PwC: Downtown living is driving the housing market
Canadians want to live near the city core rather than the suburbs and that’s driving the housing market. That’s one of the key findings of a new report by PricewaterhouseCoopers and the Urban Land Institute. The study says that Canadians are more than happy to trade space for convenience; choosing to live downtown to be close to shops, leisure facilities and workplaces rather than the more spacious property they could afford in the suburbs. Much of this trend is down to young families who are choosing to be where the action is rather than the inconvenience of a commute to work and school. Suburban land is often hard to find or comes at a premium whereas downtown building continues to grow. The report does question what this increased density downtown will mean in the future; will all these families look to move out to suburbs later in life or will they continue to live in smaller downtown locations? For 2015, PwC believes that there will be an increase in mixed-use developments and that Calgary, Edmonton and Vancouver will see the largest residential market growth. Read the full story.
Toronto divided by income
Is the real issue in Toronto down to income divides rather than the urban/suburban divide? Writing in the Huffington Post following this week’s mayoral elections, Daniel Tencer suggests that there is a split between the wealthy parts of the city and the lower income areas and argues that facilities that are meant to help those on the lowest incomes are located in the higher-income areas. Subway stations for example are generally located in what are now the wealthier areas but it’s those in the lower-income neighbourhoods who would benefit most from them. Read the full story.
Buying property in the US may increase your taxes
Buying a vacation property in the US could land you with an extra tax bill. A new report by CIBC called ‘Your US Property Could Be Quite Taxing’ says that many Canadians get caught out by not realising the potential tax implications of their second home in the sunshine. There are lots of pitfalls including tax burdens from both US and Canadian authorities when renting out your second home and capital gains tax if you sell it. There are ways to mitigate the burden and the report suggests that while it can be complex, careful planning can save thousands of dollars. Read the full story.