19.5 C
Friday, April 12, 2024

Canada. Ban on buying real estate by some foreigners

Must read

- Advertisement -

Canada has introduced a two-year ban on the purchase of residential real estate by foreigners. The new rules, which are intended to help solve the housing crisis, have been in force since the beginning of 2023.

From January 1, 2023, a ban on the purchase of residential real estate by non-citizens was introduced Canada or permanent residents. Those who violate the new regulations will be fined PLN 10,000. Canadian dollars.

However, there are some exceptions. The Canadian government in late December – 11 days before the ban came into force – eased regulations, including for foreign students who have been in the country for at least five years, asylum seekers and people with temporary work permits.

Canada has banned the purchase of homes for foreigners

Federal Housing Minister Ahmed Hussen indicated that the ban is intended to discourage buyers from looking at real estate as commodities, rather than a place to live and raise a family. “Through this bill, we ensure that housing will be owned by Canadians, for the benefit of all who live in this country,” Hussen said.

- Advertisement -

The BBC portal pointed out that Canada – next to New Zealand, USA and the UK – has one of the most inaccessible housing markets in the world. They cited data showing that the average price of a house in Canada is C$777,200, or the equivalent of US$568,000 – more than 11 times the median household income after taxes.

As recalled, New Zealand adopted similar legislation in 2018.

Tax on uninhabited houses

This is not the end of changes in the real estate market in Canada. The country also introduced a tax on uninhabited houses and flats from the beginning of 2023, which is 1 percent. the value of the house or apartment. The levy will have to be paid annually by non-resident foreigners who own a house or apartment in Canada, if they do not live in it or rent it.

The “underused housing tax” (UHT – tax on underused properties) is one of the federal solutions designed to hinder speculation on real estate and the use of Canadian real estate to safely invest money.

The Canadian Mortgage and Housing Corporation (CMHC), which is the government agency that insures mortgage loans, published a report in June last year, which indicated that by 2030 across Canada, 3.5 million new homes and apartments will be needed for the price to stop being such a serious barrier to their purchase as at present. Just 20 years ago, households spent around 40% of their income. income to buy an average-sized home in Ontario and 45 percent. – in Colombia British, currently – it is about 60 percent.

Main photo source: Shutterstock

Source link

More articles

- Advertisement -

Latest article