Real Estate

Liberal Victory Means a National Foreign Buyer's Tax

  • Last Updated:
  • Oct 31st, 2019 10:27 am
25 replies
Deal Addict
Dec 4, 2016
1989 posts
1011 upvotes
Trudeau's tax is annual and ongoing, so in some ways it's more effective than 15% buyer tax. On the other hand, taxing properties that are both vacant and foreign owned may not cover all that much. BCNDP's most effective housing tax appear to be a simple luxury home tax for houses 3 million plus, with no exception what so ever.
Deal Fanatic
Oct 7, 2007
9136 posts
5018 upvotes
It will be interesting to see how many of the Liberal promises turn to reality AND for those that do, how many are implemented as expected. On the flip side, I wonder how many surprises there will be. We are already hearing things that make me wonder about what will really happen. Don't get me wrong, not delivering on some promises may be a good thing for our country. But I think what we see come to fruition is a better indicator of reality than anything we hear.
[OP]
Member
Jun 23, 2009
313 posts
547 upvotes
Toronto
I agree with most of the comments, you should be required to be a permanent resident of Canada to own property. The house next to me has sat empty for the last 3 years. 2 houses on the street I grew up on sit empty today. It does us no good to allow these houses to be bought by foreign investors to just sit empty. Which is another thing I'd love to see the government look at, taxing empty houses no matter where the owner is located.

Homes should be for living, not for investing. Turning homes into investments has put us in this crisis.
Deal Addict
Mar 20, 2017
1366 posts
1156 upvotes
Sonduren wrote: I agree with most of the comments, you should be required to be a permanent resident of Canada to own property. The house next to me has sat empty for the last 3 years. 2 houses on the street I grew up on sit empty today. It does us no good to allow these houses to be bought by foreign investors to just sit empty. Which is another thing I'd love to see the government look at, taxing empty houses no matter where the owner is located.

Homes should be for living, not for investing. Turning homes into investments has put us in this crisis.
At least you are trying to generate opinions, even though its wrong.
In other countries, people without financial literacy often end up on street drugs use and stabbing each other.

Election results is for people like you. If something is possible to say for sure, one 100% guaranteed thing is that Trudeau will cause way bigger rental shortage than we have today.
Just because you have no common sense to be grateful to people who create supply. Low fraction of them keep units empty for personal desire, while other are using it for income producing purposes.
As a result you reap what you sew. If you don't buy your home, nobody will build it for you to live as rental...and you will be in desperation to find any roof above your head.

But don't worry, most Canadians are like you. Most Ontarians as well. You are not worse than average.
Deal Fanatic
Oct 7, 2007
9136 posts
5018 upvotes
I believe in free markets (i.e. developers should be able to build and people should be able to buy) that allow the natural forces of supply and demand to allow prices to evolve naturally. HOWEVER, in Canada we seem to have a huge, unaddressed problem with enforcing laws which leads to a large amount of cash in the system that is not clean nor from clean sources. And the government is not really doing anything noticeable about it. If one were to remove all of the dirty money from the market, I think real estate prices would be far less inflated. In Vancouver, we know that there is a lot of dirty money floating around due to gangs, drugs, tax evasion and foreign money being laundered here all contributing to a rapid rise in real estate values. This makes no sense. Foreign money that comes from clean sources means that it was earned honestly, even if from another country, and after proper taxes are paid will not be worth significantly more than local dollars. Until we stop the dirty money with tough law enforcement, our crime problem and housing problem will continue to plague our communities. In addition, free market forces means that politicians are not doing back door deals with developers at the expense of the taxpaying public as has also been observed in places where real estate prices have skyrocketed. This is not loyal on the part of the politicians to their constituents who elected them.
Deal Addict
Mar 20, 2017
1366 posts
1156 upvotes
choclover wrote: In addition, free market forces means that politicians are not doing back door deals with developers at the expense of the taxpaying public as has also been observed in places where real estate prices have skyrocketed. This is not loyal on the part of the politicians to their constituents who elected them.
They don't need back doors. They do same corrupt schemes using front door and a red luxury carpet. Just see some photos of John Tory working on Affordable Housing Program. He and 20 people who dictate their terms. Small businesses are intentionally excluded from this elite club by removing eligibility for room rentals to get any money fro John Tory. Big guys don't need any competition and price dumping.
Deal Addict
Dec 23, 2010
1897 posts
931 upvotes
Moon
Sonduren wrote: I agree with most of the comments, you should be required to be a permanent resident of Canada to own property. The house next to me has sat empty for the last 3 years. 2 houses on the street I grew up on sit empty today. It does us no good to allow these houses to be bought by foreign investors to just sit empty. Which is another thing I'd love to see the government look at, taxing empty houses no matter where the owner is located.

