Today, the Provincial government has increased the Foreign Buyer’s Tax from 15% to 20%.
This was a sudden change, but not entirely unexpected.
As you may remember, when the previous Provincial government initially introduced the Foreign Buyer’s Tax in 2017, Toronto detached homes dropped an average of $400k over 4 months.
The problem is, I expect a lot of changes in the next year that won’t solve the problem of supply.
Other rules on the horizon that they are considering, is increasing the down-payment for investors to 35%+ and of course, the primary resident’s tax exemption is always on the table.
B.C. is looking at allowing a Buyer’s “Cooling off” period, where buyers can just walk away if they feel like it. (Hopefully they don’t consider that law here!)
However, there may be some good laws coming up.
Recently in Burlington, a developer told the buyers to pay another +$300k or they will cancel their purchase! (Currently, this is legal)
Hopefully they introduce some changes to the laws that could help with buyers who get stranded in this situation.
I think this year will see a lot of changes, including the interest rate hikes, so stay tuned while I keep you informed of the market.
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