BC, hype, opinion, politics, renting

NDP proposes $400 rental grant

92
92 Comments

The NDP is promising to implement a $400 rental grant if elected.  This grant would be applicable to all rentals and would have the side effect of pretty much putting an end to rental income tax evasion.

Christy Clark is disturbed by the idea of money going to “wealthy renters”

“That isn’t right,” Clark said. “We shouldn’t be redistributing our tax money to the very rich. We should be making sure that we spend our resources supporting people who are having trouble staying in their homes.”

The NDP also pledges to close a fixed term lease rent loophole that lets some landlords raise rents higher than otherwise allowed.

Read the full article here.

92 Comments
newest
oldest most voted
Inline Feedbacks
View all comments
trackback

[…] –taming the CMHC […]

0
0
Sebastien

I have a thought experiment for everyone. Here it is:

Let’s say next year a drug-lord from Guangzhou buys a 5,000,000 $ house in Vancouver West to launder money and to call in escorts from time to time. Let’s see how much he will pay under:

The Greens:
* 30% FBT = 1,500,000$
* 12% PTT = 600,000$
* Surtax based on income = ???? unknown yet
* 1% Vancouver empty home tax = 50,000$

Total = At least 2,150,000$

The NDP:
*2% whatever tax = 100,000$
*3% PTT = 150,000$
*1% Vancouver empty home tax = 50,000$

Total = At worst 300,000$

You see the difference now?

0
0
Just me

Where is the 15% FBT?
The NDP did not say they will abolish it, so it should be there.

0
0
Sebastien

They didn’t they’ll keep it either.

0
0
Just me

Now you are clutching at straws.

0
0
Sebastien

Really? So you believe that they won’t fall for the “the FBT is racist” mantra?

0
0
Sebastien

I remember now. I emailed Raj Chouhan and he sent me back an auto-reply saying the FBT was a bad idea. There.

0
0
Combat roach

I would vote for the party that would prosecute a drug-lord from Guangzhou, confiscate all his assets in Canada and deport him in 6 hours. Or party that wouldn’t let motherfucker in Canada at all.

0
0
Sebastien

Agree.

In a perfect world, I would vote for the party that expedite him to China to have his kidneys harvested. But we live in an imperfect world.

0
0
Shut It Down Already

Wow, provincial governments can do all that?

0
0
Sebastien

I’m surprised to see how many here are content with the NDP platform. It’s so weak.

Here are a few questions for you:

What makes you sure that there’ll be a cross-check between the renters 400$ whatever and the landlords tax claims? Was it mentioned today by the NDP?

What if the astronaut families just pay the 2% and they still keep pouring in here in droves?

Any mentions of Smurfs in the platform? Do the consider this “money laundering”?

Do you think they’ll keep all these promises?

Will they keep the 15% FBT?

Call me a Liberal shill but I’m voting with my conscience and that’s f**king Green. 3 months from now , I’ll change my name and it’ll be “I Told You So”.

0
0
patriotz

The NDP tax, announced Thursday in the party’s campaign platform, would put a 2-per-cent tax on homes of people whose tax returns indicate they pay little or no taxes in British Columbia…. “It’s a very targeted tax toward people who are buying property here, or who own property here, but who aren’t paying income tax here,” NDP MLA David Eby said on Thursday…

The NDP would review the existing foreign-buyers tax to ensure it would not apply to people who live, work and pay taxes in British Columbia, Mr. Eby said.

0
0
paulb

New
247
Price Change
34
Sold
183
TI:8169

http://www.clivestevepaul.com

0
0
southseacompany

“Inside the taming of CMHC”, Maclean’s

http://www.macleans.ca/politics/ottawa/inside-the-taming-of-cmhc/

“Under the outspoken Evan Siddall, the housing agency has gone through one of the largest reorganizations ever seen in Ottawa. But with home prices skyrocketing, is it enough?”

0
0
Just me

Zolo stats are back on fire. Market picking up speed. These are reasons enough for me to vote NDP in may. If this means 4 years of higher taxes for me, so be it. I am not happy about that but I don’t see a future for this province under BC Libs rule (unless you are a developer or real estate “investor”). By the way, I see that Christy Clark has embraced the tech sector: where are all these new tech workers going to live? Will they all commute from Surrey? I am really keeping an eye on NDP housing policies, so far they have been underwhelming. The Green party has a much better platform for housing. But I think voting NDP is ur best shot (and might be the very last shot we will ever have — four more… Read more »

0
0
Combat roach

Or into Richmond, same shit.

