Canada Authorities Prohibits Foreigners From Purchasing Properties
According to a new regulation that went into effect on January 1, Canadian authorities have for the next two years prohibited Nigerians and other immigrants from purchasing residential homes.
The “Prohibition on the Purchase of Residential Property by Non-Canadians Act” was put into place to bring down the price of residential real estate, which was thought to have risen sharply as a result of foreigners buying the homes as investments and leaving locals with no choice but to buy at exorbitant prices.
The Liberal Party of Prime Minister Justin Trudeau stated on its website that “the attractiveness of Canadian property is luring profiteers, affluent corporations, and international investors.”
“This is causing a serious problem of underutilized and abandoned housing, widespread speculation, and increasing prices,” it was further stated. For individuals, not for investors, are homes.
Taxes on non-residents and abandoned houses have been implemented in places like Vancouver and Toronto to dissuade foreign investors and keep property costs down for locals.
But the new rule allows exceptions for immigrants and long-term residents, allowing them to own homes.
According to the Canada Real Estate Association (CREA), average home prices have dramatically decreased from more than $590,000 at the beginning of 2022 to $465,000 today.
The group was concerned that if other nations, such as the United States and Mexico, passed a similar law in reprisal, Canada may suffer.
According to CREA, “Canadians buy vacation and residential properties in numerous nations, but especially in the United States.”
The group said that the new regulation may disproportionately affect locals who purchase homes abroad to avoid Canada’s brutal winters.
According to CREA, “These give Canadians a somewhere to stay during the winter and are a kind of savings for Canadian retirees.” “We should anticipate retaliation on the part of Americans if Canada prohibits Americans from purchasing property there.”
