Quote:
Originally Posted by skiahh
No, the stated purspose is to curtail the astronomical rise in housing prices. The theory being that either 1) the tax would put downward pressure on selling prices or, if not, then 2) reduce demand in the market thus slowing the upward spiral in prices.
It doesn't prevent sales, and applies to all foreigners equally, as I understand it. So exclusionary to all but Canadians, but not targeted at any particular groups. Except that it's primarily Asians buying up the properties, so you can put on the tin foil hat and say it's targeted at Asians, rather than housing prices, I suppose.
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They just implemented the same 15% foreign buyer's tax in Toronto, also to curtail the rising prices. They are also implementing a vacant house tax, as a lot of offshore money is being invested in houses that then sit empty.
In my area (1950-60s predominantly 3 bedroom bungalows) the average price has risen from $1M to over $2M in the last three years. Hopefully the new taxes have an impact.
We are a very tight knit community but that's slowly changing as the young families can no longer afford to buy here. I don't mind the new taxes if it means houses are bought by families who integrate into the community, even if it means the value of my house will drop a bit.