Real Estate Professional forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Industry self-interest clouding discourse around B.C. tax - analysis

Notify me of new replies via email
Ephraim Vecina | 02 Sep 2016, 08:15 AM Agree 0
Warnings about the “death of real estate” in B.C. are ridiculous, says an observer
  • Lex | 02 Sep 2016, 02:56 PM Agree 0
    What people don't realize is that foreign buyer that are buying for investment are buying the big luxury homes that are in the millions how does that drive the prices up for your everyday starter home buyer?
    The other so-called foreign buyers are international students that have a job here that have finished university and want to stay in Canada and contribute to the skilled workforce applied for PR that wants to buy a home to get a head start being also classified as foreign buyers raising housing prices. Most industry members can agree since May of 2016 before this 15% tax we are already seeing less multiple offers. The market seems to be declining already. I am talking about the lower and average priced homes, not the ones that are selling for Millions. I have lots of local buyers all Canadians that are no longer buying right now because media is saying price drop and correction of 10-20% the market only cooled now because people are waiting once they realize that the supply remained the same and there is way more demand it will take off again.
  • peter b. realtor | 02 Sep 2016, 07:11 PM Agree 0
    What a mixed bag of nonsense. This "tax" did nothing to cool the market. The market is cooling due to over-valuation. This was expected. The 15% tax has hurt many would-be buyers that are being unfairly punished and what rubbish it is to claim that all agents are making "eye popping commissions". Any wold-be buyer intending to purchase a live-in home now has 15% less to spend on furnishings and services for their new home. Which stupid government official was too blind or self-serving to see this (self-serving as they did not want to look as if they were failing to recognize the issue of foreign (living outside of Canada, not foreign person living and working in Canada)? All of them.
    No doubt they will take credit for "taking effective steps to make the housing market more accessible to average buyers...
  • Incroyable | 02 Sep 2016, 10:08 PM Agree 0
    It's amazing to see just how much foreign buyers were affecting the market.
  • | 03 Sep 2016, 01:47 PM Agree 0
    The 15% tax has frustrated many contracts (which is illegal! ie- the first buyer in a chain of 4 is a forien buyer who chooses to forfit his deposit and walk away from the deal because of the 15% tax. Each of the following firm deals collapse because the front deal collapsed. The result is local buyer/sellers/voters end up losing their deposits and face being sued for nonperformance. All because the government didn't protect those they are suppose to serve, by honouring firm contracts that were in place by Aug 2. As simple step that was passed over in the rush to make a big play and grab more money before this government kicks off their run in the next election ( may 2017) are we going to get sucked in again?
  • | 06 Sep 2016, 02:33 AM Agree 0
    The BC Government should have imposed the Foreign Tax sooner than later. The foreign buyers were responsible for the unprecedented home price hikes in the Metro Vancouver. The foreign buyer tax of 15% has definitely cooled the red hot real estate market. But now the BC Government needs to stop collecting the Property Transfer Tax on each subsequent sale of homes. It should be collected only once upon initial purchase like GST. This will help every home buyer in the province of BC.
Post a reply