Remember the foreign buyers tax that was implemented in Vancouver to subdue its crazy real estate market? Well, that tax might be making its way to Ontario, specifically Toronto. Finance minister, Charles Sousa says nothing is off the table regarding the tax, which implies anything is game at this point.
As we all know the scarcity of homes for sale has pushed their prices sky-high, a result of the widening gap between the demand and supply for property. The lack of supply has created an abundance of bidding wars on properties that would typically not get a second glance. By adding this tax it would discourage foreign buyers from further inflating prices of homes that are a hot commodity.
The Toronto Real Estate Board (TREB) is not for this, along with Mayor John Tory. Both think that this will not solve the issue of high prices. TREB president, Larry Cerqua, even goes ahead to appreciate the purchases of foreign home-buyers, stating that it contributes to the growth of Ontario’s economy.
What must be addressed here is the root of the problem: lack of supply. A tax may solve the issue of demand and further inflation, however would it be beneficial to Ontario’s economy? On the other hand, would this tax provide residents with a competitive edge?