BREAKING REAL ESTATE NEWS:
This week, the British Columbia government has announced that beginning Aug. 2nd there will be an additional 15% land transfer tax on foreign national (personal or corporate) purchases of properties in Metro Vancouver.
Why is this significant to Toronto you ask?
This is HUGE, as the trickle down affects of this tax may or may not be beneficial to the Toronto market. There are obviously arguments For and Against the imposition of this new tax by the BC government, but even so where do you think investors or buyers will put their investment dollars now?
- If Toronto DOESN’T add a similar foreign tax:
- Then those investment dollars will be flowing to the Toronto market and thus flaming the house prices even higher.
- If Toronto DOES add a similar foreign tax:
- The pace of investment dollars coming to TO may slow and will affect housing prices here being neutral to moderately positive.
In any case, in my discussions with realtors in Toronto, we feel that the Ontario government will eventually impose a similar tax, as the revenue for the debt-ridden government is too good to pass up. Imagine, more tax revenue for the Ontario government and Ontarians don’t even have to pay for it. Sounds like a win-win, as long as the housing market can absorb it.
Send me your comments if you wish!
Check out the full article here
Have a wonderful Long Civic Holiday weekend!
Live Life Better,