Blog Post

ENM On Foreign and Speculative Investments

  • By Admin
  • 07 Aug, 2018

A recently released survey of BC residents found that 86% of respondents believe the government should be doing more to curb foreign and speculative investment in B.C. real estate. 58% of respondents believe that we should consider an outright ban on foreign buyers of B.C. real estate.

Speculative Investment

B.C. already tracks foreign ownership of real estate by requiring purchasers to disclose their citizenship. In addition, the government has introduced several measures and taxes intended to curb speculation, including a foreign buyers’ tax and a speculation tax. But these measures, while popular on paper, may end up hurting housing affordability and significantly damaging the number one driver of our economy.

ENM’s co-founder Daniel Greenhalgh believes that foreign buyers are often just useful scapegoats for soaring housing prices. “If we’re going to get serious about attacking housing affordability, it has to start with increasing the supply of housing stock. I don’t think that foreign buyers and speculators have anywhere near the effect on the market that politicians would have you believe. It’s an easy way to get votes and there’s no defending mouthpiece, so all the problems get lumped onto this issue. But I maintain that the best way to increase affordability is to reduce the cost to build.”

The cost of construction is skyrocketing along with housing prices, and there are easy methods of curbing these costs that would have an immediate impact on housing prices in the province. “The first step, in my opinion, would be to curb the self-inflicted wounds of government fees and levies on development. These costs are virtually always passed on to the buyer. We can cut some of those levies right now and we’d see a big impact on affordability and supply.”

We at ENM do not support any attempt at banning foreign buyers. We’re also not for any major changes or government interference in this regard, including setting up ‘restricted zones’ where foreigners are not allowed to buy.

We believe the primary issue that needs regulation is the acquisition of land without development by either foreign or domestic buyers. This kind of practice is clearly speculative and should be curbed or mitigated. Conversely, there should be more incentives for those who acquire land for purposes of development. The best tool we have to fix the housing crisis is to build more housing, and the government needs to do much more to smooth the roads for this process.
 

About ENM Construction Management Ltd.

ENM Construction Management is the brainchild of Daniel Greenhalgh and Colin Lacey. The firm specializes in construction and development management since 2008. It is a recognized member of the Vancouver Regional Construction Association (VCRA), serving communities in Greater Vancouver Area, including Langley, Surrey,  Abbotsford, Coquitlam, and Fraser Valley. Subscribe to their newsletter to stay up-to-date with their latest projects and construction developments.  

 
Contact Information
ENM Construction Management Ltd.
604-371-3663
info@enmconstruction.ca

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