Should We Tax and/or Limit Foreign Real Estate Purchases?

[Carjosse]

I was reading an article on Reddit and it was a Global news article on whether we should tax foreign buyers of real estate.

I personally believe we should tax and limit purchases, home prices are getting out of control and wealthy foreign buyers are largely responsible for it. These buyers are making it impossible for Canadians to afford a home, we should be the first priority in our own country. Foreigners should be heavily taxed on their purchases and the amount of property they can own should be restricted in order to prevent them from over-inflating prices and substantially reducing supply.

What do you think? If you do not support a tax or limit what should be done to make homes more affordable for Canadians?

 

[azgreg]

My first thought is that it should be mandatory to be at the minimum a legal resident of the country in order to own property there. I'm willing to be convinced otherwise though.

 

[Carjosse]

My first thought is that it should be mandatory to be at the minimum a legal resident of the country in order to own property there. I'm willing to be convinced otherwise though.

Well the problems I see with that are people who own vacation homes and secondly people who are not residents but say work here enough to want a permanent home here. For example Americans should be allowed to own a cottage on one of our many lakes but even then they should at least pay some kind of tax but less than these foreign speculators.

 

[joG]

My first thought is that it should be mandatory to be at the minimum a legal resident of the country in order to own property there. I'm willing to be convinced otherwise though.

Very true. Canada is tiny compared to the size of the population.

 

[Carjosse]

Very true. Canada is tiny compared to the size of the population.

 

[MrT]

I was reading an article on Reddit and it was a Global news article on whether we should tax foreign buyers of real estate.

What do you think? If you do not support a tax or limit what should be done to make homes more affordable for Canadians?

I could understand and probably support some type of additional hurdle for foreign purchasers of domestic property, like an additional (but not overly burdensome) tax, so long as that tax is designed for a useful purpose also in the realm of housing. For example, if that tax were used to support and fund low income housing as an offset to the increase in housing pricing that is the result of foreign investment.

I could actually make the argument that one of the primary drivers behind absurd increases to home prices are cars (pun intended). Consider the fact that in many metropolitan areas we have to devote massive areas to essentially housing an object while it is not being used. If we could convert even half of the area that is used for parking spaces into housing, the impact on home prices would be very significant. Wealthy people, and I imagine that Americans are probably more guilty of this than Canadians, are simply too addicted to their vehicles and to a need for massive space.

My first thought is that it should be mandatory to be at the minimum a legal resident of the country in order to own property there. I'm willing to be convinced otherwise though.

I would argue that this is a limitation that would amount to a disruption of international trade and could result in a trade war (or at least a petition sent to the WTO). Think of all the additional hurdles that would need to be met just in the event that you wanted to purchase a vacation home overseas - assuming that those countries also implemented similar rules.

 

[Carjosse]

I could understand and probably support some type of additional hurdle for foreign purchasers of domestic property, like an additional (but not overly burdensome) tax, so long as that tax is designed for a useful purpose also in the realm of housing. For example, if that tax were used to support and fund low income housing as an offset to the increase in housing pricing that is the result of foreign investment.

I could actually make the argument that one of the primary drivers behind absurd increases to home prices are cars (pun intended). Consider the fact that in many metropolitan areas we have to devote massive areas to essentially housing an object while it is not being used. If we could convert even half of the area that is used for parking spaces into housing, the impact on home prices would be very significant. Wealthy people, and I imagine that Americans are probably more guilty of this than Canadians, are simply too addicted to their vehicles and to a need for massive space.



I would argue that this is a limitation that would amount to a disruption of international trade and could result in a trade war (or at least a petition sent to the WTO). Think of all the additional hurdles that would need to be met just in the event that you wanted to purchase a vacation home overseas - assuming that those countries also implemented similar rules.

Have you been to Montreal, Toronto, or Vancouver? There is almost no such thing as above ground parking, everything is underground either under apartment or office buildings. What above ground parking that does exist is very limited. Toronto used to just be a sea of parking lots but now it almost entirely condo and office towers with underground parking.

 

[SDET]

I didn't realize Nova Scotia was such a population hot spot.

Seriously though, I wonder what those percentages would be if you moved the line up to Winnipeg.

 

[Grand Mal]

Is that true? Half of Canadians live in southern Ontario?

 

[Carjosse]

I didn't realize Nova Scotia was such a population hot spot.

Nova Scotia just so happens to fall below the line, almost all the population below that line is Ontario and Quebec, by far the most populated provinces. Nova Scotia's entire population is <1,000,000. The two largest cities (Toronto and Montreal) are below that line.

 

[Carjosse]

Is that true? Half of Canadians live in southern Ontario?

Well the line covers Montreal and Southern Ontario so yes. Sorry BC.

Here is the East-West split:

It pretty much goes right through Toronto.

 

[SDET]

Is that true? Half of Canadians live in southern Ontario?

If you look carefully, it's Southern Ontario plus most of Nova Scotia. I don't think that extreme Southern Quebec and New Brunswick have a measurable impact.

 

[SDET]

Well the line covers Montreal and Southern Ontario so yes. Sorry, BC.

