What Might We See From the New Budget Plan?

What should you expect from the new budget from the federal government this April? These are the most plausible rumors at this point.

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There's a new budget coming around in April and today, I wanted to address some of the rumors and how it could affect real estate.

There's so much pressure mounting for the federal government to do something to cool the red-hot market, and we're starting to see signs of that already. We don't know what they'll do, but the first rumor is that the capital gains tax will increase from the current 50% to 70%, 80%, or maybe even 90%. 

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The capital gains tax could go up as high as 90%.

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The second rumor is that the foreign buyer tax is being revisited. They're looking into bringing the tax from Vancouver and B.C. to here again. Hopefully they don't go through with it, though.

The third way the market could be affected is a law they're considering that would impose a tax on vacant properties. If you have a property that's been sitting on the market for six months or more, there will be an additional tax when you sell it.   

All these measures are efforts to cool the market and get flippers out of the market, which they say has caused inflation. We'd like the market to stay strong forever, but in reality, we always have to look out for when things cool down. We haven't seen any huge effects yet, but we're seeing some signs of softening.

If you have any questions about how this could affect you or about the market in general, you can always give me a call or send me an email. I'm happy to help!