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Saturday, March 7, 2015

Restrict foreign buyers: Article from The Vanouver Sun

Friday, March 6: Restrict foreign buyers

    The CMHC survey found that 3.4 per cent of condominium units in the City of Vancouver were owned by foreign buyers.

Other jurisdictions impose fees and taxes on non-residents


Re: Is there a peak for Metro housing prices? Impossible to say, Editorial, Feb. 26

Why are we only looking at housing supply? In other jurisdictions demand by non-residents is dampened down by transfer fees and additional taxes. For example, Hong Kong charges an additional 15 per cent transfer tax if a buyer of real estate is not a permanent resident in Hong Kong. There are similar restrictions in Singapore, the United Kingdom and Australia. Canada will soon be one of the few jurisdictions in the world without restrictions in foreign demand for real estate. 

For the benefit of Canadians who live and work in Canada and pay taxes in Canada there needs to be restrictions placed on foreign demand. If there are no restrictions then the affordability issue will only grow into a bigger and bigger headache until finally something breaks. Action should have been taken years ago. But now is better than never.