Leading up to the Federal budget announcement, the rumour mill was churning, with mainstream media outlets salivating over a possible tax on primary residences, including speculation taxes or even increased taxes on capital gains when selling investment properties. Instead, the federal government delivered none of that, ultimately opting not to tinker with the golden goose. But can you blame them? According to Ben Rabidoux with North Cove Advisors, residential investment has accounted for 46% of nominal GDP growth since Q1 2018. Yes housing is the economy. So, naturally, the Liberal Government opted to introduce policy that would provide the illusion they are doing something, while simultaneously ensuring the policy wouldn’t interfere with the red hot housing market. In other words, political lip service. Starting January 01, 2022, there will now be an annual 1% tax on foreign-owned vacant homes. “Houses should not be passive investment vehicles for offshore money. They should be homes for Canadian families,” said Finance Minister Chrystia Freeland in her budget address. However, according to official Government data, foreign ownership is just a small sliver of the market. Remember, back in 2019 CMHC studied non-resident ownership, concluding: Properties that have at least one non-resident owner amount to 6.2% in
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Leading up to the Federal budget announcement, the rumour mill was churning, with mainstream media outlets salivating over a possible tax on primary residences, including speculation taxes or even increased taxes on capital gains when selling investment properties. Instead, the federal government delivered none of that, ultimately opting not to...
The views expressed are those of the author, Steve Saretsky, an Oakwyn Realty REALTOR®, and do not necessarily reflect those of Oakwyn Realty. It is provided as a general source of information only and should not be considered personal investment advice or a solicitation.