Investors account for 30 per cent of home buying in Canada

According to a Bank of Canada report:

Investors were responsible for 30 per cent of home purchases in the first three months of the year, according to data released by the Bank of Canada. That is up from 28 per cent in the first quarter of last year, and 22 per cent in the same period in 2020. The central bank defines an investor as a buyer who took out a mortgage to buy the property while maintaining a mortgage on another home.

The effect of investor buying is:

“During housing booms, greater demand from investors can add to bidding pressures and intensify price increases,” said the note. “Similarly, when prices are stable or declining, a lower influx of investors can add downward pressure on housing demand and prices.”

bighatchester,

Housing in all of Canada right now sucks . My ex recently moved to another province and took my son with her. She’s living with her BF’s parents and can’t find anywhere to live so I don’t know how I’m ever going to be able to move closer with the amount I already have to pay towards rent and my car .

ReallyKinda,

Oof. Canadians tell your reps you want cumulative tax increases per residential property! Even better, per unit!

Sami,
@Sami@lemmy.zip avatar

I wonder what the split between individual vs institutional investors is

redditron_2000_4,

Does it matter? Housing should be a right, not an investment. The reliance on housing as a savings mechanism has driven up the cost of housing in Canada. No one (wealthy) wants housing values to drop, as it would destroy their retirement resources.

Sami,
@Sami@lemmy.zip avatar

Not from the perspective of someone trying to find a place to live but it does matter from a policymaker’s perspective. The way it is framed in the BoC report makes it sound like it’s mostly individual investors (people with an existing mortgage).

Rocket,

Housing should be a right

Housing is a right, defined in the 1948 Universal Declaration of Human Rights, of which Canada is a signatory.

WilliamTheWicked,

This fucking economic system.

zcd,

Well there’s your problem right there

SamuelRJankis,

The problem is that Canada has not developed enough for the population growth while we let multiple people take their cuts before it ever ends up being someone’s home.

On top of that Canadian voters overwhelmingly said they wanted more of the same last election by pretty much voting for the same 2 parties has brought us to this point.

corsicanguppy,

I know – vote for the guys whose biggest donors are property managers and oil companies.

That’ll work.

THERE IS NO PROBLEM SO BAD IT CANNOT BE MADE WORSE. – Bruce Jackson

WtfEvenIsExistence,

30 per cent

I can get 30 homes for a cent? Sign me up!

ares35,
@ares35@kbin.social avatar

if you pay with cash, could you get 60 for 'free', cuz $.02 rounds down?

corsicanguppy,

Nice. I’m used to seeing the millennial word-joining - eg incase, aswell - but not the splitting. Nice heckle.

Echo71Niner,
@Echo71Niner@kbin.social avatar

Fuck Canada! This piece of shit of a nation allows housing to be used as an investment utility.

Half the fucking Canadian politicians are fucking landlords.

Ryan213,
@Ryan213@lemmy.world avatar

But it’s the immigrants and foreign students’ fault driving up the prices!! /s

Swim,

30,000 new jobs and 100,000 new immigrants last month. its not one thing exacerbating the situation.

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