0
0
southseacompany

“Rental stigma? Not in Vancouver or Toronto, experts say”, Real Estate News Exchange https://renx.ca/no-rental-stigma-toronto-vancouver-vref-experts/ ““People are deciding rental is not just a stepping stone. Rental is an end game,” said Dan Sander, director of Hollyburn Properties. “We don’t want to spend 75 per cent of our income owning a condo. We want to live our lives and enjoy our lives. People are deciding, ‘I’m good with renting. I don’t need to own a condo. It’s not an identity issue for me.’ ” “He noted there is “a huge gap” in the cost of renting versus owning. In 2016, in the Vancouver area, a one-bedroom apartment rented for an average $1,425 per month versus $2,456 for a condo, not including strata or condo fees and property taxes.” “In Vancouver, renting is “literally half the cost. I absolutely think it’s here to… Read more »

0
0
southseacompany

“B.C. real estate activity slumps by $7 billion as Ontario watches and ponders own solution”, Financial Post

http://business.financialpost.com/news/retail-marketing/b-c-real-estate-activity-slumps-by-7-billion-as-ontario-watches-and-ponders-own-solution

“The dollar volume in the Greater Vancouver market was $7.4 billion over the first quarter, down from $13.3 billion a year ago.”

“Prices in Greater Vancouver continue to fall and declined 9.3 per cent from a year ago to $991,690”

0
0
bullwhip29

Notley warns her government workers away from campaigning for BC NDP
http://www.theglobeandmail.com/news/british-columbia/notley-warns-her-government-workers-away-from-campaigning-for-bc-ndp/article34704299/

0
0
kime

In Ontario it seems that renters are able to receive a tax credit which would mean that they are reporting an address somewhere on a tax return that is cross-checked and verified for eligibility.

So does that mean that everyone is pretty much compliant in reporting rental income over there as opposed to the wild west here in BC where every other house is renting out their basement and CRA couldn’t care less?

0
0
patriotz

Only renters with low incomes get the credit in Ontario. Note that the credit applies to both renters and homeowners, there is no universal homeowners grant like in BC.

http://www.fin.gov.on.ca/en/credit/oeptc/index.html

0
0
Bear Vancouverite

While that fact is interesting, can you share whether you think the low income renters who get the credit results in the landlords of said low income renters to properly report their rental income for taxation?

0
0
patriotz

https://action.bcndp.ca/page/-/bcndp/docs/platform_book_1.pdf

We’ll close the loopholes that let speculators dodge taxes and hide their
identities and we’ll require them to pay their fair share of tax on their empty houses through a yearly two per cent absentee speculators’ tax.
›We’ll direct the revenue from the absentee speculators’ tax into a Housing Affordability Fund. This fund will support housing affordability initiatives for British Columbians.
›We will also establish a multi-agency task force to fight tax fraud and money laundering in the BC real estate marketplace.

It would appear the NDP is not going to follow through on taxing principle residences of those with low or no taxable incomes, however. The third point could be the real biggie.

0
0
YVR

LOL. Just as predicted. The NPD won’t even bring in their own proposed legislation. No HAM tax it is. Looks like Eby got overuled by the incompetant rest. The tax force to fight tax fraud and money laundering? Hilarious. Why not just state how you will fight it. They have had 16 years to think about it.

0
0
patriotz

On the other hand,

Horgan says the Housing Affordability Fund and Speculator Fee Act propose to collect a two-per-cent tax on the assessed value of property owned by those who don’t pay income tax in Canada and that money would go into an affordability fund.

I expect the NDP to clarify this pretty soon.

http://www.vancouversun.com/business/real-estate/proposes+speculation+tackle+housing+affordability/11792062/story.html

0
0
YVR

The Sun article is a month old. The NDP clarified today what they are doing. No HAM tax.

0
0
Just me

What do you mean “no HAM tax”? Care to clarify?

0
0
YVR

The 2% tax only applies to empty homes of speculators (what ever that is). It does not apply to principal residences of those who do not pay income taxes (HAM). Remember the legislation the NDP put forward that Patriotz claimed was a done deal? That is not happening now.

0
0
Damunn

It will come in a future budget. No need to say it out loud.

0
0
Best place on meth

Oracle, please just stop it already.

