Vancouver's Real Estate Market

[twdm]

BC brings in 15% property tax for foreign buyers - NEWS 1130
No significant foreign money amiright?
Well don't mind the 15% transfer tax

[Special K]

It would be interesting to see how this turns out in the next 6-12 months. How easy would it be to find loopholes to recruit a "relative" or "friend"?

Where is the tax money going??

What about a foreign national selling tax? Grab some money while we are at it.

[hypediss]

dont think its going to do much especially when most of the buyers from china carry a PR thanks to the QIIP

that or they buy through a shell company opened by someone in BC with a PR status

cra or fintrac dont give a dam anyway

[originalhypa]

Originally Posted by pastarocket

Does Crusty's chances of getting re-elected as Premier in the May election next year improve after the introduction of this tax?

I would vote for one of Kevin Falcon's dried turds before I voted for the BC Liberals again.

I feel so dirty saying this, but I may be forced to vote NDP the next time around......

[4444]

Originally Posted by EmperorIS

BREAKING NEWS: BC brings in 15% property tax for foreign buyers
The new tax will take effect on August 2nd and will apply to foreign nationals or foreign-controlled corporations that buy homes in BC. This would mean a $300,000 tax on a home worth $2 million.

Metro Vancouver's housing market high priority as BC legislature convenes for summer session - NEWS 1130

was only a matter of time. you could almost feel it coming.

haven't had time to read into this yet, but what would prevent a foreigner buying via a corporation (would be fine as corp would be taxed on capital gains in canada).

step 1 krusty - won't save your backside though

next, stop giving out PR and citizenship like candy.. and federal gov needs to eliminate QIIP (can the feds do this? Quebec seems to have its own set of rules!)

[eclipseman]

The tax is being applied to affordable housing strategies.

At least it's a step in the right direction, but like hypa, not going to be voting the Lie-berals...

Green party here we come!

[4444]

Originally Posted by Carl Johnson

Says the man who has been preaching doom and imminent collapse for Vancouver real estate for who knows how long now. You, like Garth Turner, are just too predictable.

The funny thing about you is that you are actually supposed to be a "investment" guru. I am wondering how come you have never heard of one of the most basic tenets of investing: a bull market always rides on the back of cynicism.

get a life, mate

[MarkyMark]

This will do dick all. Isn't the real problem immigrants who come here and suddenly have millions of dollars to throw at a house with no answers to where it came from other than "business person" ?

[GLOW]

is green party even a viable voting option? seems like last couple elections it's been libs vs ndp while everyone else is not a major player...

[320icar]

Originally Posted by MarkyMark

This will do dick all. Isn't the real problem immigrants who come here and suddenly have millions of dollars to throw at a house with no answers to where it came from other than "business person" ?

I believe they count that as foreign money. If immigrants have only "$20,000" declared money to Canada (via tax etc) yet have 2 million overseas to buy a home in Vancouver, that is counted as foreign money

[4444]

Originally Posted by MarkyMark

This will do dick all. Isn't the real problem immigrants who come here and suddenly have millions of dollars to throw at a house with no answers to where it came from other than "business person" ?

you may have a point, but it's not all foreign money - a big part of this may be the affect on the perception of future price gains.

don't underestimate the strength perception has on overheated (at risk) markets

[MarkyMark]

Originally Posted by 320icar

I believe they count that as foreign money. If immigrants have only "$20,000" declared money to Canada (via tax etc) yet have 2 million overseas to buy a home in Vancouver, that is counted as foreign money

Im curious if that's the case. Is the tax strictly for people buying that have no citizenship here whatsoever, or immigrants who bring millions of dollars with them as well?

[320icar]

You can be a permanent resident and not be a citizen. The issue is people who live here, buy our homes but have a 'declared wealth' of below the poverty line. If you declare your wealth, bring it over and pay duty or tax or whatever on your income, then no you should not be subject to this new 15% foreigner tax

Edit: my opinion anyways, no facts included

[quasi]

Originally Posted by originalhypa

I feel so dirty saying this, but I may be forced to vote NDP the next time around......

Eeeeeeeew, you know times are bad when.

[Liquid_o2]

Nothing else to say regarding this issue that hasn't been said above. People will find a way around this tax, whether it is through Quebec, shell companies, or funneling money through locals.

[Hakkaboy]

Anyone have a recommendation for movers with first hand experience? Looking to move from a 1 bedroom apt in Richmond to Burnaby.

Tried googling and there's like way too many choices so I'd prefer recommendations than potentially fake yelp reviews

Thanks!

[Ch28]

I personally think that 15% is too low. Just seems like a figure that is put out there to appease all the critics but nothing severe enough to detract mainlanders from using their corrupted money to launder.

I don't follow the RE market as much as most of you, so what are your thoughts on an "appropriate" figure that would actually do something to deter it?

[pastarocket]

Originally Posted by Ch28

I personally think that 15% is too low. Just seems like a figure that is put out there to appease all the critics but nothing severe enough to detract mainlanders from using their corrupted money to launder.

I don't follow the RE market as much as most of you, so what are your thoughts on an "appropriate" figure that would actually do something to deter it?

