Real Estate

Why doesn't the government just ban all foreigners from buying real estate in Canada then?

  • Last Updated:
  • May 7th, 2019 6:57 pm
[OP]
Member
Feb 8, 2015
226 posts
105 upvotes
Manotick, ON

Why doesn't the government just ban all foreigners from buying real estate in Canada then?

Chinese, Philippines, Russian, Middle Eastern, Indian, Japanese, British, American, Spanish, German, Swedes, etc just ban them all from buying real estate.

Since everyone on this board seems to be fed up with money launderers, tax evaders, criminals buying Canadian real estate...

In order to process a land transfer with the government, a citizenship must be provided
102 replies
Deal Fanatic
Feb 29, 2008
9291 posts
4394 upvotes
Canada can’t afford to do that. We actually need foreigners.

This notion that foreign investment is baaaad and it’s all money laundering needs to end. People are running way too far with that narrative.
Deal Addict
Dec 20, 2018
2070 posts
1536 upvotes
garmium wrote: Chinese, Philippines, Russian, Middle Eastern, Indian, Japanese, British, American, Spanish, German, Swedes, etc just ban them all from buying real estate.

Since everyone on this board seems to be fed up with money launderers, tax evaders, criminals buying Canadian real estate...

In order to process a land transfer with the government, a citizenship must be provided
You are terribly misinformed
Newbie
Aug 5, 2018
81 posts
81 upvotes
JayLove06 wrote: Canada can’t afford to do that. We actually need foreigners.

This notion that foreign investment is baaaad and it’s all money laundering needs to end. People are running way too far with that narrative.
How does this stop foreigners? He is not advocating that we close the door to immigration.
Deal Addict
Jan 2, 2015
1411 posts
440 upvotes
Toronto, ON
Is the OP proposing banning permanent residents from buying property? Where are they supposed to live? Should we punish someone who came here with talent and skill, giving our government their money for taxes and putting their money into the economy?

In any event, it's not too difficult to own property but have someone put their name on it (in exchange for some kind of reward). A year or two ago, a Canadian citizen did exactly this. He bought many pre-construction houses or condos but put all but one in the name of family (all of whom got to "enjoy" first-time homebuyer bonuses). This bit him in the behind when the project fell through.

We need more purpose-built high-density shelter in attractive citites, whether that's apartment buildings or condos, and not just the luxury kind. We also need at least a few such structures with larger units (for people who want large families). We don't need dozens of barriers, including protesting NIMBY organizations, every time someone tries to build something more than five stories. That would mean an end to new houses, but it would still give people places to live, with a mix of renting and owning for people who prefer either option.

We also need to control the fraud... but fraud is being committed by lots of citizens too.
Deal Addict
Dec 6, 2006
4484 posts
1126 upvotes
Toronto
Meh just ban everyone from buying properties. All properties must be free. Instant solution to affordability issue.
Sr. Member
Dec 30, 2012
984 posts
1037 upvotes
Toronto
Wouldn’t that turn Markham ON and Richmond BC into ghost towns? *
Last edited by MrDisco on May 2nd, 2019 12:00 pm, edited 1 time in total.
Reason: rude
Newbie
Apr 1, 2019
25 posts
33 upvotes
garmium wrote: Chinese, Philippines, Russian, Middle Eastern, Indian, Japanese, British, American, Spanish, German, Swedes, etc just ban them all from buying real estate.

Since everyone on this board seems to be fed up with money launderers, tax evaders, criminals buying Canadian real estate...

In order to process a land transfer with the government, a citizenship must be provided
I don’t know why everyone on this board would want any limitation on foreign ownership. A large number of people on this board own real estates and foreign ownership keeps the value of their assets high. Why would they be upset?

Maybe a small number of people here would be fed up but not everyone.
[OP]
Member
Feb 8, 2015
226 posts
105 upvotes
Manotick, ON
ucu5009 wrote: I don’t know why everyone on this board would want any limitation on foreign ownership. A large number of people on this board own real estates and foreign ownership keeps the value of their assets high. Why would they be upset?

Maybe a small number of people here would be fed up but not everyone.

Some examples of posts:

vancouver-re-money-laundering-asian-dru ... t-2203761/
gwplant wrote: If they follow through with this, the foreign ownership numbers will rise substantially, good on the government for going after these "anonymous" offshore buyers.
http://forums.redflagdeals.com/vancouve ... 94032/813/

chinese-real-estate-investors-wary-vanc ... o-2277501/

dirty-money-driving-up-toronto-real-est ... s-2273172/

toronto-vancouver-giant-money-launderin ... s-2098437/
Deal Addict
Jan 26, 2016
1374 posts
1157 upvotes
Toronto, ON
If vacancy for rental is low, banning foreign investment in RE, which incidentally drives building of new units by putting capital in the system, will mean fewer units being built and even higher rental prices.

Not to mention the loss of jobs.
Deal Fanatic
Feb 29, 2008
9291 posts
4394 upvotes
Staffah wrote: How does this stop foreigners? He is not advocating that we close the door to immigration.
LOL. OK. Face With Tears Of Joy
Deal Fanatic
Feb 29, 2008
9291 posts
4394 upvotes
WinterSleep wrote: If vacancy for rental is low, banning foreign investment in RE, which incidentally drives building of new units by putting capital in the system, will mean fewer units being built and even higher rental prices.

Not to mention the loss of jobs.
These are the same braniacs that begged for rent control.
Member
Feb 15, 2018
231 posts
256 upvotes
Lets not confuse immigrants with foreign buyers. Immigrants are free to buy properties in Canada at any time. Immigrants are people who have chosen to reside in Canada, whereas foreign buyers are usually not resident in Canada. Canada currently allows people to just buy property in Canada without ever having set foot in the country. Worse, they can even buy an entire city block.

The problem is that such buyers are not invested in Canada and when things go south they will be the first to bail out and residents of Canada are left to deal with the all the consequences of a housing collapse. Morally, why should these foreign buyers be allowed to enjoy the the profits of real estate speculation yet not have to live with the consequences of the fallout? I thought privilege always comes with responsibilities as well.

Also, our tax paying essential service providers are being driven out of our cities only to be replaced by non income tax paying foreign overloads? I do not want my kid's teachers and local cops to commute 2 hours to work.

Europe, under feudalism never really prospered. Feudalism is a failed economic model and history books are littered with countless examples of such. We do not want to return to a feudal society where a few robber barons own all the land and everyone has to pay them rent. Rent seeking is not an economic model to aspire to.

Some of us are property owners and earn reasonably decent incomes but have the foresight to appreciate that if we just standby and watch our teacher/nurse neighbors priced out, then next the lawyers and doctors will be priced out, then next the SME owners will be priced out. So, there is an element of self preservation.

If wealth foreigners want to come and compete for properties in Rosedale or Bridal Path, I have no problem with that. Canada has always had wealthy families like the Eatons and Rogers and they never competed with us for Etobicoke or Scarbourough or Burnaby. If I heard about a bidding war for a mansion in Shaunessy or West Mount, I wouldnt even care. However, when our ordinary homes on Weston road are being gentrified by foreign buyers bent on building a portfolio of homes they do not even plan on living in, we can not just standby.
Deal Addict
Mar 27, 2004
3572 posts
998 upvotes
Toronto
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