Oh look, free money! Should we leave it on the table?

November 11, 2015 admin

Should property taxes be higher for non-primary residences?

“The dark houses in West Vancouver are so prevalent on some streets that Mayor Michael Smith worries about how his community is functioning.
He would like to see a heavy tax on houses that are used as investments or secondary residences, just like the $20,000 a year he pays in taxes for his vacation house in Kauai, Hawaii.
“As a society, we need to decide whether homes are for people and families or whether they’re investments,” Mr. Smith said. “If it’s not your principal residence, you should pay more in tax. The best way to stop this is to make it punitive.”
In Coquitlam, residents are also noticing dark condos in the new high-rises around the city centre. But Mayor Richard Stewart said it is not seen as such a bad thing.
“We raise taxes to pay for city services and, if someone is paying taxes but not consuming services, most people don’t have a problem with that,” he said.

Is it good enough to collect a standard property tax from some one who doesn’t live in a community or should politicians jump to take extra money from people who can’t vote them out?

Read the full article here.

69 Comments

newest

oldest most voted

Inline Feedbacks

View all comments

www.merilocal.com

6 years ago

I delight in, cause I found exactly what I was having a look for.
You have ended my four day lengthy hunt! God
Bless you man. Have a great day. Bye

Bubjo

6 years ago

More anecdotes from Burnaby. Went to an open house, you could all but hear the rats in the walls. Mildew everywhere. Packed wall to wall with foreigners with thick accents. Asking price 1.4 mil, went for 1.6. A few desolate locals walking around with their inspectors trying to find something to smile about. Detached has really hit the stratosphere.

jaymo

6 years ago

I haven’t been here in what feels like 5 years. I’m actually surprised that people still post here, especially Patriotz. It is different this time: The free flow of Chinese money, facilitated by lax taxation laws, lawyers and banks, has changed the playing field forever. Vancouver has become a place to park cash, both ill-gotten and legitimate, and there is nothing to be done about it. Move on. I have, and there is life outside of Vancouver, and the weather is often much better.

realist

6 years ago

@ 60 David “Here’s the fault in the mayor’s thinking: citizens are more than a source of tax revenue.”

Praiseworthy, but unfortunately our municipal pols and civil servants largely see us citizens as targets to be shaken down, just as surely as does any criminal gang member, the principal difference being that the cities have the law on their side!

When it comes to CoV Mayor Gregor R, his view of certain of his own constituents, Vancouver’s citizens and taxpayers, as “effing ____” and “hacks” is on the record to be enjoyed by all of us who contribute unwillingly to his salary and expenses.

Here is video of Vancouver West End citizens making presentations, to which Gregor responds apparently very reasonably, after which he unleashes his potty mouth:

https://www.youtube.com/watch?v=0IDcmUQa0WM

Friday Free-for-all!

6 years ago

[…] –Tools to cope with overheated market –Property tax proposal –Fed to raise rates in December? –Craigslist Math –Empty houses consume services –CMHC ‘walking tightrope’ – […]

Bull! Bull! Bull!

6 years ago

FRENCH POLICE REPORT SHOOTOUT AND EXPLOSION IN PARIS

http://hosted.ap.org/dynamic/stories/E/EU_FRANCE_PARIS_SHOOTINGS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2015-11-13-16-16-27

Bull! Bull! Bull!

6 years ago

oil going to new lows and the canadian dollar with it.

vancouver real estate is about to get even cheaper for HAM.

and remember all those people who said the downturn in the dollar would cause HAM to sell because “Chinese don’t like to loose money”? well, obviously they were wrong. just look at the stats.

southseacompany

6 years ago

“Bank of Canada looks to innovate as conventional monetary policy ‘stretched'”, Toronto Sun

http://www.torontosun.com/2015/11/13/bank-of-canada-looks-to-innovate-as-conventional-monetary-policy-stretched

“One important challenge that central banks now face, many of them, is that conventional monetary policy is stretched to its limits in many countries, where policy interest rates are at, or below, zero.”

“The Bank of Canada, (Carolyn Wilkins, the central bank’s second-in-command) added, has already begun taking a closer look at innovative monetary-policy tools that have been used by central bankers around the world, including asset-purchase programs, or quantitative easing, and negative nominal interest rates.”

space889

6 years ago

@Yunak – So you are blasting Victor Wong for calling anyone a xenophobe racist for blame Chinese for local housing RE.

In the meantime, you are also blasting anyone who disagree with your view on Chinese as member of 50 cents party & communist scum?

Hmmm….sounds like you two are just different sides of the coin.

david

6 years ago

Here’s the fault in the mayor’s thinking: citizens are more than a source of tax revenue.

They are the basic, component elements of a society, part of a more complex entity than simply a vacuum that collects funds through institutional coercion.

Bull! Bull! Bull!

6 years ago

Sweden checks trains for migrants in first border controls in 20 years

http://www.reuters.com/article/2015/11/12/us-europe-migrants-sweden-idUSKCN0T128720151112

patriotz

6 years ago

@57: “I’ll take the problems that come with an overly long and fastidious process of urban planning over one that can tear through the social fabric of my community.”

