According to experts, a ban on foreigners buying residential properties that are unlikely to affect Metro Vancouver prices

But this policy could look like a victory for the Liberal Party, as prices have already fallen.

Article content

According to local experts, the federal ban on most foreigners buying homes for the expected two years on Thursday’s budget is “Virtue Signaling” and will affect Metro Vancouver prices. It is unlikely.

Advertising 2

Article content

But rising interest rates have already weakened the residential real estate market, which could seem like a win to the LDP government.

“This is a policy virtue signaling, not an action that has a substantial impact on affordability,” said Tsur Somerville, director of the UBC Urban Economics and Real Estate Center. “It doesn’t define affordability, so it’s not about what happens to Point Gray’s most expensive property.”

British Columbia already has a 20% foreign purchaser tax and speculative and vacancy tax, curbing foreign demand, but some suburban prices have been 50 in the last two years, according to Summerville. %It is rising.

He also said that the ban is not expected to apply to foreign students, permanent residents, foreign workers or foreigners who purchase their primary homes in Canada. It also does not apply to recreational facilities.

Advertising 3

Article content

“The rich will find a way to get rich. If you really want to buy in a place you don’t want to live in, you can find a student buyer. There are always loopholes,” says Somerville.

Steve Saletsky, a local realtor and analyst, looks good given that the real estate market has already slowed last month as five-year fixed mortgage rates rose from 1.5% to 4%. The policy was called “political grand standing.”

“It wouldn’t be surprising if the ban was introduced, markets began to fall, and public awareness that the policy worked,” said Saletsky. “It would look like a” W “to the Liberal government, but the market is already slowing down. Policy timing will be great for political interests, but mortgage rates do all the policy work for them. “

Advertising 4

Article content

According to Bloomberg, those familiar with the matter have asked not to name it because the issue is private, and Thursday’s budget for Finance Minister Chrystia Freeland will build affordable homes. Faster construction of new properties, said it will include billions of dollars to help local governments update their systems to allow.

Freeland also said it would introduce a law that would allow Canadians under the age of 40 to save as much as $ 40,000 on down payments for homes in new tax-exempt cars.

Prime Minister Justin Trudeau is also expected to successfully handle the proposed ban on “blind bidding” on housing. This is a common system for keeping offers secret when someone is selling a home. Blind bids have been accused of accelerating price increases, with properties sometimes selling hundreds of thousands of dollars above the asking price. Some people believe that secret bids force each potential buyer to offer as much as they can.

More news, less ads, faster load times: Get unlimited adlite access to Vancouver Sun, Provins, National Post, and 13 other Canadian news sites for $ 14 / month or $ 140 / year. Subscribe now from Vancouver Sun or Province.

    Advertisement 1

Comment Comment

Postmedia maintains a lively yet civic discussion forum and encourages all readers to share their views on our articles. Moderation can take up to an hour for comments to appear on your site. Comments are relevant and should be stored with respect. You have enabled email notifications. You will now receive an email when you receive a reply to a comment, when the comment thread you are following is updated, or when a user follows a comment. For more information and details on how to adjust your email settings, see Community Guidelines.

According to experts, a ban on foreigners buying residential properties that are unlikely to affect Metro Vancouver prices

Source link According to experts, a ban on foreigners buying residential properties that are unlikely to affect Metro Vancouver prices

Related Articles

Back to top button