Chinese Tightening Real Estate Rules Could Bring Money to Canada

Tightening Real Estate ownership rules in China could lead to more overseas Condominium investors in Toronto, it has been suggested by a recent article by the National Post.  The new rules, which will see required down payments increased for second mortgages and tougher implementation of a 20% capital gains on the sale of property has had an immediate impact with the property index down as much as 9.3%.

International Investors see Toronto as a “safe haven” for wealth preservation amid tightening real estate rules in China

Benjamin Tal, chief economist of CIBC states “This is a positive move because some of the money will find it’s way to Canada”.

Canada’s conservative lending rules and regulations make Toronto a “safe haven” for funds and offers excellent wealth preservation for international buyers.  The relatively cheap (compared to other international markets) real estate makes it an extremely attractive proposition.

It has always remained unclear how much international investment takes place in Toronto and numbers have been greatly exaggerated in the past (with some claiming as high as 90% buyers are international).  In our recent discussions with condominium developers, most reveal that only 3-7% of their sales are to international purchasers (buyers without a local SIN or Drivers License).

Source: National Post