forma condos.The country’s house prices have risen by more than 50% in two years. Canada’s federal budget report, due to be released on April 7 local time, will include a new rule that makes it illegal for foreigners to buy any residential property in Canada.Please Visit: forma condos to Get Your VVIP Registration Today!
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.
Housing problems have been going on in Canada for several years. Canada, as a country of immigrants, at least 300000 immigrants come to Canada every year, but the supply of housing 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. Two years after the novel coronavirus epidemic, house prices in Canada have risen by 52%, according to a report by the China well-off Network, citing the Canadian Global Post.
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.”
“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. ”
Interestingly, agreements for the sale and purchase of houses signed in violation of the law will not be invalid. Lawyer Zinati explained that the buyer and seller still have to abide by the contract.
However, the federal government will have a task to require courts in the province where the house is located to order the sale of the property, and foreign buyers are not allowed to profit from the sale.
The lawyer said that the enforcement process would be very cumbersome, and he wondered whether the bill was mainly a deterrent.
“they may rely on industry insiders who are afraid to do deals with foreign buyers.”
Lawyers added that the rules would not apply to agreements signed in the last month of 2022, although the houses purchased would not be handed over until 2023 next year.
Mr. Zinati says foreign buyers who have nothing to do with the country rarely buy houses. In his own company, for example, lawyers know that they have to pay Ontario foreign buyer tax on behalf of the buyer.
“this is not a very common example.”
Mr Zinati also believes that the new ban has little impact because the housing market has cooled a lot since the spring budget was announced.
“it happened when the market was hot,” he said. “We have encountered a phenomenon that is not uncommon and the market can calm down on its own in all aspects.”
Mr Zinati added that the Ontario government recently raised the province’s foreign buyer tax from 20 per cent to 25 per cent.
Customers have been calling him to ask why the provincial government should raise taxes if the federal government forbids foreign buyers.
Zinati points out that the two levels of government are not working together.
The Toronto city government also plans to introduce a vacant housing tax. From 2023, an annual tax will be levied on uninhabited houses.