other provinces sign on if their average home price isn't even close to the point where this tax would actually start taking uh effect and would people who are in toronto and vancouver be okay footing the bill and paying up all this money that could be doled out to the other provinces you can see how it gets a little complex here the second challenge that i see here is getting the actual value of the home that the provinces would be trying to tax here there's essentially two ways the first way is to get an appraisal which is costly you have to get an appraiser out and they have to look at all the market comparables around you to figure out what the fair market value is for your home now that's quite expensive if they're trying to do that on every single home the second way that they could do it is to use the provincial assessments now at least here in ontario every single home their municipality and the province sort of work together to get a value of the home that they use for property taxes to determine how much each individual home needs to pay now the problem with these assessments is that they only happen every four or five years and as a result for the vast majority of the time again at least in ontario these assessments are far lower than the actual value of the home so there could be tons of million dollar plus homes that aren't getting taxed at all because their assessment is far lower than that and as a third potential issue i wonder if this kind of tax would actually create more affordable housing for most canadians well sure if the money is actually managed well by the government it could create more affordable housing but think let's think of this from a broader market perspective when we take him to consider supply and demand essentially the two things that will change the value of a home if there's more supply and not enough demand home prices go down if there's too many people or too much demand that want homes and there's not enough supply enough people selling well that is what causes skyrocketing home prices and that's why this one little footnote on the policy has me concerned they say that though the tax would be calculated annually it would be deferred until the home is sold so it would function similar to a land transfer tax that many provinces and municipalities already levy essentially what they're saying here is that you wouldn't actually have to pay this tax every single year you would only have to pay the tax for every single year that you've had it at the time that you sell the house now selling a house is already a very expensive thing to do when you consider all of the lawyer fees and realtor fees and all of the land transfer taxes but if we add even more funds on top of this that a prospective seller would have to pay in order to get rid of their home and to sell it well that would disincentivize them from selling you may have far more people who just opt to keep the home and maybe take out a home equity line of credit to access the funds that are locked inside of the home's equity instead of selling it so if we have more people not selling their homes and the same amount of demand well a policy like this could actually drive prices even higher than they are right now those are just a few things to consider that may make attacks like this far less effective but in the grand scheme of things i think that there's only really two things that can be done that can really make an impact on
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