- Joined
- Aug 30, 2007
- Messages
- 13,879
I am usually a free market kind a guy. Let the market dictate prices and let $s flow freely. I appreciate the fact that governments set rules in this marketplace to foster growth, keep people safe, keep the environment clean and to ensure fair competition. Therefore, generally speaking, as a free market guy: the less rules, the better. The less government meddling, the better !
This question has crept up lately, triggered by three events: my visit to Toronto in late March with its crazy downtown condo overbuilding, watching desirable Vancouver properties snapped up by non-Canadians,with prices in the $3M range for old homes on a 50x130 foot lot, and thirdly when watching a condo conversion project with unreasonably high prices being sold to Asian investors in Malasia, Singapore and HongKong: "Should foreign ownership of Canadian real estate be restricted" ?
Switzerland does it. Australia does it. Austria does it. China does it. Even capitalistic HongKong does it. The US and Canada do not.
http://opinion.financialpost.com/2012/04/13/to-tame-torontos-housing-bubble-ban-foreign-buying/ written by Dianne Francis, a pro-market Financial Post writer weighs in with a solid YES.
On the one hand restrictions reduce capital inflow, thus reduce demand and thus, lower prices and create less jobs.
One the other hand, no restrictions push many people, especially younger folks, out of the housing market while many houses or condos sit vacant, but are benefiting baby boomers wanting to cash out.
I think a sound middle ground has to be sought, and the debate should certainly happen in earnest !
Perhaps along the lines of the Australian policy which restricts ownership by temporary workers and foreign owners - or perhaps more liberal, like Switzerland, one per beneficial party tops but not as an investment, only as a 2nd home.
Canada is not the land anymore that needs huge amounts of foreign money to build condo towers. Enough local money and demand is available. Canada is big enough. Many metro markets are desirable, and thus people will come here: GTA, Vancouver, Alberta, even Winnipeg, Montreal or Halifax.
Will house or condo prices in Vancouver or GTA - the two regions where most of Canada's surplus condos are located - be affected by this policy: yes, to some degree but it will be manageable. it is sad to see 1/2 to 3/4 of certain downtown towers in the dark or with their shades down while young people or the less wealthy are pushed to the suburbs.
An interim step could be to increase the property tax by factor two to three for foreign owner investor condos/homes - with 1/3 going to city, 1/3 to province and 1/3 to the federal government.
The the next question is: what properties would be restricted ? Farmland is already restricted in AB, SK and PEI to my knowledge. What about shopping centers, trailer parks or office towers ? condos or houses only ? Or just in some areas, or only a certain number per buyer ? One ? Two ? 23 ?
What do you think ?
This question has crept up lately, triggered by three events: my visit to Toronto in late March with its crazy downtown condo overbuilding, watching desirable Vancouver properties snapped up by non-Canadians,with prices in the $3M range for old homes on a 50x130 foot lot, and thirdly when watching a condo conversion project with unreasonably high prices being sold to Asian investors in Malasia, Singapore and HongKong: "Should foreign ownership of Canadian real estate be restricted" ?
Switzerland does it. Australia does it. Austria does it. China does it. Even capitalistic HongKong does it. The US and Canada do not.
http://opinion.financialpost.com/2012/04/13/to-tame-torontos-housing-bubble-ban-foreign-buying/ written by Dianne Francis, a pro-market Financial Post writer weighs in with a solid YES.
On the one hand restrictions reduce capital inflow, thus reduce demand and thus, lower prices and create less jobs.
One the other hand, no restrictions push many people, especially younger folks, out of the housing market while many houses or condos sit vacant, but are benefiting baby boomers wanting to cash out.
I think a sound middle ground has to be sought, and the debate should certainly happen in earnest !
Perhaps along the lines of the Australian policy which restricts ownership by temporary workers and foreign owners - or perhaps more liberal, like Switzerland, one per beneficial party tops but not as an investment, only as a 2nd home.
Canada is not the land anymore that needs huge amounts of foreign money to build condo towers. Enough local money and demand is available. Canada is big enough. Many metro markets are desirable, and thus people will come here: GTA, Vancouver, Alberta, even Winnipeg, Montreal or Halifax.
Will house or condo prices in Vancouver or GTA - the two regions where most of Canada's surplus condos are located - be affected by this policy: yes, to some degree but it will be manageable. it is sad to see 1/2 to 3/4 of certain downtown towers in the dark or with their shades down while young people or the less wealthy are pushed to the suburbs.
An interim step could be to increase the property tax by factor two to three for foreign owner investor condos/homes - with 1/3 going to city, 1/3 to province and 1/3 to the federal government.
The the next question is: what properties would be restricted ? Farmland is already restricted in AB, SK and PEI to my knowledge. What about shopping centers, trailer parks or office towers ? condos or houses only ? Or just in some areas, or only a certain number per buyer ? One ? Two ? 23 ?
What do you think ?
