The Ontario government has little choice left but to enact a 15 per cent tax on foreign home buyers, according to CIBC World Markets deputy chief economist Benjamin Tal, as financialpost.com reports today.
Here are the key points of what Tal Said:
- Ontario will have little choice but to tax foreign investment
- Even if home prices in Canada stop increasing today, the imbalance has left the Canadian economy in a dangerous imbalance
- Governments need to make it more difficult to borrow to "save Canadians from themselves"
- One potential solution, among others, could be for the government to raise the minimum down payment on homes valued between $500,000 and $1 million to more than 10 per cent.
See the entire article here.