Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By Greater Fool (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Pay Up

% of readers think this story is Fact. Add your two cents.


One more week. The tax-collectors can hardly wait. 2023 will be the year that real estate really, truly, becomes a cash cow. And all for naught.

Look at the cost of having a place you don’t sleep in for 180 nights a year. Toronto calls that an ‘empty house’, even when it’s a person’s principal (and only) residence. So any property not physically occupied for that length of time during a year will soon be subject to the city’s spanking new yearly levy equal to 1% of assessed value. In other words, property taxes will more than double for properties putting less strain on services. Weird.

In the last few days every owner got that yellow letter telling them to declare. False statements or failure to do so means a fine of up to ten grand.

And where is this headed? Jut ask Vancouver. Local politicians there absolutely love taxing folks who don’t use their properties the way bureaucrats dictate. That city’s 1% empty-house levy exploded to 3% of value annually and in a few days swells again to 5%. City council has even asked staff to explore the impact of a 10% tax. Imagine that. A $1 million condo downtown used for business purposes costing an extra $100,000 per year or $8,300 a month in tax. No wonder YVR will forever stay a regional, not international, centre.

But this is just the start.

Coming next week; the Flip Tax

The flip tax is here. It begins in a few days. Once again The Federal Authorities have decreed anyone who owns a property for less than 365 days should be punished. So someone buying a pre-con and selling the assignment prior to closing will be in the crosshairs. A guy who acquires a fixer-upper, then lives through the renovation and finds a buyer before the first anniversary will be nailed. A family that decides to move for personal reasons (or bad neighbours) within a year of buying will also be hit, in addition to the substantial closing and selling costs incurred.

No principal residence exemption for these folks. If they make any money it’ll be treated as regular income. Sale proceeds, net of expenses, will be taxed in the year of sale and dealt with the same as if earned as employment. The good news is you can still claim the PRE if you die, get divorced or become bankrupt.

There’s more.

Atop the anti-Chinese (de facto) hit in BC and Ontario (up to 25% of a property’s value is sucked off in tax upon closing), plus the newly-minted federal UHT (Underused Housing Tax), in a few days Ottawa will ban the purchase of residential properties by non-maple people for two years. After that, forever?

Welcome to Canada. Now go away.

A non-resident or non-Canadian who buys will face a $10,000 fine. So will any realtor assisting in a sale – knowingly or in ignorance. Worse, the new legislation (regulations were published for the first time this week) allows courts to order a property be seized, if in contravention. It’s a stinging rebuke of (for example) Americans – who openly welcome and embrace hundreds of thousands of Canadians with properties in Florida, Arizona or elsewhere. In fact, Canadian banks do a roaring business helping us little beavs finance sunbelt homes. Now Americans who want a summer home in Nova Scotia or a cabin in the Canadian Rockies will be met with hostility and refusal. Consequences unknown.

The exceptions: foreign students who have lived here five years may buy a place for less than $500,000 (good luck). Foreign workers who have been here three years, and paid taxes can also purchase. Plus people fleeing conflict, and refugees.

Okay, so what are we trying to accomplish by telling people how many nights they must sleep in their own homes, how many days they must own a property, or why a guy in Tatamagouche can’t sell his place to a family from Maine? So much for property rights (you don’t have any).

Politicians say it’s all about housing affordability. Of course, it’s about revenue.

Across Canada, for example, CMHC finds a total of just 4% of properties are owned by non-Canadians – and that includes the most popular locations of Toronto and Vancouver. There’s never been credible evidence published showing overall market prices were being pumped by these folks. But in many cases, envy certainly was. Meanwhile Canadians have purchased 431,000 American homes since 2010. No ban. No discrimination. No hassles – just some extra property tax (Florida) and IRS paperwork to wade through.

Most people believe we have a housing crisis in Canada. We don’t. There are scads of homes for sale, sitting unloved on MLS. Builders are cutting back because of crashing demand. We have an affordability crisis, not one of supply. Properties are not in short supply because they’re sitting empty in downtown Toronto or Vancouver condo towers, or being snapped up by voracious foreign dudes.

Until we attack the roots of this problem – excessive leverage, too-lenient CHMC provisions, political pro-housing giveaways, state-induced FOMO and our non-sensical non-taxation of real estate gains – nothing will change.

We’ll just look like jealous hicks.


About the picture: “Hello out there in GreaterFool land,” writes a Blog Dog pretending to be her pooch. “My name is Diesel.  I live in the best part of BC – the Okanagan – on enough land to give me freedom galore.  My humans are Darcia and Roy.  I keep them company and look out for any unusual activity on the place.  That’s my job.  I live with three cats that think they run the place but that’s not true.  I do.”


Source: https://www.greaterfool.ca/2022/12/23/pay-up-5/


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%! (See Video).

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.