B.C. Budget aims to fix real estate woes

There’s a new budget in BC and it includes some changes aimed at the real estate market.

For the first time the government has decided to start collecting data on foreign buyers and are offering a break on property transfer taxes for new construction under $750k.

The changes will see buyers save up to $13,000 from B.C.’s property transfer tax if they purchase a newly built home, condo or townhouse valued under $750,000, as long as they are Canadian residents who live in the home for at least a year. The tax break starts today.

It’s designed to boost the supply of new home construction and give people a helping hand to enter the market, said Finance Minister Mike de Jong. But it won’t cool the market enough for those who say they can’t afford to live in the Lower Mainland.

“If by cool you mean actually reduce the value of people’s major asset, their home, clearly we were not interested in taking that step,” said de Jong.

The tax break will be offset by a one-per-cent increase to the property transfer tax, to three per cent, on luxury homes that sell for more than $2 million.

Critics say the budget amounts to half-measures from a government that’s stuck between not wanting to intervene directly in the housing market and needing to look responsive to public frustration.

Read the full article over at the Vancouver Sun.

Sort by:   newest | oldest | most voted
patriotz
Member

BC Budget Aims to Fix RE Prices at Current Record High Levels

There, fixed the thread title for you. That’s not a conclusion from me of course, it’s what the Finance Minister said himself.

Best place on meth
Member
Best place on meth

I’m not sure about that, I think the LIbs want prices to go even higher.

They’re personally making out like bandits.

space889
Member
space889

They could have took a little bit extra $$ by boost the property transfer tax by 1% per million dollar threshold up to say like max 5% for amounts over $5M. And use that extra $$$ to maybe offset some of the MSP premiums which everyone seems to be criticizing.

space889
Member
space889

@VanCity Guy – Really??! You don’t say??! So where the heck is you when team BPOM, Yunak & company are doing it en-mass on this blog??

VanCity Guy
Guest
VanCity Guy

I ignore their shit, and I suggest you do the same. Like I said, you do have useful thoughts to contribute to the conversation, your previous post being a perfect example of this. But when you try to turn the conversation to race, as I have seen you do many times, it only encourages them. It’s not helping improve the discourse on this blog.

Thanks for admitting to race baiting though. Hopefully the others will realize this and no longer take the bait.

space889
Member
space889

Ah…I see…oh you are basically saying tolerate and turn the other cheek?!

It’s not acceptable for me to do the exact type of race baiting, as done by BPOM, Yunak, etc to loud cheers of a good majority of this blog’s readers, in a sarcastic manner or pointing out the hypocrisy of people on this blog?

But if BPOM, Yunak, & co does it, it’s ok, right, or ignore it? Silence is also a form of acceptances. I mean do you tell bully victims to just ignoring the bullying?

VanCity Guy
Guest
VanCity Guy

You’re right, an eye for an eye is a much better approach.
Cheers.

Best place on meth
Member
Best place on meth

Still waiting for someone to explain how a supposed budget surplus results in a rise in overall debt.

They didn’t teach me any of this accounting trickery in math class.

patriotz
Member

Off budget spending. That is, the government borrows money to do something and records it as an investment rather than an operating expense.

This has gone on for a long time with Crown Corporations (since WAC Bennett days) but when BC Hydro borrowed money to build a dam there was the certainty of selling the electricity to pay the debt back. However the government now does this for non-revenue generating undertakings such as roads and schools.

space889
Member
space889

Strictly speaking, for capital investments, corporations are also required to record deprecation as an expense against their revenues. So for gov’t equivalent, if they don’t expense / include the whole amount in the current year budget then they should at least include the deprecation. But since depreciation is not exactly cash going out the door, I have a feeling it get conveniently left out of the budget and our now 4th consecutive budget!!!

Too bad most people can’t see through this type of trickery and actually believe BC Lib to be good economic stewards, even as we carry more and more debt, and systems cracking under pressure.

