本文发表在 rolia.net 枫下论坛Letter to
Ministry of Economic Development, Employment and Infrastructure Brad Duguid
This letter is regarding to a petition that has gathered supporters who also agree that the foreign investment in the Canadian, particularly the Greater Toronto Area, real estate markets have become too detrimental to Canadians.
Canada is facing a very prevalent challenge that is driving up Canadian prices, and is overall affecting Canadians rather severely. Foreign investment in Canadian real estate has skyrocketed in the past half decade and this has caused Canadian real estate to increase immensely. In a recent study by the Foreign Investment Review Board Annual Report, Canada is ranked third in most attractive markets for Chinese to invest in real estate. Housing prices in Canada also rank second most expensive in the world compared to household incomes, as prices become far too steep for Canadians to buy. Vancouver, which is being bombarded with Chinese investors according to Canada's former ambassador to China, David Mulroney, is ranked second most expensive real market in the world (Statistics Canada). “Vancouver home prices are said to climb to $2.1 million by 2030” (CBC), which is outrageously too expensive for the average Canadian to have to pay. It is estimated that up to 50% of condominium real estate in Vancouver and Toronto is foreign owned (Toronto Star), and in Vancouver 15% of condos are empty, meaning they are solely for investing. Canada is allowing too much foreign real estate investment, and it is hurting Canadians, as they are not able to afford to live in their own country.
According to Huffington Post, increased investment in real estate from foreigners is a result of low interest rates, making housing more affordable. Though, as more and more real estate is being bought by wealthy foreign parties, such as the Chinese, housing prices are on the constant rise. This makes it harder for Canadian nationals to buy property in their own country. “Canada recorded a trade deficit of 984 CAD Million in February of 2015” (Statistics Canada), and with a trade deficit, that means that there is more Canadian currency circulating through foreign markets. As there is so much Canadian currency circulating around due to our deficit, countries like China are turning to Canadian property and treasuries to invest their Canadian dollars in. This foreign investment is keeping interest rates low. This deficit will also cause our exchange rate to decrease, as the Canadian dollar will be valued less as there is so much circulating through other economies, and this will also cause the inflation rate of the Canadian dollar to increase. The unemployment rate is also affected by this problem, as the money lost to imports and being sent out reduces the amount spent in this country so their is lower demand and thus fewer jobs to produce the good and services consumed. Trade deficits may be expected to contribute to a weaker dollar, as the economy adjusts to create the surpluses needed to repay foreign investors. If this dilemma continues, Canada could be facing the same problem that the U.S. faced in 2008, when the Central Bank decreased the interest rates to make housing more affordable for those who could were not financially stable enough to afford houses. With so many people borrowing money for homes and not being able to repay their loans, the market crashed, and their exchange rates dropped while inflation skyrocketed. This would be a terrible situation for the Canadian market, which is why there should be stricter sanctions on foreign investment, especially in the real estate industry.
Furthermore, the foreign real estate investment invasion on Canada must be regulated because it will negatively affect all of Canada’s economic indicators, as well as decrease GDP. Foreign ties will become too strong in the Canadian market that we will become too reliant on other markets. Most importantly Canadians will not be able to afford to live in their own country because of other richer foreigners investing in real estate, and not even using it.
I propose that Canada examines Australia’s policies around this issue. Australia has already faced this issue, and as of 2010, have had to take action against their rapidly rising real estate prices. Business Insider reports on Australia’s new regulations and write that under Australian law, “Foreigners are only allowed to buy new dwellings and are barred from purchasing existing residential property in Australia”. “Foreigners who break rules on buying Australian real estate will face up to three years in jail or fines of Aus$127,500 (US$100,050) for individuals and Aus$637,500 for companies under new tougher rules”. This is a very interesting concept because if a foreigner would like to buy real estate, they must invest in new development in the country, meaning the country’s real estate market grows, while pricing stays the same because more real estate will become available. Canada would prosper if they chose to adopt Australia’s Foreign Investment Review Board, which creates more strict regulations to protect their country from issues that will financially hurt it’s citizens.
