We're going to see a lot of rental units being sold off: changes to capital gains tax
HTML-код
- Опубликовано: 17 апр 2024
- Davelle Morrison, broker at Bosley Real Estate, discusses what the increased tax inclusion rate could mean for people who hold investment properties.
Subscribe to BNN Bloomberg to watch more videos: / bnnbloomberg
Connect with BNN Bloomberg:
For the latest news visit: www.bnnbloomberg.ca
For a full video offering visit BNN Bloomberg: www.bnnbloomberg.ca/video
BNN Bloomberg on Facebook: / bnnbloomberg
BNN Bloomberg on Twitter: / bnnbloomberg
BNN Bloomberg on Instagram: / bnnbloomberg
BNN Bloomberg on LinkedIn: / bnn-bloomberg
--
BNN Bloomberg is Canada’s only TV service devoted exclusively to business, finance and the markets.
![Budget 2024: Capital Gains Tax is Increasing [Canada]](http://i.ytimg.com/vi/QyCQGuXdmcs/mqdefault.jpg)
Recently bought some recommended stocks and now they are just penny stocks. There seems to be more negative portfolios in the last 3rd half of 2023 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?
Just ''buy the dip'' man. In the long term it will payoff. High interest rates usually mean lower stock prices, however investors should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder
The truth is that this is really not as difficult as many people presume it to be. It requires a certain level of diligence, no doubt, which is something ordinary investors lack, and so a financial advisor often comes in very handy. My friend just pulled in more than $84k last month alone from his investment with his advisor. That is how people are able to make such huge profits in the market
nice! once you hit a big milestone, the next comes easier.. who is your advisor please, if you don't mind me asking?
ANGELA LYNN SCHILLING' is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
"it's not just the wealthy. If you have to sell the family cottage, it'll impact you too."
Oh shit, not my middle class family cottage! I have like 10 of those!
Lol. I needed this comment 😅
My family cottage = a cardboard box at the beach.
So you think it’s okay to tax people to oblivion for a property they’ve owned for years? What about people whose parents passed away and they need to sell that home? You think it’s okay to steal their money? The money that was used to buy that home had already been taxed.
Haw haw, good one!
It's not a cottage....it's a CHALET.....
I hope someday Canada will get rid of these brokers/agents, who does nothing but ready to take commission. They add no productivity to the country.
if we reduce their commission, we can save and pay tax instead, even if we don't increase the tax? so the government should chase after agents, not investors
Oh! It's my time to shine. I actually work along side brokers/agents in Ontario Canada. The commission prices I have seen have been between 2.5% to 5% of the total cost of the sale/lease/rental with maybe a split if there is another agent/broker company involved. It's mainly due to how big the price of the property is. Also, remember they are on commission only. No salary pay, and they could not be paid their commission for over a year because of when the deal is closed/moved into. So, yes you could be paid $2,000 in a month or over $50,000; but you could also not be paid for 8 months because none of your listings or clients have anything to show for in the market. Their job, if they want to be successful, they need to be available 24/7 for answering questions, showing space, send dozens of paperwork that sadly has to get done over again the next week, and stuck on the phone with no time for family or friends. Now looking at property managers on the other hand; they get paid lots and give back few things to their tenants.
There will be an app for that eventually
What needs to happen is that the MLS system that realtors use needs to be available to homeowners. You can currently sell your own home without an agent, but you then won’t have access to the MLS system and your house won’t show up on it. That needs to change.
My real estate agent was a huge help. How many properties have you had to buy and sell?
Am I the only one who thinks the guy is correct and the lady is wrong? “When you leave Canada, you are considered to have sold certain types of property (even if you have not sold them) at their fair market value (FMV) and to have immediately reacquired them for the same amount. This is called a deemed disposition and you may have to report a capital gain (also known as departure tax).” If you stop living in Canada as a permanent resident you are going to get hit on the capital gains tax anyways! lol that lady doesn’t know what she is talking about. If you’re a resident you pay tax in Canada even when you make money from outside the country.
She also seems to think rentals will go down in popularity if people aren't flipping houses, where as one would think it would incentivise people to hold onto the rental property long term
The moment you stop being tax resident, you don’t pay Canadian taxes. The government can however have withholding tax on properties that generate income but it can never tax the capital gains tax as if the owners are dead.
it should be 0
not if you hide it hun. If the government doesn't know they wont tax you. Especially if you're wealthy.
Thats what I thought too but, she is saying to open an investment company abroad just in name basically, and through that company you buy property. So the property is not on your name but in the investment company's name so you have nothing to declare on your behalf as long as you dont bring that money from the company back to canada.
I disagree. Local property Investors will hold onto Assets as the exit costs just increased. Investors will sit on the units until the next government. This will create a higher supply, driving up the housing prices and the Cap gains tax obligations further, This will become a self perpetuating cycle.
Another way of looking at it is their exit profits have decreased as it isnt money coming out of their pockets.
What this will do is hopefully decrease investors from purchasing more places for flipping. Prices of housing will come down as most ppl cant afford +$1M for units, if investors stop scooping them up.
@@silverfox1234 Exactly, less lucrative for house flipping, less attractive for investors.
There are so many Canadians who are investors! What about the people who have been saving money and making the right business moves for the past 3 decades and bought an investment property to rent out to supplement retirement income. What if they want to sell now? Of course they are affected by this capital gains tax because they bought so long ago. This isn’t taxing the rich! This is taxing hard working Canadians.
