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According to a Bank of Canada report:
Investors were responsible for 30 per cent of home purchases in the first three months of the year, according to data released by the Bank of Canada. That is up from 28 per cent in the first quarter of last year, and 22 per cent in the same period in 2020. The central bank defines an investor as a buyer who took out a mortgage to buy the property while maintaining a mortgage on another home.
The effect of investor buying is:
“During housing booms, greater demand from investors can add to bidding pressures and intensify price increases,” said the note. “Similarly, when prices are stable or declining, a lower influx of investors can add downward pressure on housing demand and prices.”
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Fuck Canada! This piece of shit of a nation allows housing to be used as an investment utility.
Half the fucking Canadian politicians are fucking landlords.
But it’s the immigrants and foreign students’ fault driving up the prices!! /s
30,000 new jobs and 100,000 new immigrants last month. its not one thing exacerbating the situation.
Well there’s your problem right there
The problem is that Canada has not developed enough for the population growth while we let multiple people take their cuts before it ever ends up being someone’s home.
On top of that Canadian voters overwhelmingly said they wanted more of the same last election by pretty much voting for the same 2 parties has brought us to this point.
I know – vote for the guys whose biggest donors are property managers and oil companies.
That’ll work.
THERE IS NO PROBLEM SO BAD IT CANNOT BE MADE WORSE. – Bruce Jackson
Oof. Canadians tell your reps you want cumulative tax increases per residential property! Even better, per unit!
This fucking economic system.
I wonder what the split between individual vs institutional investors is
Does it matter? Housing should be a right, not an investment. The reliance on housing as a savings mechanism has driven up the cost of housing in Canada. No one (wealthy) wants housing values to drop, as it would destroy their retirement resources.
Housing should be a right
Housing is a right, defined in the 1948 Universal Declaration of Human Rights, of which Canada is a signatory.
Not from the perspective of someone trying to find a place to live but it does matter from a policymaker’s perspective. The way it is framed in the BoC report makes it sound like it’s mostly individual investors (people with an existing mortgage).
Housing in all of Canada right now sucks . My ex recently moved to another province and took my son with her. She’s living with her BF’s parents and can’t find anywhere to live so I don’t know how I’m ever going to be able to move closer with the amount I already have to pay towards rent and my car .
This is the best summary I could come up with:
Investors have become more prevalent in Canada’s housing market, accounting for 30 per cent of all residential real estate purchases in the first part of this year, according to new data.
Over the course of the COVID-19 pandemic, investor buying has grown as soaring home prices ramped up interest in residential properties as an asset class.
The pandemic’s low interest rate environment and the proliferation of marketing promoting real estate investing have encouraged everyday Canadians and investors to buy multiple properties.
“The presence of investors in real estate markets can amplify house price cycles,” the Bank of Canada said in a note accompanying the data.
So far, the federal government has not addressed individual domestic real estate investors as it tries to come up with policies to deal with the lack of affordable housing.
The central bank’s data are designed to shed light on two vulnerabilities facing the Canadian economy: the elevated level of household indebtedness and high house prices.
The original article contains 614 words, the summary contains 160 words. Saved 74%. I’m a bot and I’m open source!
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if you pay with cash, could you get 60 for ‘free’, cuz $.02 rounds down?
Nice. I’m used to seeing the millennial word-joining - eg incase, aswell - but not the splitting. Nice heckle.
