As you know, the real estate markets in Canada have overheated in the past two years in a crazy and unprecedented way, deepening the pain and suffering felt by a large segment of society during the pandemic stage. Certainly, there are many reasons for this, some known and some unknown, and some subject to uncontrolled human behaviors whose owners work to seize opportunities to increase their wealth regardless of the crises this may cause, whether at the general, community, or individual level.

This undoubtedly led to an increase in anxiety and tension among this large social segment amid the blackmail practiced selfishly and with ugly thinking by many investors or even sellers of their homes, and this was what would have caused a crisis that was almost imminent and deep as it undoubtedly reared its head.

Therefore, the Progressive Conservative Party government in Ontario, headed by Doug Ford, announced the imposition of a 20% tax on foreign investors, where this amendment to the law falls within the framework of its rolling action plan regarding housing.

The tax imposed on foreign investors who buy properties in the province of Ontario has risen from 15% to 20%.

This tax will be imposed on foreign buyers throughout Ontario, and it is no longer limited, as before, to the area known as the Greater Golden Horseshoe, which includes the Greater Toronto Area (GTA) and several neighboring cities where about two-thirds of the province's population lives.

Also, as you know, this amendment targets “foreigners, foreign companies, and taxable agents” who buy properties in Ontario, as mentioned in the Ontario government statement, the largest Canadian province in terms of population and economic size.

It is also worth mentioning that this measure is supposed to raise the tax rate to 20% and apply it province-wide, thus enhancing efforts to deter non-resident investors from speculating in the Ontario real estate market, which will facilitate for Ontario residents who wish to buy their first home to own properties.

This matter will undoubtedly create a state of balance and it is very possible that it will return prices to their normal state, making them affordable for many homebuyers from the middle class on one hand, and on the other hand, it will reveal the extent of the imbalance caused by this real estate frenzy that occurred over the past two years by giving way to the reckless interference that rebels against the real estate culture of society.

Today, the Ontario government is restoring hope once again, even if this decision, from the perspective of many, is nothing more than a political decision serving the electoral phase and will not have any fundamental and real impact in the future on the madness of the real estate market that seems to have almost gotten out of control due to the frenzy of investors on one hand and the severe shortage in the number of available housing units on the other hand.

But in my opinion, the withdrawal of many new home purchase applications is in itself an indicator that the real estate market no longer deceives the citizen and invades his mind to make him submit to the demands of this crazy and rebellious market, but there is now a desire and ability among first-time homebuyers to be patient in the face of this cheap economic blackmail that departed from ethics and entered the tunnel of greed and avarice under weak justifications such as the high cost of building materials or high wages for workers and their unavailability, or the lack of available land for building.

These fabricated rumors and weak information aim only to scare the citizen wishing to buy his first home or update the status of his current home to get a house suitable for the natural change in his family's status, and they could only come from the group that benefits from the status quo until it reaches the stage of price explosion leading to a complete inability of the struggling citizen to buy a home, keeping the matter confined to the hands of foreign investors who suddenly and without warning invaded to take over this vital market, thus filling their pockets at the expense of the hopes and aspirations of these struggling people.

Today’s real estate market does not only need to impose taxes on foreign investors but also needs serious work to curb all fraud methods that may circumvent such an important decision and to provide lands dedicated only to those wishing to buy their first home or to provide all support and facilities to help them achieve that, simultaneously with placing clear and strict restrictions on those who wish to buy homes for harmful investment rather than beneficial, ensuring that there is no room for these individuals to manipulate and collude with foreign investors on rental or sales prices far exceeding the purchasing power in the market and the ordinary citizen who represents the backbone of community stability.

Many of the matters accompanying this crazy increase in the real estate market during the very dangerous pandemic phase, which produced an unprecedented inflationary situation, were not ethical at all and needed control and redirection, as their negative effects have not yet appeared, but they were about to break and destroy the entire social fabric when hope disappears from the individual.

Today, the Ontario government has taken the first necessary and correct steps to stop this crazy surge that created a state of obsession and imbalance in this market until the prevailing feature became the conflict between many groups operating in this market who also found themselves weak in front of complex challenges that threaten their continuation in their profession.

Therefore, I tend to the views that talk about an inevitable coming price correction, and what many experts say that such measures will not affect or correct prices is mere delirium and wishes serving selfish interests and desperate hopes only, so there is no need for panic or fear, and the struggling citizens must unite in a single stance to confront such madness rather than submit to it by refraining from rushing to buy homes at crazy prices, as proposed currently, to help the government curb the madness of prices and return them to their natural state.

Here, I cannot but applaud the hands of the Ontario provincial government on one hand, the federal government on the other hand, and all responsible media personnel who shed light on this issue and its risks on the younger generations and university graduates. I urge them to continue highlighting this matter and take more purposeful steps to expose the dangers of continuing this unhealthy situation to contain this madness in the runaway real estate market and to preserve the rights of the individual, society, and aspiring generations who still live with hope of living a secure future without burdening them with such terrifying burdens that undoubtedly threaten the stability of the individual and society.

So, there must be no fear or anxiety about the challenges resulting from this real estate madness that hinders the creativity of young people, who represent one of the most important pillars of stability, development, prosperity, and flourishing, but deterrent initiatives and measures must remain in place until the real estate market returns to its natural state.