Lessons from B.C.: What Toronto should consider before adopting a foreign buyers' tax
With Ontario reconsidering the levy, it must decide who would be taxed and how to spend the revenue
This article was originally published on CBC NEWS. Written by Laura Frase.
With the Ontario government indicating it may try to douse Toronto's scorching housing market with a foreign buyers' tax, critics and advocates of the move say the province has a lot to learn from British Columbia.
Economists have had mixed reaction as to whether the 15 per cent levy implemented in the western province in August 2016 can take full credit for the nominal cooling of real estate sales in Metro Vancouver.
And while Ontario Finance Minister Charles Sousa has yet to decide whether he'll follow British Columbia's lead, here are four factors he may be considering.
The Ontario government is reconsidering its opposition to taxing foreign home buyers, saying it is now open to a B.C.-style levy to restrain Toronto's hot housing market.
Finance Minister Charles Sousa said on Thursday he is looking at the tax as one of a number of options to control aggressive growth in home prices, after rejecting such a measure last year.
Of all the political U-turns B.C. Premier Christy Clark has undertaken in power, perhaps none was as jarring and unexpected as the one she performed on housing.
For most of 2015, and at least half of the following year, the Premier refused to do anything about rapidly escalating house prices in Metro Vancouver. She maintained that bringing in measures to cool the market might hurt the equity in people’s homes. She denied foreign investors had much to do with the fierce escalation in costs, relying on the faulty, self-serving data from a real-estate industry that wanted the sticker-shock insanity to continue.
Observers’ takes on Toronto’s red-hot housing sector
Fresh numbers on the Toronto real estate sector showed that the market remained on overdrive, with the latest edition of the Teranet-National Bank Composite House Price Index revealing that home prices in the city increased by 20.9 per cent year-over-year in January, and the Canadian Real Estate Association (CREA) stating that average home resale prices in Toronto saw a 22.6 per cent annual increase last month.
An investment that pays itself off in six months?
This article was originally published on Canadian Real Estate Magazine. Written
This is how crazy Toronto real estate has gotten. The average one bedroom apartment rental in Toronto costs $1,465 a month – pricing many young professionals and other Torontonians out of the rental market.
Is Toronto real estate really in a bubble?
This article was originally published on MoneySense. Written by
If you live in Toronto you realize you’re in the center of the Canadian real estate universe these days. While the last few months have seen Vancouver housing sales decrease and prices stabilize, Toronto’s real estate market has been catching fire. And of course, economists and bond rating agencies have noticed, too.