Concerned about about a spike in foreign real estate investors, the opposition at city hall has proposed a tax on foreign investors purchasing real estate in Montreal. Unlike Toronto and Vancouver, where the tax was implemented after reaching crisis-levels when it comes to housing affordability, Projet Montreal intends to give the city the power to implement the tax as soon as the market starts to heat up.
Currently, foreign investors own about 5% of properties in Montreal’s Downtown core. The opposition’s concern is that property taxes in BC and Ontario will attract more foreign investors to Quebec, driving up market value and prices.
Projet Montreal leader Valerie Plante suggests taking action proactively rather than waiting until it’s too late, to make sure that families can afford to buy and live in the GMA.
The municipal party will table a motion during a council session in the next two weeks, asking for the power to implement a tax on foreign investors as soon as there is a upward trend in foreign purchases.