With prices surging in the hot Ontario housing market, the GoC and CMHC spent hundreds of thousands of tax-payer dollars to complete a study of the current housing crisis. Typical of any government study, their solution to the problem is..... to implement new taxes. That's right. The GoC and CMHC believe that a new tax on homes over $1,000,000 will help solve the problem, or adding a flipping tax on homes sold within a year of purchase. How exactly will this help? That remains a question of many analysts and industry professionals. The wasteful spending on this study proves further how the GoC and CMHC are more interested in political activism than in solving the problem.
SUPPLY AND DEMAND. Focus and studies should be put towards providing more supply and choice for buyers. With immigration numbers set to rise, and new generations of buyers entering the housing market, it's time for the government to take action and install policies and procedures that allow a streamline of new development and densification. Fast track new development instead of tying up approvals for years. Allow for zoning adjustments, minor variants, and help promote multi-family properties. Increase grants and financing for affordable housing projects to entice investors to help solve the supply problem. Land-transfer tax and property taxes are enough. Don't punish flippers for risking their own money to provide quality homes to buyers. Don't punish homeowners for the market growth. YOU CAN NOT TAX YOUR WAY TO HOUSING AFFORDABILITY.
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