Great real estate article in the Financial Post.
Last Thursday, the Ontario government introduced measures intended to cool the housing market in the Greater Toronto Area. Here’s a breakdown of all 16 and the impact housing market experts believe they will or will not have.
1. A 15-per-cent Non-Resident Speculation Tax (NRST) on the price of homes in the Greater Golden Horseshoe (GGH) purchased by individuals who are not citizens or permanent residents of Canada or by foreign corporations.
The tax is ultimately aimed at curbing price increases in the GTA, which the Toronto Real Estate Board said climbed 33 per cent in March from a year ago. Will it work?
“It’s a step in the right direction,” said Benjamin Tal, deputy chief economist of CIBC World Markets. “We estimate that the share of foreign buyers in the GTA is notably lower than in Vancouver.”
The problem is that if Vancouver is any example there will be a short period during which domestic buyers will sit on the sidelines before jumping right back six months later.
Shaun Hildebrand, senior-vice-president of Urbanation Inc., says if you are desperate to park your money offshore the 15 per cent tax probably doesn’t matter.
“If you are a foreign buyer with no connection to the region, you must have a pretty big motivation to move that money here,” he said.
For the full article click HERE.
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