LOOK AT US FUTURES. THEY REMAIN IN A POSITIVE POSTURE AND AND VERY EASILY. SO. WELL, ONE ITEM IN THE FEDERAL BUDGET THAT HAS ATTRACTED A LOT OF ATTENTION FROM OWNERS OF INVESTMENT, REAL ESTATE AND OWNERS OF OTHER INVESTMENT PRODUCTS IS CHANGES TO THE CAPITAL GAINS TAX BEGINNING IN JUNE. THE INCLUSION RATE, HOW MUCH OF A CAPITAL GAIN IS TAXABLE WILL CHANGE INCREASE FROM 50% TO TWO-THIRDS 66% ROUGHLY FOR GAINS ABOVE 250,000 FOR INDIVIDUAL INVESTORS. FOR MORE ON WHAT THIS MEANS FOR OWNERS OF INVESTMENT PROPERTIES PROPERTIES SPECIFICALLY, WE'RE JOINED BY AN EXPERT DEVELOP MORRISON. SHE'S A BROKER FOR BOSLEY REAL ESTATE. THANK YOU SO MUCH FOR COMING BACK. SO MUCH MADAM. IT'S ALWAYS SPOKEN TO ACCOUNTS ABOUT THIS AND THEY SAY THEY ARE WILL BE SCRAMBLING FOR THE NEXT SEVERAL WEEKS. UNDERSTANDING ALL THE IMPLICATIONS OF THIS FOR THEIR CLIENTS. WHAT'S IT LIKE IN THE REAL ESTATE SECTOR? WELL, I WOULD IMAGINE THAT THERE'S GOING TO BE SOME INVESTORS WHO ARE GOING TO SAY, YOU KNOW WHAT, I WANT TO MY PROPERTY RIGHT NOW. AND NOW THEY'RE GOING TO NEED TO MAKE SURE CLOSES BEFORE JUNE 25TH. >> BUT I THINK IT'S ALSO GOING TO TAKE SOME INVESTORS ON THE MARKET. SOME PEOPLE ARE NOW GOING TO THINK, YOU KNOW I DON'T WANT TO INVEST IN CANADA ANYMORE, I'M GOING INVEST ELSEWHERE. SO I THINK THAT THAT'S GOING TO BE HUGE LOSS FOR OUR COUNTRY. AND I DON'T THINK THAT THAT'S SOMETHING THAT THE GOVERNMENT IS REALLY THOUGHT ABOUT OVER THE LAST FEW YEARS, THE LARGEST NUMBER OF RENTALS HAVE BEEN PROVIDED BY BY A PRIVATE INVESTORS. >> NOT THE GOVERNMENT. AND SO I THINK WE'RE GOING TO SEE A LOT RENTAL UNITS BEING SOLD OFF AND WE'RE JUST GOING TO HAVE FEWER PLACES FOR RENT. >> ONE A BIG SEEMS FAMILY COTTAGE IS SET FOR REASONS THAT ARE EASY TO UNDERSTAND WHAT HAD HOW MIGHT THIS 7 EFFECTIVE THE DYNAMICS OF FAMILY COTTAGE OWNERSHIP WILL. I THINK, YOU KNOW, THANK YOU FOR BRINGING THAT UP. YOU KNOW, THIS HAS BEEN BILLED THIS IS SOMETHING FOR THE WEALTHY. >> BUT I THINK THAT PEOPLE DON'T UNDERSTAND THAT, YOU KNOW, IF THEY'VE GOT PARENTS WHO PASS AWAY AND THEY NEED TO SELL THE FAMILY COTTAGE, THEY WILL BE IMPACTED BY THIS TAX. I'VE GOT CLIENTS WHO THEIR PARENTS HAVE PASSED AWAY, THEY NEED TO SELL THE FAMILY HOME IN TORONTO. THEY WILL BE IMPACTED BY THIS IS A LOT OF PEOPLE THAT ARE GOING TO BE IMPACTED BY THIS TAX AND ACTUALLY REALIZED. DO