I'm favoured $130k every 4weeks! I now have a good house and can now afford anything and also support my family
Wow that's huge, how do you make that much monthly?
I'm 37 and have been looking for ways to be successful, please how ??
Thanks to my co-worker (Alex) who suggested Claudia rea Lovell.
She's a licensed broker in the states 🇱🇷🇱🇷
After I raised up to 325k trading with her I bought a new House and a car here in the states 🇺🇸🇺🇸 also paid for my son's surgery (Oscar). Glory to God.shalom .
that's nice She makes you that much!! please is there a way to reach her services, I work 3 jobs and trying to pay off my debts for a while now!! Please help me.
Great to see you guys talking about her,she changed the game.
Finding yourself a good broker is as same as finding a good wife, which you go less stress,you get just enough ywith so much little effort at things
Perhaps this was the intent of these changes- to chase the highly leveraged property 'moguls' (owners of 2-3 rented units) out of the condo sector.
The war on workers
That seems obvious to me
2-3 ? Try 50-100 units
Not sure at all that is the intent. Corporations like Greenwin own massive blocks of real estate that they will never sell. This will not affect them.
This will affect someone who is renting our their condo bc they got married and bought a larger place. So now do they sell and kick out their tenant?
2-3 rental units is a mogul? That’s a dentist or pharmacist salary. Wow.
She was supposed to make an argument against the new changes to the capital gain taxes. Instead she pitched about the shady tax havens in Caribbean Islands for real estate investing and her dislike for Canada and the US.
She's reminding people that there are other options for investors that are tax free and their capital is safe unlike what the federal government just did. There's something going on with the working class in this country that seem to think investors and people of wealth are the problem some how. People who invest have to work hard to achieve and they build business and equity in this country, if they decide Canada's not worth it good bye middle class! It's already in decline :(
She's eagerly anticipating a juicy quarter.
She made the case of why such people would be looking for investment elsewher3.
@@funkspinna Canada needs real investors in tech startups. Not a bunch of arbitrageurs in single unit real estate who bring only misery to the country. I see a lot of issues with the new rules for capital gain taxation but real estate is not one of those issues.
@@fawadpopal99 who said it didn't need investors in tech? That doesn't change the fact that reducing rental supplt, as a result of the new tax, will push up prices.
I own a rental property that i was hoping to sell to help me financially in retirement. The only people this hurts is small investors and retirees
Based on when you retire, house prices might more than cover the tax loss. This is to discourage corporate house flippers from short term gains and we welcome this move.
Oh you poor thing
soooo you're not going to get quite as large a windfall? boo fn hoo.
You're going to get nothing but grief from folks here for being "rich". The fact you made sacrifices and took chances with your money never seem to enter the equation. I guess you were just lucky...
This change (along with others) will drive folks with means out of Canada. No one likes have a criminal organization as a partner.
Sell your primary residence and move into it if that is an option.
"Regular" canadian investing in the british Virgin islands 👀
This lady respectfully is not living in reality
Probably cheaper then Toronto. That's how much of a joke this country is.
@@gk6199If only housing wasnt being withheld
Well, she did break straws back with a camel
It was an example, she exposed how dumb all the liberals policy is, and how the future of canada is dying fast
you are just naive and don't know how to do it. I spend winters in Bahamas and there were thousands of regular middle class Canadians just I that country alone.These are not millionaires. These are 50+ Canadians. Just because you don't understand how to do it, does not mean it is not so.
No logic at all “if someone buying a property, it will be either occupied by the buyer or rented out to other tenant.” The net effect, or the ratio of tenants to the properties won’t change.
they're acting as if there isn't a huge demand build up for housing, if investors sell their rental properties then individuals will buy it all up.
@@mechano6505 PLUS they'll have to sell them at a price that's affordable to someone just looking for a primary residence
The next person who buys it after a correction will have lower mortgage costs and will be able to charge less rent.
The only road to affordability.
@@user-vi8ci2bi6b Finally somebody gets it. Also it will give more incentive for first home buyers with availability to get out of high priced rents for a mortgage which in turn lower rents which in turn would makes corporate home purchasing less lucrative and lower corporate home buying or even cause them to get out of the housing market all together putting more homes on the market.
3:05 Crazy that their world of 'investing' is exclusively real estate. So Canadian, part of the problem...
Who do you think provides rental properties in Canada? This is going to make the housing problem worse as these rental properties are dumped on the market fast and will wipe out existing rentals.
@@violetgypsieA correction has been brewing for a while. This might contribute to triggering what was inevitable.
@@jptrainor A “correction” of less available rentals will drive up housing prices. Market value = supply + demand.
@@violetgypsie If prices correct and properties trade at lower prices then they will have lower mortgages behind them, which translates to lower rent requirement for them to be viable investments. If the properties are purchased as primary residences then rental demand is lower. Closer to a sustainable equilibrium.
@@jptrainor How are priced going to correct to lower prices when we have a deficit of 5 million homes right now? There is too much demand and not enough supply. There is no way housing prices are coming down anytime soon.
You do have to declare when you own property over 100k abroad. Asks you on the tax form every year. I'm a tax professional
They might ask you, but that doesn't mean you have to pay taxes. It all depends where your property is located, as the lady stated@
not really...depending where you go.
not if said property is owned by an investment company that you open in said country.