Thank you for taking your time to read this letter, and I hope that you will choose to take action to protect Canadian citizens.更多精彩文章及讨论，请光临枫下论坛 rolia.net
Ministry of Economic Development, Employment and Infrastructure Brad Duguid
This letter is regarding to a petition that has gathered supporters who also agree that the foreign investment in the Canadian, particularly the Greater Toronto Area, real estate markets have become too detrimental to Canadians.
Canada is facing a very prevalent challenge that is driving up Canadian prices, and is overall affecting Canadians rather severely. Foreign investment in Canadian real estate has skyrocketed in the past half decade and this has caused Canadian real estate to increase immensely. In a recent study by the Foreign Investment Review Board Annual Report, Canada is ranked third in most attractive markets for Chinese to invest in real estate. Housing prices in Canada also rank second most expensive in the world compared to household incomes, as prices become far too steep for Canadians to buy. Vancouver, which is being bombarded with Chinese investors according to Canada's former ambassador to China, David Mulroney, is ranked second most expensive real market in the world (Statistics Canada). “Vancouver home prices are said to climb to $2.1 million by 2030” (CBC), which is outrageously too expensive for the average Canadian to have to pay. It is estimated that up to 50% of condominium real estate in Vancouver and Toronto is foreign owned (Toronto Star), and in Vancouver 15% of condos are empty, meaning they are solely for investing. Canada is allowing too much foreign real estate investment, and it is hurting Canadians, as they are not able to afford to live in their own country.
According to Huffington Post, increased investment in real estate from foreigners is a result of low interest rates, making housing more affordable. Though, as more and more real estate is being bought by wealthy foreign parties, such as the Chinese, housing prices are on the constant rise. This makes it harder for Canadian nationals to buy property in their own country. “Canada recorded a trade deficit of 984 CAD Million in February of 2015” (Statistics Canada), and with a trade deficit, that means that there is more Canadian currency circulating through foreign markets. As there is so much Canadian currency circulating around due to our deficit, countries like China are turning to Canadian property and treasuries to invest their Canadian dollars in. This foreign investment is keeping interest rates low. This deficit will also cause our exchange rate to decrease, as the Canadian dollar will be valued less as there is so much circulating through other economies, and this will also cause the inflation rate of the Canadian dollar to increase. The unemployment rate is also affected by this problem, as the money lost to imports and being sent out reduces the amount spent in this country so their is lower demand and thus fewer jobs to produce the good and services consumed. Trade deficits may be expected to contribute to a weaker dollar, as the economy adjusts to create the surpluses needed to repay foreign investors. If this dilemma continues, Canada could be facing the same problem that the U.S. faced in 2008, when the Central Bank decreased the interest rates to make housing more affordable for those who could were not financially stable enough to afford houses. With so many people borrowing money for homes and not being able to repay their loans, the market crashed, and their exchange rates dropped while inflation skyrocketed. This would be a terrible situation for the Canadian market, which is why there should be stricter sanctions on foreign investment, especially in the real estate industry.
Furthermore, the foreign real estate investment invasion on Canada must be regulated because it will negatively affect all of Canada’s economic indicators, as well as decrease GDP. Foreign ties will become too strong in the Canadian market that we will become too reliant on other markets. Most importantly Canadians will not be able to afford to live in their own country because of other richer foreigners investing in real estate, and not even using it.
I propose that Canada examines Australia’s policies around this issue. Australia has already faced this issue, and as of 2010, have had to take action against their rapidly rising real estate prices. Business Insider reports on Australia’s new regulations and write that under Australian law, “Foreigners are only allowed to buy new dwellings and are barred from purchasing existing residential property in Australia”. “Foreigners who break rules on buying Australian real estate will face up to three years in jail or fines of Aus$127,500 (US$100,050) for individuals and Aus$637,500 for companies under new tougher rules”. This is a very interesting concept because if a foreigner would like to buy real estate, they must invest in new development in the country, meaning the country’s real estate market grows, while pricing stays the same because more real estate will become available. Canada would prosper if they chose to adopt Australia’s Foreign Investment Review Board, which creates more strict regulations to protect their country from issues that will financially hurt it’s citizens.
Thank you for taking your time to read this letter, and I hope that you will choose to take action to protect Canadian citizens.更多精彩文章及讨论，请光临枫下论坛 rolia.net