Of course! You drive more West than North to get to Montreal from Vermont. Now it makes sense.

 

[Fearandloathing]

Bull****

Another thread on Canada hijacked.

No where in here is the OP even addressed.

Should anyone want to know, the problem originates in Vancouver, where the price of a stand-alone starter home anywhere in the region will cost 1.8 MILLION dollars.

Have fun with the Canada jokes....

 

[Carjosse]

Of course! You drive more West than North to get to Montreal from Vermont. Now it makes sense.

If you mean Maine the yes, Vermont no.

 

[azgreg]

Bull****

Another thread on Canada hijacked.

No where in here is the OP even addressed.

Should anyone want to know, the problem originates in Vancouver, where the price of a stand-alone starter home anywhere in the region will cost 1.8 MILLION dollars.

Have fun with the Canada jokes....

That might explain why so many Canadians have purchased property here in Arizona.

 

[Carjosse]

Bull****

Let's see populations of the metro areas involved:
Golden Horseshoe - 9 million
Montreal - 4 million
Ottawa - 1.5ish million
For a total of 14.5 million in those metro areas

We need 17.5 million to get half. We need only another 3 million which I imagine can garnered from other cities and towns.

 

[Fearandloathing]

Is that true? Half of Canadians live in southern Ontario?

I guess what he's trying to say is that the 7 million people who live in Vancouver, the two million people in Alberta and the one and a half million across the north aren't REAL Canadians.

In my opinion it simply reflects ignorance and stupidity and part of the uniformed Canada bashing Americans go through to make themselves feel better about a divided and dying country.

 

[Carjosse]

That might explain why so many Canadians have purchased property here in Arizona.

That is actually probably old people trying to escape the winter, they are called snowbirds.

 

[Carjosse]

I guess what he's trying to say is that the 7 million people who live in Vancouver, the two million people in Alberta and the one and a half million across the north aren't REAL Canadians.

In my opinion it simply reflects ignorance and stupidity and part of the uniformed Canada bashing Americans go through to make themselves feel better about a divided and dying country.

Metro Vancouver only has a population of 2.3 million, the city proper only has 600,000. I am not saying I am just pointing out our population distribution.

 

[Fearandloathing]

Let's see populations of the metro areas involved:
Golden Horseshoe - 9 million
Montreal - 4 million
Ottawa - 1.5ish million
For a total of 14.5 million in those metro areas

We need 17.5 million to get half. We need only another 3 million which I imagine can garnered from other cities and towns.

Oh, so Vancouver , Victoria, Calgary, Edmonton don't exist in your world.

This is such a case of eastern arrogance. The greater Vancouver area alone has a population nearing five million.

I have no idea what you want to "get" to, but you're getting your jollies by making fun of your own county, and on top of is are off topic.

Please, drop in to the library and check some modern information about the country you live in,.....there really are some of us than don't live in Quebec or the Golden triangle.

 

[Grand Mal]

Well the line covers Montreal and Southern Ontario so yes. Sorry BC.

Here is the East-West split:

It pretty much goes right through Toronto.

My experience of Ontario is limited- worked there, Toronto, Niagara Falls, St. Catherines, about 30 years ago when you couldn't buy a job out west. I liked the Niagara Peninsula but you can have my share of Toronto. I'm guessing that by now it's one big city from Hamilton to Toronto.
The thought gives me the willies. Takes me about 6-7 hours and three ferries to get to Vancouver, dreading it all the way. I can't imagine what it's like to live in that (southern Ontario) kind of population density.

 

[Fearandloathing]

That might explain why so many Canadians have purchased property here in Arizona.

Are they living there or is it investments?

A lot of Canadians buy property in the south for summer residences, Arizona is big because of the dry climate, ex smokers need that

 

[azgreg]

I guess what he's trying to say is that the 7 million people who live in Vancouver, the two million people in Alberta and the one and a half million across the north aren't REAL Canadians.

In my opinion it simply reflects ignorance and stupidity and part of the uniformed Canada bashing Americans go through to make themselves feel better about a divided and dying country.

Oh, so Vancouver , Victoria, Calgary, Edmonton don't exist in your world.

This is such a case of eastern arrogance. The greater Vancouver area alone has a population nearing five million.

I have no idea what you want to "get" to, but you're getting your jollies by making fun of your own county, and on top of is are off topic.

Please, drop in to the library and check some modern information about the country you live in,.....there really are some of us than don't live in Quebec or the Golden triangle.

Sounds like you guys are having your own "divided country" argument.

 

[Carjosse]

Oh, so Vancouver , Victoria, Calgary, Edmonton don't exist in your world.

This is such a case of eastern arrogance. The greater Vancouver area alone has a population nearing five million.

I have no idea what you want to "get" to, but you're getting your jollies by making fun of your own county, and on top of is are off topic.

Please, drop in to the library and check some modern information about the country you live in,.....there really are some of us than don't live in Quebec or the Golden triangle.

I am just saying the math checks out, I am not saying anything bad about it. Vancouver is the epicentre for this activity, I even might even want to live in Vancouver at some point.