CMHC tracking foreign investments made into Canada’s housing markets346 views
The CMHC (Canada Mortgage and Housing Corporation) has been trying to years to limit and track down foreign investments being made into Canada’s housing market. It was revealed this week that efforts are strongly being taken into consideration.
In the past several years there has been a lack of reliable data of how much money is coming from aboard and which is in turn a connection with soaring market prices for Canada’s two largest cities, Toronto and Vancouver.
However, it has been been always smooth sailing as some say it is difficult to determine who is considered as a foreign buyer and figuring it out as a bigger picture.
Other countries around the world have had similar problems and each country has their own solution for the problem.
Australia has come up with large fines put into place if ever foreign buyers, realtors or companies were to break any rules on foreign real estate investment. They also have limitations on newly constructed houses and apartments. Canada is keen on trying to implement Australia’s regulations on the issue, but some say it is a long way to ago.
On the other hand, there is Hong Kong. Hong Kong is part of China, but their housing market stands apart. In fact, it is consistently ranked the most expensive market in the world.
The median price of a Hong Kong home is about 19 times the median income of its citizens.
The government has responded with a 15-per-cent surcharge on homes purchased by non-permanent residents.
And in 2012, the city announced the establishment of areas with new dwellings that can only be sold to permanent residents of Hong Kong for the next 30 years.
There are only several thousand of these units, though, so in a city of more than seven million people, the policy is not expected to have much of an impact.
Source: CBC News