Rich people will navigate through this without any issues. As always, the less fortunate are gonna pay for this.
Yeah, they will just shift their portfolios to something that avoid capital gains to minimize tax.
If it gets worse, they will leave the country for six months a year and live abroad so they have to pay taxes.
That is true, the poor always pays
Hang on now, we are talking about calital gains. At the worst those affected will have to be mildly fortunate.
Less fortunate or those who were silly enough to thunk min wage jobs students traditionally held are solid career choices? Or those who make bad life decisions...don't get an education... have kids they can't afford....buy new vehicles complete with 8 year loans...always have the latest iPhone... yeah I know a lot of unfortunate people like that...... and they are always the ones complaining about not having money or getting ahead......
@@user-zx9hs7gx4i You sound triggered. Maybe you're one of those people. How can you blame people for this when the government's budget is printing out absurd amounts of money while tax on tax ofn tax with 0 benefit to our country?
You will own nothing and be happy. Enjoy relying on the government.
If rental property investors were investing for capital gains then that's a problem right there. It speaks to the unsustainable bubble that we are in the midst of.
They aren't.
Why is that a problem? What do you invest for? Losses? It’s not investing if there is no expectation of profit. Please enlighten me.
@@davidhughes6048 speculation vs. Investment
@@davidhughes6048 Income.
That is why you invest in real estate..... owning properties myself I know that at the end of the day that is the only place to make a return and it's not as much as people think all things considered..... and it can turn up to be a loss depending on your tenants...... frankly many people were thinking of getting out of owning investment properties to begin with for those very reasons
Private foreign money being landlords was part of the problem to begin with
I love how the media is trying SO HARD to convince us that it's bad that rich people are going to have to pay capital gains tax. O NOES. WE'LL HAVE TO SELL OUR FOURTH AND FIFTH PROPERTIES. Yeah. That's the point. Get bent, let the rest of us own something at some point.
Who care about investors? They're an unproductive blight on the economy. Landlords investing in other countries is a loss to our country? Are they going to carry homes across the boarder? Who do people think these rentals are getting sold to when they're sold off?
If you had the money to invest you wouldn't be saying this...
@@bsstyle123 hard working people don't have the money to invest either. It's just a scare tactic mortgage brokers are trying to project to us. They lose when prices go down.
@@bsstyle123 People who say things like that are people I expect would mug people for money if they thought they could get away with it. Is the only thing keeping you from doing public harm for personal profit opportunity and freedom of consequence? Believe it or not, most people don't want to exploit others.
I'm a senior citizen and also an investor. According to you, one of the blights on our society.
These investments,I make, go into my pension portfolio that provides me a living allowance to live on.
So I'm self-supporting and don't have to rely on the government.
Comments like yours are ridiculous!
@@brettthomas5605 That money doesn't come from you which means it's not self supporting. All profits are unpaid wages. You're simply living off the labour of others. You are skimming off the productivity of others, so, yes, strictly speaking you are one of the blights. It's mathematically impossible for everyone whose labour you skim off of to one day be in your position unless we have infinite exponential growth. You give yourself a pat on the back for not relying on the government when you live off the labour of others. Comments like yours are what are ridiculous as is referring to it as "self-supporting" because you've never taken a moment to wonder where that money even comes from. Just another disconnected boomer whose greatest accomplishment was being born in the correct year. Must be nice to feel so accomplished for other peoples work. Next you'll tell me landlords provide housing.
Over leveraged real estate speculators getting hurt. Jesus wept.
exactly. Just another scare tactic they are trying to project on regular people
The assets will still end up on the hands of those that abuse, and the poor will do without, so you’re right Jesus wouldave wept if he still tolerated living in try is luciferian hellhole we call an existence.
@@notsoinsaneguy That's exactly what the liberals want you to believe. The reality is as long as Canada let immigration run unchecked people will always prefer speculating in the real estate markets since there's always demand.
@@notsoinsaneguyand you will continue to be controlled by inferiors submitting to their will, voting is immoral
Where do you rent?
This woman is out to lunch. People only rent because they can't afford to buy. The more investors leave the market, the less demand there is and the more pricess will come back to earth. Can't wait for some sort of normalcy to return to prices. Let them go buy up all the u.s. properties.
The reason renter are renting is that they don't have money to buy, and investors are the driving force behind presales that can afford to lock up a large chunk of cash for years so that housing projects can be built. And, builders are not going to work for free, or take on risks without a buyer to ensure that they are going to buy.
No, dont buy up U.S. properties. The underclass in the U.S. face similar challenges when trying to secure a home. Several U.S. cities have a housing shortage because properties are owned by "Titans"of business" who rent the properties as short term vacation spots! Their are entire apartment complexes devoted exclusively to short term rental/vacation rental/corporate housing schemes.
Not the only reason but the main reason
No, this has ruined the Florida market because now those same dumb greedy investors from foreign countries who bought houses here for Airbnb’s are flooding the market! They are making the prices tank, after they made them pump up. I think it’s time we stop any foreign national from buying investment properties in America.
This is not true.i know many who do not buy because they do not want to deal with up keep.
My brother moves every 5 years by choice.
I have a few clients that work as technicians they get transferred alot.
Some people like to travel for work. They will spend months in one state before moving on traveling nurses do this as well.
Just for the record whenever the government besides to increase capital gains tax prices to go up more.
