Dr. Sherry Cooper, chief economist with Dominion Lending Centres
visited the MortgageBrokerNews.ca offices last week and said that, due to political uncertainty in Russia and Greece, nationals from both of those countries are expected to move their money out-of-country and into the Canadian real estate market. However, brokers aren’t exactly sold.
“It's the equivalent of buying at the top or selling at the bottom of the stock market. Both are very unfortunate. As well - a strategy like this for both of those countries should have been done several years ago and that makes this a desperation reaction,” David Toles of Mortgage Alliance
wrote on MortgageBrokerNews.ca. “To make matters worse, I strongly suspect that even trying to move money out now is next to impossible for investors from either of those countries. Don't see it happening.”
This, despite the fact that at least one Canadian broker has received inquiries from potential foreign investors.
“I’m getting calls and emails from people in Greece that are transferring here and they want direction; how much money is going to flow into here?” John Panagakos of Dominion Lending Centres
Home Financial told MortgageBrokerNews.ca. “We know billions of dollars is leaving the country every week because of uncertainty and where that money is going we don’t know.
“For Greek nationals, the Canadian real estate market is a safe place (to invest).”
Still, some scepticism remains.
“This is the first time I am hearing about Greece and Russia foreign investments. I wonder if investing in REIT or money exchange would not be a simpler alternative for foreigner as such,” one broker wrote on MortgageBrokerNews.ca. “Canadian real estate is driven by cheap credit and not necessarily attractive as cash purchase of exorbitant unsustainable costs specifically in Toronto.”
Brokers are questioning how much foreign investment is expected to flood the Canadian housing market, despite one prediction from a major economist.