Taxing unoccupied properties one way to discourage investment purchases in real estate, per Federal Government.
By Andrew Joseph, Farms.com; Photo by Artem Maltsev, Unsplash
Canada’s federal government wants to move ahead with ideas on investment property real estate that it hopes will stem the rush on housing prices of all types.
Within a mandate letter provided Federal Housing Minister Ahmed Hussen, Prime Minister Justin Trudeau wants to stymie Canadians—and foreign investors—from making investment purchases of properties by reviewing rules around down payments and policies to curb what it termed “excessive profits”.
The plan, said Hussen, is to slow down investments in properties and “flipping”, while also hoping to dissuade foreign investors from buying and holding onto vacant homes.
Of course, if wishes were fishes…
The Federal Government proposal will also rely on the whims of governments of its respective provinces and territories.
While measures being considered are mostly for what the public deems residential housing, it also affects the rural landscape where farmhouses occupy.
One such initiative is a one percent tax on empty homes owned by foreign investment, which could bring in up to $200-million during the 2022-23 fiscal year, per the Finance Department.
This taxation would affect both urban and rural residential housing markets, including ag.