The world will see fewer new foreign buyer restrictions
Neil Sharma
Mortgage Broker News
According to a report compiled by Juwai.com—arguably the most vast real estate data base catering in the world catering specifically to Chinese buyers—“the world will see fewer new foreign buyer restrictions imposed on top Chinese property destinations in the year ahead than any of the prior three years.”
In Canada, there is a 15% foreign buyer tax in the Toronto area, and a 20% tax in Vancouver to go along with a 2% speculation tax, which many believe was design to to target foreign speculators.
According to Carrie Law, Juwai’s CEO and director, says that Canada has already imposed substantial parameters around foreign ownership and it is, therefore, unlikely any further levies will follow over the next year and a half.
“Canada has seen high bars placed in front of new foreign property buyers over the past two years,” the report quoted her as saying. “But we think that in 2018-19, it is unlikely that new restrictions or taxes will be imposed.”
Apart from the foreign buyer-targeted taxes in the country’s two most expensive real estate markets, B-20 has also served as another impediment to homeownership.
“New mortgage regulations have weakened the market by dampening the primary drivers of higher prices, which is local buyers taking advantage of low interest rates to trade up or buy investment homes.”
Law added that the most popular Canadian markets for Chinese buyers Toronto, Montreal, Vancouver, Calgary and Ottawa.
Montreal, in particular, has born witness to a noticeable spike in real estate activity. While the foreign buyer taxes in Toronto and Vancouver play a role, affordability in the two cities have turned Montreal into a desired market.
Additionally, Montreal is experiencing a renaissance largely impelled by fortuitous economic conditions, including the lowest unemployment rate in 30 years.
But while Montreal is resurgent, and experiencing previously-unexpressed interest from Chinese buyers, Toronto—Canada’s economic heartbeat—remains the most desirable destination.
“Montreal is a wonderful destination that deserves a good deal more international investment than it receives now,” Law previously told MortgageBrokerNews.ca. “Toronto has demand drivers that won’t disappear, including the English language, educational system, and job market.”
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