Toronto’s luxury real estate continuously attracts the attention of wealthy buyers, investors and policy makers. The luxury real estate industry is expanding as well as the Canadian housing sector. Those are goals the government is pursuing as well.
There are proposals to tax properties valued at more than $2 million in Toronto, for example. This levy is expected to generate about $18,7 million, which will go towards affordable housing and public transportation projects. In addition to the municipal land transfer tax and provincial fees, these properties, from mansions to “McMansions”, will be taxed as well.
In the first two months of 2021, Toronto homes worth more than $4 million sold at a much higher percent annual rate. In comparison, the Toronto Regional Real Estate Board (TRREB) has posted 52 per cent gains in all price brackets. Impressively, five residential properties worth more than $10 million were sold this year, compared to only one the previous year.
According to CIBC’s November 2020 report, the Coronavirus pandemic was responsible for the country’s largest cash accumulation in history. In addition, the amount of home renovations has escalated due to new working conditions.
In today’s economic climate, an array of factors may explain why multi-million-dollar homes would be selling – from a resurgence in urban luxury condominiums to multigenerational influences, and even general optimism.
What are your thoughts? Do you think that this current situation sees any sort of end?