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Foreign buyer tax amended

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Real Estate Professional | 30 Jan 2017, 10:27 AM Agree 0
British Columbia's premier has announced her government is amending its tax on foreigners buying property in Metro Vancouver
  • | 30 Jan 2017, 10:44 AM Agree 0
    I think Trump will take B.C. First, then Quebec? Isn't Alberta already a State?
  • Scott 416 | 30 Jan 2017, 10:56 AM Agree 0
    If there were 2,000 foreign transactions but 10,000 transactions went away, there are a lot of BC natives pulling out too. (Plus it's comparing 7 weeks with a month, which is a bit wonky.)
  • L Holdway | 30 Jan 2017, 12:33 PM Agree 0
    That's a small start on what amounts to a Head Tax The percentage was overkill, a bludgeon & a cash grab Admit the mistake and immediately lower the percentage and rebate the difference to those that paid it

    Rescom Real Estate
  • Shawn Laghai | 30 Jan 2017, 12:37 PM Agree 0
    I don’t know who these people are that make these rules without thinking.

    Below is me previous comment when they intrude this tax.

    This issue is much worse than just the empty homes and is not only in Vancouver, as an example Toronto also has this problem.
    Taxing them will not help because the investors will register one of their family or friends address in that property to show that is occupied.
    The government has to find out, who are the investors (owner)? Are they really Canadian who made the money in Canada or overseas and did they pay their taxes? Or these investors are from other countries, that they are hiding their illegal assets in Canadian properties, sometimes under their relatives and friends name, which brings some other tax issues like foreign investor’s income tax as well as capital gain tax. Since them buying under someone else's name which are Canadian resident they avoid paying proper income Tax.
    I am in Toronto Ontario. Hear and perhaps in other major cities, high percentage of buyers are foreigner especially Chinese.
    When the salesperson has an offer for his/her client and facing multiple offer with 20 others competing offers, which most of them are foreigner especially Chinese and will pay 25% to 40% over asking price, cash. We wonder when and how they made this money.
    This will bring another problem and a question for the rest of us which as soon as the new property tax will be set, CAN THE REST OF US (real Canadian residents) AFFORDED? And also our own young generation cannot afford buying their home. As it is happening with new Mortgage rules and again after making this rule the government is trying to cover their mistake and trying to help the first time buyers.
    I think one solution is that.
    1- As soon as someone buy a property with 20% or more cash down payment (especially, Any offer without financing clause), the salesperson and the lawyer both, independently reported it to Revenue Canada. (This should be part of FINTRAC). Which the Revenue Canada can investigate to know if the tax has been paid or even is it clean money (Properly and legally made)? Or who is the real owner?
    2- As soon as the closing and the change of ownership happen, the local property tax starts with the new paid price. This way will be fair for the Buyer, Government (property tax department) and the rest of Canadian property owners, and also will be safer for the Buyers and Lenders.
    3- For all other property owners, the yearly property tax to be increased with the yearly inflation rate, which is announced by the government of Canada. For the new property owners, yearly property tax to be increased from the time they bought and the price they paid. Or the Yearly Tax Increase starts from this year onward for exiting owners at the rate of national inflation rate which is announced by the Government of Canada until the owner ship changes.

    I am in favor of foreign investor as long as they pay their taxes and not hiding it under false owner’s name. We as Canadian worked hard and paid our taxes to have a good, safe and affordable country. We have to keep it the same way for our children. We should not allow foreigners to come and abuse it and not pay their share.
    Shawn Laghai
    Real Estate salesperson
  • B.A. De Angelis | 30 Jan 2017, 12:55 PM Agree 0
    In my experience lately, Toronto's real estate market, with already large price increases, went crazy with buying after the Vancouver tax was implemented, and after Donald Trump's election. It's continuing to be a foreign buyers' feeding frenzy! The Ontario Premier and Toronto mayor may want to consider a similar type of foreign investor tax on Toronto real estate, such as the amended version in Vancouver.
  • | 30 Jan 2017, 01:11 PM Agree 0
    You do know that for the last 15 years there is a fintrac form that must be filled out for any cash transaction over $10,000 right?
    Our office does NOT take cash, certified cheque or bank draft only. Great policy! Let banks and lawyers deal with that fintrac.
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