Canada bans home purchases by non-resident foreigners to combat rising prices
The measure came into force this Sunday and consists of respecting an election promise from Prime Minister Trudeau. “Houses are for people, not for investors,” argues the Liberal Party.
The Government of Canada will ban the purchase of homes by foreigners who do not reside in the country in the coming years, fulfilling an election promise made by Prime Minister Justin Trudeau, according to the France-Presse information agency (AFP) .
The law which stipulates this ban came into force this Sunday and aims to combat the rise in real estate prices which has plagued the country since the pandemic and due to the belief that several foreigners have bought houses in Canada at low prices. purely speculative purposes.
Anyone who violates this rule faces fines of up to $10,000 and may be forced to sell the home. The diploma was approved by the Parliament of Canada in June last year.
However, the regime has some exceptions, for example when the property is purchased by refugees and international students.
The Liberal Party, to which Trudeau belongs, defends this measure on its official page, asserting that “houses in Canada attract speculators, wealthy entities and foreign investors. Houses are for people, not investors.”
The effectiveness of the measure is not completely guaranteed, as some experts consulted by CBS say having doubts on whether it will be able to avoid the problem of rising prices.
Meanwhile, in April, the Trudeau government presented a budget proposal that would come into effect for the new fiscal year (2022-2023), providing an allocation for a more affordable home purchase program.
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