Re:Canada to ban foreigners from buying homes
by dghlsakjg on Thursday April 07, 2022 @10:26PM
(#30952681)
That isn’t what’s happening in the Canadian market is what we’re telling you.
It is not that there are people that aren’t selling, it’s that there aren’t enough houses for the number of people in the country. House prices have risen enough to cover all of the fees, except that there is nowhere in the country you can move to where this isn’t happening.
Re:Canada to ban foreigners from buying homes
by smugma on Thursday April 07, 2022 @09:12PM
(#30952221)
When markets are rising so rapidly, there are very few people who might lose money on a sale. There’s a lot of fat in the process, but it’s not particularly relevant when prices are going up double digits each year.
Re:Canada to ban foreigners from buying homes
by kelnos on Friday April 08, 2022 @01:07AM
(#30953513)
Unless potential sellers are leaving the country or are choosing to rent after they sell, wouldn't more sellers also increase the number of buyers (because those sellers have to live somewhere else after they sell), and it all will end up being a wash?
(And if they are choosing to rent after they sell, that just shifts unaffordable home prices to unaffordable rents, as rental demand increases without a corresponding increase in supply.)
My point is that if you reduce the red tape (and deadweight loss) there are actually people who want to sell, but wont sell if they are losing a ton of money on the sale. Reduce the loss and more supply appears.
In the US this is a huge issue. If you switch cities twice and sell each time, your entire downpayment has disappeared in fees/taxes. You literally have nothing left to buy your next home with. So people stick around in houses they dont want in cities without ideal jobs because they have no choice.