What Canada Can Do To Cool Off Hot Pricing Markets

It’s no secret the different housing markets on Canadian soil are gradually heating up. Others are practically on fire and the fire truck is stuck in traffic somewhere 200 miles away. Sad.

The citizens of Canada are anywhere from upset to scathing mad about their individually unique housing markets. Scathing mad people probably live in the cities of Vancouver and Toronto where even a cockroach can’t get enough space let alone an entire family or even, a single person, without selling your organs on the black market!

There are luckily some countries that have passed some laws to make it difficult for foreign investors; the laws are in place to make them think twice about spending a certain amount of money on a property and others even have restrictions on how many properties one investor can buy.

#1. Foreign-only zones

Just like the country of Mexico, Canada should have areas exclusively for foreign investment and also, restricted areas meant only for fellow Canadians and or preservationists.

#2. Increase home prices

Instead of allowing the housing markets to become self aware and create their own prices, Canada must increase the home prices exclusively for foreign investors. In Hong Kong, non-residents are charged an extra 15% of the prices. For Hong Kong, 15% may be ok as it is one of the most expensive cities to live in. But because of the housing markets in Vancouver and Toronto, that should be at least 45%. This will discourage investors long enough to cool the systems of the housing markets.

#3. Quotas

Just as a certain amount of individuals are allowed on a boat, so should the amount of homes sold in a year in the various housing markets in Canada. This is one of the tactics used by the Swiss government to control the prices. Without reasonable limits, the boat will sink!

These are just three ways the government can begin to cool the fire in the housing markets in Canada.