When the Vancouver’s tax rule was introduced, it looked as if it would adversely affect the GTA housing market in Toronto but that hasn’t been the case. This is because there was this notion that foreigners had been the ones dictating the happenings in the market. As a result of such calculation, there was property transfer tax of 15% on foreign buyers.
Despite all these, it is interesting to note that the GTA market has only grown from strength to strength as the tax increase hasn’t been able to slow down the happenings in the housing market in Toronto. You may be wondering what reasons are responsible for this opposite development as against what analysts had earlier predicted. This post is aimed at showing you some of the ways through which the tax rule has been able to influence the GTA housing market.
More Homes Being Bought
As against the tax rule, more sales are being recorded. This is majorly because most people fear that the prices of houses may go up and never come down. There has been this mentality of members of the public that should they ever miss out on such opportunity to buy their chosen homes at the current prices, it may seem difficult for them to be able to get such homes even in the outskirts of Toronto.
Most people’s decisions to buy homes at their current prices are driven by fear and expectations that the prices may rise in future. This change has been able to generate a situation whereby over 50% of the millennials in Toronto are home owners.
The increase in prices of homes as well as an expectation for further increase has led investors to start investing into the buying of homes. Most of the buyers do have intention of buying at a given price at present and then reselling later on to make some profits. Investors are always on the lookout for places which are very promising where they have the highest return on their investments and the happenings in the GTA market has been able to provide such a platform for them to invest.
In conclusion of the above it can be seen that the 15% Vancouver’s tax rule for foreigners has been able to make the GTA market more active than ever before as investors and people who desire to have their own homes are taking advantage of the current prices.