Quote:
Originally Posted by supafamous
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Of course, an inefficient tax policy like the broad-based 1m+ tax idea is not going to be effective because:
1) Regular homeowners who are using their sole property as principal residence aren't suddenly going to sell their homes thereby increasing supply. Or, if we are discouraging people from buying homes by raising the cost of ownership, are we really solving the housing problem?
2) For investors with pockets that are deep enough to own multiple properties, 0.5~1% tax is a papercut that can be assumed as a cost of doing business when historically they've been rewarded by 10~20% total return per annum.
What we should be doing instead is specifically targeting speculative investors. Imagine how many homes will be available to regular homeowners when 1 in every 5 homes have been bought by investors from 2014.
On another thought, I wonder if David Eby is the best person to solve the housing crisis as the housing minister. He represents the Vancouver
Point-Grey riding where his constituents own one of the most expensive real estate in GVA (average listing is over 6.8m with an average transaction price of 3.5M). I am not questioning his character but will he truly pursue every avenue possible to tackle the housing crisis at the cost of his constituents who have the most to lose in a real estate market downturn.