This is tantamount to banning investor-owned rental property. In other words, only government would be interested in owning rental property. The last point on investment loan interest deductibility would upend Canadian tax law. People who don't know what they are talking about should refrain from such specific policy recommendations...
I don't have a problem with this.
I would argue that the consequences of an out-of-control condo market, building unlivable units have been very serious.
Are there other ways to limit the damage? Sure.
I've suggested going at it from the other end by simply banning pre-construction sales entirely. You can only sell a home or condo that's fully complete and can be legally occupied immediately.
I've also suggested higher minimum down payments, though I think 25% would be sufficient.
I also favour higher capital gains inclusion rates, and either capping or eliminating the primary residence exemption.
Its immoral, to me, that as someone with an investment portfolio I can pay a lower effective tax rate than someone making minimum wage, because of the capital gains issue as well as myriad tax shelters (legal) such as RRSPs, TFSAs etc ec.
Just on capital gains alone, if I earn $100,000 from that, on stocks, I pay tax as if I earned $50,000, - minus the basic exemption, so less than 35k.
A Full Time earner, taking in 50k from their job, would pay roughly the same tax.
When you factor in tax shelters, as noted above........they actually would likely pay more in absolute dollars, not just rate.
Real-Estate flipping can be even worse...........whether one uses the primary residence exemption, or whether one uses deducted interest costs.....the effective tax rate paid is again much lower than an worker/earner pulling in a similar or even lesser gross sum.
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