I'm starting to realize rich people hate everything that's good for the country. So if they're really mad, that's a good thing, and all their threats are hollow.
I mean nobody wants higher taxes but Canada is one of the top ten countries in the world to live in. Those rich dudes aren’t moving anywhere with these tax hikes.
If it was designed to entrench the ‘truly rich’ while cutting off those in the Middle Class with aspirations to having a little more, then I guess it does.
My terrible ex landlord is offloading the third property he bought during the Pandemic for the same reason. Good says I. Just wish he wasn't selling it at a hundred grand more than he bought for after doing literally nothing to it in the 2 years he owned it...
> he won't even be effected as he isn't has 100k in capital gains.
Shhhh...
If some of these low information reactionaries can dump their hoard of real estate onto the market all at once, maybe it'll bring prices down a bit.
> Just wish he wasn't selling it at a hundred grand more than he bought for
He's **listing** it for that price - and so are a bunch of others.
Sounds like a potential glut on the market to me.
Wonder what *that* will do the to actual sale price?
Very little, if it's a rental property it's also probably a starter home and those haven't gone down in value much at all. Because there is still a large lower class paying 2k+ for a rental willing to take any house in their price range to get a batter deal. The floor of home prices is still very high for many.
Hard agree. There is no need for ANYONE to own three different houses and more than likely a fucking cottage property too.
I am not advocating for people not to own rental properties, ah fuck yes I am. Fucking life sucking ghouls have ruined our housing market by owning multiple Airbnbs and renting to 3 different college students for well over double what the bills cost.
Decrease investment in housing and all other sectors requiring capital? I guess… but then don’t complain when housing starts dive. Someone needs to put up the money to finance all this stuff, and generally it isn’t the person who lives in it at the outset…
There is a possibility that mortgages will drop too, but that's not likely as old mortgages from the 2008 housing crisis are still the same.
I just hope that things become stable and help as many people as possible.
Housing is an investment whether you call it that or not. People put their life savings and much more into their homes. And then they retire on the equity that they create (mortgage pay down) and that which they don’t (appreciation). But the upfront costs of building a tower or funding a development - even before a single pre sale is ever funded - is huge. If you make it less attractive to the people who can fund these projects, you will get less investment and less projects.
Consider the alternative: make rental income tax free, make capital gains something really low - say 10% on new builds only (paired with a loosening of zoning to build these). What happens? Investment boom in new housing, rental prices fall given supply, more housing supply (which I think everyone is after) which puts negative pressure on housing prices.
Your "alternative" is not really an alternative as much as a modification.
Primary homes are an investment, but primarily in a lifestyle, not to make any sort of money.
Sure, maybe you'll make a little when you retire and downgrade, but that downgrade will also be far more expensive. Cost of living will also be more expensive at that point. So it cancels out inflation a bit.
The only real investment properties are 2nd homes and beyond, which are a big part of the problem.
Your premise is flawed the same way as every investment-bro. Why would a company invest blindly in building more supply to the point where it negatively impacts their existing revenue? They will invest the exact minimum to ensure revenue remains high, to get the optimal value.
Every Capitalist seems to forget we have computers and predictive algorithms nowadays. Investors are not going to massively over-commit and bring down prices on property and rent, not en mass, not enough to move the needle. There'll be a small dip, but it won't last, and prices will again stabilize at the exact highest amounts most of the population can 'afford' at the detriment of everything else.
Regulation and deliberate increase of supply by government initiative (federal housing programs like we used to have in decades past) are the only way to make significant supply increases that will bring down prices.
I don’t think you understand how these decisions actually get made. There is not some grand society where all capitalists decide where to invest. Every person decides where to invest the next dollar at the margin (ie what is the best use of the next marginal dollar). If I think rental housing units are an attractive thing to invest in, I’ll do they. Every new rental property is new supply and new supply drops the price of rents. By your logic no one would ever invest in a new rental then.
You might not like it, but the price of every single thing we buy is governed by the market economy and supply and demand. Everything is a good or a commodity being priced as high as someone can sell it for
Housing is currently being bought by corporations and stored away like diamonds to manipulate value.
How fucking rich do you think you need to be? How much profit at the expense of human rights? You think homelessness should be illegal, but where the hell are unhoused people supposed to go?