Where I live people voted to increase taxes on rental income/capital gains.
All it did was raise the cost of rent for houses and commercial buildings making it harder for the ma and pa business I work at to stay afloat
And so renters will begin to lose their housing. I wonder how backed up the Landlord & Tenant Board will be in the coming months. Tenants who know their rights and how the system works will insist on waiting for a hearing. What a mess.
So this is good news for people wanting to own a property to live in. Maybe these "investors" could do something productive like start a business. Or they can leave and make real estate more affordable again.
And what do all those people do who can't, don't want to, can't afford to own do? Thank turdo for this mess we are in...these punitive policies would be unnecessary if not him and those that support him!!!
False. As stated, more rentals have been provided by private investors then the government. Reducing that supply will push up the prices even more.
Ain’t no one starting a business in the country now. Also the carbon tax just went up, gonna have to charge you for all that hot air you’re spewing
@funkspinna Yay, neoliberalism. Tax people, cut all services, cut public affordable housing, defund public transport, and then give that money to corporate. Right.
@@zacloomer1921 100 % people like me are taking our money out of this country..... then who's going to pay the bills.... I have had enough
If your family has a cottage or a family home in Toronto core to sell, you are wealthy. Don't kid yourself.
Really? Most people who buy aren't rich. Buying a home doesn't mean you have millions of dollars. It just means you have debt that you must pay off in 25-30 years.
@@MrMooCow199 He's talking about a second home so it's very likely they are rich. Since a family home you can sell is a home you aren't living in.
Grandparents home that needs to be sold. What the hell?!
@@WizPigTactics So if some body sells their one and only home, then will they be paying tax?
@@elena2125 it doesn't affect single home owners
These people are so out of touch talking about their cottage homes and international investments😂😂. Take a drive down Hastings street and tell me what you see. This country has gone to 💩
It's not just hastings, it's spread to many side streets now
It's spread into small towns
The shit rolls downhill.
Imagine bringing up tax heavens and mortgage brokers in this. She's lucky that people are polite over here.
And floats to the top
We're going to see a lot of rental units being sold off?
TO WHO?
YOU NEED PEOPLE TO BUY, if you are selling!
This entire things is preposterous.
they think regular people are so dumb to not get that. Supply and demand right? Goes both ways.
There will be people to buy, just not necessarily at a price that will make the investor happy.
Blackrock and Vanguard
BlackRock and vanguard.
Blackrock Monopoly of course.
WEF Blackrock sweeps all
Just closed. Got my money out of Canada before the tax changes, made out like a bandit. Now setting up a corporation in the Caribbean and looking at places to setup primary residence.
Tenants are screwed unfortunately, all just received a 60-day move-out notice from new owners. Rent will skyrocket.
Canada was cool but the winters are cold and the tax changes put a chill on things for me. Time to move on, life is too short.
The capital gains tax on every $100K was previously $26750, and now the government has raised it to $30094. While it’s not a significant hike, these individuals are reacting as if the ground beneath them is shifting. 🙄
Lol yeah. Average rent went up 100% in last 8 years but god forbid if "investors" are taxed 4% more
Who do you think pays that tax? The person investing or the renter? Fewer investors because of the tax, fewer rental units, do you think rents go down or up with fewer units? The renters pay. Jokes on you!
@@jameswatson2784 rent availability goes down but housing availability should go up by the same amount. As a whole it shouldn't matter - the only thing that affects prices is total supply of housing vs total demand.
@noahd213 Close. Supply to people buying will go up so in the short term housing prices will decrease for buyers. Renting or investment properties will have less supply so rents will go up. Long run it is indeterminant. Depends on elasticity of supply and demand. If investors leave likely a housing crash. Bad for homeowners with mortgages good for people looking to buy. Rents will find a new equilibrium at a higher cap rate to pay for the taxes. Government sucking more wealth out of the economy. Look at Greece and Italy for what happens in long run. Especially with deficit spending.
@@jameswatson2784
Good thing some people understand supply and demand
Dirty secret: this whole problem is from us, as a society, saying that houing is ok to make an asset for driving wealth, not a human need.
Nothing is going to work until we decide to change how we see housing. As is, homeowners don't want to change that hurts their equity, banks and builders don't want chnge that affects their profits, and politicians don't want change because most of their voter base are long-time homeowners still (upside down population pyramid, with veey few young people).
You should go to Cuba
@@thomasw5466You should go to somalia. Free of government meddling and regulation!
@thomasw5466 No thanks; I don't subscribe to tyranny on either side of the aisle (oligarchy-feigning-communism or unfettered-capitalist-fascism).
I am in the middle: tempered capitalism rooted in humanitarianism. That is called socialism (not to be confused with communism, which is total anti-capitalist).
I believe in free markets, just nnot totally unhinged ones that regarding a fundamental human right like basic shelter.
@@gilliantohver3225
Somalia is a post-communist no man's land.
Which doesn't even work without capitalism to prop it up.
@@TheSlammy333
Somalia is that real communist utopia by definition.
I left Canada for US over 30 years ago, and never look back. Sadly I urged my brother and his wife to do same and they didn't.
I remember a wise coworker love to joke, there are three kinds of Torontonians by financial hierarchy. Those who read Toronto Sun for the Sunshine Girl, those who read the Toronto Star, and those who read the Globe and Mail.
never looked back but here you are in a comments section regarding canadian policy?
too much time on your hands I guess. toronto sun clientele can't actually read.