Loon
Guest
Loon

RE is smoking hot in West Van, there was a house on my block that just sold for $1.5mil it was on the market for less than 2 weeks. The crazy thing is it sold in 2013 for 900K !

I talked to a realtor friend about it and he said, “1.5mil that is cheap for West Van!”.
Sure enough, there are almost no SFH on mls for under 1.5-2mil in WV.

What the hell are people buying nowadays ?
This has got to be the top, right ?

space889
Member
space889
Apparently you should be buying newly constructed condos and TH under $750K as per BC Lib. How many years have we been saying this is the top? Condos were starting to get a semblance of a top and maybe even having a supply glut and maybe, just maybe, going down. And then I don’t know what, but something just snapped. The primal animal spirit within the local young moist #IDontHaveAMillion was unleashed and condo went up a freaking 19% last year!!! 19%!! This is probably even better than the hot pre-2008 lined up for 3 nights, I buy 3, my husband buy 3 condo market!! $700/sq ft for a box in the sky and no sign of slowing down, and rents are going up as well. Is this a top? I don’t know anymore, and frankly I’m not willing to… Read more »
space889
Member
space889

Oh NOOOOOO!!!! The Chinese are coming, The CHINESE ARE COMMING!!! And they are taking over the heart of Vancouver!!! Stop communist locust $$ now!

Bentall Towers I – IV majority stake sold to a Chinese company.

http://www.vancouversun.com/business/commercial-real-estate/chinese+investors+snag+vancouver+biggest/11726003/story.html?__lsa=f435-9594

patriotz
Member

Good. When a foreign country overpays for a local investment, it makes us richer and them poorer. Following in the steps of the Japanese circa 1990.

Of course this only works if the locals don’t try to keep up. But the Canadian commercial RE business is smart enough for that.

fosolo1
Member
fosolo1

And let’s not forget China Investment Corp’s ( sovereign wealth fund ) disastrous foray into the Alberta oil sands which turned into a loss of mega millions $$$$ .
Buy high , sell low … check

bullwhip29
Guest
bullwhip29

This is Japan all over again., no question about it. I remember the days when Japanese we swarming all over Vanc golf courses dressed to the nines and Whistler village decked out in the latest Descente gear and so forth. Little did we know back then that their issues would continue to plague them for decades (and counting).

space889
Member
space889

But are they selling though? So far looks like no. The oil sands investments might be a strategic asset acquisition where the main purpose is not necessarily money.

bullwhip29
Guest
bullwhip29

It’s always about money and power. These are all trophy purchases by a govt flexing it’s muscles. The Japanese did the same thing until it was time for the forced liquidation sale (which is never done at the top). IMHO the Chinese (esp new money) are even more in your face and brazen about it. The current path they are on is not sustainable.

ostritch
Member
ostritch

That’s what space is saying. It’s about power, not money. Long time horizon.

southseacompany
Member
southseacompany

Canadian shopping centre giant Ivanhoe Cambridge sells its share of Bentall, but on the other hand it bought a big chunk of Honk Kong based Chongbang Group, building shopping centres in China. Like trading Monopoly pieces.

“Ivanhoé’s big bet on China’s middle class”
http://www.theglobeandmail.com/report-on-business/international-business/asian-pacific-business/how-an-emerging-middle-class-is-reshaping-chinas-landscape/article27412871/

paulb
Member

2 days! Internet was down at my place last night.

New
585
Sold
328

TI:8204

http://www.paulboenisch.com

joe
Guest
joe

Premier issues another warning against shadow flipping

http://www.newstalk770.com/syn/112/151341/premier-issues-another-warning-against-shadow-flipping

Christy, am I allowed to ask HOW LONG THIS WOULD HAVE GONE ON if it had not come out in the press?

patriotz
Member

Or she’ll… she’ll… well she certainly won’t do anything that might lead to prices going down.