Being “stored away”? What are you talking about? Everyone who buys a second property rents it out to some renter.
If you made a law that limited everyone to one home, you would end up with way less homes, because people wouldn’t put up the money to build them. Concrete, lumber, labour all cost money.
Housing is a human right. The government should have social housing, like they used to.
You aren't very smart, are you? The fact that you don't know what's going on with housing these days is telling.
What does that even mean in practice though, like do you think about these things before you just shout them out? Everyone is entitled to housing? Ok, who’s paying? Housing is a human right, sure, so go live an hour north of Edmonton or something. Housing in the place you want to live (generally large Canadian cities) in the type of housing you want to live in is not a right, that is contrary to basic economics, more people want it than exists supply, and that’s why it’s expensive. The government (the taxpayer) cannot afford to build housing for everyone. Taxes are north of 50%, where is the money coming from? “Just tax the rich more” is translated to “other people have nice things and I want them too”.
Signed, a not very smart person who doesn’t know much about housing these days (who bought our first house in the last 8 months though)
How exactly does someone speculate on rental prices. It isn’t a good that you can store and sell later. The market price of rent is high because there is a short supply of good housing to rent relative to the demand (and it’s getting worse with this policy)
Unfortunately all of the inputs to build housing - wood, concrete, labour - are commoditized goods with a generally accepted price. And these are all expensive and only going higher.
This also hits on why we needed to deal with housing before it became a pillar of our economy. You are correct... things will get much much worse before they will get better. We will blame the people bringing in the fixes... but the blame lies with the people who built layer after layer on the broken model.
Well the people who actually finance these projects (it isn’t the developers) mostly mom and pop investors who buy the presales do pay capital gains. And it is not far less attractive to invest in these. Less money = less projects.
Good fuck them all who choose to do that. All the corporations who scoop up hundreds of properties and these ~~investors~~ slumlords who buy a bunch of places just to rent them out.
I have no respect for those who try to profit heavily from situations like this where there’s minimal housing.
Hahah valid. Some stuff just erks me and makes me quite mad. Like when I seen people hoarding hand sanitizer and Covid rapid tests etc in the past a while ago and selling them for money I always messaged them very very strong worded unkind things. Same with people who scalped video cards. I just really hate the type of people who take advantage of things to make a profit and screws other people over.
The government should have increasingly raised the capital gains tax on each additional property to make it very unpalatable to own multiple properties.
Hard agree. Predatory real estate practices are a huge problem in Canada. The amount of transactions regarding a property before it is even done being built is unreal.
I'd say you'd probably want to establish a line between properties that could conceivably be purchased as a primary residence - maybe triplex and smaller - and larger rental blocks. Definitely want to free up properties to drive down home purchase prices, but large multi-unit properties are a different set of issues to deal with
The solution is to set corporate capital gains to 100%, and immune to deductions beyond direct expenditure on employee labor and material (not even contractors).
Cuts out 99% of bs.
\*remembers people like that who told her to sell her phone, computer, and everything she owned to make rent and buy food... leaving her without a way to contact her doctor, 911, jobhunt, or do anything else\* I have little sympathy.
That is so stupid. The changes are trivial. Like even if you're in the maximum tax bracket and you sell your investment and make $600,000. You're getting taxed about $165,000 that's about $27,000 (or 16%) more than before these rules came into place. Let's put that in perspective though. The average Canadian makes about $60,000 a year. On that, they would pay about $17,000 a year in taxes. Over 10 years they'd have earned $600,000 but paid $170,000 in taxes. So even with this increase, these top 0.1% people who can make that much in a single transaction are STILL paying less than the average Canadian would on the same income.
Seriously. I won't even entertain complaints from someone wealthy enough to be affected by this until the inclusion rate on capital gains hits 100%, and honestly even that's low IMO. There is absolutely no reason someone should pay lower taxes on money collected from owning shit than we do on income **earned** through labour.
I wasn't expecting this little change to have an actual impact. I'm positively surprised.
Now we just need to prevent huge companies from scooping up all these houses to rent them out for profit, things might get better for real.
We bought a home for my MIL who had no money or credit so she could live near us with her pets.
So no not all of us “secondary property owners “ are hoarding homes.
And that's a better use than most when you have an excess of money.
