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Why Canada is stopping selling homes to foreigners

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Why Canada is stopping selling homes to foreigners
Human Land Desk
First page 9 April 2022, Saturday | Last updated: 3:12 p.m.

The Canadian housing market has flourished in the last few years. Home prices have risen more than 50 percent in the last two years. Illegal money being smuggled into the country from outside is being blamed for this. Buying a house in Canada is one of the choices of the corrupt people of different countries to whiten the black money.

To stop this, Canada has decided to pass a new law banning the sale of homes to foreigners for the next two years. It is hoped that the ban will reduce the value of Canadian homes. This was reported by Bloomberg. As the issue of this ban came to the fore, a class of Bangladeshis also came to the discussion. According to a report by BBC Bangla, there are allegations that a class of Bangladeshis has contributed to this abnormal rise in the price of housing in Canada.

Earlier, it was reported in the media that a significant number of Bangladeshis had bought houses with cash outside the expatriates living permanently in the country. Locals are complaining that many of these properties have been bought with the money of corruption smuggled from Bangladesh.

Meanwhile, Bloomberg reports that Finance Minister Christiaan Freeland is in the budget for the ban. With this, Prime Minister Justin Trudeau's tough stance on subduing the expensive housing market of any country in the developed world has been revealed. His government is already under pressure to increase housing spending. It is clear from the new move that Trudeau is taking this political pressure seriously.

However, foreign students and staff are exempt from this ban. In addition, foreigners who have Canadian citizenship and are permanent residents of the country are not barred from buying a home. Simeon Phillips, an official with real estate investment firm REST, told Bloomberg that the biggest competition in the history of the Canadian housing sector is now underway. So, after this move of the government, the competition may go down a bit, but I don't think the house price will go down. This two-year ban will not solve the basic problem.

According to Bloomberg, blind bidding has also been blamed for the rise in Canada's housing spending. There is a system in the country so that anyone can buy a house through auction keeping the amount of money secret. For this reason, those who have money are buying houses with millions of dollars more than the market price. But this time the Canadian Real Estate Association wants to abolish this system.
 
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Excellent decision by Canada. Any intelligent western government would do the same. The real estate market is a curse. Higher house prices means more borrowing and people spending their money paying it to the banks for homes. This reduces wealth in the hands of the population, wealth which would otherwise be spent in other parts of the economy.

Nobody take money with them to the grave, if i have $500 a month extra i will likely spend it on going out, activities, expensive items etc etc. There is a much more diverse set of businesses i the consumer will spend money on, rather than just on a HUGE mortgage payment. I will also invest that money in stocks, or try my hand at business and try and make more money.

Unfortunately, the banks who benefit from this, also are the people who bankroll western politicians.
 
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Why Canada is stopping selling homes to foreigners
Human Land Desk
First page 9 April 2022, Saturday | Last updated: 3:12 p.m.

The Canadian housing market has flourished in the last few years. Home prices have risen more than 50 percent in the last two years. Illegal money being smuggled into the country from outside is being blamed for this. Buying a house in Canada is one of the choices of the corrupt people of different countries to whiten the black money.

To stop this, Canada has decided to pass a new law banning the sale of homes to foreigners for the next two years. It is hoped that the ban will reduce the value of Canadian homes. This was reported by Bloomberg. As the issue of this ban came to the fore, a class of Bangladeshis also came to the discussion. According to a report by BBC Bangla, there are allegations that a class of Bangladeshis has contributed to this abnormal rise in the price of housing in Canada.

Earlier, it was reported in the media that a significant number of Bangladeshis had bought houses with cash outside the expatriates living permanently in the country. Locals are complaining that many of these properties have been bought with the money of corruption smuggled from Bangladesh.

Meanwhile, Bloomberg reports that Finance Minister Christiaan Freeland is in the budget for the ban. With this, Prime Minister Justin Trudeau's tough stance on subduing the expensive housing market of any country in the developed world has been revealed. His government is already under pressure to increase housing spending. It is clear from the new move that Trudeau is taking this political pressure seriously.

However, foreign students and staff are exempt from this ban. In addition, foreigners who have Canadian citizenship and are permanent residents of the country are not barred from buying a home. Simeon Phillips, an official with real estate investment firm REST, told Bloomberg that the biggest competition in the history of the Canadian housing sector is now underway. So, after this move of the government, the competition may go down a bit, but I don't think the house price will go down. This two-year ban will not solve the basic problem.

