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punter

Canadian Hpc

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Not sure if you notice - the Canadian invented something called House Sales Tax (HST) levied on services (e.g. agent commission etc) involved in a housing transaction (but not the sale price itself).

actually that's Harmonised Sales Tax - most things are now taxed at 13% instead of a variety of rates depending on whether provincial or federal sales tax is involved. It's not specific to houses but, as you say, a bunch of things that used to be taxed at around 6% (at least in Ontario) now come in at 13%. The biggest hit has been on newly built houses, resale homes are unaffected. Having said that, I don't think it's really what's made prices start to fall as that seemed to have started around 3 months back. I think the rise in interest rates has probably had a bigger impact; not so much becase of the rises themselves which have been small so far but because of the fear of much bigger ones to come.

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This is great news and will feed into the already falling prices. I got my Canadian PR card in the post a couple of weeks ago. I'm heading to Toronto in September to see some recruiters. Prices, although just off their peak in Ontario, are still half what they are in an equivalent part of the UK. Moreover, you can save into your retirement fund tax free and use a significant chunk to place a deposit on a property (you have to pay back the fund, interest free of course as it's your own money). I'm surprised the UK government didn't do something like this with SIPPs.

Another great site for those who are interested in the Canadian property market is:

http://www.chpc.biz/

I think Canada is going to head into a serious recession in the next few years as the US keeps going down and China goes pop. House prices will fall and unemployment rise as Canadians pay down their huge personal debts. However, once China recovers, and India speeds up, Canada will be one of the most prosperous countries in the west due to its vast resources of Oil, Gas, and other natural reserves. In addition, by 2020 it will be almost entirely renewable in terms of domestic energy generation. It will never run out of water. Just got to get a job now!

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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