But shadow flipping is a convenient bogeyman that she can rail against.

bullwhip29
Guest
bullwhip29

On the taxation issues, she’ll obviously be passing the buck.

ostritch
Member
ostritch

Tax avoidance is Federal. What exactly is she going to do about it here in BC? Nothing. And T2 has already made a commitment to doing nothing. And Rev Canada isn’t hiring any extra investigators to tackle this average-Joe underreporting income tax issue. Next!

patriotz
Member

One would think the provincial government might level PTT on each assignment of the sales contract and add that to the existing amount payable for the title transfer. But that would be assuming they thought it was actually worth doing something about, rather than just talking about.

bullwhip29
Guest
bullwhip29

There is more to this then just the tax avoidance issues. I have heard anecdotal evidence that some of these realtors are deliberately screwing their clients by keeping better offers tucked away in their backpockets which are later accommodated behind the scenes after the seller has unknowingly signed his/her life away. Imagine trying to buy/sell an illiquid stock to/from a “broker” without having the benefit of a real time quote. I have also heard stories about agents trading properties back and forth among themselves at higher and higher prices to effectively manipulate sales volume, price etc in certain neighborhoods.

Underground economy.
Guest
Underground economy.

All my buddies are mostly accepting cash payments only now. They are going off the grid. They say only the suckers would report all their revenue in this day and age.

BC = Be Corrupt.

Only way to get ahead. Or buy houses and become politicians. Then put policies in place to profit.

Whistler or bust?
Guest
Whistler or bust?
Shut It Down Already
Guest
Shut It Down Already

What were you saying about race-baiting and IP bans….. ?

Best place on meth
Member
Best place on meth

Oh look, as soon as you show up the votes go haywire.

I guess we found the real culprit, and what a shock it just happens to be the one person who wants to shut down the blog.

You’re the only one who deserves an IP ban, cheater.

Shut It Down Already
Guest
Shut It Down Already

We can add this to the growing list of things you don’t have the first clue about.

Best place on meth
Member
Best place on meth

No denial, just more cryptic bullshit from the cheater.

Shut It Down Already
Guest
Shut It Down Already

I’m not manipulating this site. I’m not a realtor. I’m not Chinese. Now fuck off.

Bestplace4nazis
Guest
Bestplace4nazis

Stop cheating on your boy friend BPOM

wwwww
Guest
wwwww
space889
Member
space889

Ah, the good old classic: Do as I say, not as I DO

space889
Member
space889

This data used to be collected but then BC Lib stopped, and collecting the data will more likely than not prove that foreign buyers while maybe a good percentage of buyers, but certainly not nearly as much as people think. Certainly not in the under $1M condo & TH market. Unless you count any foreign born Chinese Canadian citizens & PR as foreign too.

But then again, I doubt those inconvenient truth or facts will actually matter to people like you anyways.

Bestplace4nazis
Guest
Bestplace4nazis

Hey Whistler
Don’t forget to attending your bitter trailed trash meeting in surrey next week…

Whistler or bust?
Guest
Whistler or bust?

Spaceshit:
6 of the first 15 comments
Race Baiting
Vote Gaming
Useless nonsense adding clutter and turning people off this blog

Solution: IP BAN

Bestplace4nazis
Guest
Bestplace4nazis

Whistler Lube
Count how many down votes you have …wait inbred rednecks are bad at math…actually at everything !

dan
Guest
dan
…if by cool you mean actually reduce the value of peoples major asset,their home,clearly were not interested in taking that step,said de Jong……..spoken by the fucking prick that owns 8 properties in the lower mainland!No speculation here! How many other libs? Why the hell do you need that many homes if your not in the game??? Dan
space889
Member
space889

So you are pissed at him for being at least successful enough to get enough mortgage for buy 8 properties?? Seriously?? And this is not simple jealousy or envy?