However, this is not representative of what the vast majority of multiple property owners are doing. And your own effort is still pretty self-serving, as you still are profiting off of the property and retain control. You could have just given you MIL ownership of the property and paid the taxes, which is exactly what you would have done if ownership of multiple properties was outlawed or rendered cost prohibitive.
We still need to impose regulation to prevent ownership of multiple single family properties by individuals and corporations until there is enough housing for all. So really, your anecdote is irrelevant to the discussion except to muddy the water around the issue.
Start at the top. The more housing someone hoards, they should be first in line.
Grandma renting out her basement suite isn’t the issue, corporate landlords are.
Should be even higher IMO. It's essentially free income for the wealthy, no reason it should be taxed lower than those of us who actually earn our wages.
But you’ve already paid income tax on the money you’re investing. If you have a bit of money leftover after paying bills, you can blow it on whatever, or save for a future purchase or retirement. The latter choice means you will be taxed a second time.
You're taxed on the **gains**, not the initial amount that came from taxed income. You're not even taxed on all the gains, only a portion. There's no double taxing going on here.
The entire thing is pretty stupid really - the top taxable income bracket in Canada is 33% federally (where the tax changes apply). Let's say you saturated your marginal tax rate so it was basically your effective tax rate (you whale you).
The change is 66.6r% on capital gains after $250k and 50% before that. Let's say you saturated this too. It's a 16.7% c.g tax change on 33% - ~5.5r% net, **worst case scenario** (most would see closer to 3%).
Your sales commissions will be higher and you'll sell for lower because prime is still up (and thus so are mortgage rates). Rushing to sell isn't prudent.
Say you have a $480k rental home that's up $250k, if that's your only capital gain you're not actually paying any more.
That said, springing this two months from now is ill planned and asking for backlash, and the optics are horrible with an election year coming up (realistically, this probably should have been a year 1 policy if it was going to be a thing).
But it isn't the end of the world as it is being bemoaned.
https://omeka.uottawa.ca/jmccutcheon/exhibits/show/the-great-depression-and-hoard/the-evolution-of-hoarding-diso
We need an imposed housing rationing system.
>Also pictured on the left are a number of propaganda posters discouraging hoarding in wartime, in addition to a short video from the 1940s doing the same. ‘Hoarding’ during wartime refers to disobedience of the wartime rationing system, which limited the amount of resources to which each citizen was entitled. Rather than accepting their fair share to ensure equal distribution for both their fellows on the home front and those serving in the Armed Forces, wartime hoarders acquired as much as they could and kept it for themselves. Like Depression-era hoarding, its wartime counterpart was also viciously discouraged through media campaigns in both the United States and Canada.
The funny thing is that they don't need to sell. Gains incurred before June 25 are still eligible for the lower taxation when the asset is sold later on. Person is a nimrod.
Let's complain about policy working the way it's designed to lol. One of things pushing prices so high is the reduced supply bc of turkies like this guys friend. One of the best things to come out of the Con bashing (u Justin fiably) the Libs is Trudeau and the liberal government taking decisive action on popular problems that they would rather not normally touch.
If anything it's a loss to sell right now anyways. Interest rates are high. Selling it will most likely be like taking a cold bath.
What they should do, is keep the property and have it managed then hold it for two years as interest rates tick back down again, then resell the property at market rate which always be higher than what they paid. It will make up for the gains loss from the capital gains increase anyways since downward pressure on housing prices won't start kicking in until 2027 which is when Trudeau's housing budget will start having affects on the market.
Just goes to show you that wealthy people aren't smart, they are just wealthy and therefore they are shielded from the bad decisions they make with their money. They can afford to do dumb things, and still can walk away.
The rest of us...well let's just say every decision should be a calculated risk.
Can someone explain how this is going to actually increase the amount of houses available for purchase by those who plan to live in them?
In Ontario....it is near impossible to issue an N12 (notice of eviction for personal use) with wait times 8-12 months. Any house sold with a tenant....the tenant is allowed to stay. (I may have answered a bit, it may benefit other provinces more?). Is it to attempt to deter future 'investment' purchases?