@@klnrklnr4433 I read WSJ and FT after I left. You wouldn't know what they are. My cap gain tax is just 15%. Enjoy your Canadian tax and spend rewards.
Right, Mortgage brokers and developers should guide the public policy in Canada ?…. Shut up
Wah, i love my wealth- need every penny- I’m leaving. Hah, let them go, get out already! Tax those that can afford it and who want to stay and move forward. Housing is a basic need turned into an investment Gambit by irresponsibly low post pandemic interest rates.
For the last time, investors that buy property to rent that could be owner-occupied aren't "providing housing", they're SCALPING housing.
lol. let me guess, you rent?
lmao imagine if the didnt there would be great demand for refrigerator boxes.
@@JJJohnson441 Let me guess, you're currently riding the tsunami of unearned wealth, aka. a homeowner?
@@Clamps-nn2pz yes because all those houses would just stay empty, that makes sense.
@@ewaste8318 Uh no i was responding to your comment. investors that buy property to rent that could be owner-occupied aren't "providing housing". So the investor sells a tenanted house into the supply deficit limits his capital gain and now the tenants all have an issue. How does that fix the issue? Not everyone can get a mortgage or want one so thats why there is a rental market
hahah "consult with mortgage brokers" this made me chuckle!
Small landlord’s will sell and large corporations will buy.
They're too big for Ottawa to handle as that mean drying up the investments.
There is nothing that this government does which is well thought out!
Canadians cannot compete with housing investors and especially foreign investors in the Canadian housing market.
So good ridence
Foreign investors are already banned.
You never know. People’s might demand housing be built, not for profit but to house people, it could happen agaib
OMG, your country is nuts! I thought this was a US article at first, but then I heard 'raise from 50% to 66%' and was like, it's only 20%. So you already have it at 50%? Madness.
Is there a possibility that the prices will go up to compensate for having to pay more tax. Often when the seller of a product has to pay the government more to sell a product the cost is passed on to the buyer .
Good, sell them to people who want to own a home.
Sure..do you have the down payment and monthly qualifications for a mortgage....
Hey Mike, if you truly believe in supply & demand, then yes quite possibly. If you take that at face value, and the number of available units spikes the price will drop in turn.
Then people working a job will maybe able to afford them again! Now that is optimistic thinking, but if the market works, then your point is not as strong as you think it is.
Prices won't come down if that's what you're hoping.... at today's rents which are not going to change people will buy these rentals and keep them rentals and boot the tenants out...... it will be a wash and this policy will inflate costs to renters and home buyers
@@user-zx9hs7gx4i It won't be a wash, they'll take all that capital gains tax increase and build affordable homes for those that need it.
All it is, is a gift to corporation like Black Rock....who the hell do you all think is going to buy these over priced homes? the first time home buyer? come on people stop living in delulu land.
I got laid off from ATCO. Rented my town house to save my mortgage. Now I will either have to pay a lot of tax when I sell or I will have to remove a renter and move back in. I was avoiding moving back in because with increasing mortgage rates and lay offs in Alberta. My new job is already showing signs of preparing for lay offs. So yes these things she is talking about affects more than the top 5% wealthy.
The wealthy are never affected they have options.
This interview sounds like a lot of "Fire and Brimstone" covered in "Snake Oil" to me.
1. "I choose not to invest in Canada anymore" sounds like words from a foreign investor. To which I answer "So what ?" Canadians will happily invest in Canada. Also, most "savvy" investors also invest outside of their home country, even Canadian Investors. Again "So what ?".
2. The Government LONG AGO stopped providing rental properties to most Canadians, and instead relied on the private sector to fill the need; as did most other countries. So your point is ????
3. "Fewer places to live" ??? A sold "Rental Property" is still a place to live; it just being lived in by the actual owner, not a tenant who is paying part (if not all) of the actual owner's mortgage. Whether you own it, or rent it, you STILL live in it.
4. If you have to sell the "family cottage", it is the estate of the parents (original owners) that must pay the "Capital Gains" tax upon their deaths. This is (or should be) known by any owner of recreational properties, and can be prepared for in advance. Alternatively, the "Capital Gains" can be paid from the sale of the Primary residence, or liquidation of any other assets the parents owned. So, "Yes, you will be affected", but this does NOT mean you will be presented with an unexpected "bill", but rather you may not "inherit" as much as you expect.
5. "Selling the homes of Parents who have passed away", same as point 4.
6. "Get my money out of the country, and invest elsewhere". Uh, as a Canadian citizen, you still have to pay taxes on "Foreign investments"; unless of course you are NOT a Canadian citizen, decide to renounce your Canadian Citizenship, or are a tax evader.
7. Okay, you can keep all the money you make in a foreign country, so long as you don't bring it to Canada, and need to declare it. Countries with these kind of tax practices usually are either "Third World", or "Services for Profit". Are you saying that you plan to move to such places during your "Golden Years" when your health, and possibly your mental faculties, are starting to fail ? I think it more likely you'd rather stay in Canada, or move to the USA, in which case you need to declare. Either way, you screwed yourself.
8. "My Principal Residence doesn't need to be Canada anymore", Yeah, but this decision has other consequences that you may like a whole lot less than paying a little more in Capital Gains taxes.
