RDMcG

Interesting that Bill Moreau, the former Liberal finance minister is very negative on the capital gains move:

https://www.msn.com/en-ca/money/tops...th/ar-BB1lO0oS

rideau

The only spending reduction in the budget. Anita Anand calls on all Ministers to find ways to reduce public service headcount by 5000 employees by attrition over a 4 year period.
How hard could this be?

.2PDK

What's more interesting is that he hasn't given up on caring about the well being of future generations.

If JT want to stifle future growth opportunities and enact policies that will increase demand for housing thereby creating a rather toxic environment for those that voted him in so be it...

SToronto

As has been said, the budget will do little to help the younger generation afford housing in desired areas any time soon if at all. It's not going to bring housing prices down. Last I checked, you still need your own money to pay for the house or to have in RSP to utilize higher home buyers plan amounts etc.

Two points - Would like to hear others opinions on them

1) I don't watch the news but read articles here and there daily. Based on what I have seen, seems there is much talk about housing affordability these days and so and so group cannot afford it. I read an article about a family renting in subsidized regent park, they want to move out but rent is too expensive downtown Toronto. They are new immigrants with a baby on the way. There seems to be NO focus on the fact that maybe you can't live in downtown Toronto on X income, you can't live in Oakville on X income, or downtown Vancouver on X income. Not everybody can afford to live where they want....that's life I'm afraid. Sucks for those coming up now - for sure. But need to look at attracting people to live outside GTA, problem in Canada is that you miss out on aspects of life living outside the GTA or a major centre like Calgary, Vancouver, Montreal. You miss out on facilities, entertainment, job opportunities. It's not like the US that has many major centres where you can thrive in all areas of life without much sacrifice. We can't keep trying to make people live in the GTA, especially with all this new immigration (people aren't going to want to live in basements or boarding houses forever). Once we've built out west to Niagara and north to Orangeville, whats next.

2) The younger generation stands to inherit incredible amounts of wealth. But now we're going to tax it. Thought we wanted to help them. They NEED that inheritance to buy housing in desired areas and to afford life in the future. Incomes alone are not rising enough to cover those costs. Not all will have fantastic money generating careers, earning $500K+ as a household.

SToronto

Probably the forecasted retirement over the next 4 years.

dml

@ronnie993tt
Fed tax alone is 37%, Cali state tax is 12% for a total of 49%.

SToronto

Using some online calculators, with $500k income. average rate is 43% total.

.2PDK

Nobody seems to be discussing the "desired area" effect...talk about entitlement.

997turbocab

Whhaaaaaa you mean I can't just stomp my feet and protest and get a penthouse in Toronto?!!!!


This is the only place in the world you can go and find some common sense these days lol

.2PDK

I could spend days telling you about my young nephew and his future wife whining about having to pull back on their lifestyle so they can afford a condo in the downtown area...

CamsPorsche

Great points above pertaining to the "need/want" to live in Downtown Toronto. I simply don't get it.

When we moved back to Canada in 2013 we clearly understood we couldn't afford either Oakville or Downtown Toronto so bought a temp home in Ajax and two years later ended up building a custom home in Ajax and are really settled. When I moved to Dubai in 2004 I was able to witness friends in Toronto and New York struggle over the next 5-8 years in trying to land an affordable place to purchase. My buddy ended up lucking out and bought a condo from a widow who felt smitten with him but he literally had to apply to condo boards and interview in order to purchase a place (he's corporate counsel for the Mets too...LOL). Nothing has changed and it won't...

What I'm getting at here is much like New York and Manhattan, Toronto is Canada's most populous city and its no surprise everyone wants to live in the action. Well....much like those cities the affordability is driven by demand and unfortunately most of us likely could never afford to buy centrally in Downtown; and I'm okay with that. Go elsewhere and carve your future.

Or as noted in a previous post suck up the lifestyle changes to live in Downtown....but why would you?

RealityGT

^Cam nailed it...
My wife and I will decide later this year if we sell our primary residence in Etobicoke and move towards the perimeter..

ronnie993tt

Yes, Cali and NYC are the worst tax states, but it is still lower than all the provinces except maybe Alberta. S***t gas too. NYC is the worst because there is also a municipal income tax. In the dozen or so no tax states all you pay is federal and some of them are pretty desirable places to live. You have to watch out for muni taxes though. Some of them are pretty onerous but many states wave or reduce taxes for retirees.

SToronto

To add to my post above.....somebody needs to just say it out load to all the people. It's not the popular thing to say though. The reality needs to register with people so they can re-focus time, energy, resources coming up with alternate plans to be successful elsewhere. What government can do is incentivize business to establish itself in other further out communities. Unfortunately, it's a bit chicken and egg conversation on that front.

I'd love to buy a place in the outskirts, build a sweet garage and have a dream home. But nothing is out there for the kids and us. We want to move up to the next level in home, I'd better do it within the next 2 years or I fear I might be priced out in the market we want. Time to work harder because there's nothing from the government, rather they are making it more difficult. Other option is stay put, it's almost paid off. Buy a second home some place else, in another country perhaps.

What I think they should do more of is making it quite punitive for foreigners to buy property here and misuse the system. @Performante said this earlier. It's too easy for big overseas money to plop down $3+ MM on a home or two and leverage the system to their advantage, putting out local origin buyers. The measures taken thus far are pocket change to many of those foreign buyers. We want wealthy people to invest and live here, but not misuse the system for personal monetary advantage.

SToronto

People haven't realized that here yet. Like London, Hong Kong, Paris, NYC and so on...not everybody can afford the ideal residence downtown toronto or GTA. Either have to have lower expectations (smaller place, give up something) or move elsewhere.