Friday Free-for-all! Feb 16th 2018

It’s the end of the week, so let’s do another Free-for-all open topic thread for the weekend.

What are you seeing out there? Post your news links, thoughts and anecdotes in the comments below and have an excellent weekend!

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[…] –Transitional rules needed? –A war on upper end homes –No more hiding –Market gets tougher –That speculation tax – […]

patriotz
Member

Government Needs Transitional Rules for All Transactions Impacted By Taxes Introduced in Budget 2018

The British Columbia Real Estate Association (BCREA) calls on the government to introduce transitional rules for all transactions impacted by the new tax measures introduced in Budget 2018. … Of additional concern, the “speculation” tax introduced in the budget will affect British Columbians who own or want to invest in those markets by buying a second home or recreational property…. However, the government missed the opportunity to help home buyers across the province by increasing the thresholds to the PTT or index those thresholds to reflect the changing real estate market….

Just me
Guest
Just me

And the moaning begins. millionaires and speculators not happy.

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[…] Yvr2zrh shared this comment: […]

Just me
Guest
Just me

Taking a stand against Vancouver’s real estate disaster.
Terry Glavin on a B.C. budget that suggests the NDP is finally giving the province’s distorted real estate racket some long overdue attention.

http://www.macleans.ca/news/canada/taking-a-stand-against-vancouvers-real-estate-disaster/

“It’s a start, at least. And on the surface, it looks surprisingly bold. But it remains to be seen whether the 30-point housing plan British Columbia Premier John Horgan’s government unveiled Tuesday will begin to expunge the pathologies that have turned Metro Vancouver’s real estate market into an international housing affordability basket case and a global playground for white-collar criminals and fentanyl tycoons.”

Just me
Guest
Just me

“But people shouldn’t expect prices to start plummeting, Barrett said. “Anyone speculating for gains will now question whether this market is favourable for them or whether they’ll take this money elsewhere, but it’s hard to see things going flat.”

Andy Yan agrees. Even if the B.C government’s measures were purposefully radical and designed to pop the property bubble, all that would likely mean is a 40 per cent drop in prices. A collapse of that scale might reduce the price of a house in East Vancouver to about $650,000, and that’s still too high a price for most Vancouverites, he said.”

Just me
Guest
Just me

““Housing is hard,” he said. “All you can really do is capture all this crazy value that’s coming into the system and direct it to people who need housing. What got us here is a total mess of independent parties acting in their own self interest, which has had a cumulative toxic effect on everything. So, stabilizing the market, okay. That’s fine, but that’s not affordability. Anyone who tells you there’s a simple answer is lying.”

Just me
Guest
Just me

“Recent revelations from the investigations of Postmedia’s Sam Cooper and the Globe and Mail’s Kathy Tomlinson and Xiao Xu have drawn a chilling picture of the underworld Eby has vowed to shut down. Gangland bankers with multiple accounts in China, routinely carrying hockey bags into Richmond’s River Rock casino filled with a half-million-dollar cash loans to wealthy Chinese “VIP” gamblers, for starters. The Globe and Mail recently tracked $47 million in drug-money mortgages and liens on 45 Metro Vancouver mansions.”

Just me
Guest
Just me

“Also in the works is a “multi-agency working group on tax evasion, money laundering and housing” that will bring in federal law-enforcement and tax agencies, James said. There wasn’t much more about that, but B.C. Attorney-General David Eby has appointed former RCMP deputy commissioner Peter German to report next month on how to unravel what he calls British Columbia’s international reputation as “a jurisdiction where the rules do not apply to white collar crime, fraud, tax evasion and money laundering, where even if the rules do apply, enforcement is absent.”

A key component of German’s assignment is to come up with a kind of cartography of the routes that dubious and dirty money takes through China’s currency export controls, and from the drug trade, through B.C.’s licenced casinos into Vancouver’s real estate market.”

