Diaspora disappointed over discriminatory property law in Canada

Implementation of Property Purchasing Law in Canada has disappointed many Indian immigrants and real estate brokers (Photo: Pankaj Kataria)

The Indian community in Canada is unhappy over the implementation of a new law that governs who can buy housing in the country with effect from January 1. Many Indian immigrants are worried about the Property Purchasing Law saying that they will be losing out financially for no reason as they will not be able to purchase houses for the next two years.

“I have been living here for a long time now. In a foreign country like Canada, one feels that it is the right place to settle and invest money. After the implementation of the law, I do not think there are chances of investments and purchasing of houses for the next two years until and unless the person who is planning to settle here does not meet the conditions laid down by the new law,” Nitesh Raina, a 35-year-old businessman who has been living in Canada for five years, tells Media India Group.

“It has come at that time when the Canadian government is aiming to fulfill the vacancies of one million jobs but I do not understand why the law has been implemented now when many Indians or any foreigners are planning to look for better opportunities and do investments here”, Raina adds.

The Canadian government passed the Prohibition on the Purchase of Residential Property for two years by Non-Canadians Act on January 1, 2023. It prohibits foreigners from directly or indirectly purchasing a residential property anywhere in Canada.

The law has come with an exception that it will only apply to foreigners, not the ones who are residing in Canada. The criteria set by the Canadian government say that students, the working class, and refugee claimants are not going to be impacted by the law in any way.

“The law has come with certain criteria so that I do not have to worry about it much but for those who are in real estate companies and do investments, it will create a problem for them and impact their business and may cause losses,” Himesh Galwani, a 27-year-old who is a commerce student studying in a college in Canada, tells Media India Group.

“The Canadian government implemented the law as housing prices have been skyrocketing since the outbreak of Covid-19 and also banks are raising interest rates, resulting in higher mortgage rates in the country,” Galwani adds.

Several lawmakers said that those who own 5 pc of houses were responsible for snatching up the supply of properties for investment purposes. Therefore, it has been put forth to make houses more affordable for people who are original residents or are permanently living in Canada.

According to Canada Mortgage and Housing Corporation, nearly 19 million housing units would be required by 2030, due to widespread immigration in near future.

“I immigrated to Canada in 2015. I am associated with real estate. I have seen it has many profits and the person is benefited in a way but it may have losses as well; there are always chances of it. Here the market of selling and purchasing is high and the rates are set according to the demand so that no one is at a loss. The Canadian government should have thought before passing such a law because many are coming here to settle down or for studies. As I deal with real estate, I see it as a loss for me because it will affect my business of dealing and selling of houses and I will be in debt. It will lower the chances of selling and purchasing of houses for the next two years. I hope it does not happen,” Ramesh Nirmaan, a 49-year-old man who is associated with real estate tells Media India Group.

“Instead of passing such laws, the government should construct more houses. This amounts to nearly 5.8 million new homes that need to be built, almost 3.5 million more than the currently expected to be constructed,” adds Nirmaan.

“When the law was passed, it was said that only outsiders are getting profits not the original residents as investors purchase houses and keep them vacant but there are also families and students who come here, purchase houses and settle down, but the government is creating more problems for the people who have plans to come now. They have to go through long processes until they match the criteria,” says Nirmaan.