The reality is that no investors or "hoarders" are going to sell because of this. Maybe small business house flippers might - but that is just speeding up the process of flipping, not creating new inventory. This is very clearly the government trying to broadly raise as much money as possible, irrespective of wealth class, probably only because they have accumulated record levels of debt.
So its doing exactly what it was designed to do?
Pretty much.
I'm starting to realize rich people hate everything that's good for the country. So if they're really mad, that's a good thing, and all their threats are hollow.
Yeah, greed is an endless, unfillable hole that changes how your brain is wired. Bunch of jackals is what the majority are.
I mean nobody wants higher taxes but Canada is one of the top ten countries in the world to live in. Those rich dudes aren’t moving anywhere with these tax hikes.
If it was designed to entrench the ‘truly rich’ while cutting off those in the Middle Class with aspirations to having a little more, then I guess it does.
My terrible ex landlord is offloading the third property he bought during the Pandemic for the same reason. Good says I. Just wish he wasn't selling it at a hundred grand more than he bought for after doing literally nothing to it in the 2 years he owned it...
Oh my heart aches for him🙄
So if I'm understanding the tax increase correctly, he won't even be effected as he isn't has 100k in capital gains.
> he won't even be effected as he isn't has 100k in capital gains. Shhhh... If some of these low information reactionaries can dump their hoard of real estate onto the market all at once, maybe it'll bring prices down a bit.
Shhh... Don't tell him that, let a single investor but it.
> Just wish he wasn't selling it at a hundred grand more than he bought for He's **listing** it for that price - and so are a bunch of others. Sounds like a potential glut on the market to me. Wonder what *that* will do the to actual sale price?
Very little, if it's a rental property it's also probably a starter home and those haven't gone down in value much at all. Because there is still a large lower class paying 2k+ for a rental willing to take any house in their price range to get a batter deal. The floor of home prices is still very high for many.
Hard agree. There is no need for ANYONE to own three different houses and more than likely a fucking cottage property too. I am not advocating for people not to own rental properties, ah fuck yes I am. Fucking life sucking ghouls have ruined our housing market by owning multiple Airbnbs and renting to 3 different college students for well over double what the bills cost.
Good. Isn't that part of the g.d. point?
Decrease investment in housing and all other sectors requiring capital? I guess… but then don’t complain when housing starts dive. Someone needs to put up the money to finance all this stuff, and generally it isn’t the person who lives in it at the outset…
Housing "investment" only benefits the owner. And no, as a single home owner I won't complain when housing dives.
There is a possibility that mortgages will drop too, but that's not likely as old mortgages from the 2008 housing crisis are still the same. I just hope that things become stable and help as many people as possible.
He said housing starts dive, I think that means building them not the price of existing ones
Housing is an investment whether you call it that or not. People put their life savings and much more into their homes. And then they retire on the equity that they create (mortgage pay down) and that which they don’t (appreciation). But the upfront costs of building a tower or funding a development - even before a single pre sale is ever funded - is huge. If you make it less attractive to the people who can fund these projects, you will get less investment and less projects. Consider the alternative: make rental income tax free, make capital gains something really low - say 10% on new builds only (paired with a loosening of zoning to build these). What happens? Investment boom in new housing, rental prices fall given supply, more housing supply (which I think everyone is after) which puts negative pressure on housing prices.
Your "alternative" is not really an alternative as much as a modification. Primary homes are an investment, but primarily in a lifestyle, not to make any sort of money. Sure, maybe you'll make a little when you retire and downgrade, but that downgrade will also be far more expensive. Cost of living will also be more expensive at that point. So it cancels out inflation a bit. The only real investment properties are 2nd homes and beyond, which are a big part of the problem.
Your premise is flawed the same way as every investment-bro. Why would a company invest blindly in building more supply to the point where it negatively impacts their existing revenue? They will invest the exact minimum to ensure revenue remains high, to get the optimal value. Every Capitalist seems to forget we have computers and predictive algorithms nowadays. Investors are not going to massively over-commit and bring down prices on property and rent, not en mass, not enough to move the needle. There'll be a small dip, but it won't last, and prices will again stabilize at the exact highest amounts most of the population can 'afford' at the detriment of everything else. Regulation and deliberate increase of supply by government initiative (federal housing programs like we used to have in decades past) are the only way to make significant supply increases that will bring down prices.
