Last Straw to Kill House Market? Interest Rate, Cooling Off Period, Ban on Foreign Home Buyers
New Canada Budget, Interest Rate, Cooling off Period, will this market crush? Let’s analysis it together
I am Morning Li,
Two years ban on foreign home buyers
Two years ban on purchases of residential real estate by people and companies who are not permanent residents or citizens. Refugees, some international students, work permit holders will be exception, not including recreational properties.
A statistics Canada report found that less than 5% of home in Toronto, Vancouver were owned by non residents
May not do much, but at least it’s one Straw。 Cause they are not the cause of rising home prices or rapidly rising home prices. But still it’s a good policy to put forward
Please subscript, like, and forward it to your friends.
For the next 5 years, Earmarked $10B to get new homes and repairs, Total 106K new units, 21K per year.
Canada now builds around 200K new home a year.
400K per year new immigrant, 2 people per family.
It’s even not enough for new immigrants
Tax Free First Time Home Saving Account
Tax Free First Time Home Saving Account, maximum contribution $40K
Yes, good for people
But don’t forget more demanding
Tax on Buy and sell in one year
The budget also includes a pledge that anyone Buying and selling a property within one year would be considered to be flipping properties and would be subject to tax for profit.
It’s not new, just enforcing the current tax rules
Interest Rate Hiking will continue for sure.
Maybe several times interest rate increasing
Cooling Off Period for home Buyers
After I read the details, for me, it’s just like a default subject, also you have a chance to give up this right.
The Real Estate Board of Greater Vancouver (REBGV)
Residential home sales, get a 24% decrease from March of last year
100K people moved to BC, 60K from abroad, 40K from Canada, since 1961 record