0
0
Bear Vancouverite

When was the last time Liberals have acknowledged that Tax fraud is a problem that they intend to fix?

An NDP government with intent and as yet no announced plan is better than no intent and no plan from the BC Libs.

0
0
YVR

Tax fraud (other than PST) is a CRA responsibility. That is federal.

0
0
Just me

Making information easily available to the Feds make enforcement a lot easier. And that info is easily available to Provincial governments. Whether or not they want to share it, it is a different issue.

0
0
YVR

So why doesn’t the NDP just say that instead of creating a task force? Remember how the federal Liberals were going to “study” the housing bubble? How did that work out.

BTW the Feds could ask for any information they want and get it if they wanted it.

0
0
Just me

First, the task force is exactly meant to gather and organize that info.

Second, if that info was made openly availabke, it would be hard to ignore for the Feds. Right now they are complicit in covering up the effects of Chinese money.

0
0
Damunn

Let’s keep this info private. Just like Liberals want to abolish the foreign tax.

0
0
Damunn

Be street smart man.

0
0
Just me

The 2% tax on non-filers would have a big effect if implemented. Also, the task force on fraud (something that the BC Libs do not even acknowledge) would trigger a massive change in the behavior of mainland Chinese “investors”.
In general, I am optimistic that an NDP government would be a strong negative for the housing market. For me that is worth a higher marginal tax rate.
I also like the fact that NDP is committing to reducing or eliminating private political contributions. They will have to do something about this once in power, it is a high profile promise.
In four years I would switch again to the Libs, if they are willing to present some honest people.

0
0
Sebastien

Amen to that!

NDP = weak sauce on foreign flipping and laundering.

0
0
Just me

And Green is 4 more years of Christy and her fake smile/smirk.

0
0
Best place on meth

People get the goverment they deserve.

Maybe the people of BC deserve Christy forever.

0
0
Sebastien

Here’s my plan:

Minority NDP/Liberal ( It’s the same anyway) with the balance of power to the Greens . It’s totally doable.

0
0
brutal

Low or no taxable incomes is HAM. So basically working stiffs won’t even be able to get the full amount of their home appreciation while tax dodging HAM will.

0
0
Whistler or Bust?

NDP at it again! $10 day care $400 Rental grant (which would help me) No bridge Tolls Scrap MSP Freeze ICBC Rates Roll Back Ferry Rates Freeze Hydro Rates Cancel Uber (To reward the taxi union) How will they pay for it? “Grow the economy” Rob the LNG Prosperity Fund Raise Income Taxes Raise Corp Taxes Even after these there will be a several billion dollar hole. Typical NDP – promise everything with no way to pay for it. . They could not run a mom and pop corner store and they want to run our Province. Don’t forget the 1990’s. All the NDP fan boys on here please tell us how running multi-billion deficits and raising taxes is going to be good for BC? Do you feel any richer since Trudeau tried that on the federal level? The Liberals… Read more »

0
0
YVR

It makes no sense. Reduce user fees for those who pay no taxes, who may be very wealthy, and tax working people who already pay most of the taxes.

0
0
Abdul Lahazi

They cut taxes but made up for that in higher MSP fees and higher hydro rates and ICBC premiums. Higher ferry fares too.

0
0
Bear Vancouverite

The Liberals cut some taxes alright, and they dragged their feet on Education and Health care while increasing fees elsewhere. How many children are now in schools at risk of completely collapsing in an earthquake? Far too many. The Election 2017 timeframe comes up and suddenly Christy Clark is announcing more funding for schools and healthcare?

I do remember the 1990s, they were fine. I remember the NDP had a tech innovation grant under which our company hired some staff that I was training. After the Liberals came to power they cut that grant. We let some of those staffers go but they left with new skills and experience under the belt.

0
0
Whistler or Bust?

“I do remember the 1990s, they were fine”

They were not fine. They were awful. Here’s an article about the 1990’s written for the last election. Nothing has changed.

http://news.nationalpost.com/news/canada/canadian-politics/b-c-economy-stagnates-under-ndp-rule-report

0
0
Bear Vancouverite

Name me 3 economic hardships you personally experienced during the 90’s as a result of NDP policies, because I can’t name a single one.

0
0
Bag it and tag it

Real estate crashed in the 90’s because the Hong Kong buyers dried up…that was the main economic pain point of that period, and doubtful NDP were to blame…and if so, should be more of a congrats for popping a bubble.

