The Toronto Regional Real Estate Board (TRREB) and IPSOS did a survey in the fall after the Government announced a new Vacant Home Tax in Toronto. 

Investors who’ve had their units vacant until now might choose to rent instead of sell. 

According to the City of Toronto the tax was in fact designed to do just that, which is to encourage homeowners to sell or rent unoccupied homes. 

If they aren’t willing to do either, owners will have to pay for the privilege of keeping an empty home.

Full details about the tax and how it will be implemented are still not released. 

The tax will apparently start at 1% of the property’s assessed value. 

That’s almost twice the rate property tax is calculated. 

Full details about the new Toronto Vacant Home Tax will likely be released in the second half of 2021.

The survey found 40% of investors said they would sell in the next year …

which is up from 34% a year before, and from 31% two years ago, when a vacant home tax in Toronto was less likely. 

The survey has also found that even some owners who don’t have a vacant home, intend to sell. 

This is likely due to a perceived impact on value of their [vacant] property if its affected by the new Vacant Home Tax once implemented.

And so in closing .. we are all left with this to ponder and watch out for. 

We are left pondering and watching how this might ultimately affect the real estate market throughout all of the Greater Toronto Area. 

I’ve done many video posts about how market prices have been rapidly going up because they’re driven by supply & demand. 

Specifically, low supply and high demand. 

I’ve also done recent video posts about how there will be more immigration in the near future and a big boom to our tech sector, thereby creating more jobs, which in turn will BOTH dramatically increase demand. 

So I predict prices will keep going up and up. 

However, if something like the Vacant Home Tax causes many new listings to come on the market, suddenly there is a boost in supply. 

While supply may or may NOT still equal the amount of demand, and increase in supply of listing for sale could possibly slow down the rapid pace of price increases. 

It will be ver interesting to keep watching. 

As always, stay tuned to my videos for updates. 

And if you ever want to talk about market timing, market predictions, or your interests in selling, buying, or investing in real estate, remember I’m always happy to chat and answer your questions.  

No pressure & no obligation.