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Toronto buyers forced into last-ditch measures amid overheated market

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Ephraim Vecina | 06 Jun 2016, 08:15 AM Agree 0
The number of new listings in Toronto dropped by nearly 10 per cent in April compared to last year, stoking fears of an intensified housing crisis
  • Shawn Laghai | 06 Jun 2016, 01:29 PM Agree 0
    Hello
    This is one of the problems which are related to high prices increase in Canada especially in big cities like Toronto.
    It was time, in past that the people would sell fist and then buy since it was very hard to sell.
    Now when the house will sell in 5 days in multiple offers, the seller has to buy first before selling.
    And now, after Buyer get his/her mortgage at about 2.55%, and buys the new property, he/she will think why should I sell , I can keep it, rent it, and make 10% to 15% yearly increase in value of my property and pay only 2.5% interest to the bank. On top of it, lots of tax saving like capital gain other than making interest from leaving the cash in the bank or in the stock market. Not selling is much better investment choice.

    This problem will stay until the growth increase is 10% to 15% yearly.
    It is Easy to control it by my proviso recommendation, (( Sa soon as someone buy any properties, the yearly property tax to be start at closing time on the paid price and not continue with old assessment.)). This combined with stopping the foreign investors buying under friends or relatives name whom are Canadian resident (to avoid proper taxing. Please look at http://www.repmag.ca/news/agent-suggestion-for-foreign-tracking-207833.aspx on May 25 2016). And also should put a cap on the foreign gift to Canadian resident for the purpose of purchasing property, like up to 20% purchase price and over above that counts as taxable income, since some of it may not be legitimate gift.
    As well as yearly property tax increase for the exiting property owners by the inflation percentage which is announced by Government of Canada. Which will saves lots of money for Government from assessment process.
    This few recommendations will make the buyers to stop paying too much for their new purchase. And will not crash the market but slowly will adjust the market.
    Shawn Laghai
    Right at Home Realty Inc.
    Cell # 416-998-8119
  • Horrid | 07 Jun 2016, 03:03 PM Agree 0
    Wow, Shawn your writing skills are atrocious. If I wrote like you I would never leave my name much less use my thoughts as an advertisement for my real estate services.
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