Tory Won't Rule Out a Tax on Foreign Real Estate Buyers in Toronto

Mayor John Tory says he hasn’t closed the door on taxing foreign buyers in Toronto’s red-hot real estate market.

But the mayor says he wants to wait and see what a federal group examining the situation in Toronto and Vancouver comes up with before committing to a strategy which may or may not work.

“Nothing has come back to me by way of recommendations as to what could be done by the province or by the city to address housing prices in Toronto,” he said Thursday. “Housing prices in Toronto, as they continue to escalate are a real concern to me not only because sometimes, if it’s representative of a bubble, bubbles burst.”

On Monday, British Columbia Premier Christy Clark announced foreign buyers wading into the Vancouver real estate market would be subject to a 15% tax. Tory said while he hasn’t reached a conclusion himself on the tax, it’s hard for governments to regulate something like this.

“It’s a complicated matter,” he said. “You’re dealing with a marketplace. Governments can only macro-manage things not micro-manage them.”

Tory said he wants to protect the next generation of Toronto buyers, who are increasingly finding themselves squeezed out of home ownership because of ballooning costs.

“I am concerned about the long-term effects of this on young people who ... have an aspiration to buy a house,” he said. “We have to look at the generational impact this kind of escalation can have on the simple ambition people have to own their own home in the City of Toronto.”

Originally posted by: Shawn Jeffords, Toronto Sun

Sean Mayers

Sean Mayers

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CENTURY 21 Regal Realty Inc., Brokerage*
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