Real Estate

Brokerage paying the foreign buyers tax Ontario

  • Last Updated:
  • May 21st, 2017 3:48 pm
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Member
Oct 13, 2011
419 posts
187 upvotes
Applesmack wrote:
May 17th, 2017 8:28 am
Regardless still wont be political suicide if it doesnt affect other home owners. Many home owners here in Ottawa would support government interference to pop the Toronto bubble.
Simply based on the number seat counts, it will be very difficult to win any election without winning the 416/905 area code. Besides, if real estate prices were to crash in Toronto, it will be a government fiscal disaster and the rest of Ontario may pay for it via higher taxes as well as EI payments.

I'm curious as to why does homeowners in Ottawa care about Toronto prices? In fact, I feel sorry for home owners in Ottawa. They haven't seen much growth in terms of real estate value in recent years, yet the recent Fair Housing Plan has negatively affect them as investors will think twice before buying any rental properties in the province of Ontario.
Last edited by Rothesay on May 17th, 2017 8:41 am, edited 1 time in total.
Deal Expert
May 30, 2005
39003 posts
1274 upvotes
Richmond Hill
Applesmack wrote:
May 17th, 2017 7:59 am
If you want to crash real estate market in toronto the solution is easy: Jack up property tax rate in Toronto in a progressive way (homes over 500k would pay up to 2% and homes over 1 million pay 5%) until it is unsustainable. Itll go back to aligning with incomes real fast.
Won't work well as many people who own million dollar homes are not rich, they simply bought many years ago. They should not be penalized with a marginal property tax rate.
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Sr. Member
Jan 26, 2016
628 posts
471 upvotes
Toronto, ON
divx wrote:
May 17th, 2017 3:29 am
just mean the tax isn't high enough
It never ends with you people. All we heard over the past 6 months was bring vancouver tax here. Now it's not high enough. What's next?
Sr. Member
Jan 26, 2016
628 posts
471 upvotes
Toronto, ON
Applesmack wrote:
May 17th, 2017 7:59 am
If you want to crash real estate market in toronto the solution is easy: Jack up property tax rate in Toronto in a progressive way (homes over 500k would pay up to 2% and homes over 1 million pay 5%) until it is unsustainable. Itll go back to aligning with incomes real fast.
Boy I sense desperation. Government is already doing too much to manipulate the market. We don't live in Soviet Russia - Canada is supposedly a free market economy.

What you are suggesting will cause prices under 500k to swell as everybody will be attracted to those instead.

Remember the government mandate is not to cause the economy to collapse so you get a house. If these rich folks paying these massive land transfer taxes and annual property taxes go away, our economy will collapse overnight.

If you want to do anything, dismantle CHMC
Deal Addict
Feb 9, 2009
4193 posts
1925 upvotes
Applesmack wrote:
May 17th, 2017 8:28 am
Regardless still wont be political suicide if it doesnt affect other home owners. Many home owners here in Ottawa would support government interference to pop the Toronto bubble.
905 is a huge home owning area with a lot more power than the voters in Ottawa ... so you just stick to figuring out if you want 9 foot ceiling or bigger square foot for your house .
Sr. Member
Dec 23, 2010
640 posts
212 upvotes
Ottawa
WinterSleep wrote:
May 17th, 2017 8:59 am
Boy I sense desperation. Government is already doing too much to manipulate the market. We don't live in Soviet Russia - Canada is supposedly a free market economy.

What you are suggesting will cause prices under 500k to swell as everybody will be attracted to those instead.

Remember the government mandate is not to cause the economy to collapse so you get a house. If these rich folks paying these massive land transfer taxes and annual property taxes go away, our economy will collapse overnight.

