TRUE FACTS ABOUT The 16 measures in Ontario’s new housing plan!!!

We've all heard about "16 measures in Ontario's new housing plan" that "WILL" calm down fast pacing real estate market in GTA. (according to you-know-who) .... Really?...

How many of you had thoroughly read through them and found yourself truly affected as a buyer, seller or an investor??? 

Well, I've decided to explain those rules in 'plain English' form, in similar way as we realtors explain real estate forms to our clients. I've created tables that will show you who is affected by certain rule.

After going through them all, you will most likely acknowledge that there are basically  6 MEASURES (if we are generous in counting) and NOT 16. 

I hope that after reading this article, I will be able to take away some of that "scare city burden" from your shoulders and hopefully bring

buyers / sellers back to market.

 

RULES AND NEGATIVE EFFECT TO BUYERS, SELLERS OR INVESTORS:

 

 

*If Sellers are in the market where Foreign buyers are dominating the market, than there might be some correction, but mostly in the average selling time. Price shouldn't be affected unless the Seller MUST sell and doesn't have enough time to hold onto the property.

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#2     Expanded rent control that will apply to all private rental units in

Ontario, including those built after 1991, which are currently excluded.

 

First time Buyer	Mover-Upper Buyer	SELLERS	INVESTORS
NO	NO	YES*/NO	NO

* Number of investors might get slightly lower due to the rent control, but not that much that would hurt market.

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3. A program to leverage the value of surplus provincial land assets across the province to develop a mix of market-price housing and

affordable housing.

 

First time BUYER	Mover-Upper  BUYER	SELLERS	INVESTORS IN RESIDENTIAL PROPERTIES
NO	NO	NO	NO

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4. Updates to the Residential Tenancies Act to include a standard lease agreement, tighter provisions for “landlord’s own use” evictions, and

technical changes to the Landlord-Tenant Board meant to make the process fairer, as well as other changes.

 

First time Buyer	Mover-Upper BUYER	SELLERS Depending on location and product*	INVESTORS
NO	NO	YES*/NO	NO

* Number of investors might get slightly lower due to the rent control, but not that much that would hurt the market.

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5. Legislation that would allow Toronto and possibly other municipalities to introduce a vacant homes property tax in an effort to encourage

property owners to sell unoccupied units or rent them out.

First time Buyer	Mover-Upper BUYER	SELLERS	INVESTORS WITH intention to rent out properties	INVESTORS - NO intention to rent out properties
NO	NO	NO	NO	YES*

*Vacant properties are usually not maintained properly, making neighborhood to loose an appeal and can even attract some illegal events.

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6. A plan to ensure property tax for new apartment buildings is charged at a similar rate as other residential properties.

 

First time Buyer	Mover-Upper  BUYER	SELLERS	INVESTORS
NO	NO	NO	NO

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7.  A five-year, $125-million program aimed at encouraging the construction of new rental apartment buildings by rebating a portion of

development charges. **

 

First time Buyer	Mover-Upper  BUYER	SELLERS	INVESTORS
NO	NO	NO	NO

** This will help people who prefer to reside in rental buildings and are not interested in resale/new development real estate market anyway.

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8. More flexibility for municipalities when it comes to using property tax tools to encourage development. **

First time Buyer	Mover-Upper  BUYER	SELLERS	INVESTORS
NO	NO	NO	NO

** In long term, it might bring more inventory to GTA, but it will take many years to implement and to affect the market.

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9. The creation of a new Housing Supply Team with dedicated provincial employees to identify barriers to specific housing development

projects and work with developers and municipalities to find solutions.

 

First time Buyer	Mover-Upper  BUYER	SELLERS	INVESTORS
NO	NO	NO	NO

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10.  An effort to understand and tackle practices that may be contributing to tax avoidance and excessive speculation in the housing market.

 

First time Buyer	Mover-Upper BUYER	SELLERS	LONG TERM INVESTORS	SHORT TERM INVESTORS “FLIPPERS”
NO	NO	NO	NO	YES*

* Investors who like to flip new/resale homes and earn money from Capitol Gain, will now be more cautious since CRA will look into the patterns and if they suspect that this is done often by the same person, it will be qualified as "business" and money must be clamed as business. On that note, this rule has been in existence for very long time, but not carefully monitored and executed by CRA.

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11. A review of the rules real estate agents are required to follow to ensure that consumers are fairly represented in real estate transactions.

First time Buyer	Mover-Upper  BUYER	SELLERS	INVESTORS
NO	NO	NO	NO

** We, true professionals, respect and appreciate this rule and are sincerely hope that it will be implemented ASAP! We need to "weed out" those so

called "realtors" that continue bringing bad name to our profession.

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12. The launch of a housing advisory group which will meet quarterly to provide the government with ongoing advice about the state of the

housing market and discuss the impact of the measures and any additional steps that are needed .

First time Buyer	Mover-Upper  BUYER	SELLERS	INVESTORS
NO	NO	NO	NO

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13. Education for consumers on their rights, particularly on the issue of one real estate professional representing more than one party in a real

estate transaction.

First time Buyer	Mover-Upper  BUYER	SELLERS	INVESTORS
NO	NO	NO	NO

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14.  A partnership with the Canada Revenue Agency to explore more comprehensive reporting requirements so that correct federal and

provincial taxes, including income and sales taxes, are paid on purchases and sales of real estate in Ontario.

First time Buyer	Mover-Upper BUYER	SELLERS	LONG TERM  INVESTORS	SHORT TERM  INVESTORS “FLIPPERS”
NO	NO	NO	NO	YES*

** Already mentioned "Flippers" issue under #10. Number of those investors would not be substantial to hurt the market. 

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15. Set timelines for elevator repairs to be established in consultation with the sector and the Technical Standards & Safety Authority. **

 

First time Buyer	Mover-Upper  BUYER	SELLERS	INVESTORS
NO	NO	NO	NO

** This will definitely help people who live in buildings that use elevators, BUT I honestly don't see the relevance with "COOLING DOWN THE

MARKET"?!

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16. Provisions that would require municipalities to consider the appropriate range of unit sizes in higher density residential buildings to

accommodate a diverse range of household sizes and incomes, among other things.

 

First time Buyer	Mover-Upper  BUYER	SELLERS	INVESTORS
NO	NO	NO	NO

** Again, applaud to this rule, but not much relevance in "market cooling down measures".

 

Buyers, you wanted more inventory, so we have that for you now. Please come back to the market now, because in few months, once you realize that nothing major has changed, you will all come back at the same time and THAT can create simmilar market from the beggining of this year!!!

For more information and clarification, feel free to contact me via email.

Kindest Regards from Realtor that TRULY cares!