Home prices should increase in a sustainable way. We need new laws to support homebuyers, ensure transparency
and create ample supply.
Double down payments for investors
A main concern is that investors purchase homes that would otherwise go to families, reselling them in a few months or years for massive profits. To discourage this behaviour, we must limit the access investors have. This includes doubling the minimum down payment.
Make bidding process transparent
Buying a home today is a process clouded in secrecy. If potential buyers aren’t the highest bid, they’re asked to offer a higher price. How much higher? They don’t know as realtors keep this information secret. They have to make a blind guess. This artificially inflates prices and creates overly aggressive bidding wars.
Ensure free and open data
In Canada, much of the data on homes, listings, sales and bids is impossible to access. Much of it is controlled by private companies who fight its release. But all of it should be publicly accessible, digitized, easy to access and updated at a rapid clip.
Increase capital gains for investors
We must increase the capital gains tax from 50% to 70% for investment properties. As New Zealand does, the tax would fall each year of ownership until it reaches 50%, encouraging investors to think long-term about their housing purchases.