Brokers also
say foreign buyers are more active now than they were during the peak of the market a few years ago.
Hildebrand
says the foreign buyers and domestic investors identified in Urbanation's survey are not speculators who snap up properties looking to make a quick buck.
The board
says foreign buyers represent a small part of the real estate market and the decline has more to do with potential homebuyers waiting to see how market conditions evolve.
Dianne Usher, a Toronto - based realtor with Royal LePage,
says some foreign buyers have already been flocking to Toronto as soaring home values have priced them out of Vancouver's market.
The report
says foreign buyers — predominantly from the United States — make up 10 per cent or less of Canada's recreational property market.
Robyn Adamache, CMHC's principal market analyst for Vancouver,
said foreign buyer activity is one of many factors in Vancouver.
Brad Henderson, CEO of Sotheby's International Realty Canada,
said foreign buyers are a tiny proportion of the Toronto market and any move by Mr. Sousa to tax them will not fix the more pressing problems.
BMO chief economist Doug Porter
says a foreign buyer tax would be a good place for Toronto to start.
One former broker
said foreign buyers often pay too much, believing there are multiple offers.
Rojas
said foreign buyers tend to show preference to certain parts of the U.S. market.
Just a few short months ago
he said a foreign buyer's tax similar to Vancouver was off the table, but circumstances have changed.
Not exact matches
Canada - wide, 67 %
said property sales to
foreign buyers increased in the last year (a number that's largely diminished because of a decrease in
foreign buying in Calgary).
Tal
says his unscientific research into the subject — consisting mainly of a recent dinner with over 20 real estate brokers and agents who deal exclusively with
foreign buyers — led him to believe the number of «pure»
foreign purchasers in the Canadian real - estate market is «probably much smaller than perceived by many.»
Tim Syrianos, president of the Toronto Real Estate Board,
said the decline in activity has less to do with
foreign buyers and more to do with potential homebuyers waiting to see how the market plays out.
Caranci
says further tinkering could be required; the Australian state of Victoria saw no impact when it imposed a three per cent
foreign buyer tax in 2015, and recently raised it to seven per cent.
COPENHAGEN, Oct 2 - Denmark's central bank
said on Tuesday it had intervened in the
foreign exchange market in September, becoming a net
buyer of the Danish crown for the first time since March 2011.
«There's no question the
foreign -
buyers» tax is having an effect, and that effect is causing everybody to hold their breath and
say, «What's going to happen?»»
Solyndra
said in documents filed in Delaware's bankruptcy court that it plans to spend the next four weeks trying to drum up interest among potential U.S. and
foreign buyers to avoid shutting down permanently and selling its assets piecemeal to repay its creditors.
Tal
says his unscientific research into the subject — consisting mainly of a recent dinner with over 20 real estate brokers and agents who deal exclusively with
foreign buyers — led him to believe the number of «pure»
foreign purchasers in the Canadian real estate market is «probably much smaller than perceived by many.»
Countries that make is easier for
foreign property
buyers, with fewer tax regulations, are likely to attract more Asian investors,
says Andrew Batt, from the PropertyGuru website, tells Singapore Real Deal TV slot
Horgan
said that the new B.C. Liberal tax on
foreign nationals will not focus on speculative investment — the activity that is distorting real estate prices in B.C. — but rather on the citizenship of home -
buyers.
«Christy Clark let the market spiral out of control, and now she's trying to look like she's doing something — but her
foreign buyers» tax won't make housing more affordable for people here in Kamloops,»
said Horgan.
«Five years is a good hedge for a
foreign buyer to see the unit appreciate in value to offset the tax and also provides time to figure out a way to avoid paying the tax,»
said Hildebrand.
«Ultimately, 15 per cent is viewed as insignificant to a
foreign buyer motivated to move their money here,» he
said.
TORONTO — A new report
says sales of homes worth $ 1 million or more heated up in Toronto and Vancouver last year as the low loonie fuelled demand from
foreign buyers.
