Happy Monday morning! This newsletter has been covering three big themes in the Canadian housing sector this year. In no particular order they are as follows, excessive immigration exacerbating a housing crisis, higher mortgage rates ironically trapping people in their homes, and the destruction of new housing supply brought forth by a trippling of interest rates and an economic downturn. We recieved important updates to all three big themes this week. Let’s discuss.
What am I missing here? the solution to bring home prices back down to earth seems obvious: apply the Property Transfer Tax as originally intended to discourage speculation and property investment in the market: Apply it to non-primary residence purchases only, and raise the tax to the point it discourages speculation and investors, local or foreign. Bring in a temporary one-time speculation tax to target all current non-primary residence owners. This would trigger a near-instantaneous flood of listings, thus bringing prices back down to reality.
All the BC provincial government needs to do is to work out a tax rate which targets the speculators. The fact that they haven't, betrays their corruption. Time to drain our own swamp.
What am I missing here? the solution to bring home prices back down to earth seems obvious: apply the Property Transfer Tax as originally intended to discourage speculation and property investment in the market: Apply it to non-primary residence purchases only, and raise the tax to the point it discourages speculation and investors, local or foreign. Bring in a temporary one-time speculation tax to target all current non-primary residence owners. This would trigger a near-instantaneous flood of listings, thus bringing prices back down to reality.
All the BC provincial government needs to do is to work out a tax rate which targets the speculators. The fact that they haven't, betrays their corruption. Time to drain our own swamp.