⚡Feds Proceed With Capital Gains Hike

Capital gains tax set to increase on June 25, national rents reach record levels, and more news from across Canada.

Author

Recap Team
June 14, 2024

Good morning!☀️

Ready to kickstart your day? Take 5 minutes to recap all the major news headlines from this week.

⚡Top Story

Federal Government Proceeds With Capital Gains Hike

The Canadian government plans to increase the capital gains tax inclusion rate from 50% to 66.7%, affecting those earning over $250,000 in capital gains. This change, effective June 25, 2024, aims to raise $19.4 billion over five years to build nearly 4 million homes and boost economic growth.

📍British Columbia

BC’s Energy Rebate Launches On June 18

The CleanBC Better Homes Energy Savings Program offers up to $24,000 in rebates for low- and middle-income households to switch from fossil fuels to high-efficiency heat pumps and complete necessary electrical upgrades. Additional rebates are available for northern BC residents and various home-efficiency upgrades. Registration opens June 18, 2024.

Metro Vancouver’s office market thrives despite North American struggles. In Q1 2024, downtown office vacancy was 14%, higher than 2.1% in Q1 2020 but lower than Seattle’s 26.6%. Vancouver has North America’s lowest office vacancy rate and Canada’s highest rent at $55.51/sq. ft.

Vancouver is Creating Its First City-Wide ODP

Vancouver will create its first city-wide Official Development Plan (ODP) by 2026. This plan, based on the existing Vancouver Plan, will guide land use, growth, and development for 20-30 years. Proposals aligned with the ODP will bypass public hearings for rezonings to increase residential space.

📍Ontario

Major Vaughan Project Under Receivership

A significant project in Vaughan is under receivership due to a $29 million debt. Constantine Enterprises Inc. pushed for receivership, citing a breakdown with its partner Mizrahi Developments. This adds to Mizrahi’s financial issues, including a stalled project at 180 Steeles Avenue West planned for over 2,000 residential units.

Toronto Council Wants More Rentals

Toronto’s “Launching the Rental Housing Supply Program” aims to support 65,000 rent-controlled homes by 2030. The city council seeks to revise the Open Door program, which has approved 21,000 affordable rentals since 2016. Proposals include $351 million for 18 projects, creating 6,000 rental homes, including 2,600 affordable units by 2025.

12 Buildings Proposed for Etobicoke Cineplex Property

A significant redevelopment project at 1025 The Queensway in Etobicoke will replace Cineplex Queensway Cinemas with ten residential towers and two commercial buildings, offering 4,222 units and extensive amenities. Spanning 14.57 acres, the design aims to revitalize the area with residential, commercial, and public spaces, benefiting from strategic transit access.

🍁National

Report Reveals Every New Home Requires $100K in Infrastructure

A report by the Canadian Urban Institute reveals that each new home in Canada requires over $100,000 in infrastructure spending, including public transit, roads, and water lines. The challenge is financing this without raising property taxes. Solutions include secured payments, new financing tools, and collaboration between public and private sectors.

Canadian Rents Reach Record Levels in May

Canadian rents hit a new high at $2,202/month in May, up 9.3% year-over-year. Vancouver and Toronto rents stabilize near-record highs. Edmonton leads major cities with 14.6% growth. BC has the highest average at $2,526. Purpose-built rentals saw a 13.7% rise, with studio apartments growing fastest at 17.8%.

📅Save These Dates

June 25, 2024, 5:30am | Inflation Rate YoY

June 30, 2024 | BC Provincial Zoning Regulations Deadline

July 5, 2024, 5:30am | Unemployment Rate

July 24, 2024, 6:45am | BoC Interest Rate Announcement

💭Quote of the Day

"The only thing standing between you and your goal is the story you keep telling yourself as to why you can't achieve it."

Jordan Belfort

😯Random Fact of the Day

Did you know… a day on Venus is longer than a year on Venus! It takes Venus about 243 Earth days to rotate once on its axis, but only about 225 Earth days to complete one orbit around the Sun.

You’re all caught up! Enjoy the rest of your day.✅