If you analysis the market wrong and/or didn’t have the willingness to take the risk to invest, how is it the fault of people who did and end up with multiple properties?

dan
Guest
dan

I own my (1) house outright…for most people thats enough! You’ve obviously haven’t
got a shred of a conscience for the average young person coming up and wanting to house their families.The only thing I’m pissed @ is that “a whole lotta crooks”,have let this thing get so far out of control,albeit (the government too!),that when it finally blows,we’re all going to pay for it for along time!All this offshore money is going too get “Japaned”,anyways,along with everyone else…some things never change!!!
Dan

Bestplace4nazis
Guest
Bestplace4nazis

Dan
Don’t forget to attend the bitter losa meeting next week
Owning a 1980 trailer does not count as a house…

No Money Down
Member
No Money Down

Where are the HAM?

Anecdotal, but three new-build McMansions in my Cambie neighbourhood for sale for a few months. No takers even with a gold-medallion, top 1%, celebrity realtor on the job. Listing just expired.

Just how hard is it to get money out of China?
http://tinyurl.com/hsw9uyx

bullwhip29
Guest
bullwhip29

It is still cheaper for them to buy some random fixer upper or slightly aged property that isn’t maxed out as far as sqft is concerned and re-build.

space889
Member
space889

When you got $5M+ budget, maybe you would prefer a customized solution? As opposed to a prebuild one which may not suite to your taste?

ostritch
Member
ostritch

Apparently money out of China is a bit tricky right now. Could continue. Could let up.

ostritch
Member
ostritch

Locals going on an insane, panic-induced condo/townhouse spending spree IMHO. That includes Chinese and Caucasian locals. Still hot money mixed in there to a lesser degree.

Bestplace4nazis
Guest
Bestplace4nazis

No money down
…about as hard as getting shit out of your ass…wait …I can see its easy

wwwww
Guest
wwwww

‘Stand Up To China’ campaign pits Vancouver activism against Beijing’s oil ambitions

http://www.scmp.com/comment/blogs/article/1913809/stand-china-campaign-pits-vancouver-activism-against-beijings-oil

Best place on meth
Member
Best place on meth

“Dogwood was aware of the potential for the “Stand Up To China” campaign to be perceived as racist in tone, Nagata said, and about five people had got in touch to express this concern.”

Well of course, the corrupted, race-baiting traitors in our country are out in full force these days.

They’ll gladly sell us all into slavery for their own monetary gain.

Bestplace4nazis
Guest
Bestplace4nazis

Wwww= KKK anothed freakin bitter losa

southseacompany
Member
southseacompany

“Fed policymakers discussed changing interest rate path: Minutes”, BNN w. video

http://www.bnn.ca/News/2016/2/17/Fed-policymakers-discussed-changing-interest-rate-path-Minutes.aspx

“Federal Reserve policymakers worried last month that tighter global financial conditions could hit the U.S. economy and considered changing their planned path of interest rate hikes in 2016.”

patriotz
Member

Pope, I think the RET moment has arrived. Time to get rid of the images at the very least.

Shut It Down Already
Guest
Shut It Down Already

It arrived a long time ago.

southseacompany
Member
southseacompany

“No “God-given right” to live in Vancouver — says MLA who can’t afford it”, The Hamilton Spectator

http://www.thespec.com/news-story/6310563-no-god-given-right-to-live-in-vancouver-says-mla-who-can-t-afford-it/

“Chilliwack-Hope MLA Laurie Throness says he can’t afford to live in Vancouver on a base salary of $102,878 but “there’s nothing wrong with that.”

Royce McCutcheon
Member
Royce McCutcheon

I feel like I am taking crazy pills when I read that nonsense.

I – any of us here – has the right to expect that a government will not execute policies that blatantly favor one group over another, particularly when it comes to what is likely the single-biggest financial asset most will ever hold.

This person – and far too many others – carry themselves as if the market is governed by free market principles. Their arguments only make sense if this is their belief. Yet they ignore the many types of government interference that exist and are designed to drive prices UP.

