Early this morning I was alerted to news from the BBC (at https://www.bbc.co.uk/news/world-us-canada-64082923). There we see ‘Foreigners now banned from buying homes in Canada’ and when home pressures are as high as in Canada, that makes sense. But there is more. You see Canada states “As of 1 January, the ban prohibits people who are not Canadian citizens or permanent residents from buying residential properties” so we can state that the term ‘foreigner’ is applied loosely. Then there is the list of people with critique and issues. But consider, why would you want to buy a residence when you are not a citizen or a permanent resident? Consider that and then consider how the London Real estate atmosphere is spiced and spiked due to hedge funds and wealthy investors? Canada had to do something and they chose this. And it is not a new thing. New Zealand did something similar in 2018. We also get “federal housing minister Ahmed Hussen said the ban is meant to discourage buyers from looking at homes as commodities instead of a place to live and grow a family” and here I personally believe that Ahmed Hussen is correct. What is interesting that the BBC did not give us any results from the 2018 act by New Zealand. Did it reduce pressures? Any answer would have been nice and also illustrative, but they did not, why not?
I personally believe that Canada made the right step, whilst too many governments are catering to investors and speculators, there is a larger need to stop all this. And Canada made its move. Also the Canadian governments made a mention in December “the Canadian government announced some exemptions to the regulation, including for international students who have been in the country for at least five years, refugee claimants and people with temporary work permits”, as such we see that the heart of the Canadian government is in the right place. Will this be enough to reduce pressures? I cannot tel, I do not know enough about the housing market and specifically the Canadian housing market. Yet, overall when we consider the mess London and several other places are in, the move makes sense. If there is one loser, then that would be the players who invested in building ‘The One’ on Bloor street West in Toronto. That building screams investors and they cannot get a place as far as I can tell, but I reckon that the government will find a loophole for that as that place has nothing below a million and it caters to a different group.
I wonder if the results will be made public enough at the end of 2023 to see the impact. It might be a report that places like New York, London, Amsterdam and Paris are waiting for. In a time when the cost of living is going nuts, reducing housing stress makes perfect sense to me.