BUSINESS

The Home Stretch: When Canadians Are The 'Foreign Buyers'

05/25/2017 04:24 EDT | Updated 05/25/2017 04:29 EDT

This week's newsletter is written by Ron Nurwisah, who would totally go halfsies on a free Italian castle.

Foreign buyers are the bogeymen of a real estate boom. They’re blamed for driving up prices, emptying up neighbourhoods and all sorts of other shenanigans. But what if we Canadians are the problematic foreign buyers in question? Better Dwelling looked at data from the National Association of Realtors and saw that Canadians were the top foreign buyers in booming U.S. markets like Miami and New York. The story also points out that an overwhelming percentage of Canadians were non-resident buyers and that they were more likely to bid for homes in the middle of the market. Chinese buyers spent almost US$1-million on their homes, Canadians spent just over US$300,000 — a bit over the U.S. average for a home.

A little bit closer to home, The Toronto Star looks at how cottage country is experiencing a bit of a boom due to well-off boomers deciding to leave the smog and traffic jams for a lake-side retreat. “The demand is for three-season (cottages) where 10 years ago people were happy with a seasonal cottage,” realtor Hugh Nichols told the Toronto Star.

It’s not just young families and renters being priced out Toronto. Two stories look at how the city’s independent business owners are quickly finding the city unaffordable. The Globe and Mail's Corey Mintz writes about how the city’s restaurants are fighting to stay afloat as their rents skyrocket. While the CBC looks at how trendy Queen West is becoming a victim of its own success, the story says that around 40 storefronts on one of Toronto's busiest streets are currently empty and many shopkeepers live in fear of the inevitable rent spike.

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Quote

“You help build a neighbourhood, until the point you can’t afford the neighbourhood you built.”
— Rachel Conduit, Toronto bar owner

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