Langstaff Gateway Condos for sale . House prices in Canada are rising. It is true that Canadian house prices have risen by leaps and bounds in the past two years, but experts have been discussing why on earth they have risen so fast.Please Visit: Langstaff Gateway Condos for sale to Get Your VVIP Registration Today!
The proportion is less than 1%, which can not make waves at all; local buyers with rigid demand? I have never heard that buyers with rigid demand can drive house prices to take off. So, is it a “pot” for local investors?
Globalnews reported that some recent reports have shown that local investors have indeed contributed to the rise in house prices in the past two years, and the influence may be greater than people think.
The sudden influx of investors let house prices get out of control.
It was Paul Beaudry, deputy governor of the Bank of Canada, who said this. In a speech to the Ontario Securities Commission two weeks ago, Paul pointed the finger at local investors, especially short-term investors.
“how could Canadian house prices rise by more than 20 per cent a year without a sudden influx of investors?” “A large proportion of local buyers, who claim to buy their own homes, are actually used for short-term investments,” Paul said.
Because of the ultra-low interest rates and the rapid rise in house prices, some investors think that they can make huge profits in the short term, so they have entered the market one after another. For example, buy an old house with 2 million, then spend 200000 to decorate it, sell it for 2.6 million after a year, and make a net profit of 400000, without having to pay VAT.