We at Abana Capital have always held the view that the issue of foreign investment and its impact must be considered holistically and within the broader context of the economy as a whole rather than through a narrow lens of the housing market. Foreign investment is a key component of economic growth and can provide necessary capital for infrastructure, seed funding for small businesses and yes even affordable housing, provided the right incentives put in place by the government.
This op-ed article in the financial post by professor Murtaza Haider and Stephen Moranis examines foreign investment from an interesting social perspective. Many of the so-called Non-Permanent Residents (NPR) who according to the latest report by CMHC are the biggest cohort within the foreign buyer pool, are international students and temporary workers who are seeking residency status in Canada. These are the skilled workers, technologists, engineers, doctors and entrepreneurs who will fill the gap as our baby boomer demographic eventually exists the labor pool. We are already seeing the effects of labor shortage on the economy and our businesses and penalizing NPR’s who are here in search of a better life and can be key contributors to our economic stability and the sustainable workforce is not only short-sighted but plain counterproductive.Read Article