{"id":9340,"date":"2017-07-10T14:11:10","date_gmt":"2017-07-10T14:11:10","guid":{"rendered":"https:\/\/www.investmentimmigration.com\/?p=9340"},"modified":"2019-02-12T14:00:23","modified_gmt":"2019-02-12T19:00:23","slug":"ontario-announces-15-foreign-buyer-tax-plan","status":"publish","type":"post","link":"https:\/\/www.investmentimmigration.com\/ontario-announces-15-foreign-buyer-tax-plan\/","title":{"rendered":"Ontario Announces 15% Foreign Buyer Tax Plan"},"content":{"rendered":"

Ontario is set to introduce a foreign buyer tax in the Greater Golden Horseshoe region to help cool the out-of-control housing market.<\/p>\n

\"Ontario
\nThe 15 per cent tax follows a similar measure introduce by British Columbia in Vancouver, although the Ontario version would cover a larger geographic area.<\/p>\n

If passed, the tax would be effective as of April 21, 2017.<\/p>\n

The Greater Golden Horseshoe extends from Waterloo west of Toronto to Peterborough in the east as the provincial government takes notice of the widening impact of the increased house prices.<\/p>\n

The Non-Resident Speculation Tax is part of the Fair Housing Plan, which includes 16 measures to stabilize the market and make both buying and renting housing more affordable.<\/p>\n

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Read More<\/strong><\/p>\n

Foreign Buyer Tax To Cool Toronto Real Estate Market?<\/a>
\nIs Vancouver Foreign Buyer Tax Already Cooling Housing Market?<\/a><\/p>\n

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It comes as the average price of a home in the Toronto region hit $916,567 in March 2017, an increase of more than 33 per cent in a year.<\/p>\n

Ontario Premier Kathleen Wynne said: \u201cPeople work hard to provide for their families. They should be able to rent or enter the real estate market without making great sacrifices or taking on a huge amount of risk.<\/p>\n

\u201cAt the same time, we recognize the need to protect the significant investment homeowners have made. This plan balances those needs to stabilize the market and prevent a sharp correction that would be harmful to everyone.\u201d<\/p>\n

Stiff Opposition<\/h3>\n

The Ontario government faces some stiff opposition to a potential foreign buyer tax, with the argument being purchases from overseas buyers make up only a fraction of the transactions that take place in the Toronto housing market<\/a>.<\/p>\n

Instead, opponents argue a lack of supply is directly to blame for the rising house prices.<\/p>\n

The Fair Housing Plan also includes measures to increase supply, including a $125 million five-year program to encourage the building of new rental apartment buildings.<\/p>\n

The measure is designed to focus on the areas most in need by rebating a portion of development charges.<\/p>\n

A further measure introduced under the plan will be an expansion of rent control, which previously only focused on buildings built before 1991.<\/p>\n

The new plan with introduce a 2.5 per cent cap on rent for all Ontario residential buildings.<\/p>\n

Quebec Immigration<\/h3>\n

There are rumblings in both Vancouver and Toronto concerning the impact of the Quebec Immigrant Investor Program<\/a> on house prices in the two cities.<\/p>\n

The QIIP awards Canada immigration<\/a> for an investment of $800,000 to individuals with a legally acquired net worth of at least $1.6 million.<\/p>\n

The problem is that once the high net worth individuals who qualify for Quebec immigration<\/a> via the program are awarded Canadian permanent residence, they have the constitutional right to live anywhere in Canada.<\/p>\n

Officials in Vancouver and Toronto say the majority of them end up in their cities, with the result being red hot real estate markets.<\/p>\n

Further reading<\/b><\/p>\n