Stopping the demolition of existing properties may make the neighbourhood look better but it’s not going to do anything about empty houses or affordability issues. Take a look at London where there’s very little demolition. Instead the deep pockets leave the existing properties (with or without reno) empty.

To stop properties being left empty government has to impose a sufficient financial penalty, as we already know. And we already know that government won’t do this because they don’t want to take any action that may result in lower prices, and that’s because most voters don’t want lower prices.

elvince

6 years ago

@Bear Vancouverite: I understand their anger. The feeling of seeing the community you grew up in be torn down to build multi-condo units and/or ugly monster houses is as close as it gets to seeing your hometown be deserted and die for economical reasons (eg when an industry closes up shop and leaves). Seeing the place where you grew up and played with your friends in kindergarden, and hoped your own kids would play with their kindergarden friends in those streets too turn into a desolate wasteland is enough to infuriate anyone. And let’s be honest, this is what’s happening in Van West/East. The provinceo of BC and the CoV are definitely not proactive enough in keeping its historic buildings. I’m often laughing at what’s considered historic in Vancouver, since history on the east coast is almost 4X what is… Read more »

southseacompany

6 years ago

“CMHC is “walking a tight rope” on mortgage insurance: Author”, BNN video

http://www.bnn.ca/News/2015/11/12/CMHC-is-walking-a-tight-rope-on-mortgage-insurance-Author.aspx

“Hilliard MacBeth says the Canada Mortgage and Housing Corporation (CMHC) is becoming increasingly serious about sharing the risk of insuring mortgages, but the author and portfolio manager warns that asking lenders to put more skin in the game could be risky for Canada’s already vulnerable housing market.”

““Without that CMHC subsidy, the banks might find it impossible to offer the amount of financing and mortgages that they do now. That could really hurt the housing market,” said MacBeth.”

Bull! Bull! Bull!

6 years ago

>I strongly believe the ONLY methods the government will use to address affordability are increased density through more condos and townhomes.

tear down a million dollar house build 4 condos. sell each condo for $850,000. no yard, cramped space, $600/month maintenance fees. lol. u ppl are so fucked.

Bear Vancouverite

6 years ago

@elvince #18. Excellent post. Thank you for sharing. I think everyone here likes the idea of property taxes with a rebate on income, but as some other contributors have noted, the government has no incentive and no intention of taking any actions that will lower housing prices. I strongly believe the ONLY methods the government will use to address affordability are increased density through more condos and townhomes. Hence the teardown of homes is inline with their longterm affordability vision. I know for a fact that many current owners feel this way, and their votes will go towards supporting that belief. For that reason I wonder at the purpose or utility of all the angst and anger from the likes of vangrl, BPOM, etc. I’m frustrated too, but I’m not going to waste my time pining away at something. Those… Read more »

Bear Vancouverite

6 years ago

@crikey

“If you actually *READ* the comment I was responding to, you’ll see I was showing how that commenter was being disingenuous about the math regarding HIS chosen figure of 50%. I suggest you read at least the post I was replying to before trying to making a point.”

I did read your post and space’s. Space has a habit of hyperbole, but the message in his post was that even a 50% drop doesn’t bring prices within reach of the average family, he supported this with a ridiculous number like $1.5-3M. You chose to attack his numbers but you fail to address his point: a 50% crash will not make homes affordable.

crikey

6 years ago

@#7 bear vacouverite “are you telling me that after holding out and paying rent for almost a decade they can look forward to paying MORE then what they refused to pay 9 years ago? ” I have never predicted a 50% decline. Nobody knows how far down (or when) the decline will go. If you actually *READ* the comment I was responding to, you’ll see I was showing how that commenter was being disingenuous about the math regarding HIS chosen figure of 50%. I suggest you read at least the post I was replying to before trying to making a point. “That basically means anyone having bought in 2008-2010 made the right call, and anyone buying from 2002-2008” No! Anybody that bought in 1983 made the right, and everyone else are losers! Right? …No! What about young families just NOW entering… Read more »

Dyugle

6 years ago

Empty houses do use services. They increase commute lengths for the people who live here. This creates a greater need for better transit, better roads and better bridges. These are not cheap and income taxes, and sales taxes pay for them. Commercial taxes are down in the city as empty houses mean less commercial activity in an area. Policing empty houses is also expensive as empty houses become targets for criminal activity. Services like water and sewers are actually running so far below capacity that additional flushing is required due to material buildup and stale water. The idea that these empty apartments do not consume services is laughable!

outbid

6 years ago

Oh so I’m told the seller agent was also buyers agent…double commish and screw over the buyer. ..shady agent’s out there beware

rent info

6 years ago

Shut it. ..do you have any rentals?

Shut It Down Already

6 years ago

Rent Info, I didn’t say it was a good investment – but as a place to live you could do worse. The obvious risk is rising rates, however. Many seem certain that the first increase will be before the end of the year, and after that they’ll pick up the pace. But they were also certain of that a year ago. Nobody has a crystal ball.