Post by
deisman03 on Jul 03, 2024 3:45pm
Treading Water??????
In three of Canada's most expensive Real Estate markets there are huge diclines in sales happening.
These declines have been in the making for close to a year.
This should be an anomaly, seen only when there is a "glut" of properties on the market.
This isn't the issue right now.
Politics has intervened, in their wisdom, as well as to grab cash in the form of taxpayer dollars, by imposing a "Capital Gains" tax on such things as Real Estate, which isn't a primary residence, after being sold.
This isn't unusual in itself and it has already been in place, in one form or another for a few decades.
This new tax condition is far more reaching and it's going to have severe consequences on some big players.
The debt held in acquiring those properties is often held by BANKS.
When those properties are no longer relatively easy to flip, all sorts of things go awry.
It's the biggest Canary singing in the Coal Mine right now, from what I can deduce.
TD, BMO and Scotia will likely take the biggest hits.
GLTA the good folks here.