Homes should be for living, not for investing. Turning homes into investments has put us in this crisis.
Homes are the most important investment any hard working Canadian has. Instead of whining how about you work harder then maybe you can buy houses to 'sit empty'. By the way the empty homes are a total myth. There are very few homes that are empty as the market simply regulates itself on that front. Anyone leaving homes empty is losing money. If someone is rich enough that they can lose money for the convenience of having a vacation home available at any moment then that is their prerogative. Stop trying to tell people how to live their life and how to use their assets.
Deal Fanatic
Oct 7, 2007
9136 posts
5018 upvotes
GalvToronto wrote: They don't need back doors. They do same corrupt schemes using front door and a red luxury carpet. Just see some photos of John Tory working on Affordable Housing Program. He and 20 people who dictate their terms. Small businesses are intentionally excluded from this elite club by removing eligibility for room rentals to get any money fro John Tory. Big guys don't need any competition and price dumping.
Sad, it sounds like this is happening everywhere across our country and beyond. While the elites use divisive language to pit homeowners against those who cannot afford homes, there is a growing divide between the peasants and the elites while the elites continue to make all of us poorer each day through rising taxes and more control over our individual autonomy. I didn't realize what was happening at first but the lights have been turned on for me and now I can't believe how bad it has gotten. I also cannot unsee what I see. I hope that the voting population at all levels wakes up one day (hopefully sooner rather than later) so that they can make informed voting choices. It seems that many of us are still fooled by the smiles and good looks of our politicians while we are getting completely conned at the voting booth.
Deal Expert
Feb 29, 2008
18705 posts
16921 upvotes
Tarrana & The Ri…
4 years and the affordability problem has never been worse. I expect more of the same from the Libs. More foolishness to push home prices higher.

But the funny thing about it is all the boogeymen that have been created. Foreign buyers, landlords, dirty money and yet we never talk about there incompetence of our government officials or the amount of underhanded crap our government does out in the open. From all the contracts that get handed out to friends and family while the public is distracted by the shiny object.

I expect more of the same and the blame will just go to home owners, Chinese and money laundering.

When they get rid of dirty money and exhaust all tax options. Who will people blame when they still can’t afford housing? Maybe dragons?
Member
Mar 20, 2011
307 posts
218 upvotes
Langley, BC
While I'm not against the 1% annual foreign buyer tax, to me the real issues are far more complex.

We have zoning regulations that limit density and slow development in our current cities that push up land prices.

We also have a lack of metropolitan cities in Canada that offer high-skilled work.

Population and capital flight to the small number of cities that are metropolitan just pushes up prices further.

Smaller cities are not seen as an option to many because there is no form of intercity public transit as well as many are being expanded as residential sprawl, not in a dense urban form.
Deal Expert
Feb 29, 2008
18705 posts
16921 upvotes
Tarrana & The Ri…
CanadaJimmy wrote: While I'm not against the 1% annual foreign buyer tax, to me the real issues are far more complex.

We have zoning regulations that limit density and slow development in our current cities that push up land prices.

We also have a lack of metropolitan cities in Canada that offer high-skilled work.

Population and capital flight to the small number of cities that are metropolitan just pushes up prices further.

Smaller cities are not seen as an option to many because there is no form of intercity public transit as well as many are being expanded as residential sprawl, not in a dense urban form.
Bingo. Add 5 more Torontos in Canada and things look much different. Change zoning and allow property to get built quicker without all the red tape. You know how long it takes to get a condo started? Way too much time.

The bubble is mostly self-inflicted
Deal Guru
Feb 22, 2011
11868 posts
15296 upvotes
Toronto
They are also expanding other home buying initiatives and increasing the home buyers plan that will allow condos in Toronto.
Deal Fanatic
Oct 7, 2007
9136 posts
5018 upvotes
JayLove06 wrote: 4 years and the affordability problem has never been worse. I expect more of the same from the Libs. More foolishness to push home prices higher.

