How it’s done elsewhere: Taiwan’s RE speculation tax
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 post was submitted by Mansur al-Hallaj.
Click here to view all comments chronologically
April 19th, 2011 at 2:01 am
@patriotz:
"That’s not an argument in favour of borrowing money to buy a house regardless of price any more than it’s an argument in favour of borrowing money to buy Star Wars collectibles."
Strawman, I never claimed that.
April 18th, 2011 at 7:25 pm
@McLovin:
What's really hilarious is that everything he says about Arizona, etc. goes more than double for Kelowna because Kelowna is more than twice as expensive.
And he thinks his audience can't figure this out.
Hey Einstein, that goes for any property, anywhere. It got sold to you because nobody else wanted to pay more. Duh.
April 18th, 2011 at 3:07 pm
150 properties for sale in Gibson ?!?!?!?!?!
April 18th, 2011 at 2:59 pm
@Troll:
You ask:
"Then what’s the purpose of this blog and obsessing over every mortgage rule change and daily list vs. sold stats? [if bears aren't trying to time the market?]"
Simple. It's something to do while we watch the most insane and far reaching example of the Emperor's New Clothes that I hope ever to see in my lifetime. It's a fun game. Will this do it? Will this one? It's like watching slapstick, the hapless comic always backing obliviously towards the cliff behind him.
I personally think this is the kind of thing that makes history, sets gears in motion, that changes things. I have even less idea of how the ripples keep spreading (ie: via a downgrade of American credit) than when things will end in our pretty resort town, but oh my god, it's INTERESTING how it's working.
I find it amusing, on one level, that we can be so proud and sure of ourselves – a pretty but economically empty tourist town. We are to New York like Paris Hilton is to Meryl Streep – we're might good looking but we're vacuous. But I also feel sad, because there's been a social cost to the city, and because I know a lot of people who are living a rough, house poor "lifestyle", because they believed it was the only responsible way to invest – convinced by banks, media, brokers, Tsur, etc.
That part pisses me off, and it makes any goddamn contrarian discussion – especially any group that brings the numbers and is there to answer questions – an important resource.
April 18th, 2011 at 2:32 pm
@lol cats:
Don't be so nasty man,they have the right of masturbation after 10 yrs plus of frustration and defeat. However, you bears have to pay your rent on time,no excuse.
April 18th, 2011 at 2:29 pm
Taiwan is a low-wage province of China,so there ain't much support of RE there but here is different because Van RE is hard solid as dimond.Chinese money will keep flowing in Van re market for this century.
April 18th, 2011 at 2:05 pm
@aragonzo:
Maybe Dave should work harder on the development then.
Right now Dave is working hard on his keyboard only.
April 18th, 2011 at 12:44 pm
they're falling!!! highest inventory ever… this bubble is so ripe to burst. lets hold hands and sing kumbaya from the rooftops! all the meat beating bourgeoisie will finally pay. muah ha ha ha
April 18th, 2011 at 12:12 pm
Dave will treat us to his view of monetary policy, interest rates and Sara Palin after this episode.
Jesse please don't engage him it's getting tiriing.
April 18th, 2011 at 12:09 pm
Well folks, as of today there are no more HELOC's in Canada… Unless the bank wants to take all the risk of course – YA RIGHT!
That means no more borrowing against your home for trucks, jet skis, vacations and the big one – investment properties.
When you think about it, this might just be the biggest rule change so far. There will probably be no drastic changes in the numbers overnight, but this rule will have an effect on our economy and the RE market going forward.
April 18th, 2011 at 11:57 am
Vancouver East & West*
New Listings – 104
Back On Market Listings – 2
Price Changes -39
Sold Listings -56
Vancouver All Areas*
New Listings – 306
Back On Market Listings – 9
Price Changes – 159
Sold Listings – 151
*Attached & Detached – Date: 04/18/2011 Time:18:40 Pacific YatterMatters.com: Courtesy REBGV. Data believed to be accurate but is not guaranteed.
April 18th, 2011 at 11:43 am
Now that the 21 year old has been sent home lets get back to business.
I was sent this from a friend in Ktown. Does this local Realtard have some serious US buyer envy? I guess all his clients are buying down there:
Chapman has over 40 years of real estate expertise with 15 years in the Kelowna Real Estate market. Premier Canadian Properties at| #102 – 1180 Sunset Drive, Kelowna has this advice for those locals who are looking at owning vacation property in the south.
Four things to consider before you buy in the USA:
Don't buy thinking you can flip the property for a profit. When you buy a foreclosure you are the highest bidder. That means no one else thought it was worth what you just paid.
If you buy U.S real estate, buy only what you will personally use. If you will spend several months every year at your place in Phoenix, Florida, Nevada or California, then fine. It works for you.
Don't buy a second property as an investment because it will take years and years to realize a gain. The banks only have about 1/3 of their foreclosed homes on the market right now. If they tried to sell them all now, they would further depress the already depressed market. The banks have a "shadow inventory" said to be 2 to 3 times larger than the present number of foreclosures for sale. It will take years to clear this oversupply.
Plan to keep your U.S. property for at least 10 years and be sure you can get enough personal use to make it worthwhile. Then if you can sell it for a profit "good on you."
Hilarious! Interesting how he can accurately predict what the US will do but if you asked him what Kelowna would do in 2008 I'm sure he didn't say drop 25%.
His jealously is seething. I love his last line "good on you".
What a douche bag.
April 18th, 2011 at 11:40 am
@Drachen:#72
I can't say for sure but I suspect Dave is a property developer. He never said he was a realtor but mentioned he had interests in real estate. He is doing exactly what you expect a developer to do:
1) decrease costs, hence his oratories on the evils of taxation.
2) ensure a market exists for his product which explains his cheerleading on increasing prices.
He's right when he says that development costs get passed to the user. Typically, a project sums up the development costs (including licencing and permits) and compares that to the projected market price. If there is not enough of a buffer between the two, the project does not get built. What Dave is sweating about is the fact that there is significant lag between project conception and completion. A fall in price greater than the profit margin makes the project a money loser. That cost is borne by the developer, aka Dave. I'd be doing the same as Dave (trying to drum up the market) if I had skin in the game in a market on the edge of collapse. So, try not to pick on him. He's obviously under a lot of stress.
April 18th, 2011 at 11:40 am
@brainsail: 2.2% appears below average for the state. Interest is tax deductible in Canada for investors too. There is a claim that high real estate and developer taxes are bad for RE prices. Texas takes a big cut of its revenue from real estate related taxes especially in areas comparable to Vancouver, yet its economy is doing relatively well without the curse of high RE prices. That along with mortgage restrictions are major differences between TX and BC. I see no reason why specifically lowering developer taxes will cause prices to fall.
April 18th, 2011 at 11:33 am
Romeo Jordan – Please grow up child. I know you are mad because you paid $250K for a Bachelor Pad but don't take it out on me. I guess your job as an brokers assistant didn't really work out and now you are being foreclosed on. I'm sorry for you but there jobs other than the finance. If you really study hard maybe you could be a Realtor's assistant.
Good Luck RJ! I'm really rooting for you!
April 18th, 2011 at 11:30 am
McLoser:
You will see, with your own fat eyeballs, that Vancouver house prices CAN and WILL fall BEFORE interest rates rise.
I am here to help you McLoser, not to taunt you.
Now go for that run, fatass!
April 18th, 2011 at 11:17 am
http://www.yattermatters.com/2011/04/only-the-sha…
McLoser:
Watch for sharply LOWER averages this month.
Remember – I told you so.
Because I love you.
Not!
xoxox
Romeo Jordan