New Taxes on Vancouver & BC Real Estate

New Taxes on Vancouver & BC Real Estate
The NDP Government just released there new budget and housing strategy for the province. In an attempt to try and cool the red hot Real Estate market and make homes more affordable they have introduced some new tax changes.

They include:
– Increasing the the foreign buyers tax from 15 to 20% and making it provide wide.
– Increasing the PTT from 3% to 5% on homes over 3 Million.
– A new speculation tax on home owners who do not file taxes in BC

Here’s a link to an older video I did on the PTT as a Tax Grab: https://youtu.be/0-KGiTGM4HI

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New Taxes on Vancouver & BC Real Estate
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16 thoughts on “New Taxes on Vancouver & BC Real Estate”

  1. Tax people with second homes and vacation chalets when we have a housing crisis going on – sounds good to me!

  2. Finally a political party that has the courage to do something about the housing crisis in Vancouver!

  3. great video. thks for vancouver and toronto's stupid policies, Montreal finally starts to take up in Economy and Housing price.

  4. I believe all these taxes are sending out a long-lasting, very negative signal to investors – domestic or foreign, that BC do not want you to invest here, that BC do not want your money. Everyone who buys real estate even if it's your own principal resident is an investment, and these policies are having a detrimental effect to the LONG TERM prices of real estate value in BC.

  5. Hi Owen, very interesting, thanks! What would be your suggestion to cool the market and make it more affordable for locals in the right way. Would be interesting to know your professional view on this. Cheers, Chris

  6. Housing should never be seen as investment and its the government's job to make it non-profitable. As soon as you tax it right to make it unprofitable, prices will come down to fundamentals. Its the right thing to do. I also do not buy your argument that Vancouver is a world-class city, it is not. If you travelled, as you say, you would have known that comparing Vancouver to New York, Seattle, Los Angeles, or Boston is simply a joke. This new government is on the right path to tax people out of treating housing as investment and going back to making it more about a place to live. The fact that you see taxes as being counter productive when every economist in the province called for it – just speaks to your bias. One should admit that there is a problem when facing facts and the fact is – Vancouver real estate is overpriced.

  7. Firstly – Whistler is not in the area covered by the Spec tax. It covers the same areas as the FBT.  Also – I sympathize with the people who have had these properties for a while. However – "we are closed for business" is basically what the NDP is saying. The supply problem can be solved by shaking the tree and forcing all the non-residents to sell into the market. The 0.5% tax in year one is partly just to give them time to dump the property before the tax really starts to bite.  They have now finally made the decision that Vancouver is not a resort town. It is for people working and living here and either you need to be an investor and renting it out for long-term tenants or you need to live in it.  What is not clear, however, is how they are going to capture those who do live in their home full time as a permanent resident but are "funded" by overseas money and ultimately pay no tax here. We will have to see how they structure it because either you capture a lot of innocent people or you make it too easy to avoid . . .  Also – If this tax shakes the tree how can you possibly say that only 50-60 units would come online.  They expect 20,000-30,000 units to be affected by this tax at least. Also – your message about people – "we don't want you here" – Frankly – people don't want these vacation homes in the middle of their city. I used to have a couple in Vancouver – but don't any more – I did the math – I can stay at the Four Seasons – exactly as you said . . . . for much less than holding the property.  The local people want those units to now come online. If you get 2K-3K units from this by the end of the year – this market will fall fairly quickly.

  8. in ndp's beginning speculation levy, it only target property newly bought(under 5 years), and lots of exemptions, basically avoided long term holders.

  9. Owen, what’s the difference between buying vacation homes and satellite families? To me they are the same. Both spend in B.C. but both are not paying local tax. Why is it okay for vacationers to take up local houses when we blame everything on satellite families? Sure vacationers spend when they are in town, but so do the satellite families ( they spend a lot!!!). So they both should pay the extra tax that’s long overdue. If vacationers think 2% is too expensive, then isn’t good for them to free up the empty houses for locals who can’t find rentals closer to work? Anyway I feel you’re giving vacationers too much excuses in this video.

  10. $6B to build 114,000 affordable housing units equates to $52k per unit. I agree that this is not possible. I'd be surprised if they manage to build half of that. I also question who will qualify to live in these units. It sounds like the middle class will be paying for it, but won't benefit from it. This especially hurts when the middle class can't even afford housing for themselves.

  11. The logic that it will only effect the guy with the 5 Million dollar house is short sighted, there is a trickle down effect to the average house buyer from the high end to the trailer park house that's for sale in Whalley. Also, is there anything in the budget in regards to commercial real estate or is commercial excluded all together?

  12. Thanks for the update Owen. Seems the NDP is setting itself up to learn the hard way, as they always do. It's somewhat disturbing to see the hateful comments posted on your latest video, a sign of the times I guess. Penalizing fellow Canadians for having a vacation home in BC is not only un-Canadian, it's bad karma. Canada has a multi-generational cabin/cottage culture, and holiday makers support the local economies of these towns in a big way.

    Chasing away capital and the jobs and services that comes with it isn't going to help either. People who are gloating at the additional taxes on capital may change their tune when it dries up and the layoffs begin. Then the stampede to the open arms of the welfare state will begin, only for them to find that the coffers are dry, thanks to irresponsible spending and snouts that have been in the trough for far too long.

  13. Hi Owen thank u for the information. Just curious to know how that tax (increase of foreigner tax and increase tax over 3 million) gonna affect the condos under 3 millions (in most cases… condos are under 3 million…). I think there will be more money rush into the condo market.. since i also believe that Vancouver is one of the top desirable cities to live in the world, so people will always want to have one place to live here.. today is the Chinese oversea buys, next decade might be people from India, from Japan, from Europe, etc. its human nature. Like u said in ur book (or in ur video) that Vancouver's west coast lifestyle is similar to California Dream in the US, so Vancouver is not only attracting oversea buyers, but also Canadians too.

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