We're going to see a lot of rental units being sold off: changes to capital gains tax 

I’m a new dad, I moved to the Bay Area a few years ago and I’m thinking of purchasing a single family home, but with real estate prices currently through the roof, is it still a good idea to buy a home or should I invest in stocks for now and just wait for a housing market correction? I heard Nvidia and AMD are strong buys.

May I ask which investments are good? I've been looking at a few different ones but want others' opinions as well.

I hope someday Canada will get rid of these brokers/agents, who does nothing but ready to take commission. They add no productivity to the country.

"it's not just the wealthy. If you have to sell the family cottage, it'll impact you too." Oh shit, not my middle class family cottage! I have like 10 of those!

Recently bought some recommended stocks and now they are just penny stocks. There seems to be more negative portfolios in the last 3rd half of 2023 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?

Rich people will navigate through this without any issues. As always, the less fortunate are gonna pay for this.

Perhaps this was the intent of these changes- to chase the highly leveraged property 'moguls' (owners of 2-3 rented units) out of the condo sector.

I disagree. Local property Investors will hold onto Assets as the exit costs just increased. Investors will sit on the units until the next government. This will create a higher supply, driving up the housing prices and the Cap gains tax obligations further, This will become a self perpetuating cycle.

So this is good news for people wanting to own a property to live in. Maybe these "investors" could do something productive like start a business. Or they can leave and make real estate more affordable again.

She was supposed to make an argument against the new changes to the capital gain taxes. Instead she pitched about the shady tax havens in Caribbean Islands for real estate investing and her dislike for Canada and the US.

"Regular" canadian investing in the british Virgin islands 👀 This lady respectfully is not living in reality

Am I the only one who thinks the guy is correct and the lady is wrong? “When you leave Canada, you are considered to have sold certain types of property (even if you have not sold them) at their fair market value (FMV) and to have immediately reacquired them for the same amount. This is called a deemed disposition and you may have to report a capital gain (also known as departure tax).” If you stop living in Canada as a permanent resident you are going to get hit on the capital gains tax anyways! lol that lady doesn’t know what she is talking about. If you’re a resident you pay tax in Canada even when you make money from outside the country.

3:05 Crazy that their world of 'investing' is exclusively real estate. So Canadian, part of the problem...

Over leveraged real estate speculators getting hurt. Jesus wept.

You do have to declare when you own property over 100k abroad. Asks you on the tax form every year. I'm a tax professional

If your family has a cottage or a family home in Toronto core to sell, you are wealthy. Don't kid yourself.

For the last time, investors that buy property to rent that could be owner-occupied aren't "providing housing", they're SCALPING housing.

Good, sell them to people who want to own a home.

I own a rental property that i was hoping to sell to help me financially in retirement. The only people this hurts is small investors and retirees

If rental property investors were investing for capital gains then that's a problem right there. It speaks to the unsustainable bubble that we are in the midst of.

This woman is out to lunch. People only rent because they can't afford to buy. The more investors leave the market, the less demand there is and the more pricess will come back to earth. Can't wait for some sort of normalcy to return to prices. Let them go buy up all the u.s. properties.

No logic at all “if someone buying a property, it will be either occupied by the buyer or rented out to other tenant.” The net effect, or the ratio of tenants to the properties won’t change.

Who care about investors? They're an unproductive blight on the economy. Landlords investing in other countries is a loss to our country? Are they going to carry homes across the boarder? Who do people think these rentals are getting sold to when they're sold off?

There are so many Canadians who are investors! What about the people who have been saving money and making the right business moves for the past 3 decades and bought an investment property to rent out to supplement retirement income. What if they want to sell now? Of course they are affected by this capital gains tax because they bought so long ago. This isn’t taxing the rich! This is taxing hard working Canadians.

We're going to see a lot of rental units being sold off? TO WHO? YOU NEED PEOPLE TO BUY, if you are selling! This entire things is preposterous.

Private foreign money being landlords was part of the problem to begin with

And so renters will begin to lose their housing. I wonder how backed up the Landlord & Tenant Board will be in the coming months. Tenants who know their rights and how the system works will insist on waiting for a hearing. What a mess.

These people are so out of touch talking about their cottage homes and international investments😂😂. Take a drive down Hastings street and tell me what you see. This country has gone to 💩

Dirty secret: this whole problem is from us, as a society, saying that houing is ok to make an asset for driving wealth, not a human need. Nothing is going to work until we decide to change how we see housing. As is, homeowners don't want to change that hurts their equity, banks and builders don't want chnge that affects their profits, and politicians don't want change because most of their voter base are long-time homeowners still (upside down population pyramid, with veey few young people).