But the funny thing about it is all the boogeymen that have been created. Foreign buyers, landlords, dirty money and yet we never talk about there incompetence of our government officials or the amount of underhanded crap our government does out in the open. From all the contracts that get handed out to friends and family while the public is distracted by the shiny object.

I expect more of the same and the blame will just go to home owners, Chinese and money laundering.

When they get rid of dirty money and exhaust all tax options. Who will people blame when they still can’t afford housing? Maybe dragons?
They seem to have a common MO. First, sow division... over here are the good guys and over there are the bad guys. Then, they punish the "bad guys" with a new tax because they are the bad guys and use the money to pad their coffers, hire more staff and fund their campaigns for re-election. I wish more people would stop listening to nonsense and look at what is really going on. We are all considered peasants under this regime. Just an inconvenience really to the ruling class.
Deal Fanatic
Oct 7, 2007
9136 posts
5018 upvotes
CanadaJimmy wrote: While I'm not against the 1% annual foreign buyer tax, to me the real issues are far more complex.

We have zoning regulations that limit density and slow development in our current cities that push up land prices.

We also have a lack of metropolitan cities in Canada that offer high-skilled work.

Population and capital flight to the small number of cities that are metropolitan just pushes up prices further.

Smaller cities are not seen as an option to many because there is no form of intercity public transit as well as many are being expanded as residential sprawl, not in a dense urban form.
City governments are not helping with all of their crazy taxation used to grow their own bureaucracy as they put in policies that are really hurtful to our quality of life. In Vancouver, taxpayers literally have no say. I'm not sure if it has changed under our newly elected council as the policies still seem highly in favour of special interests at the expense of the people.

I think a strong will to want to solve problems is what is needed. Our problems are completely solvable but our systems are corrupted and our current elected officials have proven that they are not willing to do the right thing to make our city/province/country a better place to live. When we stop voting these people in and start voting for something better, that is when we might HOPE to see something different.
Deal Addict
Jan 29, 2010
1806 posts
2762 upvotes
Toronto
Liberal victory means investment property owners won. Trudeau will force prices to be stagnant, thus pushing rent to go up due to higher demand (more people needing to rent because they can't afford to buy).

Losers: poor people or renters, homeowners
Winners: Investment property owners

Let's try it again in 2 years guys. Vote blue this time. Don't be dumb.
Deal Addict
User avatar
Dec 13, 2016
4214 posts
3704 upvotes
Jesus Christ.

Just limit land ownership to permanent residents and let the foreign investors buy condos.

When there is condo demand everything else flourishes. I see this first hand in Asia. There will be malls, there will life.

Ultimately the biggest reason why prices are high is the awful public transit.

Cheers
Deal Expert
May 30, 2005
47582 posts
8190 upvotes
Richmond Hill
jillaryit wrote: Liberal victory means investment property owners won. Trudeau will force prices to be stagnant, thus pushing rent to go up due to higher demand (more people needing to rent because they can't afford to buy).

Losers: poor people or renters, homeowners
Winners: Investment property owners

Let's try it again in 2 years guys. Vote blue this time. Don't be dumb.
That's assuming investment property owners are only looking for cash flow. There are much better investment options than the 3% you get from rental cash flow. Most investment property owners are looking to eventually cash out with capital appreciation while receiving the cash flow that serves to only cover the cost of the investment over time. Certainly can't do that if prices will be stagnant.
Deal Fanatic
Oct 7, 2007
9136 posts
5018 upvotes
What the media did not share with us BEFORE the election is the true sentiment across the country. If you research what is going on OUTSIDE of the MSM you will discover that there is a serious issue affecting our country that is NOT BEING TOLD. There is a large fracture developing in the unity of our country which is becoming even more real as a result of our recent election. I am not an expert but civil unrest as we are seeing in our own country is not viewed upon as healthy for our country and I don't think this can fare well for real estate investors across the country either. Companies in Alberta have started laying off hundreds of employees but the news outlets continue to stay silent. Our current leadership created and exacerbated this problem and now we have a unity crisis on our hands. I am a patriot and want to see our country weather this storm but there are some pretty strong forces at play here and I don't think our current leadership has the political will to treat all Canadians equally. Time will tell how this all turns out.
Deal Expert
Feb 29, 2008
18705 posts
16921 upvotes
Tarrana & The Ri…
The media is pro Lib so.....yea. I'm just along for the ride. It'll be interesting to see how Ontario fares. Trudeau is a tool and so is Ford. I'm not too optimistic.

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