Market watchers have little faith anti-flipping tax, foreign buyers ban will improve housing affordability in Canada

both came into effect this month. Neither move is expected to significantly impact the housing market in a way that would lead to a reduction in property prices, or curb the treatment of housing as a commodity. A report released by the Parliamentary Budget Office in September showed the house price affordability gap widened last year.

“So you could go ahead and buy the place, you wait 18 months and they’ve chased you, and then you sell it, and you pay the $10,000 fine. That’s kind of the perfect money laundering timing scenario.” “Just as we found out with the foreign buyer’s ban, the new [anti-flipping] tax could have many holes as a pair of fishnet stockings,” Mr. Butler says.

“There’s one other interesting twist on the flipping tax,” he says. “If you lose money – which could happen now with the market being soft and maybe going down – the loss cannot be claimed as a business loss. That’s very interesting. They just wanted to, I imagine, say, ‘this is a no-go area. Don’t do it. If you happen to lose money you’re out of luck.’”“Looking back, I don’t think anything that B.C. has done, or now the federal government is doing, has had a big impact,” Prof. Kesselman says.

Once it applies to assignment sales, government estimates another $5-million in tax revenues over five years. The proposal to extend the anti-flipping tax to assignment sales was announced in the federal government’s fall economic statement. Profits from the assignment sale would be fully taxable as business income if owned for less than 12 months.

'Market watchers' may not be completely unbiased.

If you raise interest rates to 20% you'll solve the problrm overnight just like in the 1980s.

It's correct. It's all just a tax grab by politicians with no impact on solving the problem. They just want their slice of the pie. shameful

Unlikely!

Not even a dent

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Canada's real estate market still 'really overvalued,' warns economistAn economic expert believes that the possibility of a more severe crisis in Canada's housing market remains a possibility because real estate remains 'really overvalued.' Asian money launderers that the COWARD LAZY police do nothing about. No kidding, it’s still completely ridiculous. In most states you could buy 3 large houses for the cost of o townhouse here. IMO some cities prices can still go higher when you compare prices to other major cities around the world.
Source: CTVNews - 🏆 1. / 99 Read more »

Posthaste: Housing market bottom is within sight, TD saysDeclines in home prices and sales are expected to bottom out in the first few months of 2023, according to TD Economics. Find out more. With interest rates expected to rise, you have to question how low is that bottom.
Source: calgaryherald - 🏆 64. / 52 Read more »

Hot housing market a factor in soaring Cape Breton property assessment values, report finds | SaltWireA hot housing market, along with a rise in commercial construction projects, have translated into soaring property values across Nova Scotia, says an independent, non-profit authority responsible for assessing all property in the province. | SaltWire
Source: SaltWire Network - 🏆 45. / 63 Read more »

Posthaste: Housing market bottom is within sight, TD saysDeclines in home prices and sales are expected to bottom out in the first few months of 2023, according to TD Economics. Find out more. another hopeful? bank report?
Source: nationalpost - 🏆 10. / 80 Read more »