YOU EXPECT A FLURRY OF ACTIVITY BETWEEN NOW AND THE DEADLINE IN I WOULD IMAGINE THERE WOULD I DO THINK SO. I THINK PEOPLE WILL NOW THEY'LL START TO FIRM UP ON THEIR DEALS AND TRY TO CLOSE EARLIER TO MAKE SURE THAT THEY BEAT THAT JUNE 25TH DEADLINE. AND THEY MIGHT ALMOST AND ALL OF A SUDDEN START THINKING, YOU KNOW, WHAT? LET ME SELL MY PROPERTY NOW AND GET MY MONEY OUT OF THE COUNTRY AND INVEST ELSEWHERE TO CAL. GIVE THE NEXT QUESTION TO CASH. YEAH, BUT DO YOU THINK AS CANADIANS, THE IDEA OF INVESTING IN THE U.S., FOR EXAMPLE, ARE INVESTING. >> OUTSIDE OF CANADA, I MEAN, I'M NOT A TAX EXPERT, BUT I THINK THAT UNFORTUNATELY, THE GOVERNMENT SORT OF HAS THE ADVANTAGE HERE BECAUSE THE OTHER OPTION OR THE ALTERNATIVE OF INVESTING IN REAL ESTATE OUTSIDE OF CANADA. I DON'T EVEN KNOW IF YOU GET THE SAME TIME, YOU KNOW, I THINK IT'S INCOME WHEN YOU'RE OUTSIDE. SO IT'S ALMOST LIKE THERE ISN'T ANOTHER ALTERNATIVE. IF YOU INVEST OUTSIDE THE TAX SITUATION WILL BE BETTER. WELL, YOU CAN INVEST IN OTHER COUNTRIES, SO FORGET ABOUT THE U.S., YOU CAN INVEST YOUR MONEY IN THE CARIBBEAN, YOU COULD BUY. >> THERE'S LOTS OF CANADIANS BUYING HOUSES RIGHT NOW IN EUROPE, IN PORTUGAL, IN ALL OF THESE OTHER PLACES. AND THERE'S ALSO A LOT TAX HAVENS AROUND THE WORLD, YOU KNOW, THINGS THAT WE DON'T REALLY TALK ABOUT. SO IF YOU LET'S SAY INVEST IN A TAX HAVEN IN, LET'S SAY THE BRIDGE, BRITISH VIRGIN ISLANDS, FOR EXAMPLE, AND YOU USE THAT MONEY TO SET UP A CORPORATION AND INVEST ANOTHER PARTICULAR COUNTRY AS LONG AS YOU DON'T BRING THAT MONEY BACK TO CANADA. AND YOU JUST WOULD LEAVE IT IN THE BEADY EYES, THEN YOU'RE NOT, YOU DON'T NEED TO DECLARE IT TO THE GOVERNMENT AND YOU DON'T NEED TO DECLARE HIS INCOME. SO I THINK A LOT OF CANADIANS MIGHT START TO SAY, YOU KNOW WHAT? MAYBE MY PRINCIPAL RESIDENCE DOESN'T NEED TO BE CANADA ANYMORE, MAYBE IT'S ALSO GOING TO BE ANOTHER COUNTRY. MAYBE I DON'T CARE SO MUCH ABOUT THE HEALTH CARE BECAUSE I CAN'T GET A DOCTOR ANYWAY AND THEY JUST MIGHT LEAVE. SO I THINK THAT WE'RE REALLY GOING TO SEE A LOT MORE PEOPLE HAVE THAT SORT OF FLIGHT ECAUSE THEY FEEL LIKE THIS WAS SORT OF CAMEL THAT BROKE THAT THAT THE, THE LAST STROKE THAT BROKE THE CAMEL'S BACK. >> WHAT ABOUT OTHER MEASURES IN THE BUDGET INTENDED TO DRIVE A INCREASES IN THE, IN, IN THE HOUSING SUPPLY. HOW WOULD HOW WOULD YOU