If you want to do anything, dismantle CHMC
A 1989 style correction would be very healthy actually as it would improve investment in other areas outside of Toronto which has been getting too much of the pie. Anyway from recent government actions it has been clear that the government has an interest in ensuring that the Toronto housing market suffers a huge correction. I don't expect government intervention to stop but only get worse. I expect a vacancy tax to be coming up very soon alongside the renter protections introduced recently. I would support that decisions Ontario-wide.
Last edited by Applesmack on May 17th, 2017 9:46 am, edited 1 time in total.
Deal Expert
User avatar
Oct 26, 2003
26688 posts
1650 upvotes
Winnipeg
WinterSleep wrote:
May 17th, 2017 8:48 am
It never ends with you people. All we heard over the past 6 months was bring vancouver tax here. Now it's not high enough. What's next?
nothing at this point matters anymore, world class cities are meant for most people renting, not buying
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Sr. Member
Dec 23, 2010
640 posts
212 upvotes
Ottawa
WinterSleep wrote:
May 17th, 2017 8:59 am
Boy I sense desperation. Government is already doing too much to manipulate the market. We don't live in Soviet Russia - Canada is supposedly a free market economy.

What you are suggesting will cause prices under 500k to swell as everybody will be attracted to those instead.

Remember the government mandate is not to cause the economy to collapse so you get a house. If these rich folks paying these massive land transfer taxes and annual property taxes go away, our economy will collapse overnight.

If you want to do anything, dismantle CHMC
Nah not really everyone will always be attracted to higher quality housing. We have a progressive income tax system why not a progressive property tax system? The current tax rate of 1% of property value should be the owners of the cheapest properties (I'd say under 400k). Valuation of the house after 400k should pay 2% property tax and after 600k should pay 3% (maybe even higher?) and so on. I feel this would be a much more fair system.
Sr. Member
Sep 30, 2011
625 posts
167 upvotes
MISSISSAUGA
Applesmack wrote:
May 17th, 2017 8:28 am
Regardless still wont be political suicide if it doesnt affect other home owners. Many home owners here in Ottawa would support government interference to pop the Toronto bubble.
are Ottawa-er aware that 1/3 of federal revenue is from construction related tax?
Deal Fanatic
User avatar
Mar 31, 2008
9319 posts
1137 upvotes
Toronto
I just signed documents to close on a house. They now ask for your passport or citizenship as verification is needed. Sign a bunch of other disclaimers. But the lawyers seemed a bit annoyed that all this has come down to them to basically be liable for.

He said just this requirement alone has had a huge impact that he could see. From what I can see, It's not just the price. It's the higher paper trail, uncertainty, and having to put yourself out there in the light in any way, people want to avoid and stay in the shadows.

Older, but funny guy. Can tell he's been through alot of deals. He's like "People like you (meaning small time, local, salary earning ppl), you got nothing to worry about. But it's the ones with the BIG money, the ones that spend millions like nothing with money from abroad, they're always looking over their shoulders. Worried that someone is coming after them (meaning tax authorities, their own government, may certain shady people, laundering type people). This new rule, they hate to even be providing that type of ID

Another realtor at a open house in Scarborough also said the new rules has had a huge impact. The money from China, India, Middle East, Russia, etc., all stopped just like that following the new rules. He's like forget it. No more bidding wars on these type of houses (typical suburban). And the reasons why there's so much listings is people held on like crazy as long as their assets kept going up. But with it now flat/declining from the watermark highs, they're trying to cash in before it goes down even more.

Overall, I'm glad it's returning to more stability and normalcy. Housing is still great LONG-TERM over decades. Those trying to game and play to win in the short-term, good that many have been caught trying to flip and profit like that.
Member
Jan 4, 2013
287 posts
39 upvotes
TORONTO
Totally agree!

I really don't understand why people here hate foreign buyers.
reesefitzmaurice wrote:
May 17th, 2017 9:04 am
i hope there are more foreign buyers, it helps our economy
Member
Jul 16, 2006
312 posts
143 upvotes
gimegime wrote:
May 17th, 2017 11:40 am
Totally agree!

I really don't understand why people here hate foreign buyers.
Because its their right to own a home apparently

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