Re:Canada to ban foreigners from buying homes
by dfas23 on Thursday April 07, 2022 @02:42PM
(#30948673)
Capital gains on primary residence is a non-starter. 65% of households in Canada own their homes.
It would be political suicide.
Re:Canada to ban foreigners from buying homes
by tomatowurst on Thursday April 07, 2022 @02:16PM
(#30948326)
When the going gets tough the ruling party just scapegoats a minority group who they perceive to be socioeconomically advantaged. ex) Jews in Europe
Key problem here is that the inventory is super low, part of it is due to everyone wants to settle in places like Toronto/Montreal/Vancouver due to high job concentration along with NIMBY attitude among the existing suburbs. There is an inflow of 400k immigrants every year who mainly tend to settle in the big cities such as Toronto/Montreal/Vancouver, putting upward pressures. On top of that, the liberal government flat out does not want to impose tax free capital gain from primary home sales, and wide availability of credits with as low as 5% downpayment which can be used with equities from first, second, third homes.
This is just a political move to show they did something. The liberal party minister once said they don't want to entertain any crush on house prices because that would be detrimental to new home buyers. When buyers get the signal that Government has their back and there will never be a crush [1].
[1] https://www.cbc.ca/news/business/housing-canada-policy-marke...
https://www.thestar.com/politics/federal-election/2021/08/24...