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B.C. to bring in a 15 per cent additional real estate tax on foreign buyers

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Real Estate Professional | 25 Jul 2016, 02:12 PM Agree 0
Foreign nationals who buy real estate in Metro Vancouver would pay an additional property transfer tax of 15 per cent under legislation being brought in today by the British Columbia government
  • Leafs Rule 67 | 25 Jul 2016, 02:42 PM Agree 0
    I don't live in BC, but this is foolish. As a Canadian we dont like when a foreign country targets extra taxes onto us. So this is bad for the message it sends to international investor. Also, this will do nothing to the market as markets always rule. Looks like this is bad politics to appease those that are jealous of those investing into our Country. Sad day for BC. I hope the investment comes to Toronto because developments means jobs. Eventually, those wealthy investors will relocate and spend their wealth. Come to Ontario and avoid this silly tax.
  • | 25 Jul 2016, 02:42 PM Agree 0
    Just another tax grab by our government.
  • Alister | 25 Jul 2016, 02:47 PM Agree 0
    How foolish & so typically ignorant of Government, there are so many ways to stimulate a solution to the problem, instead they've implemented a ridiculous tax to drive the money away to be invested elsewhere. Instead of creating opportunities and incentives they introduce penalties and negativity into the marketplace! Now perhaps - if they used the tax dollars they collect to give Canadian first time buyers a low mortgage fund to borrow from, that might help, but no - I expect they will just waste it in the usual mindless bottomless pit of government waste!
  • Amanda | 25 Jul 2016, 02:55 PM Agree 0
    Well Said above, agreed everyone.! BC government is making a big mistake, as a realtor in Ontario, hope this penalty doesn't have a place in our province. I am not sure how do you verify foreigners here, I know many landed immigrants would prefer to hold their landed immigration status forever and they do not want to become a Canadian for many reasons. when they buy real estate here, do you consider them as foreigner as they are still holding foreign passport although they have landed immigrant status.
  • Your Mortgage Guy | 25 Jul 2016, 02:55 PM Agree 0
    It simply means more money for Toronto....higher prices on the way.
  • Sunny | 25 Jul 2016, 03:00 PM Agree 0
    Canadian comes first... they should have fair opportunity to buy a home first. Most of foreign investors just buying and holding the homes empty. Meanwhile there are huge shortage of the homes for the people living and working in BC. I think this is great move and it will give people living with in BC who don't have deep pocket a chance to buy property. Hopefully money raised by this program will invested back in the community.
  • Mark | 25 Jul 2016, 03:01 PM Agree 0
    I seems to me that this is just another tax that will only add to the price of housing on resale.
  • Dominic Downer Re/Max Crest Realty Westside | 25 Jul 2016, 03:05 PM Agree 0
    I'm thrilled with this. It will cool the demand (IMO) thereby improving the affordability crisis while hopefully raising funds for hospitals, schools and infrastructure. Again, IMO, Real Estate in Vancouver is a resource just like a commodity such as wood. If foreign nationals want it we should tax them. They clearly have enough money or they wouldn't be investing in the first place right? If residents want it we should get favourable deals. Its ours and we can manage it the way we deem necessary. Australia interestingly has introduced rules to foreign nationals Buying and the Government has already force Sold many homes because of contraventions to the rules. Markets cannot be left unregulated IMO - this much has been proven time and again.

    Time will tell if this measure works the way I hope...
  • Nobody | 25 Jul 2016, 03:06 PM Agree 0
    15 % is too much! 5 % is more realistic. At 5 % this would send the correct message. But 15 % is advising foreigners to not invest in Canada at all. CANADIAN Government please wake up! Just because a few Cities are prospering, it not justification to stop it. Basic Economic Principles dictate that the blind hand of the economy rules, not Government intervention. While most industries are not prospering, the Government wants to stall the 1 industry with the biggest growth in a few Cities. Whoever is making the decision of a 15 % tax, is only looking at a small picture. YOU NEED TO LOOK AT THE WHOLE PICTURE!
  • Mike in Victoria | 25 Jul 2016, 03:07 PM Agree 0
    With all of the major problems we're facing we move to chase out investment!!??

