Too Much, Too Late for "‘Massive effort’ underway to create database that will shed light on Canada’s housing market": It is Known Where the Additional Housing Demand Has Come From and only a 15% Tax Was Placed on it

http://business.financialpost.com/personal-finance/mortgages-real-estate/massive-effort-underway-to-create-database-that-will-shed-light-on-canadas-housing-market/wcm/7b6aff4d-0bff-4223-a2cc-bc0207ff9e89

Finally this is being done; however, it is too late. The cat is out of the bag.  Despite data being released that only one in 10 or one in 20 buyers are "foreign", this does not account for many housing transactions purchased by a Canadian funded by a "foreigner", nevermind Permanent Residents (PRs), Visa entries and other classifications involved in these transactions.  In Vancouver, the headlines and real estate chatter is full of these examples.

Essentially, Toronto (and other major cities in Canada) are bidding against the world, not just the couple of million residents in their own city borders.  Why? There are no restrictions on "foreign" buyers (this has not been defined by any media source or real estate body - is it a non Canadian? a non Canadian passport holder? a non permanent resident?), unlike other countries such as Australia (only new construction is available by foreign purchasers).  Foreign purchasers, whether becoming PRs or Canadian Citizens or no interest in any status, want the security of law and title as well as having an eye on education (which is significantly cheaper compared to world standards, and Canada does not appreciate it).

If Justin and his merry band of Liberal taxation experts want to close loop holes, protect the middle class and raise more tax dollars, then instead of a provincial 15% foreign buyer tax:

i) Increase property taxes that would benefit directly those who have been able to enter this housing frenzy and reduce directly their follow on expenses like annual property taxes or improve the infrastucture for which property taxes are raised and used. This would be a more accountable and direct method for a housing tax rather than going to the provincial (Kathleen's) coffers. 

ii) Increase tuition fees for those not in any citizenship application process.  Canada's universities and colleges are world class and this standard of education is coveted around the world - especially at the price Canadians (and foreign students) pay!  So much so, that as witnessed from many resumes I have read at my prior firm, many are only applying and graduating under one final semester of the program (while credits from a previous international university are transferred).  This "appears" as a graduation with a (as an example) full UBC degree (far from the full represntation).  The US is charging astronomical amounts for education to its own American Citizens (nevermind foreign students).  In Canada, this education is a bargain (just don't tell the red path kids in Montreal, they may protest again).

http://business.financialpost.com/personal-finance/mortgages-real-estate/massive-effort-underway-to-create-database-that-will-shed-light-on-canadas-housing-market/wcm/7b6aff4d-0bff-4223-a2cc-bc0207ff9e89