The capital gains tax on every $100K was previously $26750, and now the government has raised it to $30094. While it’s not a significant hike, these individuals are reacting as if the ground beneath them is shifting. 🙄

No mention of average canadians being able to buy instead of investors. Why so much concern for investors and no mention of the benefits to family's and Middle class

There is nothing that this government does which is well thought out!

Nice Justin, let’s have fewer rentals, and 500,000 immigrants a year.

hahah "consult with mortgage brokers" this made me chuckle!

Right, Mortgage brokers and developers should guide the public policy in Canada ?…. Shut up

Is there a possibility that the prices will go up to compensate for having to pay more tax. Often when the seller of a product has to pay the government more to sell a product the cost is passed on to the buyer .

Transfer ownership before parents pass away is best

Canadians cannot compete with housing investors and especially foreign investors in the Canadian housing market. So good ridence

In Alberta the new home buyer's deposit is insured up to a specified amount. the builder takes the payment as a progress draw.

I got laid off from ATCO. Rented my town house to save my mortgage. Now I will either have to pay a lot of tax when I sell or I will have to remove a renter and move back in. I was avoiding moving back in because with increasing mortgage rates and lay offs in Alberta. My new job is already showing signs of preparing for lay offs. So yes these things she is talking about affects more than the top 5% wealthy. The wealthy are never affected they have options.

Wah, i love my wealth- need every penny- I’m leaving. Hah, let them go, get out already! Tax those that can afford it and who want to stay and move forward. Housing is a basic need turned into an investment Gambit by irresponsibly low post pandemic interest rates.

You never know. People’s might demand housing be built, not for profit but to house people, it could happen agaib

Just closed. Got my money out of Canada before the tax changes, made out like a bandit. Now setting up a corporation in the Caribbean and looking at places to setup primary residence. Tenants are screwed unfortunately, all just received a 60-day move-out notice from new owners. Rent will skyrocket. Canada was cool but the winters are cold and the tax changes put a chill on things for me. Time to move on, life is too short.

Get qualified on a 30 year amortization make your payments based on a 25 years amortization, most bank have the option to increase your payment by up to double monthly the additional payment goes directly to principal.

I left Canada for US over 30 years ago, and never look back. Sadly I urged my brother and his wife to do same and they didn't. I remember a wise coworker love to joke, there are three kinds of Torontonians by financial hierarchy. Those who read Toronto Sun for the Sunshine Girl, those who read the Toronto Star, and those who read the Globe and Mail.

Do not take investment advice from a real estate agent!

This is so out of touch. We need far fewer foreign investors seeing our housing market as an opportunity.

OMG, your country is nuts! I thought this was a US article at first, but then I heard 'raise from 50% to 66%' and was like, it's only 20%. So you already have it at 50%? Madness.

I hope everyone finds a loophole to not pay these taxes

It's all going according to plan.

Let’s hope they all hit the market at the same time, tanking the prices and making long term rentals a little more affordable in the aftermath. This entitlement to twist the real estate market to your greed in cahoots with an American “sharing” economy is disgusting. Couldn’t be happier to see it “right sized.”

I am renting out a town house and I just saw 2 other units in the same area get listed. That's 2 less rentals available.

Sounds like Canada needs to take a page from the US and make Canadian citizens declare all income, domestic and foreign.

Yes but most of us younger people don’t have houses to begin with and on a larger scale it would hurt that one guy from that London Ontario Graham Stephen video and hey man. 50+ units come online from that one guy. Sure. I’m all for it. Get these leech landlords and corporate landlords out of our pocket. And I’m surprised people are ok with cost of living as it is, when every ceo boasts how they can jack up rates because people are being told inflation is going to happen so they are going to take advantage of that and increase profits.

So what’s happening after the month of June? Is the housing market collapsing or not?

The development problem is less about labour shortages and more about developers wanting lower interest rates. Real estate shouldn’t be as big a part of the economy as it is, bubble needs to pop now. Let’s get back to oil, gas, mining, and producing shit please

I mean most rich people have already left canada, there is little to no incentive to be rich in canada, you get penalized so badly, why would any stay?

If Justin Trudeau even just consulted with RU-vid comments rather than his useless cabinet we would be better off.

Canadian here. Keep your money. It hasnt helped my nation.

Small landlord’s will sell and large corporations will buy. They're too big for Ottawa to handle as that mean drying up the investments.

