Starting this June, property not lived in by the owner and sold within two years of purchase will be taxed 10-15%.
Real estate agents and the property sector have opposed the tax. They fear it could hurt sales. But surveys show most Taiwanese people favour the move.
[ Comment: 10-15% feels laughably low. Make it 30% here – and BC will be a livable place again. ]
Article in the BBC
This is gold:
http://www.moneymorning.com.au/20110418/why-there…
A pimp in Australia has written a rebuttal to a paper who reported on their housing bubble.
It is interesting because it is per verbatim what pimps like Bill Slut, Levy, Don Campbell, Muir, and some of the “bank-loan shark-economists are spewing here.
One of my favourites:
“Modern science is allowing us to live longer and foreigners will continue to migrate to this great country because of our employment opportunities, culture, vast open spaces, and general quality of life”
Don't these turds know Vancouver, oops I mean Kelowna is the best place on earth?
@patriotz: Never mind there are very few landlords: over 90% of Taiwan's population owns. Taiwan has huge income stratification; with inflation high it was only a matter of time before the government had to do "something".
I don't think Canada's in as bad a spot yet. Any similar changes will have to be at the local/provincial level.
The level of speculation is actually quite low in Vancouver. The data shows that only about 3-5% of sales volume are people buying and selling within a short period of time (1 year).
In any case, we need to stop thinking that taxation can solve all our societal problems. The problem is that we have too many taxes. The more we tax real estate, the more we pump prices higher. If you truly care about having affordable housing, then tell city hall to drop the high levels of development taxes. Tell the Province to drop the Property Transfer Tax. Tell the Province to get rid of the upper limit for the HST exemption on new purchases.
@Dave:
The level of speculation is actually quite low in Vancouver. The data shows that only about 3-5% of sales volume are people buying and selling within a short period of time (1 year).
That's not what speculation means. Speculation means that buyers intend to make a profit on capital gains rather than on rental income.
Everyone buying in Vancouver is a speculator.
@Dave:
The more we tax real estate, the more we pump prices higher.
Which US state has the highest RE tax rates? Hints: it's been the fastest growing one for decades, and its name starts with "T".
@patriotz:
Not again… sigh… The term speculation in real estate is quite specific and well known across the industry. When I use this term, it's obvious I am using it within that context. You may choose to stick with the standard economic definition and that's fine, but it isn't using the same language that the real estate industry uses. To somehow think that you have disproven a point of mine by using a non-standard definition of a word is quite strange. Even more so that I was I specific in my definition and context. Only an accountant could be so pedantic.
"Scored a 66 on my real estate license exam because I answered "location, location."" – Tim Siedell on twitter
@patriotz:
You think Texas has higher taxes than we do?
You ever been to Texas? You can build in all four directions quite easily. If you think Richmond is flat, square and boring, you should drive around Houston. Imagine 20 Richmonds lumped together and you have Houston Texas.
The fact remains that higher real estate taxes flow into higher real estate prices. Want lower prices? Then encourage more supply. Want more supply? Make it cheaper to bring product to market. Get that product onto the market more quickly.
@Dave,
Isn't there a requirement to own the property in a given tax year before it qualifies for primary residence tax exemption? As this is a substantial benefit for holding more than a year, what is the data for two years?
@Dave:
You think Texas has higher taxes than we do?
The property tax rates are massively higher. A $250K house in Dallas or Houston pays as much property tax as a $1mil house in Vancouver. Maybe more. But it's a nicer house. 🙂
Anyone willing to do a bit of thinking (which seems to exclude you) can see that higher property tax rates push prices lower, not higher.
@aragonzo:
It's not much of a tax benefit. It's 5% of assessed property value with a minimum of something like $570. I think you get the deduction right away.
@patriotz:
Sigh… big difference between property taxes and property development taxes, the same way that there is a difference between buying a car and paying for gas.
@Dave: "The fact remains that higher real estate taxes flow into higher real estate prices. "
Saying it more still doesn't make it true. As mentioned, Texas has higher property and development taxes than BC, limitations on mortgage lending, no real estate bubble, and the fastest growing economy in the US. "Everyone" wants to live there and they have data to prove it.
@jesse:
I call BS. Let's see those development cost charges for comparable developments. Bring it.
@patriotz: RE: Taiwan Tax
The tax should increase the rental stock. It's a crackdown on speculater buying and selling within two years. This kind of speculation usually means the unit sits vacant so that it can still be considered 'new'. Under the new rule, people buying an investment property will likely be doing so with the purpose of renting it out. This should increase the rental stock, and also push the price/rent ratio toward norms.
Dave is in despair, almost no traffic on his blog.
Poor pathetic lonely low life, living a lie, pretending with his keyboard again.
@Dave:
It’s not much of a tax benefit. It’s 5% of assessed property value with a minimum of something like $570. I think you get the deduction right away.
What are you talking about?
@Dave:
Sigh… big difference between property taxes and property development taxes,
Of course…you brought up the development tax issue. Nice bait and switch.
Read post 4 dummy.
Clearly something that you know very little about. A person like you should support high taxes. It's the only hope you have.
@Dave: OK Big Boy let's "bring it". I am only allowed one link per post so let's start simple, with property taxes:
What is the property tax rate in Houston TX?
TX has some of the highest property taxes in the nation, especially in and around the major cities. It's not at all unusual for rates to skirt upwards of 5% of the Fair Market Value of the home every year.
The ball's in your court, Dave. Forehand or backhand?
@jesse: You're using *facts* in a discussion with Dave? Homey don't play dat game.
@Dave:
Read post 4 dummy.
No need to resort to name calling…asshole.
I asked what you were talking about. There are a number of tax issues with respect to a primary residence designation. Take another stab at it. ASSHOLE!!!
@Dave: You don't know me, asshole. I don't need taxes to support me…trust me!!!!
You're the one that likes to confuse the issues that are being discussed. In the article, development taxes were not the issue. Go cry on some other developer's shoulder. Stick to the discussion at hand.