The Green Party and NDP have announced an intention to form the government of BC and they have some different approaches to the real estate economy than the BC Liberals.
So what does the future look like to you? Will the new government implement some of their more dramatic policy changes and what does this mean for the Vancouver Housing Bubble and the wider BC real estate economy?
Oracle had the following wish list:
1) 30% FBT Province wide. Absolutely No Loopholes.
2) Tax 2nd homes of Citizens an annual property surcharge of 2% with rental offset. 3rd and more homes tax surcharge of 5%.
3) Tax homes of non taxpaying non residents 2%. Tax 2nd homes at 5%.
4) Limit foreign student at any institution to 15% maximum to ease rental crisis.
5) Inteoduce rental tax credit to out tax Evading Landords.
6) Pressure Federal government to limit 10 year tourist visas stays to a max of 3 months per year.
7) introduce extended mortgage amortization periods for those owners who will go underwater with the above changes.
Markoz points out this shift might not be painless for anyone:
Horgan and Weaver Have a Tough Job Ahead.
If they do all the things Eby talked about, real estate prices will definitely come down. The problem is, Krispy has painted our economy into a corner where it is very RE dependent. Lower prices mean lost jobs in construction and related industries. Also, as others have pointed out, lower tax revenues. There are many benefits to lower prices but they may not be self-evident to the 70% who own. Especially people who bought in the last 3 years.
The Krispy alternative, letting prices run amok until a 1 bedroom condo is $4 m, is not an alternative. Still, doing the right thing is going to be very painful and politically unpopular with many.
Dave wonders what’s next for Christy:
I think Clark should make a throne speech and outline what she wants to do for the next year of government and see what happens. Let the Greens and NDP shoot her vision down but at least people know what got voted down. I also think she should also try to split the NDP and Greens, not because it’s politically smart, but because voters should know what their MLAs stand for and support. Small chance she can pull something off, but not likely. I don’t see any ridings or obvious MLAs that the Liberals could split or steal.
Let us know your thoughts on the future of the BC economy and real estate prices in the comments below!