Comment by fzeroracer | Hacker News Reader

Comment by fzeroracer | Hacker News Reader

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As is with Canada, the problem is always investors. Canada's housing crisis stemmed from a lot of outside money buying up property simply to sit on it and leave it empty/unused, and in the Netherlands you see similar trends along with investors buying up property the moment it appears. Additionally, any bans on things like Airbnb gets overruled by the court system.

These are all things that lower taxes and kicking out foreigners can't solve, because that just opens up more property for investors to swoop in and buy. You stop investors from speculating on property and make it illegal for property to go unused and you solve a good chunk of the issue right there.

Real estate investors expect to earn income from the properties they buy, and thus try to rent them out, especially when interest rates are above zero as they are now. Often the financial plan assumes that rental income will be used to pay the mortgage, property taxes, and other costs.

I assume the OP is referring to (largely Chinese) real estate buyers, where the goal isn't so much earning a return, but instead finding a safe place to stash money. I know this was reported as a problem in Vancouver, BC, but I'm unconvinced it's a true problem outside of hyper-local areas. I've also seen the same argument about luxury flats in London (mostly Middle Eastern buyers here).

And of course, the reporting always calls out the non-native buyers, largely ignoring that wealthy Americans, Canadians, and Brits also own multiple homes spanning many nations, and can't inhabit them all at the same time.

They built loads of condos in Vancouver which were only advertised for sale overseas in Asia. Residents in Canada weren't given a chance to purchase.

40% of Canadian Federal MPs are landlords.

>Canada's housing crisis stemmed from a lot of outside money buying up property simply to sit on it and leave it empty/unused

Is canada's vacancy rate significantly higher than other developed countries?

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