It’s amazing how the new foreign buyers tax that apparently only affects 1.5% of all real estate transactions in Ontario has had such a huge affect on our market.
Goes to show that it’s more about changing people’s perception than it is about making changes. By making people question the future of the real estate market, and prices, a chain reaction caused people to become increasingly skeptical and prices have thus dropped.
I’m not saying this is the only reason the market has cooled but it was said to be a major part.
Blame your problems on whoever isn’t around to complain I guess.
“Given that foreign students and those applying for landed immigrant status are exempt from the new tax, the levy only affects about 1.5 per cent of all real estate transactions, said Brad Henderson, CEO of Sotheby’s International Realty Canada.
‘It’s a fairly small piece, but politically it is large,’ he said. That’s because in global cities such as Toronto, where prices continue to escalate, people are looking for someone to blame. Foreign buyers have no voice and no vote.
‘They can be taxed with impunity,’ said Henderson.”