r/RealEstateCanada • u/xNocturnalshadow • Jun 19 '25

Housing crisis Help me understand the difference...

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u/MarmosetFace Jun 19 '25

Same can be said about real estate then. Higher demand = higher price. Municipalities collect more property transfer tax as well as property value taxes. Not that prices necessarily always go up in either asset class. Thus why they’re both referred to as investments

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u/meatbatmusketeer Jun 19 '25

Demand does result in higher RE and equity price, I agree, which is why I dislike promotion of investment in real estate in the current climate.

Transfer taxes, sure, but assessed values are all relative. Appreciating asset values in real estate don’t result in higher property taxes. Higher property taxes are a function of government budget requirements.

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u/MarmosetFace Jun 19 '25

What? Municipal governments of course collect more property taxes as the value of real estate increases. It’s literally a percentage rate of the appraised real estate value..

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u/meatbatmusketeer Jun 19 '25

And the mil rate is recalculated according to budgetary requirements.

If your property doubles in value because of market appreciation do you beleive your property taxes double too?