Ontario's provincial government on Thursday introduced a 15 percent tax on property purchases by foreign buyers as part of 16 measures created to cool Toronto's red-hot housing market.
The City of Toronto and the federal government are also mulling over options to cool the housing market.
Toronto Mayor John Tory has floated the possibility of a vacant home tax modelled after Vancouver's, which came into effect this year.
Even though the province will refund the tax to foreign students and foreign nationals working in Ontario, those people would have to pay a lot of money up front, said Marmourian, who sells new homes and re-sale properties. The price rises reflected confidence in Ontario's economy but when young people could not afford homes, "we know we have a problem and we know we have to act", she added.
Some builders likely will abandon rental projects in the pipeline under the provincial plan to extend rent controls to units built after 1991, which were previously exempt, said Jim Murphy, CEO of the Federation of Rental-housing Providers of Ontario. New rules would see all private rental units fall under annual rent increase guidelines. "Right now, and, over the last few years, the average has been 1,500", said Jan De Silva of the Board of Trade.
A standardized lease document for all tenants.More news: Padres' Weaver gets first crack at Braves
Other measures to be implemented by the CMHC next month include the introduction of improved underwriting flexibilities and a revised premium schedule supporting increased affordable housing.
The number of sales in Metro Vancouver plunged in the months after the new tax, though there are signs that the market may be bouncing back.
Providing municipalities with the flexibility to use property tax tools to help unlock development opportunities.
A tax on assignments would be a good step forward to limit speculation in the new construction market. The Canada Revenue Agency will also work to ensure there's tax compliance.
- Set timelines for elevator repairs to be established in consultation with the sector and the Technical Standards & Safety Authority. Others, however, believe the figure was much higher.
Possibly the most far-reaching of these measures is a 15% Non-Resident Speculation Tax (NRST).More news: 'Don't Mess with Us,' North Korea Says as US Plans Next Move
"We've got 80,000 people a year moving into the city. They'll look after themselves".
But, similar to what transpired in Vancouver, the changes are unlikely to have a long-term impact on house prices in the Toronto area. Yet, it remains unclear whether that will take the form of a vacancy tax.
The foreign-buyers tax won't apply as directly to Hamilton, which sees less interest from global buyers than Toronto, but if it serves to lessen demand elsewhere in the Greater Golden Horseshoe, Hamilton may see some relief.
"One thing however remains clear, whatever the government decides to do should be considered at length and be based in research".
However, unlike GTA and its environs in southern Ontario, the vast majority of local housing markets across Canada are not in need of cooling, the latest CREA data suggests.
"Limitless rent increases are now going to be illegal and renters have the protection that rent generally won't increase more than around 2.5 per cent a year", he said.More news: Death toll in Venezuelan protests reaches nine
"Yet, the question is, will Toronto grow at the same pace we're now experiencing?" But the region was up 4.1 per cent on a month-over-month basis.
- PDP worker killed, 2 injured in Jammu and Kashmir
- Manchester United's Jose Mourinho not giving up on top-four finish
- United CEO says no one will be fired after passenger dragged
- USA again puts faith in China to rein in North Korea
- Compound in marijuana seems to help with severe form of epilepsy
- Manchester United partners with the new Facebook augmented reality developer platform
- NBA Playoffs: How Will Chicago Bulls guard Isaiah Thomas?
- Arkansas executes Ledell Lee
- Fox dumps popular host Bill O'Reilly
- Queen Elizabeth II celebrates 91st birthday