If anyone has been following the Canadian Real Estate news recently, you are no doubt aware of the Vancouver foreign buyer's tax, and the subsequent price rise in Toronto. Now Toronto is talking about a foreign buyer's tax because Toronto housing prices are going through the roof.
As I read about politicians and "experts" talk about the issue, I keep hearing about supply and demand, market forces vs affordability, and the effect of a tax on the economy of Ontario.
These talk points all focus one a single issue: the price of homes in Toronto, and all their discussions only revolve around that one point.
What gets left completely out of the discussion is *WHY* people, foreigners or not, want to buy homes in Toronto.
First, the obvious part: Toronto is a world class city with one of the lowest crime rates in the North America. It has a ton of things to do, a vibrant economy, and some of the best schools in the country.
Now, for the less obvious part: Toronto has an antiquated subway system that was built in the 50's and hasn't seen much expansion in the last half century. I like to joke that if you can name a famous landmark in Toronto, the subway probably doesn't go there. Even the CN tower is a 20-minute walk from the nearest station!
Worse yet, the Toronto subway doesn't go very far, and any expansion work takes ages to build. The short, 6-stop extension to York university was started some 15 years ago, and it's *still* not open yet!
Toronto has atrocious public transit compared to other cities in its class. As a result, everyone is forced to compete for the small speck of land instead of being able to spread out. Foreign taxes isn't going to change that!
Maybe if people were *able* to live further away and still work in Toronto, Toronto homes wouldn't be so overpriced, eh?