This interview sounds like a lot of "Fire and Brimstone" covered in "Snake Oil" to me. 1. "I choose not to invest in Canada anymore" sounds like words from a foreign investor. To which I answer "So what ?" Canadians will happily invest in Canada. Also, most "savvy" investors also invest outside of their home country, even Canadian Investors. Again "So what ?". 2. The Government LONG AGO stopped providing rental properties to most Canadians, and instead relied on the private sector to fill the need; as did most other countries. So your point is ???? 3. "Fewer places to live" ??? A sold "Rental Property" is still a place to live; it just being lived in by the actual owner, not a tenant who is paying part (if not all) of the actual owner's mortgage. Whether you own it, or rent it, you STILL live in it. 4. If you have to sell the "family cottage", it is the estate of the parents (original owners) that must pay the "Capital Gains" tax upon their deaths. This is (or should be) known by any owner of recreational properties, and can be prepared for in advance. Alternatively, the "Capital Gains" can be paid from the sale of the Primary residence, or liquidation of any other assets the parents owned. So, "Yes, you will be affected", but this does NOT mean you will be presented with an unexpected "bill", but rather you may not "inherit" as much as you expect. 5. "Selling the homes of Parents who have passed away", same as point 4. 6. "Get my money out of the country, and invest elsewhere". Uh, as a Canadian citizen, you still have to pay taxes on "Foreign investments"; unless of course you are NOT a Canadian citizen, decide to renounce your Canadian Citizenship, or are a tax evader. 7. Okay, you can keep all the money you make in a foreign country, so long as you don't bring it to Canada, and need to declare it. Countries with these kind of tax practices usually are either "Third World", or "Services for Profit". Are you saying that you plan to move to such places during your "Golden Years" when your health, and possibly your mental faculties, are starting to fail ? I think it more likely you'd rather stay in Canada, or move to the USA, in which case you need to declare. Either way, you screwed yourself. 8. "My Principal Residence doesn't need to be Canada anymore", Yeah, but this decision has other consequences that you may like a whole lot less than paying a little more in Capital Gains taxes. 9. "Deciding to just leave". Leaving a country doesn't just mean selling your home and crossing a border. It also means leaving a job, family, friends, and liquidating a lot of other assets. If you are "Free enough" to be able to do this, just because of "a 16% increase in Capital Gains Taxes, I doubt you are part of the "working population", and therefore don't contribute as much to the "Healthcare system". 10. "30 Year Mortgages", any person who takes out a 30- year mortgage for a building that has yet to be built is either an Investor, or a fiscally irresponsible idiot. I think the government had "Occupant ready Single Family Homes" in mind, rather than "Pre-built Condos ill suited to families" when they wrote that paragraph. She is right though, that a 30 year mortgage holder will pay more interest than a 25-year holder; assuming that neither decides to pay off their mortgage earlier. This paragraph was "Government Window Dressing" regardless. 11. "Use it or Loose It". I think the idea here was to discourage developers from applying for, and sitting on more permits than they can execute as a way of "excluding their competition". If one developer has all the permits, and even at max capacity can only complete 1 home per day, then there are only 365 homes built in a year, even if there is space for 10,000 homes. Better that 28 competing companies all get permits to build 365 homes each, and 10,000 homes get built. Labour issues are "not the government's nor the population of Canada's problem", It is the company's problem if their workers are unhappy, and you need to decide if angering your workforce and risking a strike is worth loosing the permits over. Interest rates are published, and I'm sure companies have the option to "return" any permits they receive if they decide the original building proposal is no longer "cost effective". I'm sure a competitor would be happy to have a crack at getting those permits if the original company doesn't want them. Also, the whole point is to "get homes built for Canadians", NOT "Maximize profits to line the pockets of Construction Company Executives and Investors". If interest rates and prices are "too high", well I say "That's life" AND "No Kidding, but interest rates and prices are high for ALL Canadians right now, so you are just one of many suffering". This is called project planning, and if you didn't factor this into your business plan, then "maybe this isn't the job for you". "Trust me, I'm sure if they "could build quickly they would want to ?", how about "No". As long as there is low supply and High demand, those companies will work to MAXIMISE their profits by keeping the supply low to maintain the value (and Profit) as high as possible. Rant over. Peace.

All it is, is a gift to corporation like Black Rock....who the hell do you all think is going to buy these over priced homes? the first time home buyer? come on people stop living in delulu land.

Very informative. Very knowledgeable subject matter expert Val Morrison! So fluid and articulate no uh...um...

Great news, more supply which may actually help stabilize prices.

