What does this mean to you?
The purpose of the meeting is to see what can be done to slow down the housing market. Here is a list of possible discussion topics:
1) A Foreign Investment Tax similar to recent changes in Vancouver. This will reduce the demand and theoretically slow down the market.
2) Increase interest rates, but this growth is regional and tax rates will affect everyone regardless of where in Canada they live. It will also discourage business activity which is driving our economy.
3) Rezoning to allow for more units and encourage more development. This proposal is a long term option but will do very little to change our current housing situation
4) Taxing housing wealth. Currently the government generates most of its revenue from Income tax but housing wealth on primary residences is mostly exempt from taxation. By taxing housing wealth it will raise more in taxes and will make property investments less appealing but with our current rate of growth real estate is still a fantastic investment.
In the end, there is no quick fix for slowing the market other than a foreign investment tax and raising interest rates. However, if the focus is on affordability for people entering the housing market, then interest rates will make it even more difficult for young Canadians to purchase their first home. Only time will tell what the government will do, let’s hope their decision sides with Canadians.