In Chapter 1, sub-section 1.4 of the 2022 Canadian budget, there is a rather remarkable new rule that bans foreign ownership and investment in housing for a period of two years. [LINK HERE]
“To make sure that housing is owned by Canadians instead of foreign investors, Budget 2022 announces the government’s intention to propose restrictions that would prohibit foreign commercial enterprises and people who are not Canadian citizens or permanent residents from acquiring non- recreational, residential property in Canada for a period of two years.”
Two points about this issue. First, can you imagine the media outcry if a conservative prime minister would ever make such a proposal? Quite a leftist change from the previous mantra “diversity is our strength”?
Second, considering the issue of foreign investment that creates housing, there is a likelihood this could backfire. The new position of Canada will certainly put more upward pressure on the U.S. housing market. Every action tends to have an equal and opposite reaction. It will be interesting to follow this and see where it leads.
OTTAWA, Ontario (AP) — Prime Minister Justin Trudeau’s government announced Thursday it will ban foreign investors from buying homes in Canada for two years in a bid to cool off a hot housing market.
Finance Minister Chrystia Freeland took a number of measures to tamp down speculation and demand amid record home prices in announcing the federal budget for the year.
The government announced a two-year ban on foreign home buying as well as higher taxes for people who sell their home within a year, though both measures include multiple exceptions including for permanent residents and foreign students. (read more)
Imagine the apoplexy if Donald Trump made such a nationalistic move.
As with most things leftist, European, political and currently Canadian, the ideologues are all about advancing globalism until some consequence reaches their doorstep. Then suddenly changes need to be made and protectionist programs like this new 2022 housing rule are triggered. Can you think of something more economically nationalist than this rule?
Alas, we beat the dead equine. In order for entrenched left-wing ideologues to continue advancing their insane ideology, they must pretend not to know things.
Since when has the government ever protected the housing market for individuals?
And how hard is it really for investors to setup a Canadian corp? Hell, simple ol’ me as american citizen was a corporate director of a Canadian business entity.
I think the object of this exercise is to make sure that every investment dollar is traceable by the Canadian government.
That, and for investors to buy homes in Canada, not actual people who intend to live in them.
Yes!! Like the Chinese have been doing for years in Vancouver.
Meanwhile, in the U.S., Blackrock has purchased sfhomes in mass quantity and illegal gimmigrant foreign invaders r given everything free, courtesy the American taxpayer
Trudeau is the ultimate hypocrite, but this is an excellent NATIONALIST policy as far as I am concerned.If the GOP had a spine, they would enact this policy in perpetuity when/if we ever gain control of the govt again.In fact, I would expand it and BAN any foreigner from buying our farmland and/or any of our other precious resources, and also get our precious national treasures out of the hands of UNESCO (World Heritage Sites).
The ChiComs have been buying-up, and bidding-up, properties in the Silicon Valley for decades. They immediately ignore ALL zoning regulations … and partition-off single family homes into apartment/dormitories … each bedroom has a new exterior door installed and the bedrooms all have access to a common kitchen & living area. I’ve seen 3 bedroom houses (plus detached garage) housing no less than 8-10 unrelated ChiCom Nationals working in Silicon Valley. These tenants (in a single family home) are all unrelated which violates single family zoning. This is why the State of CA eliminated single family zoning … to basically “legalize” all these illegal ChiCom apartments They say … “me no speaky English” to the local Planning Agencies … who did nothing for fear of being called “racist”. Now the State remedied that … by eliminating single family neighborhoods altogether. These tenants pay $2,500.00/month for their bedroom in Silicon Valley. Yeah … the ChiCom owners are making Bank! Even on their $3.5M 3 bedroom home next to HWY101.
yeah … America should have eliminated or restricted foreign buyers of American property. However … when your goal is the elimination of borders, language, and culture … not to mention – countries … then allowing foreign buyers to invade your lands makes complete sense. Nonsense.
A strategy is to use “strawmen” to buy real estate, and those straw men are usually Chinese students.
Students are exempt of the ban.
I wonder why students are exempt ?:-\
Also good timing, banning the buying of housing on the peak of the housing bubble when everything is about to go chimney up.
FTA: A few convenient loopholes make this law an empty gesture to appease those blaming foreigners for real estate inflation. The ban does not prohibit purchasing through corporations, so Vanguard and BlackRock can continue profiting while individuals face the burden of this new law — but only certain individuals without the money to bypass the system. Permanent residents, foreign workers, and students will be excluded from the law. Foreigners who plan to buy their primary residence in Canada are not prohibited from purchasing property. So Canada is not aiming to eliminate all foreign real estate investments; the government simply wants it to appear that they are working to lower real estate costs when this measure will do no such thing.
https://www.armstrongeconomics.com/real-estate/canada-bans-foreigners-from-real-estate-market/
Please …………………….. can we force Canadiens to sell their properties here in Florida.
