I don't think you need to look far to figure out that foreign cash purchases are coming from... foreign rich people who realize that housing is the best long-term investment possible.
I looked at the investments my bank made with my savings, and IIRC a chunk of it was invested in real estate companies. So I, a middle-class person who cannot afford a house, am giving money to my bank who is giving it to real estate companies to buy more apartments. And given how much apartment prices have risen, it seems like my bank made the right call for its customers.
In the USA, all it takes to buy a house is money. A wealthy person sitting anywhere can buy a home with a email, and a few clicks, or a phone call. All it takes is money.
If a person can't legally live in the home he bought, why are we selling it to them? I know the answer, but don't like it.
I don't know of any other country that makes buying our land so dam easy.
(I only know U.S.A. realestate, but care about Canadians.)
Now the butcher knows the baker is hungry and has $100, so he ups his prices to get the most value
But the butcher needs knives and the blacksmith knows he can afford more now too
The kings left town but the damage has been done, will probably take some time for things to go sane again
Who should be allowed to buy a house: Markus, Swedish born foreigner who moved to America with his wife to work at an academic research lab or Liang, born in Saipan thanks to birth tourism, using the money his parents managed to get out of China to grab as much real estate as he can.
https://the-peak.ca/2016/05/vancouvers-housing-crisis-caused...
Source: https://www.canada.ca/en/immigration-refugees-citizenship/se...