CANADA EXTENDS FOREIGN HOME BUYER BAN | Kanebridge News
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CANADA EXTENDS FOREIGN HOME BUYER BAN

The law that forbids non-residents from acquiring homes in most areas has affected the luxury end of urban markets, experts say.

By MICHAEL KAMINER
Tue, Feb 6, 2024 12:27pmGrey Clock 2 min

Canada’s government has extended through the end of 2026 a controversial ban on foreign home buyers that took effect last January after years of debate.

“For years, foreign money has been coming into Canada to buy up residential real estate, increasing housing affordability concerns in cities across the country, and particularly in major urban centres,” Chrystia Freeland, Canada’s deputy prime minister and minister of finance, said in a news release yesterday. “Foreign ownership has also fuelled worries about Canadians being priced out of housing markets in cities and towns across the country.”

The Prohibition on the Purchase of Residential Property by Non-Canadians Act forbids non-citizens from buying residential property in most urban areas, though it includes a long list of exceptions. Property in many rural and “recreational” regions is exempt; most students, refugees, permanent residents, spouses of Canadian citizens, and some temporary workers in Canada may still buy homes.

While the government says the ban will help ease Canada’s severe housing crunch, critics in the real estate industry counter that the prohibition is misguided―and ineffective.

“The newly announced two-year extension is completely unnecessary, considering the fact there is no analysis, evidence or data from Statistics Canada, CMHC [Canada Mortgage and Housing Corporation] or Finance Canada, to support the government’s intended impact on housing affordability in Canada,” said Janice Myers, CEO of the Canadian Real Estate Association (CREA), in a statement Monday. “If the government decides to move forward with this baseless extension, CREA urges them to consider recommendations including exempting pre-construction financing, defining and exempting recreational property, including CUSMA [Canada-United States-Mexico Agreement] exemptions, and giving provinces input to tailor to their housing market requirements,” she added.

Don Kottick, the president and CEO of Sotheby’s International Realty Canada, agreed.

“Canada’s housing market has been driven almost entirely by the housing needs and demands of locals, as well as by population gains due to in-migration of Canadians from other cities, and through immigration,” he told Mansion Global in an email. “The extension of the foreign buyers ban will continue to have little or no impact on housing affordability and housing prices. This policy has only confused and frustrated those from other countries with crucial skills, talent and capital that Canada has been striving to attract and retain.”

The ban has also chilled luxury home sales in key markets like Toronto, said Maureen O’Neill, manager of Sotheby’s International Realty Canada in Toronto. “People who want to sell houses for more than C$5 million [US$3.92 million] can no longer rely on the buyers they used to count on globally,” she said. “It’s another extra burden on selling a house.”

That burden may soon get even heavier; Toronto’s mayor last week endorsed a 10% tax on foreign home buyers in that city, Canada’s largest. The province of Ontario already imposes its own 25% “non-resident speculation tax” on foreign buyers.

Though Canadian data on non-resident buyers is limited, the CBC last year reported that in British Columbia―one of the nation’s hottest housing markets―only about 1.1% of transactions in 2021 involved a foreign buyer, a drop of 3% in 2017. At the time, Ontario’s government told the CBC it had seen “a downward trend” in foreigners buying property since it began taxing non-resident purchases in 2017.



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Tonino Lamborghini Unveils New Luxury Residences in Ras Al Khaimah

Tonino Lamborghini recently revealed a new luxury project comprising 241 units in Ras Al Khaimah, developed in partnership with Arista Developments.

Tue, May 21, 2024 2 min

Named the Tonino Lamborghini Residences, this project promises a fresh take on luxury living with its iconic design, cutting-edge amenities, and stunning sea views.

Set on Al Marjan Island, the development is adding 241 high-end units to the area’s real estate offerings, all reflecting the sleek, Italian elegance associated with the Lamborghini name.

These residences are designed to impress, featuring modern architecture that harmonizes with the scenic surroundings and interiors marked by meticulous craftsmanship and top-quality finishes.

Living in this one of the project’s units means access to a range of upscale amenities: a state-of-the-art fitness center, multiple swimming pools, beautifully landscaped gardens, and dedicated areas for children’s play. The complex also offers a business center with a conference room, an outdoor BBQ area, and a chic café, catering to all aspects of high-end living.

Arch. Abdulla Al Abdouli, Chief Executive Officer, Marjan, expressed excitement about the introduction of Tonino Lamborghini Residences to Al Marjan Island, noting the project’s blend of sustainable construction and smart home technologies. This integration, he mentioned, guarantees a luxurious lifestyle equipped with the finest modern amenities, reflecting the exquisite Italian craftsmanship. He is confident that this new venture with Arista Developments will significantly boost the allure of Al Marjan Island as a top lifestyle destination in Ras Al Khaimah for both investors and residents.

Tonino Lamborghini, President of the Tonino Lamborghini brand, said: “We are delighted to be among the pioneers in this remarkable new destination in one of the seven emirates of the UAE. Our heartfelt gratitude and recognition go to H.H. Sheikh Saud bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah, for his visionary leadership and foresight, and for embracing innovative strategies to revitalize a region full of potential.”

Mr. Arthur Chu, Chairman of Arista Developments, highlighted the project’s ambition to capture the essence of the Tonino Lamborghini brand in every aspect of its design. He described the development of a prestigious residential tower on Al Marjan Island that will reflect the lifestyle and beauty synonymous with Lamborghini. From the sharp, well-defined lines of the exterior to the elegantly designed interior common areas, every detail is crafted to showcase the brand’s distinctive elegance and sophistication. Chu emphasized that the interior designs, personally crafted by Tonino Lamborghini, aim to fully immerse residents in the Italian brand’s luxurious identity.

The variety in housing options is vast, ranging from one and two-bedroom apartments to duplexes, sea view villas, signature villas, and exclusive penthouses.

The collaboration between Tonino Lamborghini and Arista Developments blends iconic Italian style with expert real estate craftsmanship. This venture marks Lamborghini’s first introduction to Ras Al Khaimah and represents a commitment to setting new standards in luxury and modern living.

 

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