Real Estate

10 measures being introduced on or before the 27th by Souza

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  • Apr 19th, 2017 9:22 pm
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55 replies
Member
May 18, 2015
484 posts
686 upvotes
Thornhill, ON
And not to mention a new tax on DOMESTIC speculators, plus measures intended to curb bidding wars...

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Deal Guru
Feb 9, 2009
12381 posts
11307 upvotes
jonkoktosen wrote: And not to mention a new tax on DOMESTIC speculators, plus measures intended to curb bidding wars...

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they are ready to kill the market for sure if this all comes out together lol.

they went from "hmm no major measures" to like every major measure discussed on this forum...
Deal Addict
Jan 20, 2016
2028 posts
1013 upvotes
Houston, TX
Just do NOT expect the price drop. It's not what they are looking for...

Sousa emphasized that his moves would not have “unintended consequences because we also recognize the value of these properties
for families.”
Make the face great again
Deal Guru
Feb 9, 2009
12381 posts
11307 upvotes
asa1973 wrote: Just do NOT expect the price drop. It's not what they are looking for...

Sousa emphasized that his moves would not have “unintended consequences because we also recognize the value of these properties
for families.”
Sure every measure is going to affect the market in some way or another
Banned
Feb 23, 2009
1670 posts
1496 upvotes
Oshawa
asa1973 wrote: Just do NOT expect the price drop. It's not what they are looking for...

Sousa emphasized that his moves would not have “unintended consequences because we also recognize the value of these properties
for families.”
That's just trying to say he's not going to directly apply measures to families that own a home and do nothing.
He won't be able to do much when the speculators head for the exits...the same as last 2 years of huge increases.
What will happen is when the herd wants to sell for any reason and there are not enough buyers, prices go down. It's the other side of the broken equation that all the bulls fear.
The market doesn't move in a straight line and you won't have much choice but to get out of the way.
Deal Addict
Jan 20, 2016
2028 posts
1013 upvotes
Houston, TX
Sanyo wrote: Sure every measure is going to affect the market in some way or another
But the longevity of this measure is different. Talking could have some short time effect, but no more.
I trust those guys, they are experts of doing nothing for decade, so I do not expect they for sudden will betray their core values...
Make the face great again
Deal Guru
Feb 9, 2009
12381 posts
11307 upvotes
I think any tax would have to be applied to speculators today and in the future.... if they back date it it's gonna be trouble...
Deal Addict
Jan 20, 2016
2028 posts
1013 upvotes
Houston, TX
Sanyo wrote: I think any tax would have to be applied to speculators today and in the future.... if they back date it it's gonna be trouble...
No need to reinvent the wheel - the speculators, those who have more then one property, are already have to pay for this according to last fall innovation from CRA. TAX is already here, just need to apply it. One more tax will do nothing if you could not implement it.

Besides, "speculators" is very vague definition. Actually ANY business person is a "speculator" as he sell for more than he bought. Until you want to live in USSR or North Korea...

Please.s
Supply and demand are dictating the price. Once demand is not going to fall next 10 years (see projected population growth in Ontario) and even is encouraged by current government, the ONLY way to curb prices is increase the supply. But no word from 3 debiles on it, even about building more rental buildings. They are blowing on smoke instead of fighting the fire...
Make the face great again
Deal Guru
Feb 9, 2009
12381 posts
11307 upvotes
if your buying for 20-30 investment who cares... but yes if your a speculator or looking to flip dont touch this market now
Penalty Box
Dec 27, 2013
8003 posts
4050 upvotes
Toronto
what a joke.
like legitimately a joke.
Penalty Box
Dec 27, 2013
8003 posts
4050 upvotes
Toronto
asa1973 wrote: No need to reinvent the wheel - the speculators, those who have more then one property, are already have to pay for this according to last fall innovation from CRA. TAX is already here, just need to apply it. One more tax will do nothing if you could not implement it.

Besides, "speculators" is very vague definition. Actually ANY business person is a "speculator" as he sell for more than he bought. Until you want to live in USSR or North Korea...

