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Real estate exec speaks out against increasing capital gains tax

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Justin da Rosa | 22 Mar 2017, 08:15 AM Agree 0
One leader of the real estate industry explains why a potential increase to the capital gains tax on second homes is a bad idea
  • Chris Winney, Broker | 22 Mar 2017, 11:46 AM Agree 0
    It would also add more tax on sellers of family cottages whether these properties are being passed on to younger generations or sold by real estate professionals.
  • Sick of taxes- time to move | 22 Mar 2017, 11:57 AM Agree 0
    Increase in income tax, carbon tax, increase in capital gains tax, makes no sense to try to successful here. Just tack the incremental tax to the selling price. The buyer can pay it. Otherwise I'm not selling.
  • Buyers | 22 Mar 2017, 12:06 PM Agree 0
    Of course it is a bad idea from realtor point of view and speculators point of view. But it is exelent idea if you in the market of buying property
  • Ben Gauer | 22 Mar 2017, 02:25 PM Agree 0
    1. An increase in the capital gains tax will only cause owners to hold rather than sell. This creates a shortage of supply, thereby increasing prices.
    2. After the property is sold, and the tax paid, you cannot replace it with the remaining funds.
    3. An increase in the capital gains tax hinders an investor from selling in order to build more rental housing which would increase supply.
    3. Often, when an older rental is sold, the new buyer upgrades the residence or building. Creating a situation that motivates owners to hold rather than sell, often limits upgrading of the rental stock.
    4. It is better to enforce existing laws. Too many flippers are getting away without paying appropriate existing taxes.
  • Sohan | 23 Mar 2017, 10:02 AM Agree 0
    Government should tax real estate speculaters to death. So the dust can settle down.
    • Shawn | 26 Mar 2017, 05:06 PM Agree 0
      A buyer and a seller makes a transaction work. A home is sold for what it's worth. If a buyer isn't willing to pay a certain price the seller cannot sell. It takes 2 to make a transaction work. Taxation isn't the solution to anything, it's nothing more than a money grab. Wake up people.
  • Shawn | 26 Mar 2017, 05:57 PM Agree 0
    Smaller government = more economic growth. This is just another money grab. Those that wish to speculate will continue to speculate, sooner or later the market will catch them. This is how the free economy is designed to work. Let those that want to speculate continue speculating it's no different that playing hot potato or musical chairs, sooner or later the free economy catches you. However to think that taxation would stop speculation is just another way for the government to think they have your back. A government cannot stop bubbles. Bubbles cannot be stopped, it's the inherent nature of bubbles. The government taxation is just another money grab to get to your hard earned money. With the amount of corruption that already exists in the government do not let government think that yet another tax will be the answer to our problems. Do your part, vote for a changing government.
  • Van investor | 27 Mar 2017, 12:07 AM Agree 0
    I haven't seen one example where taxation as policy has truly succeeded. The historically low vacancy rate is due largely to government taxing and regulating rental properties into the ground that no one is willing to take the risk.
  • Hans | 27 Mar 2017, 09:12 AM Agree 0
    When an invester purchases a property they must decide its best possible use to create the best profit margin. If the government decides to increase the tax on a spec property they are assuming that it will be flipped or that the investor will make a profit on it which to polititions is a unknown idea. As they only know how to use up their budget and ask for more. Have they forgotten that their pay and fat pensions are created by investors? So if you want to create a non investment climate , get ready for a depression not just a polite recession and an exodus of investors to other markets in other countries.
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