Get Used to high Real Estate Prices

29 April 2015

It looks like Real Estate prices in Toronto are not going lower any time soon. We broke it down into 4 key reasons why you should get used to high Real Estate prices.

Ontario's Greenbelt

Ontario's Greenbelt, is a protected area of Green Space surrounding the Greater Toronto Area. It's purpose is to protect farmlands, forests and greenspace by preventing urban development and sprawl. When it comes to Real Estate, this means less land to build new houses. Less new properties on the market only means higher prices.

Toronto Land Transfer Tax

In 2008 Toronto implemented the  Municipal Land Transfer Tax, affecting anyone who purchases a home or business in Toronto. Depending on the price of the property, Toronto's Land Transfer Tax can be anywhere from  0.5% to 2% of the sale price. The result ended up having very little impact on buyers, however it did make a large impact on Sellers. Most home owners are opting to renovate their properties instead of selling.

Lengthy Planning Processes

Both Levels of Government have a lengthy City Planning Process. Instead of months, it can sometimes take years of negotiation for developers to get approvals. The longer the process takes, the more it ends up costing developers and the less new development projects in the works.

Public Transportation

Finally we have huge public transportation problems and those won't be fixed for 6 years at the earliest. This causes lengthy commutes for those who live outside of the city. More and more people are choosing to stay and live in the city to avoid hours of commute and spend more time with their families.