Please.s
Supply and demand are dictating the price. Once demand is not going to fall next 10 years (see projected population growth in Ontario) and even is encouraged by current government, the ONLY way to curb prices is increase the supply. But no word from 3 debiles on it, even about building more rental buildings. They are blowing on smoke instead of fighting the fire...
exactly

where is the proposed changes to the green belt?? and giving out more permits???? why does it take so long to get a permit and development going?? Why are they reaming developers up the ass?? developments cost huge money. I dont see any word on that.
Deal Addict
Jan 26, 2016
2240 posts
2272 upvotes
Toronto, ON
daivey wrote: what a joke.
like legitimately a joke.
the joke is indeed unfortunately on the renters who are waiting for the government to solve this issue. High RE prices is a world wide phenomena in these days of cheap credit.
Deal Fanatic
User avatar
Jul 14, 2008
8312 posts
1901 upvotes
Ontario
I really don't believe for a second when a politician in Canada says they care if it tanks. They have all proven to be short sighted and most are financially set for life. What is expedient for them is what gets them votes. And it's no surprise that a short sighted politician would see themselves as 'saviour of the market' when they could in fact be its reaper.

I don't think it will have a wide scale impact, but I could be wrong. We'll see how this all pans out after getting more specifics. It may just be statu quo, "eh, higher cost of doing business" for people 'speculating'

Edit: removed "don't"
Last edited by onlineharvest on Apr 19th, 2017 6:08 am, edited 1 time in total.
Banned
Feb 13, 2017
951 posts
1283 upvotes
onlineharvest wrote: I really don't believe for a second when a politician in Canada says they don't care if it tanks. They have all proven to be short sighted and most are financially set for life. What is expedient for them is what gets them votes. And it's no surprise that a short sighted politician would see themselves as 'saviour of the market' when they could in fact be its reaper.

I don't think it will have a wide scale impact, but I could be wrong. We'll see how this all pans out after getting more specifics. It may just be statu quo, "eh, higher cost of doing business" for people 'speculating'
Actually 70% of voters DONT WANT prices to fall...so as a politician, if you want to get voted in again, you do not want to affect the housing market too much
Deal Guru
User avatar
Sep 8, 2007
10978 posts
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Way Out of GTA
crocp8 wrote: Actually 70% of voters DONT WANT prices to fall...so as a politician, if you want to get voted in again, you do not want to affect the housing market too much
With home ownership quite high in Ontario and they already have the majority of renters voting for them it's highly unlikely it helps them from a voting perspective. Also if RE and the offshoot work generated starts to dry up in Ontario, it will feel like the Oil patch is to Alberta. Ontario will see a jobs depression. And I'm not even an RE bull...just a realist.

There is, however a need to curtail the "book a house" assignment flippers with their whole family in line or speculators as they are also referred to. It is doing 2 things....1) causing massive distortion in perceived demand..if a flipper family has 5 houses "booked" the supply of those will only show up when their assignments show up for sale at a later date. Working people looking to buy a house can't really afford the time to line up earlier that these "pro" speculators. 2) It's also pushed up the prices as pro speculators care less about the actual cost vs a buy to live buyer who has a budget and mortgage to pay.

When pro speculators make it all the way to Bowmanville last a few weeks ago (and no it's not anecdotal as builders would have you believe in order to keep the insanity going)
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Deal Guru
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Sep 8, 2007
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Way Out of GTA
Rules around the bidding war process, will likely prove ineffective. As I could see it just evolving around it quickly. If there remains an imbalance of more buyers to sellers some buyers aren't going away happy. We may see where sellers then high list properties and bidders have to come up to the price.

At the end of the day the key cause of the housing bubble will not be tackled = interest rates that were and are too low for too long along with generally easy credit.
Deal Guru
Dec 11, 2008
13064 posts
3756 upvotes
We shall see if this has a major impact.

Who knows maybe my brother has hope afterall to purchase a home.
Deal Addict
Sep 30, 2011
2419 posts
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Who can explain vacancy tax, how is it possible to work. - any one and falsify a rent agreement with friend, and no legal ground the friend can rent 500 houses for vacation.
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Deal Fanatic
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Jul 14, 2008
8312 posts
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Ontario
napoleonbot wrote: Who can explain vacancy tax, how is it possible to work. - any one and falsify a rent agreement with friend, and no legal ground the friend can rent 500 houses for vacation.
It's based on hydro bills I believe. But I'm sure people will be savvy enough to figure out what is cheaper. (Eg take the tax, or setup automation to ensure power consumption is at threshold to avoid)

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