    Sure bring in refugees that want us dead - but scare off the wealthy individuals who have been the best thing for BC.

    Without these people - who have been the driving force behind our success, we're doomed. The decay of our shining west coast Jewl will slowly erode into ruin.

    Just another example of big government, over-reach & tax fuelled madness.

  • Tony | 25 Jul 2016, 03:11 PM Agree 0
    Chinese will find a loophole around this tax. Guaranteed !!
  • Tony | 25 Jul 2016, 03:12 PM Agree 0
    Until it happens in Toronto soon.....
  • RealtorKing | 25 Jul 2016, 03:32 PM Agree 0
    Just means after 2 August there will be a 15% price decrease in Vancouver and a 15 % increase in the GTA.
  • Scott Simmons | 25 Jul 2016, 03:41 PM Agree 0
    They should have just put in a head tax on the Chinese or put it on title that they can not buy in certain areas. O wait they did that 131 years ago and it's called racism. This is nothing more that modern day punitive tax on the Chinese investors. If the buyers were from the UK no one would ever demand a tax on them. Thanks for taking us back to 1885 and bringing in the head tax again.
  • Dave | 25 Jul 2016, 03:51 PM Agree 0
    There is no doubt that this has become a societal issue. Surely, though, the Canadians we see living on the streets of virtually every community will not be benefitting from this new tax. Just another knee jerk reaction to a problem that smells and looks like a money grab by politicians that are too weak and afraid to do the right thing, which is by the way, really attack the affordable housing crisis.
  • Scott Simmons | 25 Jul 2016, 03:52 PM Agree 0
    For those that do not know about the not so distant racist past of BC here is a clip from an article about restrictive covenants that were on some properties in Vancouver.

    Realtor Wayne Hammil recently spotted a covenant in a land title dating back to 1928 when he was putting a Vancouver home up for sale.
    "One of the clauses in the restrictive covenant makes reference to not selling to certain ethnic minorities in the world," said Hammil.
    The covenant prevents the sale or rent of the land to people who are of Chinese, Japanese, Indian and African descent or any other Asiatic race.

    full article here;

