According to Statistics Canada, in 2014, there were 95,775 permanent residents admitted in Ontario. In comparison, 2015 saw 103,560 admitted permanent residents. January 2016 alone had 10, 265 people admitted to the province with PR cards, while the Liberal Government has a plan to increase space for refugee resettlement and family reunification in 2016, accepting between 280,00 to 305,000 new permanent residents. This plan is rooted in Canada’s welcoming and generous traditions.
A University of British Columbia geographer, Daniel Hiebert, has research findings which show that ethnic Chinese and South Asians buy homes at much higher rates than the general Canadian population or other immigrants. Many of
the Chinese migrants are millionaire investors, as a result of China’s booming economy.
A great deal of immigrant home buyers have come here through the Immigrant Investor program, which has now been terminated in some provinces like Ottawa but currently runs in Quebec. The program offered visas to wealthy investors, primarily from China, who would lend the Canadian government $800,000 over a 5 year term. As per Gary Mason of the Globe and Mail, these foreign investors end up paying a much lower income tax ($1,400) than the average Canadian ($7,500).
According to the National Bank, 1/3 of homes in Vancouver were bought by immigrants from Mainland China, but their housing interest is growing in Toronto as well. In fact, “there is more interest on the part of people in China in terms of just searching properties in Toronto than there is in Vancouver”, says Charlie Gillis from Maclean’s Magazine.
Immigration has a considerable impact on the housing market due to immigrants that come to our country with great amounts of money. As mentioned in a previous article (click here to view), there is a high demand for, and little supply of, new listings, resulting in bidding wars that go to those who can afford to pay the rising prices. With immigration numbers rising, so does demand and, therefore, the prices.
May 31, 2016
Team Riaz Ghani