yonge city square condos floor plans.House prices have risen too sharply. On April 7, local time, the Canadian government announced that foreigners would be banned from buying non-self-occupied properties in Canada for the next two years, in an attempt to cool the overheated real estate market. Please Visit: yonge city square condos floor plans to Get Your VVIP Registration Today!
However, Canadian permanent residents, foreign workers and students are not subject to this new measure.
After the COVID-19 epidemic, the Bank of Canada slashed interest rates to ultra-low levels, and house prices continued to rise across Canada, up more than 50 per cent so far. Overall house prices in Ontario have tripled in the past decade, far exceeding income growth.
On April 7, local time, the Canadian government announced that foreigners would be banned from buying non-self-occupied properties in Canada for the next two years, in an attempt to cool the overheated real estate market. Canadian Deputy Prime Minister and Finance Minister Cristina Freeland announced this year’s federal budget on the same day, focusing on dealing with tight housing supply, insufficient housing stock and soaring house prices.
In his budget, Freeland mentioned a number of measures to curb real estate speculation and demand, including that foreigners are not allowed to buy houses in Canada for the next two years, and sellers who buy houses in less than a year will face high taxes and fees. According to the Canadian Television Network, the above two measures do not apply to permanent residents, foreign workers and foreign students, and foreigners’ purchase of long-term self-occupied property is not restricted by the purchase ban.
The Canadian federal government proposed a series of measures to alleviate the housing problem in the new annual budget submitted to the House of Representatives on April 7. The Canadian government believes that the continued influx of foreign money into the Canadian housing market over the years has heightened concerns about the cost of living in cities such as Vancouver and Toronto, as well as fears that Canadians have been squeezed out of local housing markets.
The Canadian government also plans to provide incentives for first-time home buyers through tax breaks and exemptions. The budget also proposes to establish a housing acceleration fund to provide C $4 billion to promote housing construction within five years from the current fiscal year, with a view to achieving the goal of building 100000 new housing units; it is proposed to provide C $1.5 billion over the next two years to facilitate the construction of at least 6000 units of comfortable housing. In addition, the government will also provide funds to support the development of the rental market.
Freeland said in the House of Representatives that the Canadian government will ensure that houses are used as homes for Canadians’ families, not as a speculative financial asset.
At the end of March, the government of Ontario, Canada’s most populous province, announced without warning that it would increase the non-resident speculative tax rate, commonly known as the real estate “foreign buyer tax”, from 15% to 20%. And expand the tax coverage from Toronto and surrounding areas to the province. The province has implemented a “foreign buyer tax” since 2017. In addition, British Columbia, where Vancouver is located, has implemented a 20% real estate “foreign buyer tax” in many densely populated areas.
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 2020 to C $869300 today. After the COVID-19 epidemic, the Canadian central bank slashed interest rates to ultra-low levels, and house prices continued to rise, with an overall increase of more than 50 per cent so far. Overall house prices in Ontario have tripled in the past decade, far exceeding income growth.
“I don’t think house prices will fall because of this,” said Simeon Papailias, founder of real estate investment firm REC Canada. Even if I think it does reduce some competition in the most competitive real estate market in Canadian history, I don’t think the two-year repair will have an impact on the underlying supply shortage. ”
Providing people with more affordable housing is one of the earlier campaign promises of the Federal Liberal Party led by Canadian Prime Minister Trudeau. The Liberal Party has also promised to impose a “foreign buyer tax” across the country to calm house prices.
Although the ruling Liberal Party has less than half of the seats in the current House of Representatives and belongs to a minority government, it reached an agreement with the New Democratic Party, one of the opposition parties, in late March and won the latter’s support on trust and budget issues. The Government’s Budget is expected to be passed without any serious problems.