Just me
Guest
Just me

“Owing to the shadowy ownership structures that the Land Titles Office hasn’t been able to penetrate—a problem Horgan’s government vows to fix—all that’s known for certain about foreign ownership within Vancouver city limits is that at least 7.6 per cent of all residential properties are now owned directly by non-residents, and roughly one in five condominiums purchased since 2015 are owned by non-residents. Within Metro Vancouver, non-resident ownership accounts for about $45 billion dollars worth of residential property. Roughly 99 per cent of the single detached houses within Vancouver’s city limits, and 73 per cent of homes throughout Metro Vancouver, are now valued in excess of $1 million.”

Just me
Guest
Just me

“I’m not happy, but I’m not sad, either,” said Andy Yan, the director of Simon Fraser University’s City Program whose data analysis and public advocacy helped to shame Victoria into acting. “This will not make Vancouver affordable. But this is a nightmare we’re coming out of. It’s going to take more than one provincial budget to unwind the machine.”

Oracle
Guest
Oracle

Also the FBT or the spec tax does not apply to farmland. WTF?

This area gonna go up huge now.

Laibach
Member
Laibach
Oracle
Guest
Oracle

What we really need is a foreign student buying ban.

I really hope the 2% spec tax doesn’t provide an exemption for this group. If they do, then nothing really changes.

That’s 100,000 plus units right here.

Bag it and tag it
Member
Bag it and tag it

I’m hoping the get captured in the 2% spec tax if they do buy… if they are not paying any income tax.

Oracle
Guest
Oracle

And why this group isn’t charged the FBT is criminal.

Oracle
Guest
Oracle

And how the hell are they getting their illegal money in when china doesn’t allow it.

Shut It Down Already (original)
Guest
Shut It Down Already (original)

Try applying Occam’s Razor for once. You’ve somehow conjured up an alternate reality where 100,000 foreign students have bought a property in Metro Vancouver. That’s 10% of all households. At what point are you going to consider that your assumptions might be flawed?

bullwhip29
Guest
bullwhip29

What it’s like for a Vancouver family to lose its home in a land assembly
http://www.richmond-news.com/what-it-s-like-for-a-vancouver-family-to-lose-its-home-in-a-land-assembly-1.23180085

“…Nicolay started to suspect their days were numbered a few months ago when the two houses beside them sold and men driving Land Rovers and Mercedes began “sniffing around” one day…”

Laibach
Member
Laibach

What our local hard-working and tax-paying Joe to expect when competing with fucking locust for a roof over the head if even successful business owners can’t come close. Those fucks are like nuclear waste, disintegrating any living organism…

“So it’s particularly sobering to consider that a couple who are part of three successful restaurants, with a share in a brewery and deep roots in the community can’t even get a secure foothold in Vancouver’s out-of-control housing market.”

bullwhip29
Guest
bullwhip29

regarding ending hidden ownership…

simple question, what happens to all the properties purchased through one or a variety of these avenues? more importantly, what happens if they are never sold?

Oracle
Guest
Oracle

They need to act soon on these points and make things clear.

Hope they don’t say wait until next years budget for implementation.

Dave
Member

That’s why the holding tax is important. Worst case, the government is getting some revenue. Good case is that some properties get listed. Best case is they flood the market with condos.

bullwhip29
Guest
bullwhip29

until the govt clarifies what a “qualified long term rental” is I wont be holding my breath

Oracle
Guest
Oracle

If there is no official offset from rent collected, then it won’t have teeth and people will ignore it.

As soon as people declare it’s rented and CrA knows, then that will affect other subsidized programs and activate the cap gains binoculars.

bullwhip29
Guest
bullwhip29

to me it sounds a lot like gregor’s vacancy tax, so if the home is rented out owner may claim up-front spec tax exemption and income offset isn’t even a consideration. we’ll see…

bullwhip29
Guest
bullwhip29

regarding the condo presale registry…

whether this was by design or not, the wording used by the NDP in their 30 point plan is often vague. one example is how they seemed to outline the condo presale registry which will supposedly track the “assignments” of condos. what isn’t clear is whether ALL buyers of units will have to register regardless if they flip or not (or if only assignments are reported) and if anything really changes with respect to the purchases made by offshore buyers and when/if changes are in store for this process and the collection of FBT and future cap gains tax which is done after the fact. the fact is that many current owners and future buyers won’t sell anytime soon and this housing will remain off the market indefintely

Lost,... but not leased
Guest
Lost,... but not leased

Question…

Is the First Time Buyers Loan ( $37,500 ) still in effect ?

