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Will Ontario tax foreign real estate investors?

Wednesday, September 14, 2016 Written by Emmanuelle in General

We all know that British Columbia has just enacted a new tax on foreign real estate investors. The question now is whether Ontario is likely to follow the same route.
 
Charles Sousa, Ontario’s Finance Minister, told Globe and Mail reporters “he welcomed the B.C. government’s decision to implement a 15-per-cent increase to the property-transfer tax on people who are not Canadian citizens or permanent residents and purchase homes in Greater Vancouver”.
 
That said, he also said that “it is important to consider that any similar policies for Toronto could have knock-on effects to other parts of Ontario that aren’t experiencing the same run-up in house prices.”  “So we’ve got to be cognizant of the impacts of those decisions,” said Mr. Sousa.
 
The key issue is whether some foreign investors shall or not shift to Toronto, a more affordable condo market, creating in turn a similar market than Vancouver’s one.
 
What is my opinion about it?

  • Canada is one of the safest countries in the world
  • GTA is growing by more than 100,000 people arriving each year
  • We leave in a country where the political environment is stable. 

Investors are looking for that.

Just to take an exemple, what are the first reasons why Chinese people invest here in our GTA,

  1. Education 56,3%(high ranking of Canadian Univesities)
  2. Lifestyle 29,1%
  3. Investment 22,4%
  4. Emigration 20,3%

Only in the GTA, they have invested $9,37 Billion.
 
Is it a good thing or not?

  • No, some will say the first time home buyers' are going to suffer.

Well, it really depends as foreign investors might not have the same perspective on what is a good investment compare to the choice of your first home.

  •  Yes, others will say it creates jobs, contributing to the Ontarian economy.

Building more homes and condominium might create a more affordable real estate market.

 As your Realtor, don’t hesitate to contact me for more information.

  • Each neighborhood is different,
  • your needs are special to me,
  • I am here to listen and help.

 Source:   Tamsin McMahon the Globe and Mail July 26, 2016