Foreign capital is “using Canadian real estate as a piggy bank” says RBC CEO David McKay.
The head of Royal Bank of Canada says Canada’s housing market is being distorted by a flood of foreign money, and he says it’s having a negative impact on the livelihood of Canadians.
Bloomberg reported the comments by David McKay which were made at a recent bank conference.
“We do not need foreign capital using Canadian real estate as a piggy bank. If capital is coming in to sit in a home, unproductively, and is distorting your marketplace and the livelihood of your residents — no thank you.”
McKay also reportedly said “A surge of foreign money into Canadian housing had been adding “gasoline” to markets in Vancouver and Toronto.”
His comments are among the clearest and toughest comments that have been made by a Canadian CEO when it comes to the issue of foreign homebuyers, and “he’s supportive of government taxes and other measures targeting foreign buyers, as well as other regulatory efforts to cool the country’s housing market.”
Ban on foreign homebuyers is needed
We should go a step further.
Dealing with a similar problem, New Zealand instituted a full ban on foreign homebuyers.
Canada should do the same.
Our government is supposed to look out for our own citizens, and we should not allow foreign homebuyers to make cities unaffordable for Canadians. Canada’s cities are supposed to be for those who actually live in the country, not those who just have a ton of money to throw around across the world.