Investors miffed by suggestion government should curb domestic investing

A big bank has implored the government to crack down on Canadian speculative investors, but one veteran argues that is the wrong approach.

“As an investor it’s a little disappointing because I think there should be a difference between a Canadian address investor or buyer and a foreign buyer,” Sahil Jaggi, a Toronto-based investor, told Canadian Real Estate Wealth. “So if a foreign investor is buying into Canada, I think it’s OK to place those rules in just to make sure we’re controlling the market, we are having some kind of a rule to make sure that foreign investors have to pay a premium, maybe pay extra taxes.”

Bank of Montreal Economist Sal Guatieri recently suggested speculative investors are inflating the real estate markets in both Toronto and Vancouver. He also suggested the government take a look at that influence and take measures to reduce its impact.

“The sooner that governments can provide a clearer picture of how much speculative investment is driving these price moves and take meaningful action to curb the excesses, the better the chance of avoiding a messy outcome,” Guatieri said in a recent note.

However, trying to cool the market by placing further boundaries in front of Canadian investors is not the issue the government should be tackling, according to Jaggi.

“I can see where the government is coming from because they want to make sure that properties are not over … people are not being overpriced but to have an equal rule placed for Canadian business running investor and put them in the same category as a foreign investor might be a little disappointing to see,” he said. “I think it would be good if the government can separate the two.”

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COMMENTS

  • by Tony 2016-06-10 11:10:36 AM

    Foreign buyers , investors, flippers, speckers, shadow flippers, should be hammered with taxes of at least 10% on any purchase or sale. I would rather they were banned completely to be honest as its really just a bunch of money laundering.

  • by Matt 2016-06-11 12:51:13 PM

    As I have said in the past you can't do it in there country why should they do it in my country . I think it's time to shut the gates when the average Canadian can't buy a house and it takes him 30 years to Save for a peice of property . Not good enough . If you don't live here then you can't buy period . If you want to become a citizen or landed immigrant then you can buy !!!

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