condominium-titled rental project

Meeting of Group of Experts on Housing Management and Tenant Education

condominium severance of a rental project | condominium severance

A few key recommendations that we strongly encourage the committee to consider are to allow the rollover of capital gains should an owner wish to sell a rental building and either buy or build a new one; rebate 100% of the GST, as is the case with other multi-unit buildings; have the same taxation rules apply to the construction and operation of rental apartment buildings as are applied to condos, hotels, and warehouses; allow landlords to apply capital cost deductions at a rate that will foster significant reinvestment in upgrading and maintaining the existing 3.1 million apartments in Canada; and apply a flat taxation rate of 15% o ...[+++]n all revenues generated from secondary suites, rather than the application of standard taxation practices.

As an example, here in Victoria, numbers from CMHC show us that the cost for building a rental apartment per door is three times as much as building a condo. So the private developers in the city who get the land are building condos, which is taking a lot of units out of the market.

We need to have the private sector building apartments, and we need to increase the incentives so that they'll actually build rental apartment buildings rather than condos.

The success they're having in the high-end rental luxury market, the success being had by many small investors, who fled the stock market and the bond market and are buying condos and renting them out, creating more rental space in the city, and the success many homeowners are having—a kind of double cohort of tenants graduated out of rental housing last year into home ownership—largely has to do with the tremendous benefits the lower-interest-rate environment is creating.