It was likely that property prices in Canada, Mexico and the Caribbean would shoot upwards...
THIS IS THE WRONG MOVE…!
By Professor Gilbert Morris
The result of this property value explosion - like Turks and Caicos islands - Canadian locals are being priced out of their cities and country. I myself, have raised this spectre and I warned at March 2020, that an impact of:
1. Covid 19
2. The 100 million North American retirees over the next 20 years
It was likely that property prices in Canada, Mexico and the Caribbean would shoot upwards. I explained that the two drivers - one an event driven demand and the other a demographic driven demand - cross-pollinated into a sustainable economic force, likely to run for at least two decades. Neither the Caribbean nor Mexico are prepared for this influx or uptick. And Canada’s attempt to limit property purchasers shows they are woefully unready.
The full details of what’s wrong and how to put it right can’t be shown here.
HERE ARE THE DECISIVE POINTS:
a. Limiting purchasers will fail because it does not move at the speed of the markets = and could have the reverse effect of generating even higher prices - and so a lottery dynamic for the designated properties
b. This would result in “overspill” in price appreciation to properties not included in Trudeau’s selections, still pricing citizens out of their country
c. Any solution must move at the speed of the market by absorbing the appreciation in price and value into a mechanism for the benefit of the citizen, rather than fighting price appreciation pointlessly
d. The best mechanism for this is to place designated properties into a Sovereign REIT, of which all citizens are members, then allow those lands to gain and move by the same open market momentum
This means the government would not have to offset the price appreciation - or introduce redistributive programmes as citizens would benefit from market driven organic momentum!
