Updated about 3 years ago on . Most recent reply
Canada Bans Foreigners From Purchasing Most Real Estate
The title of this post is the same wording as the title of an article from Voice of America on January 5, 2023. Apparently, the Canadians are sick of the home price increases caused by motivated buyers, mostly investors who are 'parking money' in Canadian real estate. They make, apparently, some exceptions for 'real' property buyers (residents, not investors) and property "in areas with a population of less than 10,000." The ban expires in 2 years.
I would find it hard to imagine, but as a retaliatory measure would the US ban Canadians from buying in the US? I would think this would be a really bad idea.
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As a Canadian, I can tell you the policy is stupid and will have marginal effect at best. The target is intended for crazy rich asians, but anyone who is a permanent resident is exempt from the rule anyways. Most rich asians have their kids in Canada, and they are all permanent residents anyways. Personally, I would rather buy in the US, but the hassle of figuring out a team to do that in the states has put me off that idea for now. I think the return in the US is also much better. The biggest thing I wish we had in Canada is the 1031 exchange. On sale, the capital gains and recapture will hit you. As far as I know, there's no way around that.