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Foreign Buyer’s Tax – Not the Solution

Blog by Doriana Zohil-Morton, Broker of Record/Owner | April 5th, 2017

This has been a hot topic lately. The perception is that foreign buyers make up the majority of buyers in the GTA, and that this is why prices are continuing to increase. This couldn’t be further from the truth. Foreign buyers only make up a small portion of buyers. High prices and bidding wars are a result of one thing... lack of inventory. There are simply not enough houses and condos on the market right now to meet the needs of current buyers. More buyers, less homes... that’s the culprit.

The solution? We need more inventory. Condo developments provide affordable housing for thousands. But the reality is that those projects often wouldn’t proceed without foreign investors helping out. So taxing the golden goose is NOT going to help. We need more inventory.