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Ontario Finally Cracks Down On Toronto Housing Bubble: Launches 15% Foreign Buyer Tax

zerohedge.com / by Tyler Durden / Apr 20, 2017 7:38 AM

Almost a year after Vancouver, ground zero of Canada’s housing bubble inflated with Chinese “hot money”, implemented a foreign buyer tax, and just weeks after Toronto’s housing bubble officially went nuts as prices soared 33% Y/Y, prompting economists such as David Rosenberg to demand a government intervention, Ontario’s Liberal government has finally cracked down on foreign buyers and according to CBC will join Vancouver in slapping a 15% tax on home purchases by non-resident foreigners, while expanding the province’s existing rent control system to cover all tenants.

 The moves come after the price of the average home in the Greater Toronto Area jumped 33 per cent in a year, triggering warnings of a real estate bubble, as well as after reporting by CBC Toronto revealed landlords slapping massive rent increases on tenants.

The announcement, which is expected to be made Thursday morning, will include in addition to the foreign buyers tax and expanded rent control, the following measures:

  •     A rebate of development cost charges to encourage building of more rental housing.
  •     A standardized lease document for all tenants.
  •     A ban on flipping of pre-construction units by speculators.
  •     A review of the rules governing the conduct of real estate agents.

The full details will be unveiled at 9 a.m. today by Premier Kathleen Wynne, in Toronto’s neighbourhood of Liberty Village, along with Finance Minister Charles Sousa and Housing Minister Chris Ballard.

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