When Canadian's Gain to lose, Capital Gains and the 2024 Canadian Federal Budget


The recently unveiled 2024 Canadian Federal Budget has sparked significant discussions and debates across the country. One of the key highlights of this budget is the proposed changes to the capital gains tax, particularly as it pertains to the real estate market. (this does not include the primary residence) Let's dive in and explore the potential effects it may have on the Canadian real estate sector.


The new 2024 Canadian Federal Budget introduces changes to the capital gains tax aimed at addressing wealth inequality and generating additional revenue for government programs. Under the new provisions, the capital gains inclusion rate will be increased from the current rate of 50% to 75%. This means the individuals who realize captal gains from the sale of assets, including real estate, will now be required to include 66.67% of the gain in their taxable income. 

So let's break this down. The 2024 budget would increase the "inclusion rate" from one-half, to two thirds on capital gains above two hundred and fifty thousand dollars for individuals who sell their assets. So, for the first $250,000.00 in capital gains, an individual tax payer would continue to pay taxes on 50% of the gain.  For every additional dollar beyond $250,000.00, two thirds will be taxable.


  • Before 2024 Canadian Federal Budget
  • 50% of your gain was taxable
  • taxable gain $500,000.00 x 50% = $250,000.00
  • Tax owed :$250,000 x 50% = $125,000.00

  • After the 2024 Canadian Federal Budget
  • taxable gain first $250,000.00 x 50% = $125,000.00
  • Next $250,000.00 gain x 66.67% = $166,667.00
  • New total taxable gain is $291,667.00
  • Tax owed now is: 291,667.00 x 50% = $145,833.00
Under the new budget the new capital gains tax will be an additional $20,833.00 leaving you with a sick feeling in the pit of your stomach.

So what is the impact this is going to have on the real estate market? 

The real estate market in Canada is a significant driver of economic activity and wealth creation.  The changes to the capital gains tax are expected to have a notable impact on this sector. Here are some potential effects:

1. Slowing Down of Real Estate Transactions; 

The increase in the captial gains inclusion rate may lead to a slowdown in the real estate transactions as property owners may be less inclined to sell their assets if they are facing higher tax liabilities.  This could result in reduced inventory and potentially drive prices higher due to limited supply.

2. Shift in Investment Strategies:
Investors in the real estate market may reconsider their investment strategies in light of the new tax regime.  Some may opt to hold onto their properties for longer periods to defer tax obligations, while others might explore alternative investment options that offer more favourable tax treatment.

3. Impact on Housing Affordability

Higher capital gains taxes could have implications for housing affordablility, especially in hot real estate markets where prices are already inflated.  The increased tax burden on property sales may make it more challenging for individuals, particularly first-time homebuyers, to enter the market.

4. Regional Variances:

The effect of the new capital gains tax will likely vary across different regions in Canada. Markets with high levels of speculative investment and rapid price appreciation, may experience more pronounced impacts compared to regions with more stable and affordable housing markets.

The changes to the captial gains tax outlined in the 2024 Canadian Federal Budget have the potential to reshape  the real estate landscape in the country.  While the full extent of the imapcts remains to be seen, stakeholders in the real estate market should closely monitor developments and adapt their strategies accordingly.  As the government aims to strike a balance between revenue generation and economic growth, it is crucial for industry players to navigate the evolving tax landscape with prudence and foresight.

written by: Sherry Zwetsloot - Real Estate Broker


How Millennials are Redefining the Housing Market

As Millennials (individuals born between 1980 - 2000), grow up and start their lives independently of their parents, what they want and expect from a home differs greatly from the generation before them. Millennials, also known as Gen Y, are settling down later in life, thus entering the housing market with more maturity, sophistication, and education.  They know what they want when it comes to purchasing a house and making it a home, and, they aren't afraid to wait for it.  In turn, the housing market is being molded to meet the needs of this generation, who makes up the majority of today's home buyers.

Key Features


As a generation that grew up in the age of environmentalism, it is no surprise that Millenials look for eco-friendly features when it comes to buying a home. These features range from Energy Star appliances, to quality windows and insulation, to sustainable building materials, Not only is it important that the homes be eco-friendly for environmental benefits, but running an efficeint home equals lower utility bills. With housing prices steadily going up, cutting costs wherever they can is important. Having a 'green' home is a point of pride for many young buyers.


With smartphones in the palm of practically every Millennial's hand, let me correct myself,,, with smartphones in the plam of every Millennial's hand, houses equipped with smart technology are also on the 'want' list for this generation. From lighting, to security, to automated blinds and shutters, Millennials love to be able to manage and control their homes using apps on their phones. The future is now.


Condos are also popular among Millennials who are just dipping their toe into the market. They can be affordable and are often built in urban areas with tons of amenities (shopping, restaurants, parks, transit, medical centres, etc). Walkability is becoming more,and more important as millenials are sizing up their wants in relation to their needs as independents. Despite the idea that Millenials prefer to settle in urban settings over the suburbs, the reality is that the majority of millennial home buyers aren't that different from their former generations. According to a Consumer Insights report 84 per cent of Millenials want a single-family detached home, and surprisingly the majority prefers the suburbs. Open concept floor plans and, large backyards are also high on the desired list for homes.

Waiting and Saving

The competative job market, combined with the rise in housing prices, has more or less forced Millennials to wait a bit longer to enter the real estate market. This means young people are living with parents longer, or renting in groups in order to save up enough money for a down payment. This isn't necessarily a bad thing as they enter the market wiser, with more life experience and knowledge. 

Because they've patiently waited and saved for so long, Millennials are more inclined to spend time researching prior to purchasing. They have been raised in the tech savvy era, and mainly conduct their search for homes online where they can compare prices, neighbourhoods, and cities by simply swiping and clicking.

Shaping the Future Market

The Millennial impact will encourage the building industry to focus on both quality and quantity. With single family homes as the desired home type for this generation, builders will need to increase supply to keep up with demand. With the energy efficiency importance stressed by Millennials, it is also likely to keep improving, which is beneficial for everyone's pocket, and conscience. 

Because of the short supply of single-family dwellings, we will also see a shift towards condo living. Condos can be suitable for singles, couples, and even families as units are now being designed to accomodate a full size family. For Millenials who have children, they don't necessarily have to move due to better floor designs and increased storage space. 

In Closing

As Millennials dominate the marketplace, sellers have to keep up if they want to sell for top dollar. This means sellers may have to renovate current floor plans, upgrade appliances, and add new technology to create a smart home. Gone are the days of selling your home 'as is'.


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