It's encouraging to see Minister Morneau move to close a capital gains tax loophole that enabled unregulated, speculative global capital to impact Vancouver’s real estate crisis. Vancouver’s recent home price increases are not sustainable, they put our economy at risk, and shut many local residents out of home ownership.
Ensuring tax breaks and capital gains benefits are limited to residents declaring principal residence should slow the abuse of unregulated, speculative money churning up the Vancouver real estate market. This will help to stabilize our housing market over the long term and ensure the best use of all our housing.
I raised the issue of enforcing capital gains with Minister Morneau in June as one that needed urgent attention to help cool our housing market. Requiring the sale of any primary residence to be declared to the Canada Revenue Agency also has the potential to provide better information that will help Vancouver’s auditing on our empty homes tax, which will be in place next year.
I appreciate Minister Morneau taking action on this issue and Vancouver will continue to support his working group to bring forward recommendations to level the playing field in Vancouver’s housing market.
-Mayor Gregor Robertson