The Ontario government has introduced a 16-point plan to try and control the real estate market. A summary of the 16 point can be found below, and the details can be accessed at the following Ontario Government Link.
1. Implementing a new 15-per-cent Non-Resident Speculation Tax (NRST) on the price of homes in the Greater Golden Horseshoe (GGH) purchased by individuals who are not citizens or permanent residents of Canada or by foreign corporations. (Upon the enactment of legislation, the NRST will be effective as of April 21, 2017. Binding agreements of purchase and sale signed on or before April 20, 2017 are not subject to the NRST.)
2. Expand rent control to all private rental units (with “an increase capped at 2.5%”)
3. Introduce changes to the Residential Tenancies Act – including standardized leases
4. Create new market housing and affordable-housing units with surplus provincial land
5. Empower the City of Toronto “and potentially other interested municipalities” to introduce a vacant homes property tax
6. Making sure multi-residential apartment buildings are charged property taxes at similar rates to other residential properties
7. A $125-million program over five years “to further encourage the construction of new rental apartment buildings”
8. Giving municipalities “flexibility” to use property taxes to fuel development
9. Creating a “Housing Supply Team” to identify obstacles to housing developments and work with developers and municipalities to address them
10. Working to “understand and tackle” real-estate practices that allow “paper flipping,” which includes using assignment clauses for real-estate speculation
– An assignment clause allows buyers to sell a property before ever taking possession thus avoiding the land transfer taxes, closing costs and capital requirements.
11. Reviewing rules for real-estate agents to “ensure that consumers are fairly represented”
12. Establishing a “housing advisory group” to advise the government on the housing market and the effects of the newly announced changes
13. Educating consumers on their rights in real-estate transactions
14. Partnering with the Canada Revenue Agency to strengthen reporting requirements and make sure taxes are paid on real-estate purchases and sales
15. Overhauling standards for elevator repair
16. An updated Growth Plan with municipalities to address density and “an appropriate range of unit sizes”
If you have any questions about this sixteen point plan or any investing, buying, selling or general real estate questions please contact me.
Blue Elephant Realty Inc.