Canada’s Trudeau is proposing a ban on foreign homebuyers

Amid the ongoing coronavirus pandemic and with elections coming up next month, Canadian Prime Minister Justin Trudeau proposed a two-year foreign home purchase ban in his home country this week.

According to Reuters, Trudeau laid out his residence during an election freeze in Hamilton, a city outside Toronto. The proposed two-year ban on foreigners buying houses in Canada was perhaps the most noticeable feature of the pitch that could go into effect if Trudeau’s party wins a majority in the upcoming election.

Other features of the proposal reportedly included a tax-free savings account for younger shoppers, an anti-flip tax and a ban on blind bidding, where shoppers bid without knowing how much other consumers were bidding.

“You shouldn’t lose a bidding war for your house to speculators. It is time things changed, ”Trudeau said aloud Bloomberg.

Elections are due to be held in Canada on September 20th. According to Reuters, Trudeau’s Liberal Party of Canada was previously ready to secure a majority, but has recently fallen behind the Conservatives. Reuters described the new apartment proposal as Trudeau’s attempt to “revive his election prospects”.

Living in Canada and elsewhere in the world has become a controversial issue during the pandemic. As lockdowns widened and many people started working from home, some areas saw demand and prices rise soaring.

In the US, suburbs and rural communities – where homes generally offer more space for less money – are particularly popular, while large urban areas like New York and San Francisco saw cool demand.

In Canada, concerns about limited home supply have fueled outrage among overseas buyers, said Bloomberg. That is reportedly especially true of Vancouver, which has long been attracting consumers from other parts of the Pacific Rim such as Hong Kong.

According to a recent report from the Canadian Real Estate Association (CREA), the average home price in Canada was Canadian $ 679,000 in June, up 25.9 percent year over year. The report also notes that the Vancouver and Toronto areas are “two of the most active and expensive housing markets in Canada.”

It remains to be seen what will happen in next month’s elections, although political parties other than Trudeau’s have committed to addressing housing issues. And in the meantime, Trudeau continues to advocate housing regulation.

“It’s not okay that the communities you grew up in are not in places where you can build a life, raise a family, or grow old,” he said at the event Bloomberg. That’s because the deck is stacked against you. “

Email to Jim Dalrymple II

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