Quote:
Originally Posted by UFO
If all people did that, it would cool the Van housing market quick. New builds now commonly have 2 basement suites and laneway house, yet sell quick and easy because owners see an easy $2500-3000+ a month tax free in mortgage help. Add that to an average $2000/mth regular mortgage contribution and you don't need to make CEO money to afford a 2M house. Now think of how that. that extra taxed income can contribute to actual social problems if everybody went about it the proper way.
The increase in property tax I'm guessing just goes to pay for increased use of garbage, water, etc. What is the fine/penalty? Clearly not big enough to deter people from doing that. Then we also have the issue of essentially tax evasion with illegal rental suites and non-reported rental income, not sure what sort of hurt CRA could deliver but I'm guessing they know this happens a lot and they can't really do anything to enforce it unless somebody rats out on a landlord?
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Let's cool the market by making it even more difficult for locals to purchase properties? This would have no effect on outside buyers. It would make the condo market even hotter and more inflated as well. Not to mention cut down on affordable rentals.
Yes, it's an issue, but I doubt it's the number one issue at hand.