Former child actor’s real estate empire under OPP investigation and the Home of the Week: Canadian real estate news for the week of January 10

Here are The Globe and Mail’s top housing and real estate stories this week and one home worth a look.

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Legal woes mount for associates of former child star Robby Clark amid property empire collapse

As former child actor Robby Clark deals with mounting legal challenges in relation to his crumbling real estate empire, which left hundreds of investors on the hook for millions, The Globe has found that an Ontario Provincial Police probe is looking into allegations of potential criminal fraud. A team of investigators of the OPP’s Anti-Rackets Branch has been interviewing lenders and investors for weeks who lent money to companies controlled by Mr. Clark and his primary mortgage broker and promissory note vendor Claire Drage, writes Shane Dingman. Several lenders who spoke to The Globe said the OPP probe is seeking documents and information related to allegations of potential criminal fraud raised in civil court filings. None of the allegations have been proven in court.

Capital gains tax uncertainty leaves taxpayers facing two unappealing options

Prime Minister Justin Trudeau’s announcement that he will resign and prorogue Parliament heightens the uncertainty around the fate of the capital gains tax changes, with affected taxpayers potentially left to decide whether they’d rather risk overpaying the tax or facing interest and penalties later on, tax experts warn. While few people regularly have more than $250,000 in capital gains in a single year, the proposed capital gains hike would also affect middle-class Canadians who’ve experienced a one-time financial windfall from the sale of certain assets, such as a vacation home or income property, since June 25, writes Erica Alini. With an election likely in the late spring or early summer, it’s unclear whether the tax increase will ever become law. But experts say taxpayers aren’t quite off the hook.

Toronto-area real estate market sees slow growth in December, as experts predict better outlook in 2025

Canada’s lacklustre real estate market may see a rebound in 2025, Bay Street forecasts, but so far buyers in the Toronto area are not bringing the heat, writes Carolyn Ireland. Properties did change hands in December – some with spirited competition – but overall the reaction to new mortgage rules and a Bank of Canada interest rate cut has remained subdued, real estate agents say. Experts predict 2025 will be the year that home prices pick up after three long years of a flat-to-down trend, as home sales begin to stir in response to the aggressive Bank of Canada rate cuts, and new listings have simmered down.

Opinion: A path forward on capital gains – and the taxation of housing – for the next prime minister

Memo to the next prime minister of Canada: Please kill the zombie tax increase on capital gains. The hike to the capital-gains inclusion rate is an undead policy right now, writes personal finance columnist Rob Carrick. Legislation for the change was thrown into uncertainty when Mr. Trudeau prorogued Parliament on Monday, yet the CRA is proceeding as if the increase took effect on schedule last June 25 – standard procedure for tax measures that have been introduced but not yet passed into law. There’s still time to kill it, as the tax-filing deadline for 2024 is April 30. Then we can move on to some bold changes that will address two of this country’s biggest economic and personal finance challenges: economic productivity, which is key to raising wages and living standards, and unaffordable housing.

Home of the Week: A Toronto renovation that proves less is more

11 Ottawa St., Toronto – Full gallery here

When the previous owners first moved into the four-bedroom home in Toronto’s coveted Summerhill neighbourhood, she found it overstuffed with sconces, arches, pillars, drapery and other unnecessary features. With the help of a major renovation, the home ended up looking more put together as they removed from it. The foyer is like many Victoria-era terrace-type homes with a stairwell that runs upstairs directly ahead and a formal sitting room off to the side. The pale wood of the floor adds earthy colour under the simple white walls and mouldings, and shocks of colour are provided by the views out the front and rear windows. The third floor is given entirely to the primary suite, with a rooftop terrace facing the backyard and its own ensuite bath.