0
0
Best place on meth

The 90’s were the best time of my life.

Jobs were plentiful, wages were good, rents were cheap.

I didn’t have a care in the world in the 90’s.

Now, everything is so expensive.

0
0
Grime

You must have been a beneficiary of one of the NDP programs in the late 90s (e.g. FRBC). What a colossal waste of taxpayer money. A whole bunch of people made out like bandits though.

0
0
Best place on meth

I was working two jobs in those horrible 90’s because there were so many of them.

Saving shitloads of money because I had the energy and drive to work as much as I wanted.

Every time I hear somebody talk bad about the 90’s I’m quickly reminded of the retarded ads Krusty played in the last election featuring the dumb cunt repeating the same line over and over like a parrot..

“Remember the 90’s?”

SQUAWK!!! SQUAWK!!!

0
0
Just me

Made out like bandits? You mean like millionaire homeowners under Christy Clark?

0
0
Grime

That’s not the 90’s I remember. Forced to leave southern BC as there were zero opportunities.

0
0
Whistler or Bust?

Check your math. Those increases were pittance to what revenue they “gave up” by cutting income taxes.

0
0
patriotz

Not for people with ordinary incomes. But they don’t count on Planet Christy, or on yours it seems.

0
0
YVR

“Not for people with ordinary incomes.”

It was a 25% tax cut across ALL income levels. If you made minimum wage you got a tax cut. But, the big impact was not cutting income taxes, it was creating more and better paying jobs by not punishing businesses. Government tax revenue actually increased under the Liberals even after the 25% income tax cut and corporate tax cuts.

0
0
Whistler or Bust?

Well said YVR and cue the NDP fans slowly slinking away into the corner…

0
0
Best place on meth

Low taxes are the hallmark of third world banana republics.

I wonder why high tax northern European countries are ranked the best places to live, the happiest places to live and the least corrupt places to live.

Go ahead and vote for corruption though, I certainly don’t give a shit.

0
0
Just me

That is, in fact, quite true.
In China there are little or no property taxes. And income taxes are generally enforced incinsistently. Rule of law, serious enforcement and taxes that pay for good services are what makes countries healthy.
Everything else is the far west, where the criminally-inclined thrive.

0
0
Just me

Exactly. 25% of a small number is something close to zero. The cut was really for the higher earners.

0
0
Just me

The net expenditure is not very different, in aggregate, between BC Libs and NDP. It is the distribution that will change.
Moreover, not all policies are part of the electoral platform: in due time, expect more taxes on homeowners. One way or the other!

0
0
YVR

“It is the distribution that will change.”

That is correct. Under the BC Liberals workers pay some and everyone pays some through tolls and user fees regardless of income. Under the NDP workers pay it all and HAM and other retired wealthy home owners pay nothing. Everything is free unless you work then you pick up the full tab. That is why the NDP fail. No incentive to work, start a business or do anything productive other than suck free government benefits.

0
0
Bear Vancouverite

This is gross exaggeration. If you really believe there is no incentive to work whatsoever then I expect you will resign if the NDP wins so you can suck on the teat of the NDP Dole and live the lavish live that it allows.

Someone will take that job you vacate, and I’m sure they will enjoy the high income and not complain a wit about the taxes.

Yes, all of us hard working folk dream nothing more of the NDP win so we can retire on EI and low income subsidies and eat caviar in our NDP subsidized mansions.

0
0
Just me

Technically I belong to that famous top 2% of the labor income distribution that will be taxed more. The funny thing is: I feel anything but rich in this city. Honest earnings only go so far here. Wealth (nit labor) rules in Vancouver. So, I quite simply feel that 4 years of NDP might put a dent on the inflow of wealthy non-workers, and make life a bit better for folks who get up every morning to provide valuable services to society,

0
0
bullwhip29

Home Capital Group HCG-TSX slumps to new 52 week low today

0
0
bullwhip29

The federal finance minister is set to meet with his Ontario counterpart and the mayor of Toronto next week to discuss the hot housing market in the Greater Toronto Area
http://www.cbc.ca/news/canada/toronto/toronto-gta-housing-market-1.4069546

0
0
Hyper-mega-Bull

Housing bears already know that owners are subsdizing renters, and that renters are making a lot more putting their extra money in stocks instead of real estate so why do they need even more help? Something doesn’t add up.

0
0
Joe Voter

Government handing out money to buyers, or renters, is inflationary.