My read is it is gone….

Oracle Sockpuppet Doppelganger III
Member
Oracle Sockpuppet Doppelganger III

It’s toast.

bullwhip29
Guest
bullwhip29

they actually said it is being wound down. effective when is unclear. let’s see if a spike in applications materializes…

KickThemOut
Member
KickThemOut

You nailed it on the head @YVR! And the morons here can’t see that…

But then when you have morons supporting even more clueless morons in charge, what can you expect? frankly, NDP knows there aren’t that many actual foreign owners to tax. Most of the foreigners / HAM this blog rages about get counted as local because they are freaking locals as far as the law is concerned. If they want to start taxing them based on declared income / paid taxes then they have to create exemptions for seniors / retirees at the minimum, never mind all the other sobs stories that will show up, which means easy loopholes for these new “locals” to get around the taxes.

What they did is basically guarantee another banner year for condos & TH which are big profits for big developers.

Laibach
Member
Laibach

Business as usual, perpetual motion… Officials to chase locust-scumbags and locust-scumbags to chase loopholes, otherwise what else they would do while being useless and unemployable by local standards but loaded with “traditional skills” to keep getting ahead.

Confucius
Guest
Confucius
Umm. The speculator tax will tax locals. There is a primary residence exemption, but you can only claim one residence per couple. The I buy three, husband buy three couple will pay through the nose whether they are local or not. How the NDP implement and enforce this tax will be important. Not sure what your point is as the Liberals barely did anything. The NDP mean business. Wechat has gone crazy with Chinese Realtors claiming these changes are a deathblow to their business. Space889, you’re predictibly playing the same tune however, since you are thin skinned and hold a grudge against many people on this blog. You can’t help yourself from constantly attacking them or posting ridiculous links. You should take it easy and stop allowing people to affect your mental stability. They are actually in control of you.… Read more »
bullwhip29
Guest
bullwhip29

exemption for seniors and retirees? yeah, which ones genius? all, some or just the ones that have anglicized names on the new enhanced ID’s?

they didnt guarantee anything with regard to condos/th’s. it seems to me that as a result of this confusion, which is sure to last, it makes more sense to pool assets into one detached property preferably with a tear down house on it (to stay under $3M threshold) vs buying multiple condos which could be all be subject to the new speculation tax (subject to clarification). until such time we get more answers i bet there will be run on farmland < $3M as well as vacant undeveloped lots

KickThemOut
Member
KickThemOut

oh really?! You are the genius who has been wrong for 10 years and running? Who cheered on every house cooling measure only to see house prices ripping higher. Yes, Mr. All Knowing High & Mighty smarty pants. You are so right with all your link postings and strategies and analysis.

bullwhip29
Guest
bullwhip29

Update: Chinese-only signs erected across from Richmond City Hall
http://www.richmond-news.com/news/update-chinese-only-signs-erected-across-from-richmond-city-hall-1.23178882

Last week Hong Guang Zhang erected a Chinese-only business sign at his art and ceramics store on No. 3 Road, in the sightlines of Richmond City Hall. Regardless of language, the sign was illegal because he hadn’t acquired a permit, as it was erected prior to obtaining a business licence. When some residents complained publicly about the sign, City of Richmond officials fined Zhang $400 for having no permit.

>>> so, if a bylaw is introduced, will the 50% guideline be based on # of words or how much area should be allocated to english?

