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Potential foreign buyer tax gains major opponent

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Real Estate Professional | 10 Mar 2017, 09:59 AM Agree 0
Real estate association speaks out against potential Toronto foreign buyer tax
  • Terri P. | 10 Mar 2017, 10:35 AM Agree 0
    Lack of supply in Toronto is a combination of factors and much is a result of Government policies namely the double land transfer tax in Toronto is making the cost of moving for both move up buyers and down sizers too high, Torontonians are opting to renovate rather than move or not move at all affecting the natural ebb and flow keeping supply balanced; the Greenbelt initiative is restrictive for new homes being built outside of the GTA and most finally the sheer number of people immigrating to the city. While foreign buyers are estimated to be 10% of the buyers, its still a significant number but not the main issue. Its a combination of factors that need to be addressed and quickly!
  • Felix Vortsman | 10 Mar 2017, 11:55 AM Agree 0
    Yet another news article about the blatantly obvious lack of affordable housing all across the GTA. Yet more BS ideas from politicians such as taxing foreign investors, just like what was done in Vancouver last year. Yet no one seems to be talking about how the housing correction in Vancouver was temporary and average home prices there are now actually higher year over year. Just more evidence that politicians are only throwing useless band aid solutions on a gapping wound that is the lack of affordable housing. Very few are talking about the fact that many foreign buyers don't even seek or need a mortgage as they can purchase properties in cash. Tightening mortgage rules by the government over the past few years has only resulted in hurting those most in need of starter homes, first time buyers. The truth is there is no fast and easy solution here. Do to the Greenbelt and Places to Grow Act developmental land use has been greatly restricted and much of development land that still exists will take several months if not years to provide services, like sewers, hydro, municipal water, cable, etc. Even if all this already existed, it's not like you can push a button to simply build houses. It takes time to plan, get all necessary provincial and City approvals, jump through hoops and overcome a plethora of red tape, engage architects, engineers, mobilize an already highly in demand and limited supply of construction labour force even before putting a shovel in the ground. This too can take several months and years to plan and put into affect. In the meantime, all the politicians are attempting to appear to be doing something to ease the house market's meteoric rise, a rise fueled by massive demand and low supply. Unless, they directly address demand and supply directly anything else they decide to throw at this issue will be a futile and useless effort and even more concerning can actually cause the overall economy to crash like a house of cards. Their actions do not inspire confidence, to say the least, in addressing these 800 lb gorillas in the room type issues that they continually fail to address. Indeed, these should have been addressed years ago. Simply put, there are no quick fixes to these issues despite the sense of urgency to do something about it across the entire Golden Horseshoe.
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