9. "Deciding to just leave". Leaving a country doesn't just mean selling your home and crossing a border. It also means leaving a job, family, friends, and liquidating a lot of other assets. If you are "Free enough" to be able to do this, just because of "a 16% increase in Capital Gains Taxes, I doubt you are part of the "working population", and therefore don't contribute as much to the "Healthcare system".
10. "30 Year Mortgages", any person who takes out a 30- year mortgage for a building that has yet to be built is either an Investor, or a fiscally irresponsible idiot. I think the government had "Occupant ready Single Family Homes" in mind, rather than "Pre-built Condos ill suited to families" when they wrote that paragraph. She is right though, that a 30 year mortgage holder will pay more interest than a 25-year holder; assuming that neither decides to pay off their mortgage earlier. This paragraph was "Government Window Dressing" regardless.
11. "Use it or Loose It". I think the idea here was to discourage developers from applying for, and sitting on more permits than they can execute as a way of "excluding their competition". If one developer has all the permits, and even at max capacity can only complete 1 home per day, then there are only 365 homes built in a year, even if there is space for 10,000 homes. Better that 28 competing companies all get permits to build 365 homes each, and 10,000 homes get built.
Labour issues are "not the government's nor the population of Canada's problem", It is the company's problem if their workers are unhappy, and you need to decide if angering your workforce and risking a strike is worth loosing the permits over.
Interest rates are published, and I'm sure companies have the option to "return" any permits they receive if they decide the original building proposal is no longer "cost effective". I'm sure a competitor would be happy to have a crack at getting those permits if the original company doesn't want them. Also, the whole point is to "get homes built for Canadians", NOT "Maximize profits to line the pockets of Construction Company Executives and Investors". If interest rates and prices are "too high", well I say "That's life" AND "No Kidding, but interest rates and prices are high for ALL Canadians right now, so you are just one of many suffering". This is called project planning, and if you didn't factor this into your business plan, then "maybe this isn't the job for you".
"Trust me, I'm sure if they "could build quickly they would want to ?", how about "No". As long as there is low supply and High demand, those companies will work to MAXIMISE their profits by keeping the supply low to maintain the value (and Profit) as high as possible.
Rant over.
Peace.
Thanks for breaking this down
I mean most rich people have already left canada, there is little to no incentive to be rich in canada, you get penalized so badly, why would any stay?
literally not true lol
@@klnrklnr4433 go on
Get qualified on a 30 year amortization make your payments based on a 25 years amortization, most bank have the option to increase your payment by up to double monthly the additional payment goes directly to principal.
In Alberta the new home buyer's deposit is insured up to a specified amount. the builder takes the payment as a progress draw.
I am renting out a town house and I just saw 2 other units in the same area get listed. That's 2 less rentals available.
Transfer ownership before parents pass away is best
Yeah, try to get your parents on board for that one
You would still be obligated to pay property transfer tax on this transaction at the lawyer. Maybe just add another person to title? Need to check this with a lawyer.
@@MissMaggieLSLC yes ppl are confused on my original post. If I can elaborate, if your parents have you in their will to leave the family home to you it is typically better for them to transfer ownership to you before they pass away then for them to leave it in their will. The details on how a lawyer does the transfer I am not sure on but many ppl do go this route as it works out less financially and less stress.
@@dtownssqwe Yes I agree..you're onto something here! This is something I need to bring up with my parents and lawyer to see. From my understanding you're paying a property transfer tax when going on title and some legal fees. It's definitely something to consider!
Thanks for the food for thought...
It's all going according to plan.
Let’s hope they all hit the market at the same time, tanking the prices and making long term rentals a little more affordable in the aftermath. This entitlement to twist the real estate market to your greed in cahoots with an American “sharing” economy is disgusting. Couldn’t be happier to see it “right sized.”
The development problem is less about labour shortages and more about developers wanting lower interest rates. Real estate shouldn’t be as big a part of the economy as it is, bubble needs to pop now. Let’s get back to oil, gas, mining, and producing shit please
No mention of average canadians being able to buy instead of investors. Why so much concern for investors and no mention of the benefits to family's and Middle class
Because the middle class don't want to be landlords. What happens when your renter doesn't pay or you get a squatter? MIDDLE CLASS don't provide rentals for the lower class. That's the upper class that does that. If you're middle class doing that, you're going to struggle when you get one bad tenant (50% of them are bad and don't pay. Stop pretending renters are responsible. Many aren't)
The middle class won't be buying apartment buildings and fourplexes to rent out lol
That's why there is no mention. Middle class isn't major investors and can't afford to purchase the buildings and homes they invest in..
The purpose of this change is to eliminate the private sector. The government wants to be in control of housing and rent. Socialism.....And the investors will leave and that will aid the housing crisis and the solution will be for the government to provide rent and housing because they are "honest" and "care" about us. But we have government funded housing complexes and they're trash
@@BluntsaggieTarot
You claim that 50% of the renters in Canada don't pay their rent and are living rent free?
That's a completely ludicrous claim.
And you think that expecting wealthy investors to pay a fraction of the tax rate that regular people pay on their investments is "socialism"?
Lol. Lol.
And you have the delusion that the federal and provincial governments want to build and run all rental housing in the country?
Lol.
In fact there is virtually no sign that they want to build and run any rental housing buildings.
You're not making yourself look good.
Do better.
ask Trudeau
Because it's Bloomberg and they only care about corporations, CEOs and the wealthy.
