OTTAWA, Aug. 13 (UPI) — Canada Prime Minister Stephen Harper has announced a plan to track foreign home buyers and potentially place limits on buying.
Home prices in Vancouver and Toronto are significantly higher than the national average. The average price for a home in Vancouver is more than $1 million. Those high prices have been blamed on foreign investors, and the high prices worsen Canada’s economy alongside falling oil prices.
Australia bans the purchase of existing homes for investment by foreign buyers. Additionally, it only allows foreign investment if it yields new construction.
Harper seeks to institute similar restrictions.
Harper’s plan would also allow first-time homebuyers to withdraw $35,000 from retirement accounts instead of the current $25,000. Homebuyers must also pay the funds back within 15 years and will receive no tax credit as funds are being paid back. The increase in the withdrawal limit would cost the Canadian government $30 million a year in lost tax revenue beginning with the 2017-18 fiscal year.
“A re-elected Conservative government will commit to collecting comprehensive data on the foreign non-resident purchase of Canadian real estate,” Harper said Wednesday.
