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Comment by berelig | Hacker News Reader

Opposing sentiment for this is usually seen in cities where the proportion of foreign real estate investment is significantly higher than the national level. For example, Toronto (or Vancouver) as a market has a much higher percentage of Asian owned real estate than Canada as a whole.

This laser focus on one specific area for investment raises the value of real estate in that area to out of reach for most of its native residents. This is where the "emphasis on it [foreign investment] being bad" comes from.

It's good for those who already own real estate, bad for those who want to.

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Whats missing is a sensible property tax scheme. Just tax the non-resident owners, who don't vote, at a much higher rate than city residents. Then use the extra money for great public infrastructure for people who do live in the city.

In the case of Vancouver, generally speaking they aren't non-resident or even non-citizens. Emigrating from China to get permanent residency and eventually citizenship for family members, along with a Western education and health care, goes along with buying one or more homes as part of what a friend who works in immigration calls "the full package". The net effect is a dramatic increase in inequality and skyrocketing house prices.

A partial solution has already happened: the cancellation of the immigrant investor program.

> Just tax the non-resident owners, who don't vote, at a much higher rate than city residents.

You don't even need to do a higher rate - they've likely bought their properties in nicer neighborhoods at higher prices, so the property tax revenue from the is higher anyways.

This really comes from ultra-low interest rates. Hike interest rates to 20% (US in 1980s had over 20% APR for mortgages) and see what happens with real estate prices then.

Foreigners influx has some influence but not as much as one might think.

I agree entirely. The influence of foreign money isn't that big when it comes to housing prices, even in the typical "foreign buyer" cities.

It's the sub 3% mortgage rates and 5% down special that are driving housing prices up.

Like you said, wait until interest rates hit even 6-7% and watch what happens to housing prices.

I don't even... Once our money is crypto, they won't be able to randomly change interest rates... I can't believe people actually ask for inflation. I guess you don't have any savings...

This is a complaint in London too.

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