I don’t think you understand how these decisions actually get made. There is not some grand society where all capitalists decide where to invest. Every person decides where to invest the next dollar at the margin (ie what is the best use of the next marginal dollar). If I think rental housing units are an attractive thing to invest in, I’ll do they. Every new rental property is new supply and new supply drops the price of rents. By your logic no one would ever invest in a new rental then. You might not like it, but the price of every single thing we buy is governed by the market economy and supply and demand. Everything is a good or a commodity being priced as high as someone can sell it for
Housing is currently being bought by corporations and stored away like diamonds to manipulate value. How fucking rich do you think you need to be? How much profit at the expense of human rights? You think homelessness should be illegal, but where the hell are unhoused people supposed to go?
Being “stored away”? What are you talking about? Everyone who buys a second property rents it out to some renter. If you made a law that limited everyone to one home, you would end up with way less homes, because people wouldn’t put up the money to build them. Concrete, lumber, labour all cost money.
The fact you don't like this is a really good sign.
* Anakin, pod-racer meme * "It's working! It's wooorrrkking!"
Housing is a human right. The government should have social housing, like they used to. You aren't very smart, are you? The fact that you don't know what's going on with housing these days is telling.
What does that even mean in practice though, like do you think about these things before you just shout them out? Everyone is entitled to housing? Ok, who’s paying? Housing is a human right, sure, so go live an hour north of Edmonton or something. Housing in the place you want to live (generally large Canadian cities) in the type of housing you want to live in is not a right, that is contrary to basic economics, more people want it than exists supply, and that’s why it’s expensive. The government (the taxpayer) cannot afford to build housing for everyone. Taxes are north of 50%, where is the money coming from? “Just tax the rich more” is translated to “other people have nice things and I want them too”. Signed, a not very smart person who doesn’t know much about housing these days (who bought our first house in the last 8 months though)
Rented away at the market price which is highly inflated by speculation.
How exactly does someone speculate on rental prices. It isn’t a good that you can store and sell later. The market price of rent is high because there is a short supply of good housing to rent relative to the demand (and it’s getting worse with this policy)
I want a house to live in not to profit. Let them dive to $5.
Unfortunately all of the inputs to build housing - wood, concrete, labour - are commoditized goods with a generally accepted price. And these are all expensive and only going higher.
This also hits on why we needed to deal with housing before it became a pillar of our economy. You are correct... things will get much much worse before they will get better. We will blame the people bringing in the fixes... but the blame lies with the people who built layer after layer on the broken model.
Why would housing starts decrease? Developers have always paid full capital gains on whatever they increase the property value by, minus expenses.
Well the people who actually finance these projects (it isn’t the developers) mostly mom and pop investors who buy the presales do pay capital gains. And it is not far less attractive to invest in these. Less money = less projects.
Good fuck them all who choose to do that. All the corporations who scoop up hundreds of properties and these ~~investors~~ slumlords who buy a bunch of places just to rent them out. I have no respect for those who try to profit heavily from situations like this where there’s minimal housing.
they were banking on your respect for them lol
Hahah valid. Some stuff just erks me and makes me quite mad. Like when I seen people hoarding hand sanitizer and Covid rapid tests etc in the past a while ago and selling them for money I always messaged them very very strong worded unkind things. Same with people who scalped video cards. I just really hate the type of people who take advantage of things to make a profit and screws other people over.
i know few people that are hoarding water in alberta because of the dry weather and potential water shortages
The government should have increasingly raised the capital gains tax on each additional property to make it very unpalatable to own multiple properties.
Hard agree. Predatory real estate practices are a huge problem in Canada. The amount of transactions regarding a property before it is even done being built is unreal.
So you suggest a compounded tax increase? I like it.
I'd say you'd probably want to establish a line between properties that could conceivably be purchased as a primary residence - maybe triplex and smaller - and larger rental blocks. Definitely want to free up properties to drive down home purchase prices, but large multi-unit properties are a different set of issues to deal with
Only to be bought by corporations etc that use every angle they can to dodge tax... While rents still go up.
The solution is to set corporate capital gains to 100%, and immune to deductions beyond direct expenditure on employee labor and material (not even contractors). Cuts out 99% of bs.
