Foreign investors to flood housing markets?

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Many of Canada’s foreign investors hail from China, but political uncertainty in other parts of the world could bring a wave of investment from two countries in particular.

Dr. Sherry Cooper, chief economist with Dominion Lending Centres told MortgageBrokerNews.ca 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.

And brokers are already receiving inquiries.

“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).”

Greece is heavily indebted to the Eurozone countries, the European Central Bank and the IMF to the tune of €110 billion for a bailout loan issued in 2010.

And On Tuesday, Greece released a reform proposal to pay back the debt within four months; however, the plan is already being criticized by the IMF, despite winning approval from Eurozone ministers.

This means uncertainty will still prevail and many Greek nationals will aim to move their money out of the floundering economy.

“It could end up in Canada or nearby European countries – safe havens. But there are a lot of people, because of the austerity measures, that are leaving Greece for their families’ sake,” Panagakos said. “I had a couple last week that are bringing money over. I have another engineer who called and asked for direction. It’s happening.”

 
  • John S. on 2015-02-24 12:51:53 PM

    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. Canadian real estate is driven by cheap credit and not necessarily attractive as cash purchase of exorbitant unsustainable costs specifically in TO. I may be wrong but I question validity of the above statement.

  • steve kates v.p. on 2015-02-24 1:55:45 PM

    china yes the rest of the world ? the Russian money is worth nothing so is the Greek .most of the Russian money when it was high went to south Florida

  • John S. on 2015-02-24 5:02:44 PM

    Why would Greek or Russian use their devaluated currency to invest in to overvalued real estate? Unless they don't know what their doing of course. Sounds like a recipe for disaster!

  • Dustan Woodhouse on 2015-02-24 6:05:39 PM

    Foreign Ownership accounts for approx 1% of Real Estate in BC. Just attended a presentation at the MBABC conference by Cameron Muir on this very item.

  • David Toles on 2015-02-24 7:26:54 PM

    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. 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.

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