Quote:
Originally Posted by Nite
Foreign buyers represent 5% to 10% in the Toronto market with the vast majority being Canadian who are buying property.
If a multinational wants to store money away it makes much more sense to invest in US properties, it's cheaper and doesn't have all the foreign regulations like land transfer taxes, foreign buyer taxes and AirBNB isn't as regulated as in Vancouver or Toronto has.
Foreign investment of any type is easier in the US than Canada do to less regulations in the US and less taxes
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It's not so much multinationals as it is Chinese elite looking for a safe place to invest, because they don't have any safe places to invest domestically. The Chinese stock market is unreliable, and the Chinese real estate is even more inflated than Canada's. Not to mention you can't really buy real estate in China, it's more like a long term lease from the state.
Also, is it 5-10% of current homes owned by foreign buyers? 5-10% of new home sales? 5-10% of new capital flowing into the real estate market? Either way though, 5-10% is not that small and can have a significant influence if those buyers lack restraint in terms of how much they're willing to pay to get a foot in the Canadian real estate market.