While the world of real estate is often in flux, a new capital gains law promises to redefine the rules of the game for rental property owners, sparking both concern and mobilization within the real estate community.
New capital gains regulations
Impact and costs with the approach of the new capital gains law, rental property owners are on alert. As of June 25, the capital gains inclusion rate will increase from 50% to 66% for profits exceeding $250,000. This measure could significantly increase costs for real estate investors.
CORPIQ is mobilizing
A petition for plexes in the face of this reform, CORPIQ launched a petition gathering more than 22,000 signatures, requesting an exemption for plex owners. This initiative aims to protect small investors and avoid additional financial burden.
A controversial reform
Who will really be affected? Some critics see this reform as an attack on the middle class rather than a measure targeting the wealthiest. The fear is that owners of small and medium-sized structures will be the most affected, unlike large fortunes.
Immediate effect
A race against time for notaries. Notaries are overwhelmed by requests for real estate transactions, with investors seeking to complete sales before the law comes into force. This rush could have repercussions on the real estate market in the short term.
Towards a Concentration of the Real Estate Market? Finally, this legislative change could unintentionally encourage the acquisition of buildings by large corporations, thus modifying the ownership structure of the real estate market.