KickThemOut
Member
KickThemOut

Bullwhip29 posts in trying to defending the indefensible of housewives leeches not having to pay the new speculation & empty home tax shows that he supports the current corrupt state of RE market in Vancouver. Why is this fucker so sympathetic to leeches and locust that take housing away from bears and drive rental costs for the bears? What is his ulterior motives here in defending these leeches and hoping they don’t have to pay the speculation or empty home tax? Why is he on the side of the rich bastards?

bullwhip29
Guest
bullwhip29

not defending, but rather exposing the thought process. i see this hit a nerve. should be interesting to what happens with all the illegal unlicenced daycares being operated for cash by the same housewives

KickThemOut
Member
KickThemOut

Oh you are defending those leeches alright…just you are now. fucking traitor to Canada. Go back to what the hell you or your hellspawn parents came from.

Confucius
Guest
Confucius

Random Speculator says “I sell sree, My husbah sell sree.”

Name
Guest
Name

LOL I wonder how many people know what you are referring to?

Lost,... but not leased
Guest
Lost,... but not leased

I vividly recall her….though I thought she was buying…
Regardless, that was a warning sign re RE market apparently unheeded till now.

Hyper-mega-Bull
Member
Hyper-mega-Bull

that woman was right and all bears on this blog were wrong.

KickThemOut
Member
KickThemOut

Which is why they hate her so much…bear thought she & her hubby was going to be absolutely screwed in 08/09. While turns out they made a fortune, while the bears?! Well, they simply kept on paying ever increasing rent for 10 years for a moldy basement, and probably paid enough that they could have actually owned their own condo by now if they bought in 08/09.

Hyper-mega-Bull
Member
Hyper-mega-Bull

white people just can’t take care of themselves, but they were here first so that has to be respected.

perhaps some land should be set aside where they can continue to live their traditional lifestyle away from a society which they can’t keep up with.

they can live in ‘charming’ old houses, kiss their dogs on the lips, let their kids play in dirt, have relationships with the people who sell them food.

bullwhip29
Guest
bullwhip29

during the same time you got to live in your mom’s moldy basement for free and even got laundry service, unlimited instant noodles, cases of kleenex and jergens and free internet thrown into the package at no additional charge

Confucius
Guest
Confucius

She’s selling now. 🙂

Shut It Down Already (original)
Guest
Shut It Down Already (original)

Why would she be selling now? Even if she is she probably made over 10x her (leveraged) investment. She’s surely crying herself to sleep every night.

Lost,... but not leased
Guest
Lost,... but not leased

Foreign locusts are vert adept….
She and her ” Stah lee Pahk ” sister will rent their condos to :

(i) Birth Tourism
(ii) Fentanyl Labs
(iii) TFW’s
(iv) SIDA and See Saw

Laibach
Member
Laibach

Surprisingly in a good way nobody yet called the budget “racist”, considering the scope (tax evasion, speculation, laundering, astronomy) and timing (Dog New Year).

Hyper-mega-Bull
Member
Hyper-mega-Bull

public mood has changed. the timing of the fentanyl money laundering case couldn’t have been better. one has to wonder.

also interesting, asians don’t vote NDP.

Just me
Guest
Just me

It will happen.
My money is on some moron calling it a head tax, others going to the courts, a bunch of RE lobbies calling it racist and inhumane.
Par for the course.

bullwhip29
Guest
bullwhip29

a lot a british columnians and canadians for that matter own vacation homes in bc. some clarity is needed to determine whether these folks, many who are retired now, will be subject to this tax if they dont rent out properties on long term basis

bullwhip29
Guest
bullwhip29

and it will be interesting to find out who determined that a 2nd home in Kelowna or Qualicum Beach for example will be subject to the 20% FBT yet in the vacation spot of all vacation spots, Whistler, things will continue on business as usual. no FBT. so, in other words, which cabinet member(s) owns 6 homes there? or put another way, who in Whistler was able to put in motion this plan to tax many other major ski resorts in the province yet keep theirs out of the cross hairs?

KickThemOut
Member
KickThemOut

Biggest foreign owners in Whistler are Americans, no need to tax foreigners there. Americans are almost as good as Canadians.