    To me we are on the same slippery slope once we put on 15% tax on foreign buyers. Will our grandchildren have apologize for this new tax in 50 years like we have had to do with the head tax from the past. I wish government would consult the public before coming out with things like this.
  • Realestate Professional | 25 Jul 2016, 03:52 PM Agree 0
    Crazy. Not well though out and a knee jerk reaction. I can thing of several wYs to get around that in a heart beat. That makes it an unfair tax grab only. Way to go.
  • Calmdown | 25 Jul 2016, 03:57 PM Agree 0
    "But 15 % is advising foreigners to not invest in Canada at all." Just FYI dear Nobody. B.C. does not control house purchases in all of Canada. This is just a B.C. Provincial Tax.
  • | 25 Jul 2016, 03:59 PM Agree 0
    Why isn't the government reducing Property Transfer Tax as a way to make housing more affordable? Wouldn't want to dig into their own pockets?
  • Disappointed | 25 Jul 2016, 04:12 PM Agree 0
    This is just another Tax Grab!! It doesn't do anything to alleviate the problem, in fact it adds to the problem by discouraging foreign investment which creates good paying jobs to construct these properties.
    A vacancy tax I could see but a 15% premium is ridiculous. When these foreign owners eventually sell these properties do you think they will not use this additional historical cost to establish their asking price, hence the government has accentuated the problem.
    If this is their best solution they should be ashamed of being so Stupid!! or Narrow minded!! No, I think Stupid fits best.
    The Pacific has a very long coast line and I'm sure there are many other municipalities that will welcome the growth/investment.
  • ironseller | 25 Jul 2016, 04:43 PM Agree 0
    What a joke and who will police it? We know and have known for a long while that properties are changing hands multiple times before a sale is recorded or registered. We know that the Real Estate board has failed miserably in policing the licenced agents and their activities. The province will now police the agents and we all know how effective that will be - the blind will be leading the blind. Where is the CRA? I believe millions of tax dollars have been avoided. This is a political play to try to make us believe they have a handle on things when in fact they have no idea what is going on or what to do about it.
  • | 25 Jul 2016, 04:54 PM Agree 0
    1 billion spent by foreign nationals , and how long did it take for the government to figure that out . Once again government is to late to deal with an issue and then make nit so government gets all the bonus dollars . And government won'the use the money to help the citizens . Just stupid .
  • Robin Telfer | 25 Jul 2016, 06:25 PM Agree 1
    The Chinese Immigration Act was passed by Parliament in 1885. The main objective of the Act was to prevent immigration by the Chinese after the completion of the Canadian Pacific Railway. The special entry tax was imposed stipulating that all Chinese entering Canada must first pay an initial "head tax" of $50. In 1904 the amount was later increased to $500. The Chinese Immigration Act of 1923 abolished the "head tax" forever. Will it take the British Columbia Legislature 38 years to amend their controversial 15% tax rate on real estate purchases in the Lower Mainland? Will we all mark our calendars for 2054 to rejoice?
  • For Better Canada | 25 Jul 2016, 07:38 PM Agree 0
    I think this tax is a great thing. The money should be used to help thoses that have been penalized so far by the delayed response of the government, and who were not able to enter the market because of the unfair advantage the foreigner who live of different life standards and income have compared to Canadian. i believe in being open to all, and I also believe, if not in Canada, where will we put Canadians first. This is an important place to put Canadians first
  • dan | 25 Jul 2016, 11:02 PM Agree 0
    BC tax is already stupid high, when is it enough....? Tax is calculated in percent, it rises with inflation, so, when is raising tax ever acceptable.....?
  • Fed-up | 25 Jul 2016, 11:45 PM Agree 0
    Typical and pathetic. If only we paid enough to get qualified people to manage public finance.
  • Fed-up | 25 Jul 2016, 11:54 PM Agree 0
    This isn't going to help you or anyone buddy. These taxes will minimize foreign investment and slow growth while the provincial government fumbles the ball and directs the revenue to ineffective public programs while taking away from real commerce.
    The problem is only 20% of the general public understands this, unfortunately very few of public servants are in this group. Most politicians are not educated in economics.
  • Todd | 26 Jul 2016, 12:59 AM Agree 0
    And that is why you live in BC, the government will make everything better by taxing it. This isn't the first or last stupid mistake the BC Government will make, but I guess it could have been worse, they could have made it 20 or 30%, lets face it if you really don't want foreigners buying the land make it 100%
  • Fed-up | 26 Jul 2016, 10:07 AM Agree 0
    This isn't going to help you or anyone buddy. These taxes will minimize foreign investment and slow growth while the provincial government fumbles the ball and directs the revenue to ineffective public programs while taking away from real commerce.
    The problem is only 20% of the general public understands this, unfortunately very few of public servants are in this group. Most politicians are not educated in economics.
  • | 26 Jul 2016, 01:10 PM Agree 0
    these idiots who have posted obviously know little of whats happening in the real estate market, how Chinese buyers come in and purchase massive amounts of properties and then leave them empty for a year and then sell them at inflated prices. There are tons of real estate companies now operating in Vancouver who's sole purpose is to but properties for Chinese who never step foot on our land. they then work the market and force it to keep going up, its a big monopoly game for the Chinese.
    how about you stfu till you know what is happening.
  • judy | 26 Jul 2016, 04:55 PM Agree 0
    You know the last time I checked Canadian Legal Tender was coloured and it should not be worth more or less based on the colour of the hands that spend it or where it was earned! Discrimination is alive and well in our BC parliament buildings!!!!
    Shame on Christy Clark, I am ashamed to say I voted for her and her party in the last few elections.
  • Jon | 27 Jul 2016, 10:38 AM Agree 0
    If Trump wins the election, it could be called the American head tax!
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