Condos have become one of the greatest investments hand down. Toronto real estate has been exploding to the point where it’s become a top contender against some of the strongest stocks that are available to day traders. The biggest difference between stocks and real estate is that it takes a semi genius to win in the stock market; investing in real estate is a no brainer method to profit on your down payment and build equity!
Enough about stocks, let’s talk real estate.
Over the last 5 years, real estate has doubled in most cases. People locally and internationally have decided that cities like Toronto, Mississauga and Vaughan may be the best places to put their money in and see it grow! These purchases may even be a 2nd or 3rd unit for some people and then these units are being left EMPTY!
This has happened to a lot of our clients as well, foreign and local investors who have purchased units and don’t need the extra rental income – so they’ve left these units empty.
The government has pin pointed this scenario and partially blamed it for the supply shortage in our country.
So, what’s the fix?
The government has imposed a VACANT HOME TAX for all property that is left empty over an extended period of time.
Any home that is left empty will be taxed 1% of the assessed value of the home, payable in the following tax period.
Either you pay income tax on that rental income or you pay vacant home tax, but you can’t get away from it!