Property News in Ontario: Updates November 2023

Property News Ontario – November 2023: As a current or aspiring property owner in Ontario, it’s crucial to stay informed about recent news that may impact your investments and property-related decisions. Here’s a summarized overview of three important property news that shed light on various aspects affecting current and aspiring property owners in Ontario:

Property News: Funding New Infrastructures

The Ontario government recently unveiled its fall economic statement, revealing significant updates. The province is grappling with a larger-than-expected deficit, with plans to balance the budget delayed by a year. To fund major infrastructure projects, Ontario is launching the Ontario Infrastructure Bank, which will collaborate with trusted institutional investors to focus on various sectors, including long-term care homes, energy infrastructure, affordable housing, and transportation. The province is also investing additional funds into the Invest Ontario Fund to attract companies to Ontario. These initiatives can potentially impact the property market, especially in terms of infrastructure and housing development.

Property News: Tax Relief for Property Owners

The Government of Canada has extended the deadline for homeowners to file their Underused Housing Tax return, granting a reprieve until April 30, 2024. This tax is part of a long-term strategy to address housing shortages. The tax primarily targets foreign national owners of vacant or underused properties but may also apply to some Canadian individuals and corporations. The tax return can be filed electronically or by mail, ensuring that homeowners meet their obligations without penalties or interest.

Property News: A Path to Affordable Properties

The federal government is introducing the Tax-Free First Home Savings Account, a registered savings account designed to help Canadians save for their first home. This initiative allows contributions of up to $8,000 per year, with a lifetime limit of $40,000. Contributions are tax-deductible on annual income tax returns, and withdrawals, including investment income, are non-taxable. This account aims to make homeownership more affordable, especially for young Canadians. It can be used in combination with the Home Buyers’ Plan, which permits Canadians to withdraw funds from their RRSPs for a down payment.

A Note on Property Reassessment for Ontario

With the Ontario Fall Economic statement being released, once again the mention of when the Ontario property reassessment will occur was left absent. The uncertainty that property owners and investors face as to what market years will be included in the next assessment still poses a serious concern. Ensuring a fair and equitable property assessment today is equally important to proactively manage your property investment and taxes for the future.

In conclusion, this property news can significantly impact property owners in Ontario and across Canada. For property owners and those looking to invest in real estate, staying informed about these changes is essential to make informed decisions and leverage potential opportunities, particularly when it comes to saving on property tax and meeting deadlines. Property tax can be one of your biggest expenses but with the help of an expert, can be minimized.