Design district.The soaring house prices caused public dissatisfaction. It is defined as illegal for foreigners to buy any residential property in Canada. However, Canadian permanent residents, foreign workers and students are not subject to this new measure. Foreigners who buy houses in Canada as their main residence can also be exempted.Please Visit: Design district to Get Your VVIP Registration Today!
During the election campaign in 2021, the Liberal Party promised to implement a new “tax exemption for the first housing savings account”. The account will allow Canadians under the age of 40 to save up to C $40,000 for their first suite, which is tax-free when they buy a house.
The housing problem has been going on in Canada for several years. As an immigrant country, at least 300000 immigrants come to Canada every year, but the housing supply is restricted by various factors, which leads to a continuous rise in housing prices.
Some foreign capital then entered the Canadian real estate market to invest and make a profit, further pushing up house prices and causing public dissatisfaction.
People familiar with the matter said, “what needs to be restricted are those who have bought property in Canada but never come to live. They leave the house empty so that those who need to buy a house have no house to buy when there is a shortage.”
In the past two years alone, the standard house price in Canada has risen from C $563700 in January 2022 to C $869300 today.
“although this measure may reduce some of the competition in the housing market, I don’t think it will lead to a drop in house prices,” said the founder of a real estate investment company. ”
Trudeau also mentioned the ban on blind bidding in the 2021 general election. Blind bidding is considered to be one of the reasons for the rapid rise in house prices in the past two years. Because both bidders and auctioneers are kept secret, bidders have to offer a high price as much as they can, resulting in the sales price much higher than the original price.
In response, blind bidding has been blamed for accelerating price rises in the hot real estate market, sometimes hundreds of thousands of dollars higher than the asking price. Some people believe that secret bidding will force every potential buyer to bid as much as possible.
Canadian real estate industry groups no longer defend this practice. The Canadian Real Estate Association on Wednesday announced a pilot project to display real-time real estate quotations on its listed website, Realtor.ca.
Michael Burke, CEO of the Canadian Real Estate Association, said in a statement, “in today’s real estate environment, multiple bidding schemes have become more and more common. Canadian real estate buyers and sellers seek greater confidence in the process. ” It is reported that the pilot will be launched in some markets this summer.
It is reported that the Liberal Party will use billions of dollars in the budget to build comfortable housing and help regional governments update their systems to speed up the construction of new buildings.