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| Matt Palmer/Unsplash |
In a massive shock to foreigners eyeing investment propositions in Canada, Prime Minister Justin Trudeau is about to ban them from buying real estate in the country for a period of two years.
Why the ban?1️⃣ Canada has become one of the costliest global housing markets.
2️⃣ Construction has slowed owing to the pandemic.
3️⃣ Home prices have increased by 50%, owing to a supply crunch.
4️⃣ Benchmark home prices stood at C$869,300 in February.
5️⃣ Canada will cool off the market, investing in new construction instead to ease supply and restore balance.
But, but, but...
✅ Foreign home ownership is just 3.8% in British Columbia and 2.2% in Ontario among other regions.
✅ The ban won’t hit the market hard; British Columbia already taxes foreign buyers at 20% more in most areas (leaving them out of the race anyway).
Net net: We foresee a deluge of foreign yachts/jets in Dubai going forward.