The Aussies use different methods to control foreign ownership of property. It's not just about the percentage of the property tax to control the amount of foreign ownership of vacant homes. It sounds like the enforcement of their laws on foreign ownership of property is quite stringent.

Foreign home buyers: How other countries limit money from abroad - Business - CBC News





Australia

Australia real estate housing
Australia has tried to increase affordability in cities like Sydney and Melbourne by introducing steep fines for buyers, realtors and companies who break new rules on foreign real estate investment. (David Gray/Reuters)

Foreign real estate ownership is a hot-button political issue Down Under and the Australian government has gone to great lengths to curb it.


Generally, buyers from outside the country are limited to newly constructed houses and apartments, and the Foreign Investment Review Board — which yields broad power over money flowing into Australia — acts as gatekeeper. It costs $5,000 just for the right to make an offer on a place costing up to $1 million, and $10,000 for each subsequent million-dollar leap in purchase price.


Foreigners who buy vacant residential land have to build on it within two years.

Australia has stepped up enforcement with a crackdown that began in earnest last year. Foreign investors shown to have broken the rules can face up to three years in jail or a fine of $127,500. Individual real estate agents who help a foreign buyer circumvent the system can be fined up to $42,500, while companies could be hit with a $212,500 fine.


As of January, the government says it forced the sale of 27 homes bought illegally, including a $39-million Sydney mansion previously owned by a Chinese real estate firm. More than 1,300 property sales have been investigated, according to Reuters.


Australia also forces foreign investors to register purchases with the federal government, part of an effort to gather and analyze an extensive data set on the issue.


Canadian critics of foreign ownership sometimes hail Australia as a model for policies that can be applied here at home, but there's much debate over that sentiment.

[Timpo]

Originally Posted by wingies

Its a bittersweet feeling, the damage has been done already for us (20's to 30's) but hopefully this can help the next generation a bit. Too little too late

Government workers and politicians are typically slow at things like this. They have to go through lengthy and unnecessary procedures and policies to do anything.
They can't adapt to changes nowhere quickly as private sector.

As Kevin O'Leary says, the lack of productivity has always been issue with government workers and politicians.
That's why some people support Donald Trump as a president.

[MarkyMark]

Originally Posted by pastarocket

The Aussies use different methods to control foreign ownership of property. It's not just about the percentage of the property tax to control the amount of foreign ownership of vacant homes. It sounds like the enforcement of their laws on foreign ownership of property is quite stringent.

The difference is Australia actually wants to restrict foreign buyers, where our government wants to keep the gravy train running while still keeping the votes to stay in power.

[Harvey Specter]

The question is do people really want to the RE bubble to burst? Think about the consequences and all the jobs in BC that are linked to RE that will be lost.

[SumAznGuy]

Originally Posted by 320icar

Timpo was 100% right. My parents were not home owners. None of my family was. And now finally in my mid 20's my gf and I bring in about ~110k gross. But with no downpayment and the housing market to continue infating at a stupid rate, I still think ill be a renter for ever. I can't afford to rent and high prices AND save enough (fast enough) at the same time

Try to be a little open minded and don't put your GF down for asking the banks.
In fact, I think she has more of a level head than you.
$110K combined income. I am guessing around $6K take home per month.
You should easily be able to be pre-aproved for a $500K mortgage as long as you 2 don't have any debts.
That is about $2500 per month for mortgage payments over 25 years at 4%.

Not sure what areas you *have* to live in but moving out to Port Moody/PoCo opens up a lot of options for you to buy a decently sized town house.

There are still affordable options out there if you are willing to settle.

Take a look at what your needs are and how much you are paying per month in rent.

[quasi]

Originally Posted by Harvey Specter

The question is do people really want to the RE bubble to burst? Think about the consequences and all the jobs in BC that are linked to RE that will be lost.

The responses will mainly hinge on whether the person answering is on the outside looking in or not. I don't care what the market does but but if it's going to drop a bunch I'd rather see it happen gradually over the next 2-4 years then totally implode.

[Tapioca]

Originally Posted by Hakkaboy

Anyone have a recommendation for movers with first hand experience? Looking to move from a 1 bedroom apt in Richmond to Burnaby.

Tried googling and there's like way too many choices so I'd prefer recommendations than potentially fake yelp reviews

Thanks!

We used Small Moves Vancouver for our 2-bed+storage move. They charge by the hour. A move from Burnaby to the Tri-Cities, including a broken elevator on the day of the move, cost us less than $600 which is far less than what other companies quoted. The 2 guys that showed up were 2 no-nonsense Middle Eastern guys who were efficient. We ended up with one small dent on one wall which is pretty good all things considered.

We also rented resin boxes from another company which I would highly recommend to anyone.

[MarkyMark]

Originally Posted by Harvey Specter

The question is do people really want to the RE bubble to burst? Think about the consequences and all the jobs in BC that are linked to RE that will be lost.

As someone who doesn't own property, and job isn't directly linked to the local real estate market, I'd have a hard time turning down my future mortgage payments being significantly less due to a crash.

At the end of the day people want what benefits them the most. Is a property owner going to care about someone else's situation if their house price doubles in another year or two? Probably not.