Forum

Broker news forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Notify me of new replies via email
Mortgage Broker News | 16 Dec 2014, 11:04 AM Agree 0
In a first for CMHC, the Crown corporation has asked property managers to disclose the percentage of units owned by foreign investors as part of its Rental Market Survey.
  • Mortgage Delivery Guy | 16 Dec 2014, 11:47 AM Agree 0
    It's very naive to say foreign investment is very low in Canada especially Toronto. Foreign investment is quite high in Realestate arena. Failure to have appropriate checks in place may lead to inflated Realestate prices which in turn makes housing more unaffordable.
  • Derek Austin | 16 Dec 2014, 12:34 PM Agree 0
    Unfortunately I believe the source of information they used for the percentage of foreign ownership is unreliable.
    Owners can register any address with the property managers . I find it hard to believe those numbers .
  • David Pylyp | 16 Dec 2014, 01:21 PM Agree 0
    I welcome foreign investment in our condominium market.

    Government refuses to build rental housing. Conventional builders refuse to built long term rental units [probably because of LEVY costs and LTT controls]

    I welcome foreign investment in Toronto. If they sell their investments there is a 25% wih holding taxon profit taking in Canada.

    Cheers

    David Pylyp
    #bythewater Toronto
  • Nick Bachusky- MortgageInOttawa.com | 16 Dec 2014, 01:33 PM Agree 0
    Are the property managers obligated to take part in this survey?

    What the the consequences for not giving a truthful answer?

    Does anyone know this?
  • Ron Butler | 16 Dec 2014, 01:49 PM Agree 0
    There are definitely no penalties for lying to a survey but how about this key variable: how many condos have been purchased by those who don't live here but use nominees: how many Canadian citizen adult children of foreign nationals own several condos yet they have zero income? Are they the true condo owners or are their parents? How many persons have Canadian citizenship but don't live in Canada at all and still own a host of condos. They are not foreigners but they sure as heck don't live or work here? Foreign ownership comes in many forms that this survey never touches.
  • Nick Bachusky- MortgageInOttawa.com | 16 Dec 2014, 01:51 PM Agree 0
    Thanks Ron, I agree.
    Why does CMHC then release this obviously error-filled document? Does it appease people in government? Do the employees putting this together seriously feel like they did the best job they could? This is not informing Canadians and I sure as hell hope this document does not sway any politicians to make decisions based on it.

  • Zden | 16 Dec 2014, 02:00 PM Agree 0
    Here is the full article from CTV News section that caught my attention:

    The Canadian Press
    Published Tuesday, December 16, 2014 1:39PM EST
    OTTAWA -- Canada Mortgage and Housing Corp. says only a small minority of the condos for rent in most major urban areas have foreign owners, although some neighborhoods in Vancouver, Toronto and Montreal are higher.

    "Small minority"? I wonder if there is such a thing like this and the opposite would be "big minority".

    Only small minority of the condos although some cities are "big minorities" I am little insulted with this double tongue bullshit. I wonder if Asian immigrant still haven't learned English, because truly I wonder who else is buying real estate in Canada unless completely ignorant or misinformed.
  • Ron Butler | 16 Dec 2014, 02:06 PM Agree 0
    @Zden.... the racist stupidity is totally not welcome here. We are having a straight forward discussion about questionable data. Data that is important to a cogent discussion of the housing market. It not about a value judgement, it is about proper risk analysis. Racist comments are not welcome.
  • Werner | 18 Dec 2014, 01:42 PM Agree 0
    I came across an article on CBC.ca where realtor and developer Brad Lamb says 50% of condos are foreign owned. And Ron, thank you for your last post.
  • Ray | 03 Jan 2015, 02:20 PM Agree 0
    Hi,

    great article, I just came over, searching online.

    I agree, and to add on this, buying off-plan condos is really great option of investment.

    Very good locations to buy condo as investment is France, Spain, Egypt, England, to get good ROI, but last and for me the best is Thailand. You can get condo for 30K USD with free swimming pool usage, fitness, sea view, 24 hour security, low costs,...and really fantastic ROI. ;)
    You can check the designs here if you want... www.thailandpropertyinvestments.com

    Thank you for info.

    Regards
  • M. Robertson | 05 Jan 2015, 12:43 PM Agree 0
    It is all just speculation on everyone's part. The reality for all of us however is that this foreign investment in property has been very positive for Canada, specifically our ability to weather the world wide economic crunch that happened. Brokers have lamented the restrictions on mortgages for years, and they themselves have used the economy as the reason not to restrict the rules by touting how much the industry drives our economy.

    If you want to block foreign investment, or make it less appealing, you have to understand that will have a ripple effect. It might reduce home prices, but it will also mean less construction, which means less construction jobs, etc etc.

    It always sounds good to take the side of the little guy, and housing affordability is an issue - make no mistake. All of that being said, we need to be aware of the potential fiscal impact the restrictions many brokers are calling for will have on the overall industry.
Post a reply