For the next two years, Canada is prohibiting the purchase of residential property by Nigerians and other foreign nationals.
The “Prohibition on the Purchase of Residential Property by Non-Canadians Act” was put into place to bring down the price of residential real estate, which was thought to have risen sharply as a result of foreigners buying the homes as investments and leaving locals with no choice but to buy at exorbitant prices. According to a new law that became effective on January 1st, this most recent development.
The Liberal Party of Prime Minister Justin Trudeau stated on its website that “the attractiveness of Canadian property is luring profiteers, affluent corporations, and international investors.”As a result, there is a serious issue with underutilized and unoccupied housing, rife speculation, and increasing prices. For individuals, not for investors, are homes. Taxes on non-residents and abandoned houses have been implemented in places like Vancouver and Toronto to dissuade foreign investors and keep property costs down for locals.
But the new rule allows exceptions for immigrants and long-term residents, allowing them to own homes. According to the Canadian Real Estate Association, average home prices have dramatically decreased from more than $590,000 at the beginning of 2022 to $465,000 today (CREA). The group was concerned that if other nations, such as the United States and Mexico, passed a similar law in reprisal, Canadians may suffer. According to CREA, “Canadians buy vacation and residential properties in numerous nations, but especially in the United States.”
The group said that the new regulation may disproportionately affect locals who purchase homes abroad to avoid Canada’s brutal winters. These give Canadians a place to stay throughout the winter and serve as a source of savings for retirees, according to CREA. American property owners should be prepared to retaliate if Canada forbids them from doing so.