Published: Thu, April 20, 2017
Economy | By Annette Adams

New Ontario Housing Rules Land Thursday. Will This End The Frenzy?

New Ontario Housing Rules Land Thursday. Will This End The Frenzy?

The average price of detached houses in the region was $1.21 million last month, up 33.4 per cent from a year ago. "They should be paying income on those issues, and I'll have more to say on that in the coming days".

Ontario Premier Kathleen Wynne has described the Toronto market as "a frenzy" that needs to be calmed.

"Everything we wanted to say about capital gains taxes was in our last budget and you probably saw what was in our last budget", said minister Morneau.

Sousa and Morneau have jockeyed back and forth over who is responsible for the increasingly feverish market, and appear at odds over whether a tax on speculation or foreign investment is the best approach.

Sousa has said families are "pissed" they can't win bidding wars, and suggested such activities will be dealt with in the housing package.

"The realtors themselves have asked for a little more transparency and determination as to how operations are, " he said.

"There's the foreign buyers tax, the empty homes tax in Vancouver... so there certainly has been progress, but generally speaking, we should raise property taxes and cut income and sales taxes, and we haven't done that yet for the general population", he says.

Late past year, Ontario announced it would double the rebate on its land transfer tax for first-time homebuyers to $4,000 in an effort to help them enter the housing market.

Tory said he has committed to streamlining and speeding up building approvals, in particular for new affordable rental housing and he is also looking at a vacant homes tax.

According to Gordon, another way of taxing speculation is to tax real estate sales when the seller has only owned the property for a short amount of time, with the highest rates for those who've owned the home less than six months.

"A strong housing market reflects Ontario's strong economy".

Buyers will be required to give information about their residency, citizenship and permanent resident status, if they're buying the home for the benefit of anyone else, or, if the buyer is a corporation, about the ownership and control of the company. The provincial government is "aware that a response is needed now to address recent dramatic increases in rents and home prices", he said.

But in an attempt to placate the real estate industry, which is against the tax and has maintained that the exact same fee in the Greater Vancouver market helped drive sales down as much as 40 per cent, the provincial government has plans to grant a number of exemptions.

The government will reportedly bring all tenants under the province's existing rent control system, ending the exemption that now allows unlimited rent increases in units built after 1991.

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