Cost of housing in Canada

[Halifax Tar]

‘Becoming unlivable’: Halifax residents fleeing city due to rising housing costs - Halifax | Globalnews.ca

A new report found that Halifax's average asking rental price has overtaken Ontario markets like Kingston and East York, and is now more than $200 higher than the national average.

globalnews.ca

 

[Eaglelord17]

My apartment in Halifax in 2014-2015 was 860$ a month for a two bedroom apartment. Last I looked same old apartment was going for 2400$.

 

[MilEME09]

My apartment in Halifax in 2014-2015 was 860$ a month for a two bedroom apartment. Last I looked same old apartment was going for 2400$.

yeah rent is sky high and most provinces that had rent increase controls got rid of them, it just blows my mind how all over the place some places are valued, not to mention good luck renting if you have pets. Most common reason for surrendering to shelters here is because they couldn't find a place to live with the pet. I know there is added cost, but I feel like there should be a limit per X area on how many pet free rentals there can be, just charge more for a pet deposit.

 

[Eaglelord17]

I am of the opinion that landlords should not be able to dictate if you can have pets or not (just like any other legally acquired property). The only exemption to me would be if it was the same property and they have allergies.

That being said the renter should be liable for the damages that the pet may cause beyond reasonable wear and tear.

Getting rid of rent control would long term solve the rent problem because it would cause everyone to average out. Right now with rent control any time a landlord gets a chance to rent it out they go for the maximum amount possible due to the inability to raise it later. Those locked in at the lower rates don’t care but it screws those who are getting into the market or forced to move.

 

[Halifax Tar]

Getting rid of rent control would long term solve the rent problem because it would cause everyone to average out. Right now with rent control any time a landlord gets a chance to rent it out they go for the maximum amount possible due to the inability to raise it later. Those locked in at the lower rates don’t care but it screws those who are getting into the market or forced to move.

We have the same issue here with property taxes. We have capped assessments.

I hate to get into the generational fight, but the oldies are driving this plane into the ground.

 

[Halifax Tar]

Maybe this thread can be renamed cost of living ?

Well done Manitoba Manitoba NDP!

https://twitter.com/x/status/2036473689839980815

*Corrected.

 

[dapaterson]

Maybe this thread can be renamed cost of living ?

Well done Manitoba!

https://twitter.com/x/status/2036473689839980815

Don't you mean "well done NDP government" ?

 

[FJAG]

Maybe this thread can be renamed cost of living ?

Well done Manitoba!

https://twitter.com/x/status/2036473689839980815

It's a bit smoke and mirrors, I think.

When we lived in Manitoba - Lord that was two decades ago this year - there was no PST on groceries to start with. Only on things like prepared foods and drinks that weren't designated as "basic groceries."

It seems a small incremental change at best. But, I guess any change reducing taxes is good for the consumer.

 

[Halifax Tar]

Don't you mean "well done NDP government" ?

Absolutely, credit where it's due. I've voted NDP before and Wab is a guy I could like.

 

[Halifax Tar]

Good listen on these topics.

 

[Halifax Tar]

I heard an idea about property taxes that I thought was interesting.

For those under the older capped rates, like me, we should only be allowed to sell our property at the assessed values, not a penny more. If we want to try to maximize our profits then we need to be paying the yearly assessed rate, uncapped.

I think that's fair.

 

[Eaglelord17]

I would rather see it set up so any profits made above inflation on a property are subject to capital gains. That will cool the market and provide a ton of tax money.

Your jurisdiction just needs to change its property tax rules to automatically reassess every 5 years like many do now. It isn’t always a bad thing, I managed to actually lower the price of mine last time.

 

[Halifax Tar]

I would rather see it set up so any profits made above inflation on a property are subject to capital gains. That will cool the market and provide a ton of tax money.

Your jurisdiction just needs to change its property tax rules to automatically reassess every 5 years like many do now. It isn’t always a bad thing, I managed to actually lower the price of mine last time.

Also a good idea, IMHO.

My jurisdiction is resistant to changing the property taxes rules because those with the most to lose are also the ones making the decisions or beholden to those with the most to lose.

 

[Eaglelord17]

Also a good idea, IMHO.

My jurisdiction is resistant to changing the property taxes rules because those with the most to lose are also the ones making the decisions or beholden to those with the most to lose.

Unlikely to change unless someone makes the first move. Your old guard are actively going to fight it every step of the way.

It does go both ways though, when prices go down so do the rates.

 

[Halifax Tar]

Unlikely to change unless someone makes the first move. Your old guard are actively going to fight it every step of the way.

It does go both ways though, when prices go down so do the rates.

I am ok with that, but my mortgage is almost paid off and I am probably living in my daughters home as she will never be able to afford one if things stay the same.