Something doesn’t add up, you say? It adds up… to votes. Bought with our own money.

0
0
Abdul Lahazi

They are bribing us with our own money.

0
0
Bag it and tag it

Renter have been subsidizing owners! Homeowners grant, first time buyer programs…

0
0
Joe Shelter

“Evaluating cash-for-rent subsidies” Shelter Projects.org http://www.sheltercasestudies.org/shelterprojects2013-2014/SP13-14_B02-CashRentSubsidies.pdf “Problems with cash-for-rent” “The use of cash-for-rent within the urban context makes theoretical sense due to renting being a common shelter option, and the injection of cash into the host community can help mitigate tensions as it provides some compensation for hosting large numbers of displaced people.” “Unfortunately, there are side effects, and it is hard to see the modality as a sustainable one. It may contribute to inflation of rental prices or create an informal negative parallel rent market. Evictions remain likely, as landlords know that there are plenty of other renters supported by subsidies who are waiting to take over accommodation.” “Cash-for-rent also raises expectations in the host communities in terms of receiving compensation for hosting. This can cause problems for displaced families if landlords assume that their tenants have more resources… Read more »

0
0
Sebastien

Burnaby:
73-6878 Southpoint Drive, Burnaby
Jan 12:$768,000
Apr 12: $619,800
Change: – 148,200 -19%
Assessment: $655,000

0
0
bullwhip29

Premier Christy Clark’s Vaisakhi greetings
http://www.voiceonline.com/christy-vaisakhi-greetings/

0
0
Abdul Lahazi

“a community that has helped shape B.C. into what it is today: a prosperous, vibrant, multicultural society that is the envy of the world.” The envy of the world?

0
0
bullwhip29

When 76 per cent of citizens believe government is bought and paid for, it’s time for change
https://thetyee.ca/Opinion/2017/04/13/BC-Election-Should-Be-About-Corruption/

0
0
bullwhip29

During Wednesday’s second official day of electioneering, B.C. NDP’s John Horgan found his party’s campaign bus closely followed by a large truck bearing a shadowy image of the opposition leader and a message to voters
http://www.metronews.ca/news/vancouver/2017/04/12/cash-for-access-scandal-follows-bc-election-campaign.html

0
0
Abdul Lahazi

Hypocrites calling someone else a hypocrite; now that’s irony.

0
0
Best place on meth

There is no hypocrisy whatsoever from the NDP on this subject.

Liberals make no sense once again.

0
0
Loon

Damn, the lower end west Van market still has legs this spring. Just saw a new 1.8m SFH listed last week with an open house on the weekend at 5710 Cranley drive. Now the sold sign is up this morning, that was fast! This market continues to boggle my mind.

Maybe they listed for too low ?

0
0
Loon

Just to add, the open house was packed. I didn’t go but there were cars lined around the entire perimeter like it was the sale of the century.

0
0
Dave

It seems the market doesn’t recognize the risk that a potential new government presents.

0
0
Loon

I did some digging up of sales history and the last time it sold was 26 years ago in 1991 for $310,000. If they did just sell for $1.8m they averaged 7% increase a year. Not bad.

I doubt prices can appreciate at that pace going forward, but who knows ?
there may always be a greater (April) fool out there.

0
0
Shut It Down Already

I think the S&P 500 returned just over 7% in the same time frame including reinvested dividends. The house would have provided shelter during that time, but the stocks wouldn’t have incurred maintenance costs and property taxes etc.

0
0
Best place on meth

The 7% return was leveraged unless the buyer paid all cash, so it was actually a much higer ROI.

0
0
bullwhip29

The struggle to find affordable real estate in Vancouver is a challenge not only for the living
http://bc.ctvnews.ca/running-out-of-room-vancouver-graveyard-charging-25k-per-plot-1.3366417

0
0
bullwhip29

Leaders promise to spend your money to sway votes
http://vancouversun.com/opinion/columnists/vaughn-palmer-leaders-promise-to-spend-your-money-to-sway-votes

0
0
Sebastien

What if rents go up by 400$? Then what?

0
0
bullwhip29

someone renting for $900/mo could be subject to an allowable 3.7% increase as per RTA, which equates to $400/yr anyway

0
0
Damunn

Who cares as long as landlords start paying 20% of their income to revenue Canada. And a record of them having a rental property means they pay capital gains eventually. I don’t see what the issue here is.

0
0