Curbing Real-Estate Speculation (For Foreign Buyers)
This action from the government is tantamount to addressing issues on housing demands. Non-permanent residents and non-Canadian citizens are the primary targets for this initiative.
There are two key proposals aligned with this change:
- Introduction of a 15% tax on properties sold in the Greater Golden Horseshoe.
- Ensuring strengthened reporting requirements and payment of taxes for purchases and sales of properties.
The market’s response was instantaneous. Immediately after the announcement, housing sales plunged, giving authorities a momentary breather.
But elsewhere problems started brewing. For example, tax revenues for Ontario also started to fall. Tax revenues from property transfers are one of the province’s chief sources of earnings.
Condominiums, detached (and semi-detached) homes, and townhomes are the housing types directly hit by this provision.