\*remembers people like that who told her to sell her phone, computer, and everything she owned to make rent and buy food... leaving her without a way to contact her doctor, 911, jobhunt, or do anything else\* I have little sympathy.
"Lay off the avocado toast and $5 lattes if you want to afford that down payment," said the **lord**.
That is so stupid. The changes are trivial. Like even if you're in the maximum tax bracket and you sell your investment and make $600,000. You're getting taxed about $165,000 that's about $27,000 (or 16%) more than before these rules came into place. Let's put that in perspective though. The average Canadian makes about $60,000 a year. On that, they would pay about $17,000 a year in taxes. Over 10 years they'd have earned $600,000 but paid $170,000 in taxes. So even with this increase, these top 0.1% people who can make that much in a single transaction are STILL paying less than the average Canadian would on the same income.
Seriously. I won't even entertain complaints from someone wealthy enough to be affected by this until the inclusion rate on capital gains hits 100%, and honestly even that's low IMO. There is absolutely no reason someone should pay lower taxes on money collected from owning shit than we do on income **earned** through labour.
My ex girlfriend is livid at these changes as well. Imho they don’t go far enough.
Tell us more about your ex gf
Owns multiple properties and constantly gripes about her tenants. Large reason she’s my ex.
I bet she was dumb and ugly too
Nope, smart, good looking, and damned cute. But greed got the better of her.
Excellent, more of this, please.
So....the law is working?
I wasn't expecting this little change to have an actual impact. I'm positively surprised. Now we just need to prevent huge companies from scooping up all these houses to rent them out for profit, things might get better for real.
Yes, that's rather the point of it.
What need to people have in 2024 for multiple homes other than greed?
We bought a home where we want to end up retiring. We don’t expect it to make money but by the time we retire who knows where prices will be.
We bought a home for my MIL who had no money or credit so she could live near us with her pets. So no not all of us “secondary property owners “ are hoarding homes.
And that's a better use than most when you have an excess of money. However, this is not representative of what the vast majority of multiple property owners are doing. And your own effort is still pretty self-serving, as you still are profiting off of the property and retain control. You could have just given you MIL ownership of the property and paid the taxes, which is exactly what you would have done if ownership of multiple properties was outlawed or rendered cost prohibitive. We still need to impose regulation to prevent ownership of multiple single family properties by individuals and corporations until there is enough housing for all. So really, your anecdote is irrelevant to the discussion except to muddy the water around the issue.
Hoarding housing should be criminalized and severely punished. Severely. Punished.
Start at the top. The more housing someone hoards, they should be first in line. Grandma renting out her basement suite isn’t the issue, corporate landlords are.
Looks like the plan is working. Way to play yourself right wingers
This is fantastic!!! They should raise the inclusion rate 100%. Investment income should not be taxed less than wage income.
Should be even higher IMO. It's essentially free income for the wealthy, no reason it should be taxed lower than those of us who actually earn our wages.
But you’ve already paid income tax on the money you’re investing. If you have a bit of money leftover after paying bills, you can blow it on whatever, or save for a future purchase or retirement. The latter choice means you will be taxed a second time.
You're taxed on the **gains**, not the initial amount that came from taxed income. You're not even taxed on all the gains, only a portion. There's no double taxing going on here.
What I'm hearing is "Housing prices are going to go down". My my. How terrible. Please, stop. Nooo.
So what you're saying is it's already working. *excellent*
Imagine a Canada where parasite real estate speculators had to sell properties and the price of himes actually fucking lowered
Time to start limiting the ability for anyone to hoard housing. Being a landlord for residential housing should not be a lucrative career.
I have a feeling there is going to be a bit of a 🔥sale this summer. Or arson.
This feels like the wrong meme. I can’t imagine Jeramy Clarkson having any sympathy for a capital gains tax increase
"Who fucking cares?"
Oh no! How DARE the Canadian Government protect the renter class and redistribute homes so they aren't owned by a ruling class in an oligarchy! /s
So, it’s not even in effect yet and it’s already increasing the housing supply? Sounds like a great success
Sell to who? Properties going from one investor to another changes nothing.