Urbain
Member
Urbain

Including the willful blindness to laundered money coming into the market. Sometimes non-interference is in fact interference.

Royce McCutcheon
Member
Royce McCutcheon

Willful blindness might be kind of a charitable description to be honest. Even if loopholes or obvious avenues for abuse were not introduced intentionally, the lack of effort to repair these often longstanding features perhaps speaks to something a bit stronger than blindness/ignorance.

space889
Member
space889

So, would you be able to afford Vancouver West if it is say $2M instead of $5M? If you can’t at $2M then I don’t really think it matters what the gov’t do regarding foreign money.

Also, gov’t are elected by favoring one group over another. No gov’t will be elected on the platform of treating everyone equal since they will simply piss of everyone.

Royce McCutcheon
Member
Royce McCutcheon
I might still think many are underestimating local drivers of pricing, but having lived on the West side, Richmond, and elsewhere in this region over the past decade, foreign money is not exclusively linked to properties over $2M. Further, if you acknowledge that foreign money contributes to prices to any significant degree, the possibility of knock on effects to prices in other areas are a given. As to your last point, governance that very actively alienates a large group, even as it supports a majority, will have problems. This is particularly true where that alienated group has flexibility, means, and is expected to be of greater importance to the region in the future. I won’t claim to know what/when things will change, but an increasingly bright light is being shone on this situation and it is becoming harder for those… Read more »
ostritch
Member
ostritch

Foreign money loves SFH and condo pre-sales. Land. Land. Land. Or New. New. New.

space889
Member
space889

Under $1M condo / TH are usually bought for investment purposes by foreigners. Given the much bigger market, it’s unlikely to be as great as the $3M+ market which is 80% dominated by Chinese. I bet the local speculators is a much bigger influence in this market than foreign owners.

Frankly, for condos, we aren’t exactly running into any major limits on sky & air, so if foreigners want to pay top $$$ for condos, I say build, build, build and sell it to them. Generate the construction jobs and related jobs, management and maintenance jobs, and top up city coffers while not using services.

Best place on meth
Member
Best place on meth
What he’s saying is that people who have lived their entire lives in Vancouver have no right to continue doing so, but foreigners have the god given right to buy up the entire city and force longtime residents to move far away. This is the mentality of the BC Libs, they’ve sold out future generations in order to protect their boomer brethren. This guy is one sick fuck, and a bible-thumper no less. “Laurie has been involved in helping those who have represented our community in government. He began as Executive Assistant to former local MLA Harvey Schroeder, then Minister of Agriculture and Food in the Social Credit government. In 1994, Laurie accepted a position to work for Reform MP Chuck Strahl through his first term in Ottawa. Laurie then joined the Opposition Leader’s office, providing policy research and advice… Read more »
space889
Member
space889

So basically every Canadian citizens have the right to live anywhere they want. But some people have more right than others based on where they were born? So a seller has to sell to a local Vancouverite even if a Burnaby or *gasp* Surrey boy can offer more $$$ for the place?

ostritch
Member
ostritch

It’s not only that they are long-time residents. It’s that they work, pay taxes and actually live here. That’s what’s so odd. Even odder when you think of all the money that’s gone into making this a great live/work city??!

Hyper-mega-Bull
Member
Hyper-mega-Bull

helicopter printing press is getting traction!

Cash for life: guaranteed annual income gaining steam in Canada

https://ca.news.yahoo.com/blogs/dailybrew/cash-for-life-guaranteed-annual-income-gaining-205504354.html

space889
Member
space889

If they make it $40K per person tax free minimum income then HELLO EARLY RETIREMENT!!

patriotz
Member

http://www.pressreader.com/canada/the-globe-and-mail-metro-ontario-edition/20160218/281552289920262/TextView

“but a bursting of the housing bubble would change (BC’s) economic fortunes pretty quickly “

bullwhip29
Guest
bullwhip29

Simply put, the housing mkt in Cda is “too big to fail”. In Vancouver, where RE is the only game in town, the situation is downright scary. I’m sure measures bordering on the ludicrous, insane and even criminal will be considered to keep the punchbowl topped up for as long as possible (at the expense of future generations)

No Money Down
Member
No Money Down

Can’t happen here…can it?

