The cannabis issue affects real estate sector

Recently, a home in Winnipeg allegedly with hundreds of legally-grown cannabis plants inside was listed for sale without providing information about the previous indoor marijuana garden. This situation leads to a question of disclosure when it comes to selling a property where cannabis has been grown.

In 2018, the Free Press reported on the bungalow following the complaints by a retired police officer neighbor about the smell. Although Winnipeg police didn’t comment on the marijuana grow ops, according to the neighbor, the police noted the homeowner had a license to legally cultivate 292 cannabis plants for medical purposes. A man living in the house, but saying he’s not the owner, confirmed growing cannabis inside.

Is it possible to take dirty money out of Canada’s real estate market?

Housing affordability in Canada has been one of the main issues of this year’s federal election. Today we can see home ownership rate falling in the country for the first time on record. Young families are facing difficulties with purchasing property, says Tim Hudak, CEO of the Ontario Real Estate Association. The Conservative Party, the Liberal Party and the New Democratic Party chose to focus on the problem of money laundering at the national real estate market offering to create a beneficial ownership registry.

This registry will demand from companies, trusts and partnerships to provide public information on controlling shareholders, beneficial owners and partners. This way, everyone will know who bought the property.

About 20% of Canadian homes are purchased by newcomers

The recent report by Royal LePage shows that one in five homes in Canada are bought by newcomers.

According to the online poll conducted by Leger, which surveyed 1,500 people who moved to Canada during the previous 10 years, 54% of respondents decided to arrive to Canada because they consider this country a great place for living and working. Answering why they preferred Canada over the U.S., 31% of them said they feel more welcomed here, and 26% noted Canada is safer.

The report shows 86% of respondents consider housing to be a good investment, and 75% came here with savings for buying home. It took three years, on average, for the newcomers to purchase their own property. Before that, many of them lived with relatives and friends or rented a property.