Or Arizona, California or Hawaii.
We know countless Canadians that own places in the U.S.
We also know a number of Americans that own Canadian property.
Cheers!
Trudy does this just as Canadians are divesting their homes and fleeing to the U.S. –in droves!
This only shrinks the market of buyers for all of those homes.
There’s been a longstanding debate about Canadians of convenience. 300,000 Canadians with dual citizenship live in China.
Lebanon – more Canadians of convenience – In 2006 Canadians living in Lebanon- dual citizens- demanded that Canada evacuate them. They were provided lodging and free healthcare if needed upon arrival. Half later returned to Lebanon.
Another problem is birth tourism- women arriving mainly from China, to give birth to secure citizenship for the child. They leave once this is accomplished. Even the CBC, the media voice of the Liberal party, has written about this – because the problem was straining the health care system. This is a big issue in BC., where the doctors at hospitals were complaining.
The Asia Pacific Foundation states that 3 million Canadians live outside the country. When China imposed the National Security law on Hong Kong 2019, $ 44 billion was transferred to Canada. This was followed by an uptick in home purchases in the greater Vancouver and Toronto areas by these people. Offers- to- purchase homes, often hundreds of thousands above asking.
The average home price in the greater Toronto & Vancouver areas is 1.3 million.
When Syrians fled during the recent war, Canadians living in motels- people that were disabled and on welfare & low paying jobs, were evicted. The rooms renovated for the newcomers. Soyboy Trudo met his new voters at the airport. Some have named their newborns after dear leader.
two effects:
a. this will depress home sales AND development in canada
b. It will also cause home prices to go up (rule-based market scarcity)
this communists really is bent on destroying the canadian economy.
ps. I “was” tempted to consider perhaps shutting down foreign house and property grabs from the uber rich and fund managers and “foundations” might be a good idea, but the reality is that every country does it…and in fact does create quite a bit of positive effects in sales and growth…albeit concentrated in the 1% tier.
noting: If canada has a concern about foreign investment/ownership, perhaps they could…ahem…simply pass a law that applies some type of upcharge to discourage it. Then use that money collected and reduce taxes…ahem…(who am I kidding!)
noting: I can assure you this has nothing to do with actually limiting foreign investment. I can guarantee that trudeau and camp has developed some well kept secret about how to structure a sale for ANY home, any development, and ANY property/land for foreign investors. He is doing this, so that those foreign investors will be forced to use this special privy structure, where he and his beach friends get a sizable chunk…That you can sure of.
noting: some of this “might” be to delimit russian oligarths wealth distribution into canada, now that nearly every country has targted anyone with wealth over 20 Million and a russian sounding name. But I doubt it. REFER to point above for the most likely reason if this does relate to that “concern”
As we have learned there is NOTHING respectable or truthful that comes from this jackwagon.
He didn’t get rich and in power by playing nice and doing the right things.
He should have done this before BLM bought a mansion in Canada.
hahahahahahahahahahahahahahahahahahahahaha
I wish we could ban Canadians from buying property in Florida.
In fact, I wish we could ban foreign corporations from buying property in Florida with the sole intent of building butt ugly cookie cutter houses and selling them to more foreigners clogging up and ruining my beloved State.
I pray for the crash that is coming to stop the raping of my state.
Hard words, but, that’s how I feel and I’m sticking to it.
He confiscated the bank accounts of Canadians. It seems to me this move will make it easier to confiscate their homes too. I don’t trust him.
The plan is clearly to displace Americans from the Canadian real estate market, even as hyperinflation and depression will result in many Americans losing their American homes. As we saw with the financial obliteration of the Canadian convoy participants, the state in Kanada can already expropriate property from its subjects with impunity. Privately-owned real estate will simply be taken and turned over to Gates and Schwab and Soros. As America’s economic crisis worsens under The Dotard and The Round-heeled Mongrel, it will be necessary for the federal government to take over real estate. Voila! American as well as Canadian property turned over to the New World Order.
you never could buy residential in canada…it was always 99 year leases…until NAFTA
this is probably a NAFTA violation.
not that washington will say anything though
The right to sell your home to a buyer that qualifies should have zero interference from government. Once a government takes this step they won’t stop dictating to home owners. Next they will decide they have the right to decide what size ,type and location of your home. Slippery slope s**t.
NOTHING but EVERYTHING they have done has HURT Americans.
Let’s go Brandon…..
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