Sebastien
Member
Sebastien

Not yet 😉

Specuskeptic
Member

Delicious! Refreshing!

https://globalnews.ca/news/4037313/bc-budget-housing-taxes-prices/

B.C. would enforce the tax by directing homeowners to an electronic tax form on the Ministry of Finance website.

There, they would be asked to provide the following:

Social Insurance Number (SIN)
Information on global income
Household information
Information on exemptions from the tax (you won’t have to pay it if your home is your principal residence, in most cases)
Any other information that the Ministry of Finance may find useful for enforcement and auditing purposes

This information would then be sent along to the Canada Revenue Agency.

Oracle
Guest
Oracle

Good post. I just want these smug multiple homeowners to pay their fair share. Hopefully this prevents them from declaring primary residence for all their properties thereby evading capital gains taxes.

Now I hope the 2% spec tax has teeth and is fully enforceable with limited exemptions.

bullwhip29
Guest
bullwhip29
using this very common scenario… full fledged BC (or Cda) based boomer couple with more than one property in BC perhaps using this home for vacation purposes, which they prefer to keep vacant property is in the wife’s name and she is legitimately a homemaker with effectively zero income don’t plan to sell or manipulate the principal residence exemption even if they did some of you seem to think (incorrectly imho) that she will now theoretically have to pay thousands or 10’s of 1000s annually in spec tax based on what was announced yesterday since her taxes paid are not high enough to offset the tax. without having the benefit of seeing the fine print, i suspect that this argument will prove to be wrong. if, however, your interpretation is on the money then there will be riots in the… Read more »
KickThemOut
Member
KickThemOut

Why are you fucker so sympathetic to leeches and locust that take housing away from bears and drive rental costs for the bears? What is your ulterior motives here in defending these leeches and hoping they don’t have to pay the speculation or empty home tax? Why are you on the side of the rich bastards?

bullwhip29
Guest
bullwhip29

at what point did i mention the leeches and locusts? what is your preoccupation with the subject matter and why did my comment bother you so much? hmm….

Donkey
Guest

I came across vci today and thought to say a few words. 33,500 units…say 4heads per household. 134,000 heads in 10 years. Every year BC gets 45,000 heads…add those who are already in need of affordable housing.

2% spec tax, 20% fbt…hmm still not enough. I guess better than nothing.

It’s like donkey wanted a glass of milk but was given glass of water with couple drops of milk.

Soon $1mil will be norm for 10 yr old 1b1b in Van. $800k in Burnaby, $600k in Coq. Probably by 2020 if not 2019.

KickThemOut
Member
KickThemOut

What did you expect when the province and municipality refuse to add new housing stock, and proper family oriented housing stock in a timely manner? The average permit process for a single family, duplex, small scale TH complex / low rise condo building in Vancouver is 2 years!!! 2 freaking years just to get a freaking development permit approved. For a large scale development involving multiple buildings and a few hundred units, that process can be as long as 5 years. For even larger scale redevelopment like Oakridge, it can be 10 years before permits are granted.

Meanwhile, 134K+ new permanent residents + more temporary residents hoping to be come permanent residents have came to Vancouver. This is exactly why vacancy are so low and rents are spiking.

Specuskeptic
Member

I guess I better buy then. Could you please, kind Donkey sir, guide me to someone who may facilitate such a transaction?

Donkey
Guest

Hmm sorry specu. Its bad. The most hurt ones are first time buyers…can’t get qualified. Even those who got lucky and built equities in the past few years can’t get out of their 1b1b shoe box. Try to get 2b2b or TH, even you have $400k down pay, you can’t get qualified. So who will sell? No one. All these budget talks may only affect over $2, 3 mil homes. Who cares??? If you can’t even get qualified for $600k mortgage now.

