Exploring the philosophy of property ownership

There was another one of “those” stories on social media last week — some property owner protecting what’s theirs by stringing wire across an ATV track to clothesline those who would dare trespass (in the winter, these stories are about snowmobile tracks but they still happen). This got me thinking about the philosophy of property ownership.

While it’s permissible according to our societal values to protect your property, any reasonable person would surely agree that attempted murder (with “attempted” being the best possible outcome) is taking things too far. We’re not talking about protecting your children, your dog, or even your back porch; we’re talking about protecting something that is in no real jeopardy. They may be reckless, noisy and annoying, and their motorized toy may throw up clods of earth or ruin crops, but garrotting a stranger for cutting across your property is clearly not a reasonable approach.

For some reason, my mind made the leap to all the recent reports of the effects of foreign ownership on housing markets, especially in Vancouver with its recently enacted 15% tax. It got me thinking about what it means to “own” a piece of Earth. While there’s likely a terrific half-drunk conversation to be had on the subject the next time you get together with friends, it raised for me a philosophical question that is a little more germane to the issue.

Who has a right to own a piece of Canada?

Under Canadian law, the answer is just about anyone. There are no restrictions on the amount or kind of real estate that non-residents can buy. Any resident of any country in the world can buy property in Canada (that doesn’t mean they can live here – immigration is a separate issue).

In Toronto, foreign buyers pay the same amount in land transfer taxes as Canadian residents, and are eligible for the same tax rebates if they qualify.

I am proud of our diversity, but as I said above, this isn’t about who lives here; it’s about who buys here. It’s about who benefits from the rising prices of Canadian real estate without substantially contributing to the economy. It is a stroke of cosmic luck to live in one of the greatest countries on the planet where our human rights are well protected by law. Do we have the cosmic right to hoard that luck? Do we have a moral duty to share the wealth — literally and figuratively — with those who aren’t lucky enough to live here?

Real estate isn’t a cheap purchase — are we merely padding the pockets of those with the highest incomes? To what gain? Do foreign investors have a duty to help support the infrastructure that supports the Canadian residents who make their purchase possible?

Should we be limiting the amount a foreign buyer can spend? Perhaps putting limits on the proportionate number of non-resident buyers from each country or region? Perhaps we have so much land in Canada that we can’t imagine not sharing it with the world, but if foreign ownership is pricing Canadian residents out of our most desirable markets, do we owe our own lower-income families the same opportunities available to those with bigger bank accounts?

I’m not sure I have any defensible answers, just more philosophical questions. What do you think? (Let me clearly state that I am no way advocating xenophobia — any good rule is universally applicable.) Is it time to stop looking at our tax system and start asking some hard ideological questions — like not just who can enjoy the privilege of owning a piece of Canada, but who should.

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Vancouver

In a not-entirely-unrelated story, CBC reports that in the wake of a recent Globe and Mail story about a Vancouver speculator who pays nearly nothing on millions in profits on flips, Minister of National Revenue Diane Lebouthillier issued a statement last week saying she had asked CRA officials to look into the specifics.

The CRA has already been cracking down in recent years, working to close any loopholes that can be utilized by speculators to avoid paying for their profits. She said that between April and June, the Agency levelled 2,500 audits at real estate investments in B.C. and Ontario, along with $11.6 million in penalties.

“Those trying to avoid paying their tax obligations now face an increasing likelihood of getting caught,” she said. “Canadians expect and deserve a fair tax system and that is what we are committed to delivering.”