GRADE WELL, YOU KNOW, THERE'S ONE WITH THE 30 YEAR AMORTIZATION, FOR EXAMPLE, IF WE TALK ABOUT THAT, YOU KNOW, IT'S INTERESTING WHAT THEY DECIDED TO DO. IT'S ONLY FOR PURCHASING NEW SO IF WE LOOK AT PRECONSTRUCTION HOUSES FIRST, PRECONSTRUCTION CONDOS O A BUYER WILL BUY UP RECONSTRUCTION HOUSE FOR THEIR DEPOSITS, NOT PROTECTED IF THEY BUY A PRE-CONSTRUCTION CONDO, THEIR THEIR DEPOSIT IS PROTECTED. THAT BEING SAID, THERE'S A NUMBER OF DEVELOPERS RIGHT NOW WHO'VE GONE BANKRUPT. SO THERE IS THAT GRAY AREA WHERE PEOPLE START TO WONDER WHAT'S GOING ON WITH THEIR MONEY. AND THEN NOW IF WE LOOK AT PURCHASING A RESALE CONDO WITH A PRICE PER SQUARE FOOT IS PROBABLY AROUND 1000 TO 1200 PRICE PER SQUARE FOOT. IF THEY WERE TO PURCHASE A PRECONSTRUCTION CONDO, THEN YOU'RE TALKING ABOUT A PRICE PER SQUARE FOOT OF ABOUT 1500 TO 1800. SO NOW YOU'RE ESSENTIALLY PUTTING THE FIRST TIME BUYERS WITH THIS 30 YEAR AMORTIZATION IN A PRODUCT THAT ISN'T AS GOOD AND REALLY IT MIGHT BUY THEM AN ADDITIONAL 4 TO 5% OF PURCHASING POWER. MEANWHILE, THEY'RE ACCUMULATING A LOT MORE INTEREST. THEN THE 25 YEAR AMORTIZATION. ODDLY ENOUGH, THIS 30 YEAR AMORTIZATION PLANT REALLY GREAT FOR INVESTORS BECAUSE THEY CAN WRITE OFF INTERESTS. BUT I REALIZED THAT'S NOT INTENDED PERSON WAS FOR THIS, BUT I'M NOT SURE THAT THIS PLAN WAS ACTUALLY REALLY WELL THOUGHT OUT. IT WOULD HAVE BEEN NICE MAYBE THEY CONSULTED WITH SOME MORTGAGE BROKERS TO GET SOME BETTER ADVICE ABOUT THIS PLACATE LAST THING IS YOU'RE ALSO CRITICAL OF USE IT OR YOU LOSE USE IT OR LOSE IT PROVISION THAT APPLIES TO I GATHER THE >> ESSENCE OF THIS IS ONCE THEY'VE RECEIVED THE NECESSARY APPROVALS TO BUILD. THEY'VE GOT TO BUILD RIGHT? I THINK THEY'VE BEEN GIVEN A WINDOW 2 YEARS TO BUILD. I THINK THAT AGAIN, YOU KNOW, AS I MENTIONED EARLIER, I WISH THEY WOULD HAVE CONSULTED WITH THE MORTGAGE BROKERS WITH THIS. I THINK THEY NEED TO CONSULT WITH PEOPLE IN THE DEVELOPMENT INDUSTRY BECAUSE THERE ARE LOTS OF REASONS. LEAD DEVELOPER MIGHT NOT START BUILDING RIGHT AWAY, RIGHT? WE KNOW THERE'S LABOUR ISSUES, WE KNOW THAT INTEREST RATES ARE SO HIGH, IT SO MUCH HARDER AND MORE EXPENSIVE FOR THEM TO BUILD. AND SO THEY MIGHT WAIT A LITTLE BIT LONGER BEFORE THEY BUILD. THEY'RE NOT TRUST ME. I'M SURE IF THEY COULD BUILD BUT WANT TO THE FASTER THEY BUILD IS THE FASTER THEY GET THEIR MONEY.