Just me
Guest
Just me
This is from the Victoria housing blog. Good comment, so I thought I should repost. See below. Now we will finally get to see what a housing market just for… you know… housing …looks like! Do we? I think we do – given that they are hindering so many of the aspects of the housing market that weren’t about housing – what do others think? Is it enough of a hinderance? Even if our housing market actually returns to being just about housing, what does this mean for prices? Inventory? How much of an impact will it have on Victoria’s housing market? Since our best core market is so small I think it will hold up well. It’s probably not being driven by all the FB factors as much as Van. My prediction is this budget will have more of… Read more »
Bag it and tag it
Member
Bag it and tag it

Hey where’s YVR and Whistler? You’d think they’d have something to say…
Either too embarrassed or too worried to post I guess…

bullwhip29
Guest
bullwhip29

still no FBT in Whistler btw…so maybe he is out skiing ?

Bag it and tag it
Member
Bag it and tag it

oops…just noticed YVR’s post…credit for showing up

Best place on meth
Member
Best place on meth

Well, I didn’t get EVERYTHING I wanted today but the pile of gifts were still quite impressive.

KickThemOut
Member
KickThemOut

Isn’t that your hallmark? Wanting everything for nothing?

Dave
Member
They did more than I expected. I still think the psychological message will be as important as anything else. The NDP needs to sell the message that it’s going to cost you money to park your money in real estate in BC. The Liberal message is also going to matter as well, probably more than what the NDP say. If the Liberals jump up and down and claim these measures are terrible, then it will help sell the NDP message because it will bring attention to the new taxes. The fact that the Liberals are fairly quiet about all this, speaks a lot to me. Not a word from Wilkinson. Not a word from the Liberal Party. The Liberal caucus only attacked higher taxes in general and not the real estate measures. The Liberals want to protect the market from… Read more »
KickThemOut
Member
KickThemOut

They pretty much guaranteed another great year for condos & TH…

bullwhip29
Guest
bullwhip29

there is a chance that this is all for show if an owner can dodge the spec tax by just simply renting their place out (or appearing to) despite not having local income. can anyone clarify?

Dave
Member

It only took the foreign money about 3 or 4 months to figure out the foreign buyers tax. There is big money flowing into our real estate market and that buys good tax accountants, lawyers and bankers who can make things happen for you.

Implementation of all these measures is going to be huge. It’s possible the NDP get it all wrong and it’s easy to dodge the new taxes. Or maybe not. I don’t know the details to say. I do think our track record in Canada is terrible in this respect. Revenue Canada and our regulators are next to useless, which is why a lot of corrupt money finds it’s way here. We’re great at putting pressure on law abiding citizens, but foreign money baffles our bureaucrats.

YVR
Guest
YVR
I will say the NDP budget is a positive step in the right direction. The big red hearing is the the 2% speculators tax. They are budgeting it at $200 million revenue per year. That equals about 5000 houses being taxed (at an average price of $2M each). Considering there are supposed to be 10s of thousands of empty homes in Vancouver proper alone not counting the 100s thousands of occupied HAM houses it clearly indicates this tax is all show. It should be budgeted in the multi-billions if they truly intended on collecting 2% from HAM. In comparison the additional carbon tax in the budget is also $200 million. Your average BCers will be paying just as much as the total HAM tax on their gas and hydro bills. How much of a difference will that $200 million make… Read more »
KickThemOut
Member
KickThemOut

Exactly! And the morons here can’t see that…

But then when you have morons supporting even more clueless morons in charge, what can you expect? frankly, NDP knows there aren’t that many actual foreign owners to tax. Most of the foreigners / HAM this blog rages about get counted as local because they are freaking locals as far as the law is concerned. If they want to start taxing them based on declared income / paid taxes then they have to create exemptions for seniors / retirees at the minimum, never mind all the other sobs stories that will show up, which means easy loopholes for these new “locals” to get around the taxes.

What they did is basically guarantee another banner year for condos & TH which are big profits for big developers.

patriotz
Member

“You are getting desperate. Just admit the NDP lied to you.”

You are getting desperate. Just admit you lied to us.

