If this government is truly serious about attracting foreign investors to Canada, the recipe isn't complicated: reduce taxes and streamline regulation.
Governments have been making policy without all the facts.
"Chinese buyers still appreciate Canada."
Getting a first-time mortgage from a Canadian bank is like getting security clearance to work at NORAD. Income, credit history, source of down payment funds... are all key measurements to qualifying. These rules, of course, only apply to Canadians. Foreign buyers, some have speculated this week, may be receiving preferential treatment.
Shots fired! While our media has been pointing out how Chinese buyers are driving up real estate prices, the Chinese media has been dissecting our economy and government, and warning Chinese buyers of the dangers of owning Canadian real estate.
There's no tax quite as popular as a tax on someone else. But will the people still be on board once the bills come in for collecting the Vancouver vacancy tax, or when the foreign investment tax has to morph to catch the money coming into the country? Or if housing prices are unaffected? Or if housing prices plunge and Canadian homeowners owe more than their home is worth?
When Canadians return from celebrating the Canada Day long weekend, they can expect early July to be hot with discussion of potential changes in mortgage regulations and housing policy. Again. Only this time, the changes could have some real teeth to them.
Business sells business best -- not government folks. Ukrainian officials are putting forth a good sales pitch: they sell themselves as pro-western and pro-business in a country which has a 99.7 per cent literacy rate and is just a two-day truck drive from most EU hubs.
It's only in this market, with it's unfettered influx of foreign bags of cash that this can happen. If our market was not in overdrive, we would not see such a flagrant waste of a perfectly good home and that's the thing that people are most upset about.
High price-to-rent and price-to-income ratios don't signal overvaluation, an overabundance of property speculation, or impending doom. Perhaps they actually signal the ascension of Toronto and Vancouver into the highest of global ranks.