According to Bloomberg, blind bidding has also been blamed for the rise in Canada's housing spending. There is a system in the country so that anyone can buy a house through auction keeping the amount of money secret. For this reason, those who have money are buying houses with millions of dollars more than the market price. But this time the Canadian Real Estate Association wants to abolish this system.
You will never get such a restriction in the UK which is the world facilitator for money laundering.
 
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You will never get such a restriction in the UK which is the world facilitator for money laundering.
Let us hope the UK follows American and Canadian decision to stop using illegal money to buy properties in that country. The easiness to buy expensive properties in these countries make people in the poor foreign countries to remain corrupt and underdeveloped, and these countries remain poor.
 
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Wont make much difference. Corrupt ppl in bd buy immigration on investment category and once they become permanent resident they invest millions. Ppl also invest through holdco or holding companies allowing to hide real ownership.

should ban foreign ownership for ever not just 2 years and close other loopholes like investment category visa as well as not allow invest through holdco or subsidiaries.
 
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You will never get such a restriction in the UK which is the world facilitator for money laundering.

Actually the UK has been cracking down massively on foreign illegal money, especially after the Panama files scandal.



They've shot themselves in the foot, in order to do the right thing. But on the other hand BD, Pakistan, India etc are welcoming money from world's criminals with open arms. Just on credit card scams India is taking in billions with zero action by the govt.


On a separate note, UK property is pretty immune to foreign investment. The domestic market is so hot, foreign purchases are almost insignificant to the prices.
 
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Wont make much difference. Corrupt ppl in bd buy immigration on investment category and once they become permanent resident they invest millions. Ppl also invest through holdco or holding companies allowing to hide real ownership.

should ban foreign ownership for ever not just 2 years and close other loopholes like investment category visa as well as not allow invest through holdco or subsidiaries.
I am not aware of the system in Canada or America. In the case of japan, if any person, local or foreigner, purchases a house without seeking/ getting a bank loan but by paying cash in full, the real estate company is bound by laws to convey this matter to the relevant govt offices including the Police and tax offices.

The anti-corruption office people would come and ask for papers to identify the sources of incomes. Unable to produce documents or to identify his source of income during his adult life, he would be prosecuted.

America and Canada seem to be behind in enacting good laws to protect their societies from corrupt people. To me, having unable to identify the tax-cheaters, America and Canada are no match to the Japanese system. Japanese law enforcers are very strict.
 
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This is the cost of having the City of London as the world's money laundering capital. There is lots of dirty money flowing around the economy. Many countries have an extra tax for non-residents or corporations/trusts/funds buying houses. In the UK, the Government has encouraged overseas investors as it pushes up prices and gives the perception of wealth to people that already own homes. In the long run, it creates a wealth gap and areas with lots of empty houses, with no sense of community and owners that do not directly contribute to the local economy. It also prices out locals and first-time buyers.
 
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Actually the UK has been cracking down massively on foreign illegal money, especially after the Panama files scandal.



They've shot themselves in the foot, in order to do the right thing. But on the other hand BD, Pakistan, India etc are welcoming money from world's criminals with open arms. Just on credit card scams India is taking in billions with zero action by the govt.


On a separate note, UK property is pretty immune to foreign investment. The domestic market is so hot, foreign purchases are almost insignificant to the prices.
Its true. Uk is lot tougher on money laundering then canada is.

I am not aware of the system in Canada or America. In the case of japan, if any person, local or foreigner, purchases a house without seeking/ getting a bank loan but by paying cash in full, the real estate company is bound by laws to convey this matter to the relevant govt offices including the Police and tax offices.

The anti-corruption office people would come and ask for papers to identify the sources of incomes. Unable to produce documents or to identify his source of income during his adult life, he would be prosecuted.

America and Canada seem to be behind in enacting good laws to protect their societies from corrupt people. To me, having unable to identify the tax-cheaters, America and Canada are no match to the Japanese system. Japanese law enforcers are very strict.
Canada has loopholes. Like once you become permanent resident it allow you to bring unlimited amount of money and dont ask much about sources. As long as you dont create trouble inside canada they are happy to take dirty money. Very unfortunate reality.
 
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Politicians need a scapegoat for the problem they created by flooding the market with printed money.
 
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oh no !😱

where will our corrupt , thieving politicians stash their money now ?

maybe Cyprus or Malta ?
 
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Because the average price in Toronto is $1.25M and our own citizen cannot afford to buy houses.
Foreigners are driving up the prices while locals cannot even afford rentals .
 
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