Hong Kong Property Slump Worries Investors

“Hong Kong home sales slumped to the lowest in at least a quarter-century last month, Centaline Property Agency Ltd. estimated, adding to evidence that prices have further to fall.”

“In a city that saw demand propel property prices to a record last year, the estimate that transactions reached a 25 year-low in Hong Kong shows how quickly sentiment has turned.”

September peak to January slump, with prices off by 10%.

http://www.bloomberg.com/news/articles/2016-02-01/hong-kong-property-sentiment-turns-as-sales-slump-to-25-year-low

ChinaOne
Guest
ChinaOne

My parent come back from Shanghai for 6 months in March. They get medicine and healthcare. Then we go shopping and eat at reataurant. Buy new car and buy 2 more house.

We like import export and union pay. We like Christy Clark and we like Garth Turner.

One day we have Mandarin as main language in Vancouva. I hope I hope Then my parent stay here longer than 6 months.

We need lower pay for worker. We looking for blonde white fork to work in home to wash dish and my car clean bathroom and polish my shoe.

elvince
Guest
elvince

“We looking for blonde white fork to work in home to wash dish and my car clean bathroom and polish my shoe”

Well, she isn’t blonde, but Miss Clark should be available soon enough.

space889
Member
space889

We only get one choice?

Vanco
Guest
Vanco

There is subsized housing for low income. Oh, your income is too high. How about condoes? Burnaby, coquitlam? No, because you have a right to a SFH because you were raised here? But so do other 1 million born here. Oh you are special because you post on VCI?

bestplaceonearth
Guest
bestplaceonearth

they belongs to a big union. they are entitled to everything! the saving of PTT isn’t pleased them either. Let make it free housing for all VCI posters.

Best place on meth
Member
Best place on meth

“because you have a right to a SFH because you were raised here”

Nobody ever said that, except you. Over and over and over.

I can’t believe you’re not on the list.

Best place on meth
Member
Best place on meth

Correction, you’ve been added.

space889
Member
space889

Uhm…weren’t you one of the big complainers about locals born here can’t afford to buy a house here?? And calling politicians as sell out traitor scums for failing to ensure you can buy a SFH, in Van West no less?

ChinaOne
Guest
ChinaOne

You gov is making you guy dumb. my couzin build new home point grey. My couzin dad in Shenzen pay money to Indian builder here. builder want money sent from China to India only. Builder say Canada is for sucker. Builder live Canada but big bank account India. My cousin dad happy he got money out and builder happy too. What problem?

Shut It Down Already
Guest
Shut It Down Already

The impressions are getting worse. Time to find a new fake persona?

Lurker
Guest
Lurker

Then how does the Indian builder buy materials here dummy?

ChinaOne
Guest
ChinaOne

We like trudeua too. He not cancel TFW program. We like bringing nannies and other people here. Sorry ur wage go down. But we get rent money so to bad.

space889
Member
space889

Foreign nannies are still mostly for the benefits of locals well off families since they can’t afford a local born nanny who’s willing to work 27/6 or 7 with no OT pay and takes crap.

space889
Member
space889

Why is Yunak on the list as well?

Shut It Down Already
Guest
Shut It Down Already

What list is that then?

space889
Member
space889

The IP Ban vote.

Shut It Down Already
Guest
Shut It Down Already

Oh, I see it now. The mobile site is completely broken again. Not only does it not let you switch back to the desktop version but therre’s a stupid ad towards the bottom which expands to cover the entire screen.

Shut It Down Already
Guest
Shut It Down Already

And now there’s a massive “Add Comment” speech bubble, too.

wpDiscuz