«The accumulation of real estate is an integral component of their overall investment strategy, and as such, the
foreign buyer tax is not a deterrent,» he
said.
McKay, whose bank is Canada's largest mortgage lender,
says he's supportive of government taxes and other measures targeting
foreign buyers, as well as other regulatory efforts to cool the country's housing market.
Webb
said he took particular offence to a tweet in which Davidoff suggested selling a home for millions of dollars was not really a hardship, and then flippantly responded to a homeowner who protested that if they did sell, it would likely be to a
foreign buyer who would leave the house empty.
A Senate committee last month
said Australia's
foreign investment watchdog may need to be strengthened, even as it highlighted concerns that the increased scrutiny of agricultural deals could deter overseas
buyers.
Domestic wine companies continue to be interested in North Coast brands and assets, but more
foreign buyers are emerging, he
said.
That
said, the film has already presold to numerous
foreign territories already (U.K., Canada and more) however, Malick has so far reportedly turned down early offers for U.S. distribution, though some footage has screened for
buyers.
Trucar.com
says young
buyers prefer
foreign nameplates, with Scion, Mitsubishi and Mazda leading the demographic.
Unlike
buyers of American and Japanese passenger cars, compact truck
buyers tend to cross-shop domestic and
foreign makes, especially Toyota vs. Ranger, Bergsteinsson
said.
The bank — which includes mortgage lending in its business —
says «
foreign buyers have likely pulled back, while domestic
buyers appear to have stepped back as well to see how the changes shake out.»
TORONTO — A new report
says sales of homes worth $ 1 million or more heated up in Toronto and Vancouver last year as the low loonie fuelled demand from
foreign buyers.
Given the lack of data, it's impossible to
say with certainty how much of an impact
foreign buyers are having on home prices in red - hot markets like Toronto and Vancouver.
OTTAWA — A report by Canada Mortgage and Housing Corp.
says home sales in Vancouver were already slowing before the plunge in recent months in the wake of a new tax on
foreign buyers.
«I've had calls in the last 24 hours from agents representing
foreign buyers who are backing out of deals because of this new tax,»
says Dinani.
She
said the
buyers» real estate agent won't reveal whether the clients are
foreign but has floated the idea of the couple helping to pay part of the 15 - per - cent tax.
Josh Gordon, an assistant professor at Simon Fraser University who studies the housing markets in Ontario and British Columbia,
said one way to tax «non-resident speculation» would be to levy a
foreign buyers tax but refund or offset it according to income tax paid in the province.
More than two - thirds (69 %) or agents surveyed
said that there has been an increase in
foreign buyer activity over the same 10 - year period.
VANCOUVER — The Canadian and British Columbia governments are complicit in fuelling Vancouver's housing crisis as
foreign Chinese
buyers continue to shut local residents out of the market, a new study
says.
Gordon
said his report blames Vancouver's housing crisis on
foreign buyers, particularly from China, because «this is where the evidence points, not because of some anti-Chinese animus.»
In its housing market insight report into the preliminary impact of the
foreign buyers tax, CMHC
said Thursday it's too early to determine the long - term impact of the decision.
Ontario Finance Minister Charles Sousa
said last month that he's considering a British Columbia - style
foreign buyer's tax — which he had ruled out last year.
The Ontario government is reconsidering its opposition to taxing
foreign home
buyers,
saying it is now open to a B.C. - style levy to restrain Toronto's hot housing market.
They
said a 15 % tax on homes purchased by
foreign buyers would have helped ensure prices remain affordable for local residents.
«The main culprit behind rapidly rising house prices is the GTA's unbalanced market — housing supply can not meet demand — not
foreign buyers,» Tim Hudak, CEO of the Ontario Real Estate Association,
said in a statement on Thursday.
The surtax would target
foreign buyers who don't contribute to the local labour market, as well as wealthy Canadian citizens who have «aggressively evaded taxes,» the report
said.
Caranci
says further tinkering could be required; the Australian state of Victoria saw no impact when it imposed a three per cent
foreign buyer tax in 2015, and recently raised it to seven per cent.