Experts have indicated Canada will need to build millions more homes in the next 10 years to meet our growing needs. To the casual observer the problem is easy to solve: just build more homes. For those in the real estate development field, the problem is much more complicated than this.
An expert panel’s report on money laundering in British Columba determined ill-gotten gains contributed to real estate prices spiking 5% in 2018.
Overall, $7.4 billion was laundered in the province last year, $5b of which went through real estate. But the panel, led by former B.C. deputy attorney general Maureen Maloney, determined that money laundering is more prevalent in Alberta, Ontario and the Prairies than it is in Canada’s third-largest province.
“What this report makes clear is this is not an issue simply for B.C.,” Finance Minister Carole James said during a Thursday news conference. “This is an issue for all of Canada. This is an issue for all jurisdictions.”
James added that the B.C. government is prepared to take immediate action.
“They key here is we’re not waiting,” she said, “Yes, we need to work with the other provinces. Yes, we need to work with the federal government.”
How the government will tackle the problem of money laundering remains to be seen, but it isn’t implausible to think that sweeping legislation could be on the horizon. Arguably more arduous than curbing money laundering is the process of restoring confidence in a real estate market that’s grown beyond the reach of most residents, especially in Vancouver.
Robert Mogensen, a broker with The Mortgage Advantage, hopes that the provincial government will be wary of further short-shrifting consumers.
“I think that oversight is a good thing, but I’m not a big fan of government intervention, as far as taxes and regulations on residents go,” he said. “But I’m behind the foreign buyer tax, for instance, and behind more oversight with regards to establishing the source of cash for down payments from offshore buyers.”
Mogensen, furthermore, believes one course of action the government should take is proscribing trust accounts.
“I’ve talk to a lot of people about this over the last few years: The use of trust accounts by lawyers acting on behalf of foreign buyers and buyers in general to buy property and not disclose who the beneficial owner of the property he,” he said. “That kind of regulation is highly necessary to slow down the process of laundering dirty money.”
While there has been a deceleration in new home sales, we must keep the pedal to the metal and continue to train skilled trades workers for the future.
Many jurisdictions in the U.S. have been thinking outside the box to boost the housing supply. Here in Ontario, we’d be wise to follow suit.
This free summit will feature top experts in Canadian real estate who will share their knowledge on a broad range of topics. It will be presented on Sat. Jun. 18th from 12pm-3pm.
For Real Estate News and Market Updates & VIP Access to Exclusive Real Estate Investment Opportunities
Canadian Real Estate Wealth Media Corp. needs the contact information you provide to us to contact you with news and market updates and to share real estate investment opportunities. You may unsubscribe from these communications at any time. For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, please review our Privacy Policy.
Diversity, equity and inclusion, better known by the acronym DEI, are buzzwords that permeate the workplace these days.
Ontario's construction sector will need to recruit about 71,800 new workers over the next six years to keep pace with retirements in the industry.
While markets across the country are seeing price corrections amid rising interest rates, Calgary has held strong.
The Bank of Canada announced yet another interest rate hike at its meeting on Thursday.
CREW has compiled a group of investment real estate agents that we think stand out for their quality service and dedication to the world of real estate investing.
“Sign up for our daily newsletter to get the latest news, updates and offers delivered directly to your inbox.”