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Agent suggestion for foreign tracking

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Real Estate Professional | 25 May 2016, 08:15 AM Agree 0
Rep readers weigh in on foreign ownership debate, and provide their own unique solutions
  • Mark Ranger - RE/MAX Kelowna | 25 May 2016, 12:12 PM Agree 0
    Let foreign buyers purchase Canadian real estate but with the stipulation that it be new purpose built construction that must be resided in full time (more than 6 months of the year) buy the registered owner and subject to full G.S.T. and any other tax with no opportunity for rebate. By doing so it would alleviate pressure on current inventories (see Vancouver), add to supply (increased supply having more of a tendency to moderate prices) and stimulate domestic employment through new construction and all the related industries.

    They have every right to be on this planet and migrate as we do. We have every right to ensure our Country benefits from all that attracts people to it. We apparently have value on the world stage... Why wouldn't we take advantage of that to our benefit while still maintaining the Canadian hospitality we are known for and is in part what makes it so attractive to invest/migrate here.

  • | 25 May 2016, 07:49 PM Agree 0
    Only Canadian Citizens or those granted Permanent Resident status should be entitled to own residential property. Given that everyone else has only Visitor status why would they need to buy property in a country in which they have no right to reside? We should follow example from Thailand and other SE Asian countries. Foreigners cannot own land ... even if married to a citizen of those countries. If a proxy is found to be used the property can be seized. That would stop this problem dead in its tracks.
  • | 25 May 2016, 08:03 PM Agree 0
    Taxing doesn't resolve the underlying suspicion that foreigners with large amounts of money gained through corruption in their homelands are laundering (or parking) it in a safe country. Taking 10 or 15 % away in taxes just legitimizes their ill gotten funds. They are too exposed in securities or bank accounts and that is precisely why they hide it behind the doors of Vancouver and Toronto homes. As the Brits say the investment is "safe as houses."
  • | 26 May 2016, 07:49 AM Agree 0
    Unfortunately, there are no quick answers. We live in a different world today. In my view, foreign ownership should not be disuaded, but pointed in the right direction. Im not a part of our Federal government's think tank on foreign land acquisition, but I hope they can think outside the "box", in coming up with a better solution. For example / any properties purchased, must be owner occupied, at date of completion, for a minimum of one year/ a further deposit of 33 percent of the purchase price, to be held, in trust, and paid back, to the owner, in 5 years, from completion date, provided it can be shown. It was owner occupied for, say 70 percent of the time. Fintrac is weak, as its only as strong as the information that is given. Foreign investment in Canada is inevitable, as we are an incredible bastion of freedom. Our government needs to step in and hurt the bad guys where it counts, in their pockets.
  • William | 26 May 2016, 01:38 PM Agree 0
    I basically agree with Shawn Laghai but not that the issue isn't with astronomical property prices. There are two main issues here: 1) how much Canadian property should a foreigner be allowed to own (especially if they're not living in it)? and 2) should huge amounts of (often ill-gotten) foreign money be allowed to flood into our country and deny our own citizens the right to own a property here? The problem that people outside of (mainly) Vancouver and also Toronto don't understand is, they absolutely cannot conceive of the AMOUNT of foreign money coming in here. And especially if it's ill-gotten and there's a lot more where that came from, they DON'T CARE what they pay, which is why you see the ridiculous over-bidding that's going on. They just want to GET IT OUT AND KEEP IT SAFE! And folks, there's 1.4B people in China to our 36M. Our country has as many people as ONE of their major cities. Now do you get the scale of this? Do you have any idea what effect that has on a 'tiny' city of 2M people?? That's why Vancouver has a property crisis - and that's what it is, a crisis. If this trend continues, within under 5 years the entire West Side of Vancouver and West Vancouver will be only rich Chinese people. There you go...
  • Bill Hubbard | 31 May 2016, 09:19 AM Agree 0
    Sometimes we as Canadians can be so hypocritical. We boast the land of the free. We boast multiculturalism. Now we are going to start inhibiting people coming to our country with the "slur" of which race they belong to. I get that they have to follow the rules. That should be enforced more effectively. However, 70% of our population growth in Canada is from immigration. We are one of the most underpopulated countries in the world. Immigration drives our economy. If we want to slow our economy to a crawl inhibit immigration. There are huge numbers of people all over the world that cannot buy in major centers in their country because the prices are too high. Vancouver and Toronto prices are not even close to the highest Real Estate prices in the world. We don't even make the top 10. As harsh as it sounds if people cannot buy in a certain area they should choose not to live there or rent. Not everyone gets what they want. Letting the government come in and artificially control the market and therefore the economy is, in my humble opinion, a huge mistake.
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