Leftbank condos buzzbuzz. Canada can’t hold up? The real estate market in Canada has been overheated in recent years. As a sparsely populated country, the supply and demand of houses in Canada has been maintained at a normal level.Please Visit: Leftbank condos buzzbuzz to Get Your VVIP Registration Today!
Therefore, compared with other developed countries, the house price in Canada is more reasonable. But since last year, Canadian house prices have shown a crazy upward trend.
With the rise in house prices, many young people in Canada cannot afford to buy a house at all, and the Canadian government is prepared to take a series of compulsory measures to control house prices within a reasonable range. For the Canadian government, ensuring the housing needs of its own people is a top priority.
A few days ago, the Canadian government announced that in the next two years, Canada will prohibit all foreigners from buying any residential property in Canada. In fact, in last year’s Canadian presidential campaign, representatives of the Canadian Liberal Party put forward this idea. Of course, this ban does not prohibit any foreigner from buying a house in Canada, there are still some special circumstances.
For example, permanent residents of Canada, foreign workers with work visas and students studying in Canada will not receive this ban and can buy houses in Canada according to their own needs.
The main reason why the Canadian government chose to ban foreigners from buying homes this time is that it wants to cool the overheated Canadian real estate market. House prices in Canada have been rising since last year, raising prices in Canada by at least 20 percent in a year. Many people believe that it is those overseas buyers who have joined in, resulting in a shortage of houses in the entire Canadian real estate market.
Under the influence of supply and demand, house prices in Canada have risen so much. According to the relevant data, overseas buyers in the Canadian real estate industry account for less than a percentage of all buyers. The purchasing power of these overseas buyers simply cannot overheat the entire Canadian real estate industry. So the real reason for the rapid rise in house prices in Canada is the sudden influx of investors.
Affected by the epidemic, the original physical industry has been greatly restricted, so some of them have turned their attention to the real estate industry. Interest rates on loans in Canada are relatively low, while house prices are rising much higher than bank lending rates.
So some investors began to borrow money from banks to buy houses. According to bank statistics, the loan line of Canadian investors has now about doubled, which is a very frightening figure. The increase in loans has also put a sharp increase in pressure on the Canadian banking industry, so the Canadian government has to limit overseas buyers to ease the increase in investment in the real estate sector.
The sharp rise in house prices has left Canadians who originally wanted to buy homes unable to afford high house prices, which is detrimental to the Canadian economy in the long run. That’s why the Canadian government has taken such a tough approach this time, and it’s obvious that they can’t sit still.
The main purpose of the Canadian government’s action is to ensure the purchase of homes for its own people, and the Canadian government is ready to invest billions of dollars to increase the supply of housing.
Now there is a shortage of housing in the Canadian real estate industry. In order to change this situation, the Canadian government has decided to invest billions of dollars to add new housing to the original housing supply. The increase in housing supply will be able to meet the current demand for housing in Canada, which will prevent Canadian house prices from rising rapidly.