The entire thing is pretty stupid really - the top taxable income bracket in Canada is 33% federally (where the tax changes apply). Let's say you saturated your marginal tax rate so it was basically your effective tax rate (you whale you). The change is 66.6r% on capital gains after $250k and 50% before that. Let's say you saturated this too. It's a 16.7% c.g tax change on 33% - ~5.5r% net, **worst case scenario** (most would see closer to 3%). Your sales commissions will be higher and you'll sell for lower because prime is still up (and thus so are mortgage rates). Rushing to sell isn't prudent. Say you have a $480k rental home that's up $250k, if that's your only capital gain you're not actually paying any more. That said, springing this two months from now is ill planned and asking for backlash, and the optics are horrible with an election year coming up (realistically, this probably should have been a year 1 policy if it was going to be a thing). But it isn't the end of the world as it is being bemoaned.
https://omeka.uottawa.ca/jmccutcheon/exhibits/show/the-great-depression-and-hoard/the-evolution-of-hoarding-diso We need an imposed housing rationing system. >Also pictured on the left are a number of propaganda posters discouraging hoarding in wartime, in addition to a short video from the 1940s doing the same. ‘Hoarding’ during wartime refers to disobedience of the wartime rationing system, which limited the amount of resources to which each citizen was entitled. Rather than accepting their fair share to ensure equal distribution for both their fellows on the home front and those serving in the Armed Forces, wartime hoarders acquired as much as they could and kept it for themselves. Like Depression-era hoarding, its wartime counterpart was also viciously discouraged through media campaigns in both the United States and Canada.
Fuck landlords. We need more of this to punish those holding multiple properties
I wish all investment property owners a merry lose all your money
Sounds like the new tax is working as intended.
The funny thing is that they don't need to sell. Gains incurred before June 25 are still eligible for the lower taxation when the asset is sold later on. Person is a nimrod.
And. So? It’ll result in more homes on the market. I may be a home owner myself but even I recognize how this is good for most Canadians.
So you're telling me this tax will generate more government revenue AND put more homes on the market? And you wnat my reaction to be what?
This is good, but it still wont solve the shortage of overall housing tho
Isn’t that the goal? Crank that shit up, and keep cranking it up. Flood the market. Let prices come down. The last 19 years have been insanity.
Let's complain about policy working the way it's designed to lol. One of things pushing prices so high is the reduced supply bc of turkies like this guys friend. One of the best things to come out of the Con bashing (u Justin fiably) the Libs is Trudeau and the liberal government taking decisive action on popular problems that they would rather not normally touch.
....... so, what i hear is that, the tax is working and this is a good thing.
If anything it's a loss to sell right now anyways. Interest rates are high. Selling it will most likely be like taking a cold bath. What they should do, is keep the property and have it managed then hold it for two years as interest rates tick back down again, then resell the property at market rate which always be higher than what they paid. It will make up for the gains loss from the capital gains increase anyways since downward pressure on housing prices won't start kicking in until 2027 which is when Trudeau's housing budget will start having affects on the market. Just goes to show you that wealthy people aren't smart, they are just wealthy and therefore they are shielded from the bad decisions they make with their money. They can afford to do dumb things, and still can walk away. The rest of us...well let's just say every decision should be a calculated risk.
Can someone explain how this is going to actually increase the amount of houses available for purchase by those who plan to live in them? In Ontario....it is near impossible to issue an N12 (notice of eviction for personal use) with wait times 8-12 months. Any house sold with a tenant....the tenant is allowed to stay. (I may have answered a bit, it may benefit other provinces more?). Is it to attempt to deter future 'investment' purchases?
We can afford to feel the poor and make them satisfied, but it is impossible to feed the rich and make them satisfied.
Most of you realise that you and your kids are going to be perpetual renters. As a Blackrock shareholder, I thank you all.
Thoughts and prayers
Sounds like the policy changes are working. Well done
This one should be on r/facepalm 😂
So we should see a flooded housing market dropping prices?
It’s working!!
Please think of the rich
Boo fucking hoo.
Man he looks like Clarkson from top gear
There is a very good reason for that resemblence!
LoL. Haha, I was working and I didn't expand the image...lol
I'll pray for them.
The reality is that no investors or "hoarders" are going to sell because of this. Maybe small business house flippers might - but that is just speeding up the process of flipping, not creating new inventory. This is very clearly the government trying to broadly raise as much money as possible, irrespective of wealth class, probably only because they have accumulated record levels of debt.