Ontario @lemmy.ca Grappling7155 @lemmy.ca 3 mo. ago

Investors own 23.7 per cent of Ontario homes, report says

www.theglobeandmail.com Investors own 23.7 per cent of Ontario homes, report says

The story over the past decade-plus has been a surge in the number of homes purchased by multiple-property owners, according to Teranet Inc.

Paywall bypass

15 comments

STEAL THIS IDEA:

A 1% surcharge tax on the full assessed value of a single family home that is owned by a corporation. Each year, the tax increases at 2x the rate of inflation.
After two years, the tax applies to all individuals owning more than two single family homes (this allows for cottages and arrangements where family members own the homes where other family members live). After three years, the corporate tax increases at 3x the rate of inflation, then increases each subsequent year by a factor of +1. (4x the rate of inflation, 5x the rate of inflation, etc.).

This unravels the business of owning single-family homes as rental units over time, to avoid shocking the market -- as each home will cross over to be unprofitable at different times.
- I don't think that stops a market crash, any Corp seeing that bill pass would immediately sell their properties as it's clear that it's long term not viable and that the price of housing is about to fall.
  
  I'll cry no tears if a company sells a home to an individual at a discount. Businesses don't screw themselves by selling profitable assets. Each property has it's own schedule for when it will become a detriment to own, and they'll hold it until it approaches that point.
- Housing cooperatives, condominiums, and other forms of social housing are corporations.
  
  So are condo buildings, but they don't own the single family homes, they administrate the common elements and owners of private portions.
  
  Co-ops can be converted to condos if need be, or given an exemption if they fill a niche that's advantageous.
This is the best summary I could come up with:

The story over the past decade-plus has been a surge in the number of homes purchased by multiple-property owners, according to Teranet Inc., the private company that manages property registration records in Ontario.

Ms. Cheung notes that the share of those with 11 or more properties is down significantly from just a year ago, when Teranet reported that group made up 13 per cent of all multiowners.

“I have listed three condos for this one client – these are investments they’ve owned – because all of the sudden the rates don’t make sense,” said Andre Kutyan, broker with Harvey Kalles Real Estate.

Mr. Kutyan said he is also hearing from other clients who are looking to deleverage a property portfolio where rents don’t always cover the costs of mortgages.

Mr. Kutyan is seeing increasing interest from developers to sell leftover inventory on recently completed condo projects, and is currently marketing seven units from the prestige address of 1 Yorkville – a 58-storey Bazis International and Plaza Corp. building that was finished in 2021.

Even so, for those buyers calling him looking for fire-sale prices, Mr. Bibby said things haven’t yet gotten to the stage where any offer will be considered.

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Better people get the worm

Sucks to suck!

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