Ontario’s Foreign Buyer Tax Could Potentially Be Repealed

Back in early 2017, the Ontario provincial government introduced a foreign-buyer tax and expanded rent control in an effort to slow the increase of housing prices in the GTA. The housing market has cooled after this move but many people remain skeptical.

 

Doug Ford, brother of the late former Toronto mayor Rob Ford, and Progressive Conservative Leader is interested in scrapping the foreign buyer tax. He says he is considering a policy to do away with the tax and look for a better solution. One solution he suggested is to build more affordable, single-family homes on underused land.

 

Mr. Ford said, “I just don’t like the government getting involved. I believe in the market dictating. The market, no matter whether it’s the stock market or anything, it will always take care of itself − supply and demand. We’re short on single-dwelling homes,”

 

His party is currently looking to win the election that takes place in less than three months. For those that are against the foreign-buyer tax, Mr. Ford winning could bring some welcome news.

 

Whether or not the foreign buyer tax has worked to cool the market significantly remains up for question. While sales of single-family homes have slowed, condo prices continue to rise rapidly.