Friday Free-for-all! October 19th, 2018

It’s the end of another work week and that means it’s time for another Friday Free-for-all!

This is our regular end of the week open topic discussion thread for the weekend.

So what are you seeing out there? Post your news links, thoughts and anecdotes in the comments below and have a fantastic weekend!

BC Tables Speculation Tax on Vacant Second Homes

Will a new tax on vacant homes help solve the affordability crisis?

The speculation tax will apply to those who own multiple properties in Metro Vancouver, the Capital Regional District (excluding the Gulf Islands and the Strait of Juan de Fuca), Kelowna, West Kelowna, Nanaimo-Lantzville, Abbotsford, Chilliwack and Mission.

The tax will apply at a reduced rate in 2018, based on property owned as of Dec. 31. It expands in 2019 to 0.5 per cent of assessed value for B.C. residents, one per cent for Canadians from outside B.C., and two per cent for non-Canadians.

Owners are exempt if they rent their properties for at least six months a year. And there is also a tax credit for B.C. residents with second homes valued under $400,000.

James pointed to exemptions she said will make the tax fair, including for people facing medical emergencies, people who have to relocate suddenly for a job, seniors who enter care homes, people undergoing a separation, and those with disabilities.

“If people choose to leave their homes vacant where the housing crisis is the deepest, we are asking them to pay their fair share. All that revenue will be returned to British Columbians in the form of affordable housing,” said James.

Read the full article here.

Friday free-for-all! October 12th 2018

It’s the end of another week and that means it’s time for another open topic thread. Friday free-for-all time!

Here are a few recent links to kick off the chat:

outgoing mayor blames house prices on “influx of global capital”

quantative tightening

5 year rates rise

old Vancouver

So what are you seeing out there? Post your news links, thoughts and anecdotes in the comments below and have an excellent weekend!

Home sales continue to slide

Home sales in BC continue their decline.

“Sales fell 33.2 per cent compared to the same month a year ago, and the average residential price of $685,749 was down 1.1 per cent from September of 2017.”

“Association chief economist Cameron Muir says, “The impact on affordability and purchasing power caused by the mortgage stress test and moderately higher interest rates are negating the effect of the extraordinarily strong performance of B.C.’s economy over the last five years.”

Read the full article here.