Dividend Growth Split Corp T.DGS

CIBC's Tal comments on latest Freeland move

[mouserman]

The Financial Post reports in its Wednesday, Feb. 7, edition that Ottawa's decision to extend a ban on foreign home buyers for an additional two years is a reasonable move, but will not go far to address the country's housing affordability crisis, said CIBC economist Benjamin Tal. The Post's Denise Paglinawan writes that the plan to extend the ban, which came into effect on Jan. 1, 2023, and was set to expire on Jan. 1, 2025, was announced on Sunday by Deputy Prime Minister Chrystia Freeland. The ban will now expire on Jan. 1, 2027. Mr. Tal says that while the ban is "reasonable policy" and "a step in the right direction," he does not consider it a major macroeconomic move. Mr. Tal notes that foreign buyers are an easy target for a government eager to show it is taking action on housing. Mortgage strategist Robert McLister said the foreign buyer ban is "like a magician's handkerchief" that diverts attention from the actual problem of too many incoming immigrants relative to the number of homes built. Under the ban, foreign commercial enterprises and people who are not Canadian citizens or permanent residents are prohibited from purchasing residential property in Canada either directly or indirectly.

[flamingogold]

This is a smoke and mirrors move by the Libs. It makes them look good politically but are not addressing the problem full on. A foreign ban helps on one hand but on the other hand they are allowing amortizations to be extended to 50, 60, 70+ years? By tampering with the natural law of economics there will be no immediate solution to the housing problem. They should not have provided a safety net