@@geofflepper3207you are right they don’t want to build anything … and they should not … but they want to control it. They want to have a say how investors should run it when it’s the investors taking all the risk. Good luck with that.
Canadian here. Keep your money. It hasnt helped my nation.
You must be loser one, with no assets or investments?
Great news, more supply which may actually help stabilize prices.
Homes should be for living in - not a speculative investment. For this reason, I think the government is doing the right thing in increasing the capital gains tax.
Yes but most of us younger people don’t have houses to begin with and on a larger scale it would hurt that one guy from that London Ontario Graham Stephen video and hey man. 50+ units come online from that one guy. Sure. I’m all for it. Get these leech landlords and corporate landlords out of our pocket. And I’m surprised people are ok with cost of living as it is, when every ceo boasts how they can jack up rates because people are being told inflation is going to happen so they are going to take advantage of that and increase profits.
100 percent..... with the tax savings I will achieve by leaving Canada I can afford Platinum International HealthCare coverage for a fraction of the savings..... plus all the upside from tax-free income moving forward..... for me Canada has become a nice place to visit..... and that's it
THANKYOU DAVELLE!! FINALLY SOMEONE WITH SOME COMMON SENSE ON OVERSEAS INVESTING!!
Canadian dollar down, gold way up. No confidence in both Canada and the United States political policies.
I hope everyone finds a loophole to not pay these taxes
Nice Justin, let’s have fewer rentals, and 500,000 immigrants a year.
Are those 500,000 folks staying rent free or the investors have made them modern day slaves?
Well that's good for canadians then... Canadians are in a better position to buy property to live in than newly integrated immigrants.
Would you prefer more rentals and fewer homeowners? Fewer rentals as a result of this means more canadians ACTUALLY LIVING IN THEIR HOMES. It's not like the houses are getting bulldozed when they're sold...
The update on Canada's capital gains tax is crucial for anyone involved in real estate investment! It's a good reminder to reassess investment strategies and possibly accelerate decisions before the June deadline 📆.
The second commentor made an unfortunate comment about there not being any options outside of Canada to invest in … that is bunk.
Investing in US real estate has gotten more and more attractive… there are lenders lining up to lend Canadians money down there for products in a more stable market. And there is a tax treaty between both countries so there is no tax difference … so since Canada doesn’t want their money, an investor should seriously consider to invest in the many states where they don’t have to worry about rent controls and being used as a scapegoat for provincial and federal incompetence.
Take note that the very same people that claim that investors are taking away home from people to buy don’t care about renters that can’t afford to buy. If it were left to them these renters must live in old dilapidated apartments and only people who can buy should live in houses and condos.
Nonsense!
Sounds like Canada needs to take a page from the US and make Canadian citizens declare all income, domestic and foreign.
They already do.
Next thing is job losses in construction sector and rent increases. With investors missing from the market, the demand for housing will reduce and builders will not start new projects (construction job losses) leading to tighter supply (rent increases). More headaches for renters. The investors work as market makers.
Clown
So what’s happening after the month of June? Is the housing market collapsing or not?
Best explanation of the new measures I have seen so far...when she breaks it down its clear to see most of these new budget implementations are yet more major losses for the average canadian. All by design...
This is so out of touch. We need far fewer foreign investors seeing our housing market as an opportunity.
You are out of touch. Foreign investors are barred from purchasing residential real estate unless they are in process of becoming residents.
I’m a new dad, I moved to the Bay Area a few years ago and I’m thinking of purchasing a single family home, but with real estate prices currently through the roof, is it still a good idea to buy a home or should I invest in stocks for now and just wait for a housing market correction? I heard Nvidia and AMD are strong buys.
it’s a personal decision, but according to Forbes, housing activities will remain stagnant for the most part of the year, so maybe hold off a little.
well you could put a downpayment on a home and as well diversify as much as you can into Ai and pharm. stocks like Pfizer and JnJ.
Certain Ai companies are rumoured to be overvalued and might cause a market correction, I’d suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I.
this is all new to me, where do I find a fiduciary, can you recommend any?
’vivian jean wilhelm’’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Very informative. Very knowledgeable subject matter expert Val Morrison! So fluid and articulate no uh...um...
you still need to report foreign assets over CDN $100,000 - just not immediately with capital gains
If Justin Trudeau even just consulted with RUclips comments rather than his useless cabinet we would be better off.
Won't somebody _pleeeease_ think of the poor housing scalpers?!
lmao. consult with youtube nutters???🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣
This lady is SPOT on. Those with the means to will not tolerate this government any longer
If lots of rental units are sold off, that could result in fewer places to rent, but it would also mean lots of places for people to buy to live in, which balances out. It's good that landlords/investors are nudged to sell. It'd make for maybe cheaper homes for people to buy? I don't care if investors "invest" elsewhere, if it means way less demand.
I'm a homeowner, so it's not in my interest for home prices to go down, but I feel Canada's housing market could use a bit of deflating, for long-term benefit to Canadians and future generations.
She is 100% right. So sad Canadians leaving Canada :(
This lady is full of crap. Many Canadians are not suddenly going to invest offshore. That has its own set of problems, and is already being done by the super rich these new taxes are targeting. A lot of countries are less politically stable, which is why Canada will always attract foreign investment. Do you really want to live in Portugal for the rest of your life, cut off from family and friends? And English isn’t always spoken.
