Dear Editor
With the tentative stats showing 11 per cent of Burnaby real estate in June was bought by foreign nationals, which surely is an under-reporting, it is now time for government to act.
Regardless of where this money is coming from, it is distorting the real estate market and causing repercussions across the entire region and restrictions must be put in place. But this is only the start. Despite the rallying cry for more supply, it is demand that actually needs to be addressed. We need a return to normal, non-emergency interest rates from the Bank of Canada.
The Canada Mortgage and Housing Corporation needs to stop insuring mortgages and backstopping the banks for all but first-time buyers. The CRA needs to actually ensure rental income is reported and taxed and proceeds from real estate flipping is registered as a capital gain, as it should be. And the financial sector needs to stop the race to the bottom, which has seen Canada’s own subprime (cash back) mortgages emerge. There’s enough blame to go around. What we need now are solutions.
James Potter, Burnaby
