Canada has a ban on foreign ownership of residential properties. It’s a decent economic policy that already resulted in more affordable housing. Truly something the British Government should consider in my opinion!
Yet Canadian pension funds have hoovered up massive amounts of rental property in Ireland, driving up prices and homelessness. Homes should not be a commodity!
I share your frustrations though. The housing market is a terrible horror movie. Every policy that gets adopted is doomed to fail. But in the rare occasion that something useful occurs, I get overly excited
I’m not Canadian/Irish, just an economist who hates the housing crisis. So in my humble opinion, the Canadian ban didn’t increase prices, which is truly something. Many governments use policies that exacerbate the issue, mine included.
Foreign buyers purchase one in five houses. This law links taxation to rent prices using a price range. If rents exceed this range, taxes are imposed on the benefits. This policy seems to be effective in Catalonia, as investment funds exit the market.
Doesn't sound all that bad actually... This may at least partly solve the international "buy real-estate as an investment" pandemic. Those from outside the EU who are really committed to living in Spain can still rent, naturalize after 5 years and commit to buying a place at normal rates...
In fact, it's enough to rent long enough to get the residence permit. After that, you'll be free to buy without this taxation (up to 100% of the property's value).
Since it's a proposition that only aims at foreigners who don't live in Spain, it has the chance of being popular.
I see you and still consider the British people as my European brothers & sisters. Must have been infuriating given the circumstances of the referendum
This actually breaks my heart. One day we will be in the same Union again. My mom, who absolutely adores Britain, cried when she heard the news. Sadly our politicians are using Brexit to push for a ‘Blexit’ (weird combo of Belgium and exit i know). We all could use better politicians I fear
There are plenty of places in the UK that could benefit from expats investing in it, but that place isn't London. So, if you do this in the UK, I'd rather implement it more granularly.
Make those rundown places way more attractive and greater London way less attractive for foreign investors.
Im gonna argue part of the opposite, poor touristy places like Cornwall and Wales suffer a lot from 2nd home buying too. Best place to invest would be the random mid-large towns of Britain. Places you could tour and can support industry
I'd say that those who invest in those properties will at least invest in keeping it up, as otherwise their investment won't make sense.
I've been to Blackpool quite recently and while it always had some rough edges, I was rather shocked at how it looked and at how many places were left to rot.
The demand is indeed overwhelmed by foreign buyers (especially through AirBnB). However, non-EU residents tend to have more financial means. My guess is that it’ll be a zero-sum game, with inflationary pressure on prices.
A ban like in Canada for instance, cools things down. I think Spain would greatly benefit from something similar. Ironically Kamala Harris had a great economic plan for tackling the supply side. My professor even mailed it to our entire class 🥲
Housing prices get inflated by anything that increases prices. Even if you’re taxing the rich. Now they only get inflate because there aren’t enough houses to begin with. I imagine it like a black hole. Every subsidy, tax increase,… gets sucked into the hole and can’t get out.
Of course! Imagine someone rich wants to buy Spanish property. They now get confronted with a higher price, so they buy 1 house instead of two. But due to this tax, they’ll pay allot more money for only 1 house. So the property itself gains value, ultimately leading to higher house prices.
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Since it's a proposition that only aims at foreigners who don't live in Spain, it has the chance of being popular.
Immigrants come to Britain, those that leave are "ex-pats". It's wrong and annoying!!
Britons voted for Brexit, out of a population of 66m at the time.
And the other 49m of us are endlessly punished for something we didn’t do.
I hope one day the politicians will have the courage to reverse this but I doubt it.
Make those rundown places way more attractive and greater London way less attractive for foreign investors.
I've been to Blackpool quite recently and while it always had some rough edges, I was rather shocked at how it looked and at how many places were left to rot.
Build jobs first, then let actual residents who will fill them take the homes