YVR
Guest
YVR

You obviously do not understand what a lie is. The NDP did not take rapid action to cool housing. They waited 8 long months before doing anything. They didn’t even bother to talk the market down. I suspect many of these measures were last minute on account of Weaver. A few months ago Horgan had promised to protect home owners equity and they were talking about supply only changes. Why did they have to wait until the budget for most of this? No reason other than Weaver finally forced them into it. Prices are up 27% year over year. Let me know when prices get back to the point when the NDP took office.

Name
Guest
Name

YVR i see you are still sticking to your script…

patriotz
Member

“You obviously do not understand what a lie is.”

You made a lie right in the post: “A few months ago… they were talking about supply only changes.” That is BS. The NDP never disavowed the demand side promises in their platform. And they delivered on them.

Oracle
Guest
Oracle

My guess is they can raise revenue this was if they have to. They can easily make that $200 million into $2 Billion if they have to.

They will Guage the public. If outcry stronger, then the 2% spec tax will have more bite.

Doomcouver
Member
Doomcouver

The new measures are pretty much everything a housing bear could have realistically hoped for. I might not have to vote Green Party next election after all….

Just me
Guest
Just me
I suspect that they are downplaying the income from the speculator tax. If it comes short, they can claim accuracy. if it comes higher they pocket the foreign cash and pat themselves on the back. Taxing these millionaire migrant leeches is a qin-qin. The only reason the BC Libs never dared to do it was because of the pressure from their constituents (homeowners, developers, real estate lobby) who really don’t want this shitshow to ever stop. As I wrote many times: a small set of people became wildly rich on the back of the Chinese millionaires’ wave, the majority of us (well-established taxpayers, from the most humble to the professionals) have lost big time. To make up the lost ground would take years. But this is a start. And sends a clear signal: “You and your cash are no longer… Read more »
Doomcouver
Member
Doomcouver

We’ll have to see what the total % of foreign buyers is now that they can’t hide behind corporate anonymity anymore. My feeling is similar to yours that they are massively underestimating how much real estate foreigners are sitting on. A massive win-fall of money via the tax followed by a rush to the exits seems exceptionally likely in the months ahead.

Best place on meth
Member
Best place on meth

When Krusty reluctantly brought in the foreign tax, her real estate donors threatened to pull her campaign funding.

Thanks to the NDP, that kind of payola is over with.

As for the speculator tax, the money it brings in is secondary to the real purpose of killing speculation.

YVR
Guest
YVR

“As for the speculator tax, the money it brings in is secondary to the real purpose of killing speculation.”

A $200 million tax on a $100 billion industry is not going to make a dent. If it is in fact only going to bring in $200 million this tax is for optics only.

CRA221
Guest
CRA221

Could also be that they projected HAM selling out in their forecast thus the lower total revenue represents the ones who decide to stick it out?

Just a thought.

Bag it and tag it
Member
Bag it and tag it

I thought I read there are exemptions in the spec tax for long term rentals…so if they rent the place out they’re covered…so maybe they’re assuming in their forecast that a lot of these home will be rented out.

Just me
Guest
Just me

Question is: how much if the rental income can be used for the exemption? And what if you own multiple homes?

bullwhip29
Guest
bullwhip29

i think what is in question is whether renting out your place long term exempts you from having to use the income offset equation which would be used to calculate the speculation tax . so, is this just a glorified and more punitive version of Gregor’s tax and nothing more? if so, it makes no difference how many properties you own as long as someone is living in them for 6 months/yr

Whister or Bust?
Guest
Whister or Bust?

Admin I know there are only 22 people who frequent this blog but it appears you have lost interest.

Friday Free for all is starting to last all week.

Surely the budget is worthy of a new thread?

Doomcouver
Member
Doomcouver

Maybe the admin bought a condo. 😉

xhistory
Guest
xhistory
Just me
Guest
Just me

If you look at point (7) in the housing booklet, you will find the plan to change the homeowners’ grant. If they make it more progressive, it is going to be game over for many boomers using the proceeds to invest in the stock market and get even richer.

Reading this budget is like reading 10 years of this blog: they literally listened to all the policy proposals we debated over the years. I think this is brilliant.

