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Are foreign investors hurting Canadian homebuyers

Written by Posted On Wednesday, 11 May 2016 09:11

 

 Data released by Greater Vancouver's Real Estate Board indicates that on an average, a single-detached home in Vancouver was sold for around $1.4 million in April this year. This rate is 30 percent more than the property rate in the same region during April 2015.

Investors from China are still showing interest in Canadian real estate?

Simon Fraser University's researcher Josh Gordon recently conducted a study to understand Canadian real estate industry's health. He works as assistant professor at University's School of Public Policy. Professor has pointed out in his study that Canadians are facing tough competition from foreign investors in real estate sector. Gordon's report is titled-"Vancouver's Housing Affordability Crisis: Causes, Consequences, and Solutions."

Professor's study also considered data about population density, home buying trends, and results from a study conducted by American analysts.

Josh Gordon suggests that cities like Vancouver and Toronto are witnessing a spike in home prices because of investments from Chinese investors. Out of these two cities, Vancouver has received huge investment during 2015 alone.

Gordon interacted with journalists and shared more details about his study. While sharing his opinion about foreign investment in real estate, he pointed out that countries like Singapore and Australia have special laws for foreign investors investing in real estate. These laws aim to protect real estate market as well as country's own citizens from the inflation caused due to foreign investment. However, there are no such laws in Canada.

His report clearly blames foreign investment for inflation in property rates. It suggests that Canadians are not able to buy houses because they are facing competition from foreign property buyers. The situation can change only if Government proposes a policy to control foreign investment in real estate and protect country's own buyers.

Citizens’ sentiments

Vancouver-based Lawyer Nazma Lee interacted with journalists and shared her option about the market situation. Her husband works as an engineer in one of Vancouver's reputed firms. Both earn well enough to buy their own property. On being asked about affordability, Lee agreed that her city has attracted massive foreign investment, and localities are not in a position to pay rates as high as those paid by foreigners. “We were born and raised in this city, but we may have to settle elsewhere if rates continue to increase,”- said the young lawyer. She believes that only Canadian Government can stop this disaster by tracking money laundering activities involving foreign investors. Certain authorities are wilfully ignoring it because several people are making money out of real estate these days.

Currently, the couple has rented a two-bedroom condo; they live with their two kids.

Look at other cities worth investing

If you wish to invest in real estate, you should consider buying property in Mississauga. It is considered Canada's sixth largest city. It is one of country's fastest growing cities.  More than sixty Fortune 500 companies have their offices in this city. It is also home to top banking, finance, pharmaceuticals, computer, and aerospace companies. So, if you invest in city's real estate, you would definitely gain more on your investments during the next few years.

To check the available property options in Mississauga, you should definitely visit My Square One Condo.

 

 

 

 

 

 

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