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Real Estate, Development, Business

Overseas ad for Toronto high-rise says developer will pay foreign buyers tax

Real Estate, Development, Business

Overseas ad for Toronto high-rise says developer will pay foreign buyers tax

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DH Toronto Staff May 16, 2017 7:31 am 1,285

If you’ve ever wondered what an advertisement for a downtown Toronto high-rise condo looks like overseas, wonder no more.

A Reddit user has shared in r/Toronto what a current ad looks like in Hong Kong:

Toronto high-rise hong kong

Imgur

According to Reddit user EikenWong, the ad is being displayed near MTR train station and a simple translation is as follows:

  • City Centre, Golden (prime area), Financial Center, University
  • Walking distance to PATH train station
  • 1st 30 buyers bonuses:
  1. Rental Guarantee for 1 Year (developer finds your unit a tenant)
  2. Developer pays the 15% Foreign Buyer’s tax

Despite the Ontario government introducing a 15% foreign buyers tax last month, Toronto still remains an attractive market for international buyers. (Especially when it’s being advertised that the developer will find your tenant for the first year and pay the foreign buyers tax…)

That said, however, in April the Toronto Real Estate Board released its monthly report which contained an additional study pertaining to foreign buyers. That study analyzed aggregated annual property sales as well as residential data provided by the Municipal Property Assessment Corporation (MPAC) and Teranet Inc. (Teranet) for the Greater Golden Horseshoe (GGH), between 2008 and April 2017 in order to better understand foreign buying activity.

The analysis concluded that the number of buyers with a mailing address outside of Canada is well-below 1%, regardless of the year, and most of these buyers have a mailing address in the United States.

Still, developers promoting that they’ll cover the cost of Ontario’s foreign buyers’ tax seems, well, less like a loophole and more like something that goes against every intention the new law has in mind.

See also

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DH Toronto Staff

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