate being used to launder money is right out there. Look at the Panama and Pandora papers.. Currently: “For years, foreign money has been coming into Canada to buy residential real estate,” “This has fuelled concerns about the impact on costs in cities like Vancouver and Toronto and worries about Canadians being priced out of the housing market in cities and towns across the country.” These are direct quotes from our Prime Minister Justin Trudeau. In addition, he's hoping that a plan to ban foreigners from purchasing residential real estate will get him re-elected. There may not be hard data YET, but it's clear that what the govt sees is in line with what we the public see. As for what we the public see: - Foreigners flying in to major airports, then taking taxi cabs to small towns and remote properties with the intent to purchase. And we're not talking one or two, we're talking about enough that taxi drivers are talking about how concerned they are about the pattern - Properties that have been un-sellable for years suddenly being purchased by foreign investors sight-unseen as the market heats up in that specific area - Rental properties being taken off the market: first purchased, then renos started and never finished - Residential houses (including house hacks and house rentals) being taken off the market by being purchased and held (in the past these kinds of properties were owned by holding companies that had a vested interest in making sure they do not have any more transactions and therefore fly under the radar, but more recently people are buying and holding until a future time where they can sell for more): A for sale sign goes away but no one ever moves in. - Property values going down when a buyer purchases a property then fails to hire a property manager (resulting in the house falling in to disrepair). Turns out they had no idea that there are no local property managers and it's just communities of people doing favours for each other. As for how that explains > exploding house prices in small towns 2 and 3 hours outside of major cities, where vacancies are hitting record lows Foreign investors aren't looking at proximity to cities, they're looking at what areas 'are hot'. They're typically overpaying which urges everyone to overpay, and we still have all the expected real estate purchases: people who want to escape the city after earning their down payments, new home buyers, domestic investors (including speculators), and so-on. The result is higher and higher prices being paid for less and less properties. Vacancies have severely dropped because in multiple local areas that are on my radar (either I'm there, have talked to someone there, or have contacts there) mainly because the number of places to rent have been reduced.