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Dependence on real estate might cripple Canada in the long run - analysis

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Ephraim Vecina | 24 Aug 2016, 08:15 AM Agree 0
The Canadian economy is now especially vulnerable to factors that threaten to upend the housing markets, says a columnist
  • Kris Kooblall | 24 Aug 2016, 02:03 PM Agree 0
    The issue is not that foreign nationals, in and of itself, solely contribute to the housing crisis in Vancouver and Toronto.

    /And in a departure from the growing chorus of thought pieces pointing at wealthy foreign nationals as the cause of the inflamed prices in Canadian housing, the columnist put the blame solely on ill-advised demand-side measures crafted by policy makers./

    Housing is an economic good that is purchased by Canadian families to live and raise their families. Where else are they expected to live, if not in proximity to their work and their lives?

    Canadian families pay taxes in the form of the HST that drives revenue for our government to provide essential services.

    Wherein lies the incentives and benefits to Canadians for foreigners to have unqualified access to prime residential properties?

    That foreigners invest here by purchasing prime real estate and crowding out Canadians purchasing Canadian real estate for their families to live in.

    We are shooting ourselves in the foot and very soon we may not have the use of our feet.
  • MFenn | 24 Aug 2016, 02:27 PM Agree 0
    While some realtors and single issue campaigning groups keep repeating emotive mantras against foreigners and egging on politicians to put up taxes; yet, as the article acknowledges, it may be that more broadly too much government intervention already poses difficulties for the real estate market in the form of "restrictive land-use and densification policies in B.C.’s Lower Mainland and Ontario’s Greater Golden Horseshoe, on top of development fees and bureaucracy": well stated.

    Less government, not more.
    • Kris Kooblall | 24 Aug 2016, 02:38 PM Agree 0
      Please tell that to the Australian, Chinese, Singaporean, New Zealand governments et al.
      What is the primary function of real estate and why are those governments protecting their real estate markets?
      Is it less government and more the anomalies of the market?
      And you may be right; however, where is the supporting argument?
      The anomalies in our national real estate markets with regard to discrepancies in value makes our economy vulnerable as illustrated in the June/ 2016 Bank of Canada Report.
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