It isn’t the vacation rentals that are causing the housing shortage although living next door to one can be a PITA. It’s the punishing taxation of rental properties. Why would you want to build purpose built rentals when you can’t raise rents and then tenants decide to stop paying their landlord and you can’t get rid of them because if landlord tenant regulations
The VR story / lack of affordable housing is actually about the Federal Government taking away incentives to build it. Why would anyone build or own purpose built rental housing in this country with the landlord/tenant rules and regulations where you can’t get rid of a non rent paying tenant or raise the rent and then the government wanting a 65%capital gains tax when you sell it. Idiots in Ottawa and Victoria. Incentivize the building and operation of purpose built rentals through taxation relief on the rental income. Stop the capital gains taxes on it and the housing shortages will soon be over. Then those who want to do short term rentals could continue. After they calculate the no income taxes on the rental income with long term rentals they may think twice about wanting to rent short term. Plus rents on those long term rentals could be lower since there would be no income taxes on that rental income. Tenants forget they are also paying their landlords taxes in their rent.
Agreed with comments about the disincentives to rental properties, capital gains tax increases don't help either and those things should change. Taxes are high on VR rental income too, but I agree with the actual owner occupied model. It just makes sense, especially from a safety and community perspective. You can still rent them, but you should have to live in them.
3 comments:
It isn’t the vacation rentals that are causing the housing shortage although living next door to one can be a PITA.
It’s the punishing taxation of rental properties. Why would you want to build purpose built rentals when you can’t raise rents and then tenants decide to stop paying their landlord and you can’t get rid of them because if landlord tenant regulations
The VR story / lack of affordable housing is actually about the Federal Government taking away incentives to build it.
Why would anyone build or own purpose built rental housing in this country with the landlord/tenant rules and regulations where you can’t get rid of a non rent paying tenant or raise the rent and then the government wanting a 65%capital gains tax when you sell it.
Idiots in Ottawa and Victoria.
Incentivize the building and operation of purpose built rentals through taxation relief on the rental income. Stop the capital gains taxes on it and the housing shortages will soon be over.
Then those who want to do short term rentals could continue. After they calculate the no income taxes on the rental income with long term rentals they may think twice about wanting to rent short term.
Plus rents on those long term rentals could be lower since there would be no income taxes on that rental income. Tenants forget they are also paying their landlords taxes in their rent.
Agreed with comments about the disincentives to rental properties, capital gains tax increases don't help either and those things should change. Taxes are high on VR rental income too, but I agree with the actual owner occupied model. It just makes sense, especially from a safety and community perspective. You can still rent them, but you should have to live in them.
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