Ever think the UK would do this? Would it work?

[HovelinHove]

Today the Ontario government announced a raft of measures to cool the Toronto housing market (33% growth in past year) . None of this help to buy drive prices up rubbish that the UK has done, but real measures.

• 15% foreign investors tax effective from today
• Tax on empty homes
• Freeing up development land
• New rent controls

Since I own a property and want to move back to the UK at some point, not great news for me, but I am quite proud of how Canadians are actually taking this seriously and recognize the damage to society and the economy that crazy house prices cause.

Do you think the UK will ever do this? 

Thought not, but maybe time for a petition. I think this would have a significant impact in the UK.

 

http://www.financialpost.com/m/wp/news/blog.html?b=business.financialpost.com/personal-finance/mortgages-real-estate/ontario-slaps-15-tax-on-foreign-buyers-expands-rent-control-in-16-point-plan-to-cool-housing&pubdate=2017-04-20

Edited April 20, 2017 by HovelinHove
Typos

[iamnumerate]

We should done all that 18 years ago - although I am not 100% sure on rent controls - although the tax on empty homes might render them moot anyway. 

[HovelinHove]

Tax on empty homes should be a global policy.

[disenfranchised]

It's interesting that the foreign tax is a local control Vancouver applied that Toronto has then effectively been forced to copy.

That suggests the money will just move on again, London could get an injection.

The Chinese are taxed more on consumption than income. Luxury cars cost nearly 3 times as much in China as the USA. Luxury property has higher taxes - luxury everything gets taxed more, even pens! That's what drives consumption outside China and why China tries to block capital outflows. Bicester outlet village in the UK which has many designer outlets is a bizarre Mecca for Chinese, they arrive by the bus load straight from the airport!

I have long suspected the Osborne doctrine of sucking up to China has been to get them buying off plan London flats because he would have rather some foreign investor got their pants pulled down than a British bank when it goes bang.

Everyone needs a greater fool

[chronyx]

9 minutes ago, disenfranchised said:

 Bicester outlet village in the UK which has many designer outlets is a bizarre Mecca for Chinese, they arrive by the bus load straight from the airport!

Probably all made in China too

[nothernsoul]

If they really wanted to cool the market they wouldnt need any new measures, just do what they should be doing with existing ones. Reassess council tax bands to account for hpi ( decades overdue), raise interest rates to the modest level of 1.5 percent, end help to buy. Nothing radical there, you would have a decent correction in six months. The fact they wont do this any time soon says it all.

[disenfranchised]

2 hours ago, chronyx said:

Probably all made in China too

Yes, crazy in a way.

I prefer their tax model though. If a political party said they were going to cut the higher rate of tax and then tax the shit out of luxury property, second homes and luxury cars then I'd vote for them.

A lot of tax avoiders would be coughing up a lot more and I'd be better off!

Edited April 21, 2017 by disenfranchised

[Guest TheBlueCat]

I like the way Brad Lamb (local equivalent of Stuart Law at Assetz) says he's going to cancel 9 rental building projects - I would be really surprised to see evidence that he has even one planned in reality.

[billybong]

15 hours ago, chronyx said:

Probably all made in China too

+1

Made in China but banned for sale in China?  Cheaper to travel half way around the world to buy something made next door.

Next they'll be going on about energy conservation or something.

Edited April 21, 2017 by billybong

[John The Pessimist]

It's not like we have a Canadian in a senior independent role that could deliver some of these changes......