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Foreign investment to break records in 2016 - analysts

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Ephraim Vecina | 11 May 2016, 08:15 AM Agree 0
Canada’s bustling condo market attracts most of foreign would-be buyers, according to various observers
  • JSydneyH | 11 May 2016, 10:19 AM Agree 0
    So, we're using one year when foreign investors bought 11% of the product to dictate our actions.

    I'm not saying there isn't cause for concern but look at the numbers in 2014, foreign investors owned 5.5% of the market. After 2015, they owned 7.4%.

    We don't get alarmed when foreign investors own 11% of Canadian companies, so what exactly is driving this issue?
    • Scott | 11 May 2016, 11:13 AM Agree 0
      What's driving the issue and makes it a "hot" topic is the fact that foreign investors are pricing everyone else out of the market. For example suppose you have a house in Vancouver and you sell it to a foreign investor for $2M or more. Now, if you want to move to another house in Vancouver, can you afford it? I assume if you live in Vancouver to begin with, your place of employment and your family is there so taking the money and moving to a cheaper locale may not be an option for some homeowners. The second issue is that some properties according to the Walrus magazine sit empty and the community at large suffers - no students for schools, no customers for local businesses, no sense of community spirit such as when parents go to pta meetings or kids go to boy scouts/girl guides.

      Another issue raised by call a spade a spade was that of astronaut families where some family members receive an allowance from the primary breadwinner employed in a different country but pay no income tax in Canada (if they don't earn income in Canada, Canada can't tax it) and use local resources - education system, health care system, etc.

      Those reasons appear to be why the amount of foreign investment is a hot topic nowadays.

      What the answer idea. I think it's awesome that so many people vote with their money that Canada is a safe and stable country to invest in.

      But, I don't just want foreign investors to pour money into Canada non-stop. I want them to fully participate in Canada. Go to school here, live here, vote here, build a community with Canadians.
  • | 11 May 2016, 12:20 PM Agree 0
    heard the other day that foreign investors don't pay the land transfer tax!
  • Scott | 15 May 2016, 03:02 PM Agree 0
    In addition to my previous post (Scott, May 11/16) the Walrus magazine has the average income in Vancouver as $43,000 per year and the average selling price as $2.2 M. The only people with a chance of purchasing a property are those who already have one and sell it, they *might* be able to afford another house. If they can find one. The new graduates, the lower income and middle income families, forget it. The only way a middle class family with two breadwinners earning $43,000 each ($86,000) total is going to be able to afford an average house at $2.2 M is if they inherit a pile or team up with another family or two. I don't see an average sized house being big enough for two families - two adults, two kids each, that would be 8 people in one house. What if they don't get along? How would property taxes, repairs, etc be split?

    And...something I left out due to being absent minded. One valid concern some people have is the fact that heritage properties are being purchased, torn down and replaced with condos. One or two new developments would not be a problem but this is apparently happening on quite a large scale. This has some impact on a neighbourhood's character.
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