Canada has made the bold move of banning foreign home buyers. And America is ready to welcome them and serve their real estate and investment needs.
Canada Taking Extreme Action On Real Estate
In what may be a poorly misguided attempt to cool off its own housing market, Canada has decided to block real estate purchases by foreign buyers.
This move is expected to last at least two years. Meanwhile, the Canadian government also pledges billions of dollars to build new housing for its own citizens.
Although Canada fared better than most during the last housing and financial crisis, it lost the leadership team that was in place then. It may not be prepared for the real impact of this decision.
It’s Good News For The US
This is great news for America. Canada was long a favorite destination for global real estate investors and second home and vacation home buyers.
They trusted the legal system, property owner protections, government stability, strength of the currency, and more.
It is unlikely investors will forget being burned in such a huge way. This is a policy even few third world countries have clung to. It will certainly destroy trust and its reputation.
Fortunately, just south of the border buyers and investors can find all of the same benefits they used to be able to count on. Plus, a similar language and system.
We are not only talking about diverting billions of dollars in inbound international investment to the USA each year, but also much more as foreign owners sell up and cash out to avoid their assets being crushed. Add to that all of the Canadians who will be doing the same.
This activity could certainly fill in any voids left by Russian investors in the US this year. As well as any potentially reduced activity from those who still fear COVID like restrictions may harm them and their overseas investments.
It is reasonable to expect this major shift in policy to fuel our property market even further over the next two years at least.
You Are Welcome Here
International investors, home buyers, and Canadians are all welcome in the United States.
For those just entering this market for the first time, they will find a whole lot more value, and better returns.
Just consider that as of February 2022, the average home price in Canada was almost $820,000. It is expected to rise to at least $860,000 by the end of 2022.
Compare that to the US, where even after all of the recent inflation the average home price is still less than half of that.
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