The federal government is removing the GST on all new apartment constructions in an effort to ease the financial burden on builders amid high interest rates.
I would prefer to see more targeted measures to deter speculation, such as Singaporean-style heavy taxation of residential units owned by corporations, non-residents, and owners of multiple homes.
A combination of the 2 sounds good actually. Heavy taxes as you mentioned but also exemptions for purpose built rentals (as an entire building, not individual units)
I agree that we need to incentivize the construction of more supply, but while adding supply takes a long time, reducing demand can be done with the stroke of a pen. Here are some ideas that can be implemented overnight:
Singapore-style taxation of residential units sold to corporations, non-residents and people who already own a home.
Yearly tax on residential units, offset by refundable tax credits. This means that only non-residents would pay this tax, discouraging foreign speculators.
Switch from a property tax to a land value tax to discourage real estate hoarding. A land value tax encourages land to be used.
Temporary reduction of immigration quotas of all kinds, to be progressively relaxed over time as specific housing targets are reached.
Yearly tax on residential units, offset by refundable tax credits. This means that only non-residents would pay this tax, discouraging foreign speculators.
Could it make sense to only be refundable for 1 unit? If someone has multiple units they should theoretically be paying enough tax for it to not make a difference. This would catch anyone who’s a resident but not declaring any income.
I would prefer to see more targeted measures to deter speculation, such as Singaporean-style heavy taxation of residential units owned by corporations, non-residents, and owners of multiple homes.
That to me is one of the few true solutions, and we know if works because it’s been done elsewhere:
It hadn’t worked prior to April 2023. It is really too early to tell if the elevated rates after that have worked.
A combination of the 2 sounds good actually. Heavy taxes as you mentioned but also exemptions for purpose built rentals (as an entire building, not individual units)
I agree that we need to incentivize the construction of more supply, but while adding supply takes a long time, reducing demand can be done with the stroke of a pen. Here are some ideas that can be implemented overnight:
Could it make sense to only be refundable for 1 unit? If someone has multiple units they should theoretically be paying enough tax for it to not make a difference. This would catch anyone who’s a resident but not declaring any income.