Friday, May 23, 2025
8.8 C
London

In Canada homes are for people, not investors

- Advertisement -

OTTAWA, Canada -A ban on foreigners buying residential property in Canada took effect on Sunday, aiming to make more homes available to locals facing a housing crunch.

Several exceptions in the act allow individuals such as refugees and permanent residents who are not citizens to buy homes.

In late December, Ottawa also clarified that the ban would apply only to city dwellings and not to recreational properties such as summer cottages.

The temporary two-year measure was proposed by Prime Minister Justin Trudeau during the 2021 election campaign when soaring prices put home ownership beyond the reach of many Canadians.

- Advertisement -

Canada Liberal Party

“The desirability of Canadian homes is attracting profiteers, wealthy corporations, and foreign investors,” his Liberal Party said in its election plank at the time.

“This is leading to a real problem of underused and vacant housing, rampant speculation, and skyrocketing prices. Homes are for people, not investors.” Following their 2021 election victory, the Liberals quietly introduced the Prohibition on the Purchase of Residential Property by Non-Canadians Act.

Major markets such as Vancouver and Toronto have also introduced taxes on non-residents and empty homes.

Despite a recent heyday, the country’s real estate market has cooled for sellers as mortgage rates followed the Bank of Canada’s aggressive monetary policy in a bid to rein in inflation.

- Advertisement -

According to the Canadian Real Estate Association, average home prices have fallen from a peak of more than Can$800,000 (US$590,000) at the start of 2022 to just over Can$630,000 (US$465,000) last month.

No desired effect

Many experts have also said the ban on foreign buyers – who accounted for less than five percent of home ownership in Canada, according to the national statistical agency – would not have the desired effect of making homes more affordable.

Rather they point to a need for more housing construction to meet demand.

The Canada Mortgage and Housing Corporation – the national housing agency – said in a June report that close to 19 million housing units will be needed by 2030.

- Advertisement -

That means 5.8 million new homes must be built, or 3.5 million more than are currently anticipated to be built to meet that demand, it said.

For any query with respect to this article or any other content requirement, please contact Editor at [email protected] Bulletin

Read More News

Ivanka Trump and Jared Kushner maybe heading for a divorce, marriage reputed to be falling apart

- Advertisement -

Hot this week

Kate Middleton expecting twins, according to reports

According to news on the Internet, the Duchess of...

Is BTS’s Taehyung colour blind?

The rumour mill online has been speculating that Korean...

Hurley wore ‘the dress’ after being snubbed by top fashion designers

Model Liz Hurley became famous after wearing "the dress"...

Hyun Bin taking legal action against rumours involving Son Ye Jin

While the hottest K-drama screening on-air is undoubtedly Crash...

HK protesters call for boycott of Ip Man 4: The Finale

Hong Kong -- The final instalment of the Ip...

ChatGPT at two — and OpenAI’s vision for the future

Two years after OpenAI launched ChatGPT, the groundbreaking AI...

Vertical Institute Unveils Generative AI Course to Meet Growing Demand for Digital Proficiency

The future of work is undeniably intertwined with artificial...

Jimmy Carter: The Nobel US president who lived to be 100

Jimmy Carter, the peanut farmer who became the 39th...

Manmohan Singh: The leader who transformed India

Manmohan Singh's story is one of remarkable transformation, both...

Why AI ‘hallucinates’: What’s missing in the models

The American writer Richard Powers' latest novel, Playground, delves...

Challenging job market diminishes appeal of postgraduate studies in China

China is seeing a significant decline in postgraduate entrance...

Fatherhood changing in East Asia: Dads get into parenting and housework

A transformation in fatherhood is quietly unfolding across East...

Related Articles

Popular Categories

spot_img