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The foreign homebuyer ban recently implemented in Canada may have unintended consequences that could harm the real estate market and other industries, warns Benjamin Tal, managing director and deputy chief economist for CIBC Capital Markets Inc. The language of the "Prohibition on the Purchase of Residential Property by Non-Canadians Act" is confusing and ambiguous, including commercial real estate assets on land zoned for residential or mixed-use, and even prohibiting non-Canadians from purchasing farmland located within a census metropolitan area. Many commercial real estate deals have already been cancelled or placed on hold, and developers that rely on foreign equity are unable to proceed with purpose-built developments, which are essential to tackle Canada’s housing affordability crisis. Tal is calling on policymakers to amend the Act in a way that is consistent with what it was intended to achieve, focusing only on single units being purchased by foreigners while exempting the development of new supply.
Read the full article on: REAL ESTATE MAGAZINE
