Without doubt, the two hottest housing markets in Canada have been in and around Vancouver British Columbia, and Toronto, Ontario.
Many have long blamed foreign buyers, and investors and speculators.
To cool the overheated market which has forced many Canadians to abandon dreams of home ownership, Vancouver recently imposed a 15 percent tax on foreign buyers.
This has cooled the housing sales and slowed slightly the constant increase in prices.
It also seems to have had the effect of sending foreign buyers to look elsewhere, notably to the already overheated Toronto market.
Now a city councilor, Jim Karygiannis wonders if Toronto shouldn’t also adopt a foreign buyers tax.
Toronto residents favour a foreign buyer tax
He said the transfer tax would not apply to landed immigrants, permanent residents or those on a study or work permit.
Quoted in the Toronto Sun, he said, ““A non-Canadian resident is someone who says to his broker, ‘Buy me five or six homes abroad.’ And he doesn’t even live in the country”.
He commissioned a survey of Torontonians and that revealed that 52 percent were in favour of such a tax, while 21 percent were opposed, and 27 percent weren’t sure.
Toronto Mayor, John Tory, so far is lukewarm to the idea
Meanwhile, as is the case in Vancouver, areas outside of Toronto are experiencing rapid price increases. People pushed out of those major cities are looking at nearby areas for more affordable housing which in turn is increasing prices there.
Latest figures for Hamilton, near Toronto, show in the last three months alone, average housing prices have increased by 10.3 percent.
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