Changes to foreign buyers tax unlikely to quell Ontario market: Real estate experts
BNN Bloomberg
Real estate experts say Ontario’s decision to increase and expand its foreign buyers tax won’t do much to cool the province’s hot real estate market.
Real estate experts say Ontario’s decision to increase and expand its foreign buyers tax won’t do much to cool the province’s hot real estate market.
The industry's doubts come a day after the province announced the non-resident speculation tax would be moved to 20 per cent from 15 per cent and be applied beyond the Greater Golden Horseshoe starting Wednesday.
The province‘s changes to the tax targeting non-resident homebuyers were coupled with the closure of a loophole that gave rebates to foreign students completing full-time studies for at least two years after a home purchase and foreign nationals who continuously worked full-time in Ontario for a year after buying.
They'll be joined by more housing legislation the province is set to table Wednesday.
But don't expect the policies announced Tuesday to send housing prices plummeting or quell the bidding wars that have become the norm in the market, said experts.
"Everyone in the industry, myself included, are well aware that this isn't actually going to affect the market," said Michelle Gilbert, a Toronto broker with Sage Real Estate Ltd.