I can only handle one disappointment per day, I'll look at it tomorrow...lol
Lmaooo
That was part of the reason this was done this way, with the extended timeline
Many of the anti-investor comments in this thread are largely missing the mark on the dire repercussions this catastrophic mandate to raise capital gains will have on the country - during a period of economic stagnation to boot.
"Investors" are not only the greedy landlords or so-called rental property speculators, but more largely any individual or enterprise which would have considered operating a business in Canada - which is so much less likely after this budget announcement.
These are the same entities that would have contributed to JOBS; the ones who would've paid TAXES, and would have fostered growth.
The federal government's reckless raising of capital gains taxes is a blatant slap in the face of any hope of prosperity, and in turn the residents they've sworn to serve.
It's almost as if their increasingly besetting destructive actions toward the country are by design. 🤔
Ppl are dismissing her comments and not understanding what she is saying
- if you have a condo from when you got married (many couples) that you rent out to afford yr mortgage of yr house
- if you do not have investments bc you are putting all yr money into yr current mortgage
- if you do not have a pension bc you work for the private sector and so you kept the condo as yr “pension”
ALL those folks will be nailed by this. It is not just 1%. That is a lie the Feds have said to make it about the “rich” and make it “us and them.” Actually, this is going to affect many different types of people. The corporations own blocks of real estate that they will never sell.
Your primary home isn't gonna come under this new tax. So it doesn't really affect as many people in the way you might expect
She is spot on … people are going to take their money, investment and business to other countries
great, more homes available for Canadians.
This doctor shortage is not all that visible in Toronto nor are these long wait times I've been hearing about. In any event, it is generally always cheaper to pool money and buy in bulk which is what taxes allows a society to do. It is also what private organizations for their investors as lobby groups for their members. In a society the investors are the citizens and their children's future.
they should extend the deadline later into the year.... give people more time to sell these homes. That should have been the goal with this... put more homes into the hands of people that want to live in them.
I agree.
Not enough time to sell
Continue pushing on rental control and u ll see this more and more and more.
Rent control and tenants' rights working exactly as intended.
@@shauncameron8390 I dont know what they r intended to do but you control the price of an asset and you ll lead to shortages and illegal markets. Even a school kid knows it.
Hope to see a collapse in asset inflation.
Hope to see more homeless people...
It's almost like the idea is to get these investment firms to offload some of their realty investments..
The straw that broke the camel's back. It is happening everywhere, Canada, US, Australia (where I am from). My late mother's property sold, but I never knew that the real estate agent had prior knowledge that the property would not sell for what I signed for. AUD$420K less than what I signed for. I am renting in a Retirement village, because the rent is low. It has taken away any plans I could have made. Yet, I have a roof over my head, and given the situation around the world in regards to rental properties, I'm much better off than many.
I’m selling and moving out. The next move will be taxing the principal residence.
Boo frickin hoo!! Landlords have to sell some of their prized real estate. The regular person doesn’t have a chance to buy a property and we care about these a holes. What a joke.
You have anger control problems.
You sound like a lifer renter. Bitter
@@stephenmorris8557 I really don’t. My anger management course said I don’t.
More important when does the flood of listings come on?
We are getting poorer precisely because a narrow elite has organized society for their own benefit at the expense of the vast mass of people. Political power has been narrowly concentrated, and has been used to create great wealth for those who possess it.
raise the dollar.
drop the profiteering.
impact the greedy.❤
Wow what a crazy tax grab! Such government overreach.
She’s right. I get it most people don’t fall into this wealth category HOWEVER this is a socialist country where the rich pay more to support the poor. If the rich are taxed out of Canada and leave, the middle class end up having to pay. Anyone who’s had a parent die and had to deal with an estate knows that the house and other assets are fully taxable on capital gains, which mean you don’t get much after revenue Canada and the lawyers take their cut. This is also going to greatly affect our retirees who have saved some money for retirement and maybe need to make a big sell while prices are good. They might not make anymore money until the next sell 5 years down the road but they will be taxed heavily because of one high sell. All this is going to do is have the wealthy leave the country and invest elsewhere, taking with them the high taxes that would have been paid to revenue Canada to support the poor. Essentially all the people cheering this on are shooting themselves in the foot.
No, your wrong
@@robyndibblee8035
The poster is right.
Seems like this country is bound for greatness
Do not take investment advice from a real estate agent!
a big problem is Canada has a PM and a MInister of Finance with no qualifications in economics and obviously isn't seeking qualified guidance.
It's okay she read a book about MMT
She has a degree in Slavic studies, what are you on about? She is perfectly qualified to talk about Slavic history.
The hair will balance itself
@@Cutlerypotato She did do a TED Talk one time. The topic was along the lines of "Wealth Equality". It's concerning that our Minister of Finance is a socialist.
@@orbitx5838 she must have been twitching up a storm
If someone has capital gains of significantly over $250 on a "cottage" I don't have a problem with them paying tax on 30% more of those gains.
Seriously. How was that a real argument?
That lady could not be any more tone-deaf. She lives in some sort of upper class echo chamber.
If own by a couple that gain would be split? So 250k each?
I have to say, I would like to see more Canadian's owning Canadian housing markets... so they'll sell and leave; we don't need outside investors at the rates we're paying.
Yeah and you're going to see a lot more people homeless because of this.
This is absolutely ridiculous and completely avoidable.
FJT!