The Federal government has to cooperate with the local NDP. If they set up the agency to police money laundering, we might for their first time see the rule of law applied to our city. After more than a decade of total caos and criminal negligence.

Lost,... but not leased
Guest
Lost,... but not leased

Any investigation has to OMIT the RCMP…

Google” GANGSTER OUT BLOG ” to see how bad the RCMP are…

Bear Vancouverite
Member
Bear Vancouverite
To pre-empt and debunk the 2% speculator loopholes that are already being declared by Dave and bullwhip29: Speculators will not be able to avoid the speculation tax by setting up fake companies and declaring tiny amounts of T4 income (the fake company setup is superfluous anyway, they could just declare their resident tax status and declare global income). If the tax follows the same bill as the one the NDP tabled 4 times already, local income exemption is for the amount you’ve paid in T4 taxes. Ergo, if you are a speculator in a $2M home and decide to declare $40k T4 income and pay tax on that measly income, you’ve just saved yourself maybe $5-10k in Speculation taxes, you still have to pay the difference of the $40k. Either way, a speculator holding a $2M home will now pay… Read more »
patriotz
Member

“Either way, a speculator holding a $2M home will now pay $40k in taxes”

I think the exemption from the speculation tax is based on provincial income tax only (literally “income tax in B.C.” in the document). Thus paying yourself income from a fake company will make you a lot worse off, since you will also be paying Federal income tax (about 2x provincial) for no return. Of course the fake income will also disqualify you from a host of benefits for those on low incomes.

Oracle
Guest
Oracle

I think they will offset it by rental income. $40000 bill on a $2 million second home reduced or eliminated with rent of up to $40,000.

Here’s what I love if they do this. They have to declare that $40,000 and this will reduce their baby cheques and old age GIS payments. Hahaha. Hope it has teeth.

bullwhip29
Guest
bullwhip29
my comment regarding the fake co/subsidiary was with regard to the transfer of offshore funds and using said co in addition to “employing” various family members and associates who will use this to facilitate the completion of all the blank spaces on a loan application now correct me if I am wrong, but owner would only claim local income exemption if they did not fit into any of the other up-front exemption catagories? as an example, would this owner not be able to use long term rental exemption? besides, i think your interpretation of local income exemption is off as many boomers not currently working (or earning little) may very well have vacant second homes elsewhere in the prov that they own free and clear and now they will be severely penalized for this or have to rent out long… Read more »
Lost,... but not leased
Guest
Lost,... but not leased

Even more interesting is if CRA audits those homeowner who lived in multi-million dollar homes and also claimed welfare etc…….I hear this was quite bad.

Hopefull
Guest
Hopefull

My BF is a Canada post mailman in Pointgrey, says there a silly amount of welfare mail there

Confucius
Guest
Confucius

Hey BPOE, the real freeloaders are going to start paying now. Awwwww, I hear they’re already crying on WeChat.

For the record, my wife is from China and she hates how these multimillionaires she’s knows are getting ridiculous freebies because of their low Canadian income, while we get nothing and pay our taxes. She’s happy the free ride is over for them. Most working Chinese are resentful of the bullshit that’s been going on. The following link outlines some of the many programs they have been leeching off of. These programs are meant for people who actually need them. It unbelievable how shameless these individuals can be and how stupid the government has been until now. Good job NDP. 🙂

http://immigrationwatchcanada.org/2012/09/06/taiwan-immigrant-canada-is-being-cheated-by-wealthy-immigrants/

Specuskeptic
Member

Hi Oracle. 😉

Oracle
Guest
Oracle

Not me man. And no YVR is. It me either.

Just have one other alias and I make that one blatantly obvious.

Specuskeptic
Member

Lame attempt at a joke on my part. “Hopeful” posted an anecdote about a boyfriend. Y’all can figure out the rest.

Bag it and tag it
Member
Bag it and tag it

You don’t become an owner of a $13mil house as a student or housewife by not applying for free money…