Ontario housing package to cool GTA market coming today
Sydney, Singapore and Hong Kong have also introduced foreign buyers taxes. "I think they're already having an effect".
The Ontario government is unveiling a suite of calming measures to address soaring housing prices in the red hot Greater Toronto Area market on Thursday.
At an April 18 meeting, the federal, Ontario and Toronto governments agreed to dial down on policies that stimulate sales, meaning Ottawa and Queen's Park will not expand tax credits or limits on RRSP deductions new home buyers can make for down payments.
Home prices in the Toronto region rose 6.2 percent in March, the biggest one-month gain on record, according to a benchmark price index by the Canadian Real Estate Association, and jumped nearly 30 percent in the past 12 months.
This week, Bank of Montreal chief economist Doug Porter said there is no question the Vancouver tax is affecting the Victoria real estate market.
Allow Toronto and other municipalities to introduce a vacant homes property tax. "Therefore, any moderation in prices linked to the tax in the Toronto area is likely to take longer to materialize than Vancouver, where the effect was nearly instantaneous".
"But we do believe there is a need for interventions right now in order to calm what's going on", she said.
"RBC's affordability data strongly indicate that the Toronto area market is in a high-risk zone", the report said.
That's why they're talking about imposing everything from a foreign buyers' tax, to a speculators' tax, to a tax on vacant real estate to "solve" Toronto's housing crisis.
Tal took issue with the province's plans to expand rent control, which now applies only to units built before November 1991, to all private rental units.
The news release continued to state that FHP lists a set of 16 comprehensive measures, which in addition, to stabilising real estate market in enabling more people find an affordable place, would also protect interests of renters and the investment of homeowners.
"We're targeting those are who aren't looking to raise a family".
Use surplus provincial land assets across the province to develop new and affordable housing.
"Most of those projects are now on hold pending a review of this announcement and many of them will be cancelled and not proceed", he said.
The plan, tabled by the Liberals and Premier Kathleen Wynne, contains a series of 16 measures created to "help more people find an affordable place to call home, while bringing stability to the real estate market and protecting the investment of homeowners", according to a government release.
It will also introduce a C$125mn ($93mn) five-year programme to encourage construction of new apartments.
One of the outcomes of the much ballyhooed housing summit earlier this week between Sousa, his federal counterpart Bill Morneau and Toronto mayor John Tory was a commitment to "sharing relevant data more regularly between governments to enhance understanding", a move that seems comically late after prices in the region have surged double-digits over the past few months. These new measures include developing a standard lease and tightening regulations around landlords evicting tenants for their own use.
Harris also wondered whether the long-term impact of rent control might serve to make the rental market tighter.
In May 2016, the B.C. government put in place new rules that require real estate agents to draft offers that require the seller's consent to a contract transfer, and any resulting profit to be returned to the seller.
- Provisions that would require municipalities to consider the appropriate range of unit sizes in higher density residential buildings to accommodate a diverse range of household sizes and incomes, among other things.