This is an analogy of many holes in Canadian Foreign Buyers Ban Regulations vs Swiss cheese. How is this possible that Federal Government passed a law which created a good PR for 6 months before come into effect and then 2 months after new amendments that allows pretty much anyone to find a loophole, like Swiss cheese to buy real estate in Canada if they want to ? Did you know that the previous ban applied only in highly dense communities like Toronto, Vancouver or Montreal; domino effect buyers could buy in Whistler, BC for example which made housing more expensive in that community ?
How and why this is possible for government to change their mind? Answer; until they had to sit down and crunch numbers to come up with budget they realized how much revenue they potentially loose aka FOMO. This is a joke of a policy without much thought process that has a domino effect in what is suppose to be free market and worst part policy makers never ask opinions of people who work in the field. Here are some other examples how to mess up with an industry that is 50% of GDP;
1. Local government increase taxes in average of 10% every year for residents and even more for commercial owners. Does it help the economy or thinking about their own interests of yearly raises/bonus ?
How and why this is possible for government to change their mind? Answer; until they had to sit down and crunch numbers to come up with budget they realized how much revenue they potentially loose aka FOMO. This is a joke of a policy without much thought process that has a domino effect in what is suppose to be free market and worst part policy makers never ask opinions of people who work in the field. Here are some other examples how to mess up with an industry that is 50% of GDP;
1. Local government increase taxes in average of 10% every year for residents and even more for commercial owners. Does it help the economy or thinking about their own interests of yearly raises/bonus ?
2. Local Government fees for new construction make up to 25% of cost of new condo; imagine is condo selling for $700K would cost $525K that makes Vancouver more affordable, agree ?
3. Provincial government now regulates real estate council; imagine NDP trying to take over any other union in BC ?
4. Provincial government is demanding low income housing when they do not lift a hummer to build a tree house. This is socialism or communism system not free market economy.
5. Provincial government implementing recession period; it’s done nothing to help but, we’ve see pricing going up.
6. Other revenue opportunities, see bottom of this report , to allow overnight camping on top of Convention Center in Vancouver, I hope it's cheaper then nightly rate at Pan Pacific Hotel or bungee jumping from Lion's gate bridge, REALLY ?
The emphasis of new immigrants who needs housing; it’s another PR propaganda only for government to look good they are doing something and it's not based on any facts or logic. Who are these immigrants Canada is attracting ? Not doctors because nurse union have something to say, any new doctor after go through red tape for 3 years, they have a move to Prince George.
I immigrated to Canada 30 years ago with $30 dollars in my pocket. I barely could afford rent at the time not even thinking about buying real estate. If any immigrants come with enough money willing and able to buy real estate would want to wait two years and see the lay of the land, where their kids go to school etc
In conclusion, there is a role of government to regulate any industry in Canada but has to be done right without many holes just like Swiss Cheese.