100 percent..... with the tax savings I will achieve by leaving Canada I can afford Platinum International HealthCare coverage for a fraction of the savings..... plus all the upside from tax-free income moving forward..... for me Canada has become a nice place to visit..... and that's it

I can only handle one disappointment per day, I'll look at it tomorrow...lol

I'm not a tax expert and I hate the current tax system which is a criminal organization charging taxes over criminal rates. But, what she said about tax haven countries, aren't all Canadians taxed worldwide income assets?

you still need to report foreign assets over CDN $100,000 - just not immediately with capital gains

they should extend the deadline later into the year.... give people more time to sell these homes. That should have been the goal with this... put more homes into the hands of people that want to live in them.

Next thing is job losses in construction sector and rent increases. With investors missing from the market, the demand for housing will reduce and builders will not start new projects (construction job losses) leading to tighter supply (rent increases). More headaches for renters. The investors work as market makers.

That was part of the reason this was done this way, with the extended timeline

She was a great guest. Coherent, calm and with reasonable stances.

I’m selling and moving out. The next move will be taxing the principal residence.

She is spot on … people are going to take their money, investment and business to other countries

Homes should be for living in - not a speculative investment. For this reason, I think the government is doing the right thing in increasing the capital gains tax.

This doctor shortage is not all that visible in Toronto nor are these long wait times I've been hearing about. In any event, it is generally always cheaper to pool money and buy in bulk which is what taxes allows a society to do. It is also what private organizations for their investors as lobby groups for their members. In a society the investors are the citizens and their children's future.

I love how the media is trying SO HARD to convince us that it's bad that rich people are going to have to pay capital gains tax. O NOES. WE'LL HAVE TO SELL OUR FOURTH AND FIFTH PROPERTIES. Yeah. That's the point. Get bent, let the rest of us own something at some point.

Hope to see a collapse in asset inflation.

Is this only in Canada?

Very well said 👏

Continue pushing on rental control and u ll see this more and more and more.

Boo frickin hoo!! Landlords have to sell some of their prized real estate. The regular person doesn’t have a chance to buy a property and we care about these a holes. What a joke.

Good luck for those thinking this won't affect anything, look how bad any country with these policies became.

Cannot believe this. But I def learned new stuff , thanks Davelle

This lady is SPOT on. Those with the means to will not tolerate this government any longer

Ppl are dismissing her comments and not understanding what she is saying - if you have a condo from when you got married (many couples) that you rent out to afford yr mortgage of yr house - if you do not have investments bc you are putting all yr money into yr current mortgage - if you do not have a pension bc you work for the private sector and so you kept the condo as yr “pension” ALL those folks will be nailed by this. It is not just 1%. That is a lie the Feds have said to make it about the “rich” and make it “us and them.” Actually, this is going to affect many different types of people. The corporations own blocks of real estate that they will never sell.

We are getting poorer precisely because a narrow elite has organized society for their own benefit at the expense of the vast mass of people. Political power has been narrowly concentrated, and has been used to create great wealth for those who possess it.

So rich people quit buying rental properties is a bad thing for average Canadians? How?

This hurts all the Canadians who took risks and sacrificed to get where they are now. The government is taxing the shit out of all of us instead of focusing on growing the economy.

Wow what a crazy tax grab! Such government overreach.

Canadian dollar down, gold way up. No confidence in both Canada and the United States political policies.

I have to say, I would like to see more Canadian's owning Canadian housing markets... so they'll sell and leave; we don't need outside investors at the rates we're paying.

Anything that’s bad for real estate investors is good by me

She’s right. I get it most people don’t fall into this wealth category HOWEVER this is a socialist country where the rich pay more to support the poor. If the rich are taxed out of Canada and leave, the middle class end up having to pay. Anyone who’s had a parent die and had to deal with an estate knows that the house and other assets are fully taxable on capital gains, which mean you don’t get much after revenue Canada and the lawyers take their cut. This is also going to greatly affect our retirees who have saved some money for retirement and maybe need to make a big sell while prices are good. They might not make anymore money until the next sell 5 years down the road but they will be taxed heavily because of one high sell. All this is going to do is have the wealthy leave the country and invest elsewhere, taking with them the high taxes that would have been paid to revenue Canada to support the poor. Essentially all the people cheering this on are shooting themselves in the foot.

In general the new capital gains tax will create more more issues in the housing industries as investor will be less likely to invest develop or purchase buildings this will increase the housing crisis and supply won’t meet demand. Hence rents will go up

It's almost like the idea is to get these investment firms to offload some of their realty investments..

If someone has capital gains of significantly over $250 on a "cottage" I don't have a problem with them paying tax on 30% more of those gains.

a big problem is Canada has a PM and a MInister of Finance with no qualifications in economics and obviously isn't seeking qualified guidance.

whatever happened to homes as apposed to houses

Boohoo rich people and unnecessary real estate agents