2 Year Buyer Ban In Canada


Next time whenever you think about moving abroad, just keep in mind that a new law has been passed in Canada that might make you change your mind. According to the 2 year buyer ban in Canada, a foreign investor cannot invest in property for 2 years. However there are many exceptions to this rule but we will come to that later. The first question is why is this law introduced?Reason behind 2 year buyer banAs the property rates were touching the sky in recent years because of the high demand and less supply, the Canadian government decided to hit the demand side of the spectrum to bring down the prices a little bit and make the homes more affordable for residents of the country.  The government held foreign buyers who buy property as investments responsible for the increase in prices of the houses. Housing crisis was a big issue in recent years which needed to be addressed.   Finance minister Chrystia Freeland said, “Houses should be homes for Canadians to live in and not an investment asset for foreigners.”. What are the Exceptions to the 2 year buyer ban in Canada?Don’t worry if you are an immigrant, foreign student, have a Canadian spouse or a permanent resident of Canada because you can still buy the property. This law only prohibits foreign investors from buying property with an aim to gain a profit. According to the New York Times Report, The prohibition applies only in “census metropolitan areas” and “census agglomerations” — basically, cities that meet certain population criteria — and not to vacation homes in “recreational areas”. What impact will this law have on the housing crisis?This law will not have much impact on the housing crisis because foreign investors only accounted for 5 % of ownership, according to many experts. The real issue is the supply of houses. The government needs to do something to increase the number of houses and address the issue in a more logical way.  Takeaway The 2 year buyer ban in Canada may help with the housing crisis to some extent but there is a need to take more steps towards rectifying the situation. Also, the Real estate investment trusts who buy properties just for profits should be the next target of the government. There is no need for people who are living in Canada about this law because there is a great chance that you lie in the exceptions to this law. 
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