Quote:
Originally Posted by twoNeurons
Limiting foreign buyers will not change real estate prices, because foreigners aren't driving prices up. It's FEAR of foreigners and the idea that they're buying up all the houses that is driving LOCALS to buy real estate at insanely low interest rates, essentially enslaving themselves to a property for the next 25 years.
Sure, there's some moving and shaking in the high end, which has made some people wealthy when they downsize, but there isn't a huge amount of that happening.
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I think it's safe to say foreign ownership is driving up the price of single detached homes, but are they also driving up the cost of condo ownership?. I've heard different reports of foreign ownership of condos being at a lower proportion than detached homes. What is not reported is how many condos foreigners are buying at a time. 1 buyer at a condo development could mean 5 condos in one foreign owners hands. If that's the case, condo prices would surely be affected as well.
If condos are the only product 95% of us can afford, doesn't that give developers a way to leverage more money from prospective buyers?
Maybe foreign ownership is having little effect on housing prices or maybe it is having a significant effect. There's only one way to find out...