Toronto's soaring housing prices and Ontario budget - We need foreign buyer tax..

[CITIZEN_2015]

3 hours ago, Michael Hardner said:

You're behind on the news: Ontario put in such a tax, I believe.  We finally reached a point where such speculation was disrupting things for renters to the point where there was a demand for action.

No I was aware of the yet unclear tax on vacant houses however, (as I noted in my post) I was hoping for a heavy and clear tax on empty properties and a heavy foreign buyer tax as well to hit hard domestic and foreign speculators.

http://www.cbc.ca/news/canada/toronto/ontario-budget-toronto-reaction-1.4087957

It is not even clear by how much. I would have hoped at least for a tax of 1% of total value for every month which a property is kept vacant to at least partially offset the huge profits for speculators from rising prices (at annual 22%+ right now). I would have loved a heavier tax even (at 2% of total value per month) to force exploitative speculators who are making huge easy money on the back of the poor and the middle class to sell their properties (likely at a loss as property values would have fallen sharply soon after announcement)  or make it available for rent but I know politicians don't have the will for the latter.

There are an estimated 65000 vacant homes in Toronto and each one of them should be taxed very heavily but more importantly I was looking for a minimum 15% foreign buyer tax and i did not get anything at all!!.

Edited April 29, 2017 by CITIZEN_2015

[Michael Hardner]

http://m.torontosun.com/2017/04/20/ontario-to-tax-non-resident-foreign-housing-buyers-15

 

Ontario to tax non-resident foreign housing buyers 15%

[CITIZEN_2015]

This was a PROPOSED measure (the article is on April 20th) that to my knowledge did NOT materialize in the budget (April 27). They have just started collecting data now and God knows how long it takes them to reach a conclusion and decision (damn government bureaucracy). No date has been set if and when the foreign tax proposal will be activated.This government has waited too long already. It should have been here a long time ago at the latest it should have been in the Ontario budget. This government is dragging its feet and now 15% may not be enough. 

 As for hitting domestic speculators again NO action as yet. I believe at this moment it is just a legislation for municipalities in Ontario to introduce a tax on vacant houses IF they wish but that is all it ends. It should be high enough to knock off domestic speculators and it must come NOW. This government is too damn slow and too timid to act decisively. Time to act is NOW enough with talks and proposals. Heavy Foreign and vacant tax NOW.

 

Update on 15% foreign buyer tax :

Once legislation passes, it will be effective retroactively to April 21.

Edited April 30, 2017 by CITIZEN_2015

[CITIZEN_2015]

It appears the latest measure has worked for Toronto as prices now coming down from insane prices back in April. Down from almost a million to under 800K but still over 6% higher than June 2016. As they say better late than never. Bank f Canada appears poised to raise interest rates too as per strong economy though there is no sign of inflation s I don't see it an urgent matter at this time. Another report says that only 5% of buyers in Toronto region have been foreign buyers since statistics started in April. So likely many pulled out of market.

[Michael Hardner]

7 minutes ago, CITIZEN_2015 said:

 Another report says that only 5% of buyers in Toronto region have been foreign buyers since statistics started in April. So likely many pulled out of market.

That is beside the point. Nobody seems to know what the actual demand is for housing and how many homes are sitting empty, and are being used as poker chips in a mass real-estate gambling game.

[Rue]

On ‎2017‎-‎04‎-‎23 at 5:17 PM, CITIZEN_2015 said:

The quoted statement by itself does not indicate racism because he didn't say less black or Arab or Jewish immigration but rather less immigrant which means of all races and to some extend I agree though Selectivity must play a role based on cultural compatibility which will exclude many immigrants from mid east, Africa and Asia. Does that make me racist? i don't believe so.

Citizen do not waste your time with either Taxme or Hot Enough. By the way excellent posts and responses. Excellent thread.

If Citizen you take a look at the world map you will notice extreme water shortages in Africa China and Indo-Pakistan causing major population shifts. Some argue this is a result of desertification. Some argue the desertification is man-made, others say its the climate, some say both. Some belief the climate has changed due to unnatural causes, ie., pollution causing a green-house effect. All I can tell you is that if you follow the places where there is water shortages now, you see major population shifts and for Canada this means large population transfer from China and Indo-Pakistan as well as Africa and this movement of course creates a demand for housing yes.

War as well.

Now it used to be an immigrant would rent a tenament with many other tenants and it would take 2-4 generations to move out of these types of tenaments to the suburbs.

Today's immigrants come not expecting to have to wait in tenaments 2-4 generations but to immediately  enter homes in the suburbs as well as owning cars.

There is an instant expectation of a specific standard of living.

Bottom line is you covered most of the points but I wonder and I ask you and others, is it ever possible to correct greed in market places. Supply and demand are there as phenomena of course, but I think greed-this blind pursuit of money is fueled by new and old Canadians buying into this materialistic insanity of ridiculous lifestyle expectations and I am not sure how you prevent that..

Edited July 8, 2017 by Rue