• @aelwero
    link
    49 months ago

    The Ministry of Finance estimates the tax could generate about $43 million a year in tax revenue.

    What could go wrong you ask? It’s right there… $43m a year… That doesn’t get deducted from the profits of the speculators, it comes out of the equity in the homes that get sold. The flippers aren’t gonna eat the tax, they’re going to add it to the cost of the homes they flip.

    The law isn’t going to mitigate flipping much, it’s going to add $43m/year to the amount home prices increase by, and when people see the neighbors house values go up, they’ll demand more for their non-flip sales as well.

    • @[email protected]
      link
      fedilink
      49 months ago

      It doesn’t take a mathematician to realize that a 20% price hike every time a home is sold is an impossibility. It will absolutely have an effect on flipping volume and turnover duration.

    • @Alexstarfire
      link
      39 months ago

      Ehh, I’m not so sure. If a majority of the houses are the market are ones that were flipped, maybe. But if they are significantly above average market rate to recoup the tax, they’ll probably have a hard time selling.