M city 5 condos for sale. Why are house prices in Canada so high? The topic of “it is difficult to buy a house” has been bothering Canadians for a long time. Although the government has been claiming that it will introduce various policies, it is only a temporary cure rather than a permanent cure.Please Visit: M city 5 condos for sale to Get Your VVIP Registration Today!
During the COVID-19 pandemic, investors bought more homes than first-time buyers or even repeat buyers, according to an analysis by the Bank of Canada earlier this year.
Investors accounted for 1/5 of Canadian home purchases, while first-time buyers hit a record low last year, the analysis found.
In other words, most people now buy a house in Canada for investment rather than self-occupation.
For first-time buyers, there is a good chance that they are young people who can barely make a down payment and are completely uncompetitive when buying a house.
Recently, about 1/3 of Canada’s federal ministers own leased or invested real estate assets, according to a document submitted to the Federal conflict of interest Commissioner.
Real estate experts say that while these properties are perfectly legal, they reflect that Canadians increasingly see real estate as a financial asset rather than a place to live.
At the same time, recent data released by Canadian financial institutions show that investors are playing an increasingly important role in driving up prices.
Chrystia Freeland, Canada’s deputy prime minister and finance minister, called the trend “intergenerational inequality”.
“as a 53-year-old, one of my biggest concerns is intergenerational injustice, which shocked me,” Chrystia said.
We have a better chance of buying a house and starting a family than today’s young people, and we cannot keep the new generation of Canadian people out of their dream of owning a home. ”
As a result, measures to address this problem are mentioned in the federal budget, which will address the sky-high house prices that deprive young Canadians of their homes by increasing supply and cracking down on real estate finance.
And what is the real estate financialization? Compared with the past, the word financialization is more and more used to refer to investors buying real estate.
Such properties are usually residential and could have been used as entry-level housing or comfortable housing, but investors will use them as financial assets to make a profit by reselling or raising rents.
According to the document submitted to the Federal conflict of interest Commissioner, 12 of the 39 cabinet ministers (31%) hold real estate assets described in the declaration as “for leasing” or “investment” purposes.
And that figure does not include ministers who are paying mortgages that have nothing to do with leasing or investment purposes.
According to conversations with several government officials, the declared rental and investment assets include rented houses, vacant land, properties for tourism, and properties that are intended to move in after purchase.
All of this is legal and all ministers have performed their duties under the Canadian conflict of interest Act and reported these assets to the Federal Commissioner for conflict of interest.
Housing Minister Ahmed Hussen, who is responsible for implementing the government’s promised measures to solve the problem of unaffordable housing, is also one of the owners of rented houses, and his disclosure form shows that he is the sole owner of a rental property in Ottawa.
Finance Minister Chrystia Freeland does not have residential rental or investment properties in Canada, but she and her husband have two rental properties in London and a residential property in Kiev, Ukraine.
Francois-Philippe Champagne, the innovation minister, also owns two rental properties in the UK, while nine other cabinet ministers also own properties for leasing or investment in the country.
Although this property is also very normal, because the Conservative Party, New Democratic Party and other MPs also have real estate assets for leasing or investment, and are also listed in this document.
But as cabinet members, ministers are in a unique position to promote and implement policy changes aimed at reducing prices.
In February, Housing Minister Ahmed said that the government did not want to take measures against these investors because they could actually provide rental services to a lot of people.