Real estate crackdown

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Both the Federal and Provincial Finance Ministers will meet with Toronto Mayor John Tory Tuesday, to discuss ways to cool down the hot housing market in the GTA. Ontario Finance Minister Charles Sousa wants to crack down on investors who may be hurting the market and has also alluded to other measures that may be included in the provincial budget at the end of this month.

An assignment clause allows the buyer of a home to sell the place before they take possession of it. This is more common in the sale of pre-built homes and condos. It can be very lucrative for investors, as many scoop up pre-built homes for just a deposit and sell them to a someone else for much more than they paid. President of Marz Homes, Dan Gabriel says not all builders allow assignment clauses.

“We feel that its part of our corporate philosophy to build houses for people that will move into them.”

Remax realtor Tobias Smulders says investors are part of the problem when it comes to the hot housing market in the province and the provincial government should put in place some measures to deter real estate speculators. Smulders says many builders are putting a price on an assignment clause, some as high as $20 000.

Both Gabriel and Smulders agree that the shortage of houses and a pending increase in interest rates are more significant. In addition to speculators, Charles Sousa has also alluded to implementing a tax on foreign buyers and vacant homes.