Banning Foreign Home Buyers
By Martin Crim, Esq.
At common law, foreigners couldn’t own real estate but most countries have loosened that restriction. New Zealand has a ban on foreign home buyers and Canada just adopted a two-year ban on most foreigners buying houses. A couple of quick thoughts:
- A $10,000 (Canadian) fine on conviction is not much of a deterrent.
- I like the idea of taxing vacant houses but it would need robust enforcement to be effective.
- An exemption for “recreational” property undercuts the rule’s effectiveness severely.
- An anti-flipping tax is a bad idea because it deters rehabilitating unlivable houses.
- An extra tax on foreign purchasers is quite reasonable and could produce revenue to put toward housing availability.
Martin Crim is a shareholder at Vanderpool, Frostick & Nishanian, and has been practicing law for over thirty years, primarily for cities, towns, and other local governments. If you have additional questions or concerns, contact Martin Crim at email@example.com or call us at 703-369-4738.
This blog post is not intended to provide legal advice or substitute for the advice of legal counsel with respect to specific facts and situations. See disclaimer