Ontario to tax foreign buyers, expand rent control to cool housing market

Ontario to tax foreign buyers, expand rent control to cool housing market

The average price of a detached house in the region hit $1.21 million last month, up 33.4 per cent from a year ago.

Just as Toronto weighs a "suite" of measures to improve housing affordability, as Ontario Finance Minister Charles Sousa put it on Tuesday, prices in Greater Vancouver have quietly started to creep up again.

Foreign nationals who don't live in Canada's biggest city and its surrounding communities will pay an additional 15 percent tax on home purchases under legislation proposed by the government of Ontario province.

- A 15-per-cent non-resident speculation tax to be imposed on buyers in the Greater Golden Horseshoe area who are not citizens, permanent residents or Canadian corporations. Rent control will be imposed on buildings constructed after 1991 - effective April 20 - which limits annual increases.

Among the measures Sousa is about to introduce are a new levy on housing speculators and a tax on properties that are left vacant, according to the Toronto Star.

We have committed to meet quarterly to collectively discuss how we can address the challenges of housing affordability, managing expectations, and the impact of market speculation in the GGH.

Reviewing the rules real estate agents are required to follow to ensure that consumers are fairly represented in real estate transactions.

What else do you need to know about "Ontario's Fair Housing Plan?".

"You can't go to a barbecue in the province without people talking about real estate and how everyone has a son or daughter who can't buy a home and wants to get into the market", Hudak said. The real estate market heavily influences consumer spending-when markets boom, homeowners feel wealthier, and spend more money.

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The plan also includes establishing timelines for elevator fix so that they aren't broken so often in condos and apartments. House prices in Toronto have been on a tear in recent months, rising almost 30% in March from a year earlier. Ontario has opened the door to a similar tax for Toronto, though it will be up to the city to determine whether one is adopted.

The most recent possibility floated by the Ontario government is a "non-resident speculation tax", but the province hasn't yet said how exactly that tax would work.

New housing-related taxes won't make Toronto affordable, either, warns Porter.

If prices continue to skyrocket in the absence of higher household incomes, the chance of a housing crash rises, Mercer told the Financial Post.

This discourages first-time home buyers from entering the market, even with the tiny discounts governments grudgingly give them on the land transfer tax. By exempting students from the NRST the province is intentionally keeping a door open to allow global speculators to buy up single family homes in their children's names - at the expense of tax paying residents who can't compete.

A person purchasing a piece of land in Ontario that contains one to six single-family homes or agricultural land will have to fill out the Prescribed Information for Purposes of Section 5.0.1 Form.

"Landlords might be a little upset, but it's the best rental market for them in 30 years, so they're doing fine", he said with a smirk. "Intervention in a cyclical market like housing is often fraught with peril as policies must be able to work in a strong and weak markets".

"Yet, the question is, will Toronto grow at the same pace we're now experiencing?"

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