Langstaff Gateway Condos floor plan.Canada lowers house prices. A “overseas buyer tax” will be considered in 2021 to levy taxes on Canadian homeowners living overseas in order to reduce Canadian house prices. However, some people question the practice of implementing this policy in Quanjia.Please Visit: Langstaff Gateway Condos floor plan to Get Your VVIP Registration Today!
Over the past few years, the idea of an overseas buyer tax has become popular in British Columbia, Ontario and Prince Edward Island. In its recently released financial report, the Canadian federal government pointed out that taxing those hoarding homes in the Canadian housing market can not only benefit first-time buyers, but also bring more homes to market.
According to the BC provincial government, revenue from speculative and vacancy taxes reached C $115 million in 2019, mainly targeted at foreigners. In addition, the BC provincial government also levies an additional 15% property transfer tax on overseas buyers who buy homes in Vancouver. James, the former Canadian treasurer, pointed out that the tax was one of the reasons for the decline in house prices in the first half of 2019.
However, Somerville, a professor at the Suntech School of Business at the University of British Columbia, said that while house prices in Vancouver did fall after the introduction of overseas buyer tax, this policy was not a panacea to the problem.
Mr Somerville said that while a tax was proposed and prices might fall in some markets where demand from overseas buyers was strong, in other areas, such as tourist attractions, tourists could benefit from buying holiday homes locally. In addition, in some cities where housing supply is flexible enough, overseas buyers have little impact on overall house prices.
Pavlo, a professor at the Bidi School of Business at Simon Fraser University, also said that nationalizing BC’s policies would hinder overseas investment. If there are further taxes, the supply of housing may be reduced in the future due to the reduction of builders and investors, and the best way is to boost economic growth as soon as possible.
Household debt as a share of GDP was 117.9 per cent in the first quarter of 2021, an increase of 18.3 per cent over the past decade. Over the past 21 years, the ratio has increased by nearly 48.9 points, the average debt growth rate is 80% faster than GDP, and is expected to climb 252% by 2045.
According to a report by Canadian media HuffPost Canada last week, the ratio of household debt to disposable income in Canada continues to reach a record 170%, which means that Canadians have about $170 in debt for every $100 of disposable income. obviously, the risk of a debt crisis in the Canadian economy is very high.
In response, Bloomberg said that with heavy debt, Canadians are slowing down their spending in response to a possible blow. Personal debt is usually a cause of concern, and many people struggle with it every month. But for some Canadians, the situation has fallen into a state of despair.
In a recent survey, 1/3 of Canadian households were unable to pay their monthly bills and expenses. Half of this group is struggling with bankruptcy, and personal bankruptcy is on the rise. Those who plan to borrow money to pay off their debts will find that higher interest rates make it more expensive to borrow. Canadians now find that borrowing costs, including housing, are high, and these costs may only get higher and higher.