Canadian economy: It is in the interest of Canadian economy to have the inflated housing market as major Canadian GDP came from real estate. This is alarming and distressful economy. Since past couple years Canadian economy struggling to keep its pace and poor performance of energy sector of this economy has done nothing to help the economy. To do you own research, i will suggest to do basic google search "Canadian GDP", "Canadian gdp housing market". In past two years, struggle of Canadian industry because of NAFTA failure and dependency of Canadian economy on the US market has nothing much but to push Canada for liberal immigration policy to help its economy. During peak of distress there is always be people who would be making money on these pain points but these gains are only be realized by people who can exist in the market for quick and in short term. This signs are definitely not for working class home buyer who has everything backed behind this investment. Canadian regulation: Rule of being double agent. Canadian real-estate regulation is designed to keep this inflated housing market to support the economy growth. The downside is its un-sustainability.

The rule that allows agent to be buyer and seller agent for the same property is big loop hole and some say it intentional to make it interest in real-estate professional rather than buyer. What thus means if agent can push the selling price and it can get high commission from both seller and buyer, only one to loose in this is housing investor. Another thing even though a agent who is representing individual buyer, has all interest to get buyer highest possible price to make sure, seller agent and themselves (buyer agents) get decent commission. Flipping housing through agent and investors: There is huge flow of short term investor in housing market with so much loop holes. People are buying houses to sell in a year or less. Some time doing small fixture such paint and cleaning and increasing the price by 20 times of its fixture cost. A recent encounter i have found to this is listing of this property as a classic example.



This property listed in Oshawa, Ontario (832 Masson st). Bought less than year ago, if you found the old listing this property is cleaned, and small fixture done and again available in market with no one staying there, strong indication market is available for long time and attempted to push the price. In these scenarios, agent will list the property at low price and will get offer from buyer to only reject it. This gives a agent to show that this property is in demand and them push the next pricing. In this case they listed under 500K then to only increase another 100k after week listing. Chances is that you will buy a house with highly inflated price and it will take you at least to 3-5 years to reach your own purchase price. If you not include your mortgage interest on it. Immigrant rush to feel settled: As there is huge influx of immigrant in Canada has forced the housing problem, but this less of problem as in GTA more than 30% of condo as empty. This values shows, lack of housing in a hoax. Immigrant coming from abroad want to feel settled in new country and one the means is buying house. While they see rents are expensive and only means they see to buy a house. While this is true you might save rent which is only the half the reality. People from developing countries compare mortgage rate which the origin country and see this opportunity, not anticipating the other aspects such as inflation rate, investment interest rate, percentage increase in annual income are all proportionate, which means rate of increase of your income is equally low in Canada. They largely miss to consider the high property tax rate, housing insurance, any municipality fees, high utilities, getting mortgage at low down-payment put them to higher interest and mortgage insurance fees. Immigrant lack of understanding in money investment in various Canadian sectors:

Being immigration you doesn't get all the investment benefits such as TFSA or carried over RRSP, where as Canadian born would have accumulated high TFSA limit by the time they start earning. And also RRSP based on their early life income. Money laundering: Money laundering is huge problem and housing flipping could be classic platform to do. I won't go too much in it as with all current real-estate loopholes, it is rampaged in Canada, with no intention of government to stop is anytime soon until economy. Foreign money: Quite related with Money laundering and immigration. Immigration policy allowing people to settle in Canada with considerable low initial investment as permanent resident. Canada provide permanent resident in various investment categories which allow people to do easy investment in Canada to get their permanent resident.

Well these are just few point that i summarized for first-time buyer to avoid being stuck and real-estate market with bad deal. One bad deal can really ruin your life saving forever. Be wise and informative before making such a big decision.