 

[IKnowNothing]

I would rather see it set up so any profits made above inflation on a property are subject to capital gains. That will cool the market and provide a ton of tax money.

Would need to include a mechanism to report major capital upgrades (things that require building permits, not cosmetic improvements or necessary upkeep) and include them in the cost base- but I could get behind that.

 

[IKnowNothing]

@Eaglelord17

The more I think of it- the more it can't be "making it subject to capital gains". Making it a capital gain means treating it as an asset, and the (technically correct) push would be to then treat it like any other investment asset. Interest as a deductible expense, expense and upkeep tracking etc. It becomes an administrative nightmare that forces every home owner to act like a business from a bookkeeping standpoint and realistically wipes out most of any actually tax effect you're trying to implement.

So- not a capital gain. Call a spade a spade and own it: Principle Residence Windfall Tax. Define what a windfall is (any amount above CPI adjusted purchase price, accounting for the reported permit value of upgrades, maybe adding say 0.5% of purchase/improvement price per year of ownership of carrying cost allowance. Make it payable at time of transaction like Ontario's land transfer tax.

Example: Home Selling at 575 today, purchased at 300 in 2018, 100k improvement in 2022.

• Inflation adjusted cost base = 502k (375k (purchase) + 113k (improvement) + 12k (carry cost allowance of house for 8 years) + 2k (Carry cost allowance of improvement for 4 years)))
• Windfall = 73k
• Taxed at 14.5% (lowest federal income bracket = $10,585 tax.

 

[SeaKingTacco]

@Eaglelord17

The more I think of it- the more it can't be "making it subject to capital gains". Making it a capital gain means treating it as an asset, and the (technically correct) push would be to then treat it like any other investment asset. Interest as a deductible expense, expense and upkeep tracking etc. It becomes an administrative nightmare that forces every home owner to act like a business from a bookkeeping standpoint and realistically wipes out most of any actually tax effect you're trying to implement.

So- not a capital gain. Call a spade a spade and own it: Principle Residence Windfall Tax. Define what a windfall is (any amount above CPI adjusted purchase price, accounting for the reported permit value of upgrades, maybe adding say 0.5% of purchase/improvement price per year of ownership of carrying cost allowance. Make it payable at time of transaction like Ontario's land transfer tax.

Example: Home Selling at 575 today, purchased at 300 in 2018, 100k improvement in 2022.

• Inflation adjusted cost base = 502k (375k (purchase) + 113k (improvement) + 12k (carry cost allowance of house for 8 years) + 2k (Carry cost allowance of improvement for 4 years)))
• Windfall = 73k
• Taxed at 14.5% (lowest federal income bracket = $10,585 tax.

And if you lose money on your principle residence? Then what?

 

[IKnowNothing]

And if you lose money on your principle residence? Then what?

Then there was no Windfall, therefore no tax paid. Same outcome if the sale price is @ or under the Windfall threshold but more than originally paid.

But there was also no (claimable) Capital Loss, as the Principle Residence is still wholly exempt from Capital Gains treatment.

 

[YZT580]

@Eaglelord17

The more I think of it- the more it can't be "making it subject to capital gains". Making it a capital gain means treating it as an asset, and the (technically correct) push would be to then treat it like any other investment asset. Interest as a deductible expense, expense and upkeep tracking etc. It becomes an administrative nightmare that forces every home owner to act like a business from a bookkeeping standpoint and realistically wipes out most of any actually tax effect you're trying to implement.

So- not a capital gain. Call a spade a spade and own it: Principle Residence Windfall Tax. Define what a windfall is (any amount above CPI adjusted purchase price, accounting for the reported permit value of upgrades, maybe adding say 0.5% of purchase/improvement price per year of ownership of carrying cost allowance. Make it payable at time of transaction like Ontario's land transfer tax.

Example: Home Selling at 575 today, purchased at 300 in 2018, 100k improvement in 2022.

• Inflation adjusted cost base = 502k (375k (purchase) + 113k (improvement) + 12k (carry cost allowance of house for 8 years) + 2k (Carry cost allowance of improvement for 4 years)))
• Windfall = 73k
• Taxed at 14.5% (lowest federal income bracket = $10,585 tax.

With the notable exception of civil servants, the majority of Canadians do not have an adequate pension plan and are financially unable to establish one so they rely upon the sale of their property to simply exist for the last 20 years (give or take) of their lives. Or perhaps as Halifax Tar suggests passing it on down to family so they have a chance of an home apart from a council flat whilst living in the basement. Leave the family home alone or at the very least set the windfall tax as you put it at an amount that allows a retired couple/individual to move into something other than a social services residence. Current costs of a decent home are in the neighbourhood of 40,000 a year so given that 20 year span that would be a minimum of 800,000.