Vancouverites will be the victim under the new New Foreign Home Buyers Tax
Vancouverites will be the victim under the new New Foreign Home Buyers Tax
B.C real estate isn't short of colorful news so far this year. From shadow flipping, realtors misconduct, end to real estate self-regulation, vacancy tax to our newest most controversial New Foreign Home Buyers Tax all in the last couple of months. Well...we can tell all these measures were being implemented recently because of our upcoming election year. Government is often short term thinking especially when it comes to election time. Adding extra tax on 5% to 10% foreign buyers is an act trying to please the general public to get their votes next year. I don't think it really matters and in fact, I'm sure the rich foreign investors really don't care. It's just a costs of doing business. In my opinion, it is bad news to the local buyers. Why? It's pretty simple..when the foreign investor sells, I'm certain they expect the buyer to pay the price that would make up the extra cost they paid during their purchase unless the foreign Seller is willing to take a loss..So...who most likely is the buyers? 95% locals, or the other 5% foreign buyers? You guess....Ripple effects is what I see in the future...Our weak dollars is still 25%-30% off to the foreign buyers. This tax is NOT going to scare the foreign investor who has deep pocket. It in fact make our housing prices even more unaffordable. Another group of buyers who would be hurt by this tax is the foreign employees. They don't necessary have deep pocket. This tax would give them extra burden should they wish to buy unless their company would somehow come up with a housing allowance or some housing package to help them off set this 15% in order to retain the talent in our province. It will not affect the housing price, maybe it would adjust a bit for now but not for long.. Based on the statistic in the last 30 years, the next peak will surpass the last peak. So, in the mean time, check out real estate in cities like Victoria, Whistler, Abbotsford, Chilliwack, etc. I'm sure they welcome this tax...It is time for them to shine!
