According to a new report from Rentals, In July, the Canadian rental market hit a record high with an average asking rent of $2,078, marking an 8.9 per cent annual increase.
According to a new report from Rentals, In July, the Canadian rental market hit a record high with an average asking rent of $2,078, marking an 8.9 per cent annual increase.
Rental income is taxed at 100%, FYI.
I think carrot works better than stick. Instead of punishing everyone who made an investment, and spending god knows how much money to enforce it, just offer a one time capital gains exemption on any investment single family dwelling that has rental income for more than a year. But make that exemption dependent on the sale going to someone who doesn’t already own a home. (No landlords scooping up extra properties) this puts sellers in connection with buyers and since the seller is getting a big payout they can do the extra leg work. I bet many of the properties get sold to existing tenants.
The government gets an easy cost effective way to free up supply, and it doesn’t actually take money out of their pocket. (Just removes future tax income). Limit the program to no more than 3 years. Anyone who is a casual landlord will jump to get out. Boomers in retirement will jump at it as they will have owned these properties for years. This will free up supply in months, not years. Everyone I know who owns rentals that I discussed this with said they would sell if they could avoid capital gains.
That’s my $0.02. FWIW
You’ve already lost me. They’re the ones trying to treat homes as a commodity fit for investing. Investments carry risk. Passing the cost of that risk to tenants, or giving them a free pass because they’re being forced to play by real rules instead of the rigged game they’ve been taking advantage of, doesn’t sit well with me.
They made an investment that by its very nature exploits people. They should shoulder the consequences of that decision.
At this point I think I’m with Singapore on land and housing being a publicly controlled good
As it stands now our housing market is just an inflation resistant bank for the wealthy
They just named the price they’re willing to rent it at its entirely secondary to their goals and so it doesn’t serve the housing market
This is actually a great idea.
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Housing is already controlled by a government body, both implicitly and explicitly. The only thing that holds up the housing situation as we know it is that government body – our collective willingness to recognize and abide by it. If we don’t like it, we can change it on a whim. We are the government.
That’s the question. Why not pick a house you like and move in, its owner be damned? The answer, I’m sure, is because you know the government will soon come and kick you out. By brutal force, if need be.
It takes people like you and me to bring that force. We are the government. If we don’t like housing being a market, why are we bringing the force? It’s certainly easier to do nothing.
Why not complain to them now, then?