BC, economy, politics, renting, supply

BC Tables Speculation Tax on Vacant Second Homes

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47 Comments

Will a new tax on vacant homes help solve the affordability crisis?

The speculation tax will apply to those who own multiple properties in Metro Vancouver, the Capital Regional District (excluding the Gulf Islands and the Strait of Juan de Fuca), Kelowna, West Kelowna, Nanaimo-Lantzville, Abbotsford, Chilliwack and Mission.

The tax will apply at a reduced rate in 2018, based on property owned as of Dec. 31. It expands in 2019 to 0.5 per cent of assessed value for B.C. residents, one per cent for Canadians from outside B.C., and two per cent for non-Canadians.

Owners are exempt if they rent their properties for at least six months a year. And there is also a tax credit for B.C. residents with second homes valued under $400,000.

James pointed to exemptions she said will make the tax fair, including for people facing medical emergencies, people who have to relocate suddenly for a job, seniors who enter care homes, people undergoing a separation, and those with disabilities.

“If people choose to leave their homes vacant where the housing crisis is the deepest, we are asking them to pay their fair share. All that revenue will be returned to British Columbians in the form of affordable housing,” said James.

Read the full article here.

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Bear Vancouverite

Let me summarize YVR’s position for all newcommers so they don’t get confused:

NDP Announces Speculation Tax: “All they do is raise taxes, don’t vote NDP!”
NDP Reduces Speculation Tax: “More failures to keep promises, don’t vote NDP!”

And the cherry on top:

YVR in 2016: “Liberals and government can’t stop the coming crash”
YVR in 2018: “Prices are rising because of the NDP!”

YVR in 2016: “Rising interest rates will lower prices”
YVR in 2018: “Nevermind interest rates, under NDP prices are rising”

YVR in 2016: “I only care about SFH”
YVR in 2018: “I don’t care if SFH have dropped 20%, condos are still going up in price”

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Bear Vancouverite

Oh and for the record, because Patriotz is a stickler for this, the above is a parody paraphrase of YVR’s sentiments, not word for word quotes.

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ChinaTwo

“My parent both and me got Permanent Residency. We buy 7 property. We have income $20 each per year on tax return. We have lot saving that’s how we pay expenses. No other income anywhere in world eventhough dad lives Asia more. We love new spec tax. Here are 5 property. 1) my parent $5 million home. My parent principle residence. No tax hehe 2) my parent other $4 million empty home. I say it my principle residence. I smart hehe. No tax hehe 3) we have townhouse property in Langley. We exempt cause is under construction and take 5 year. Carole Jame say these properties exempt cause take ‘years and years’ to develop and get permit. No tax hehe 4) we have $2 million home in Westwood Plateau Coquitlam. Nice area and price go up cause more my cousin… Read more »

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Ultra Bear

Satellite families don’t have the primary residence exception. Unless they lie about their income but then they’ll have to pay income tax on it.

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Ray

I’ve been waiting for 8 months for the admin to fix vancouvercondo.info/feed the RSS feed called Entries RSS on the main page, so that I’d get notification of posts again but it continues to be broken. Has it just never been reported before or what’s the deal?

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YVR

Bingogate II? Same old corrupt NDP.

The B.C. NDP has been fined $4,000 by Elections B.C. for late filing of money raised at four political fundraising events last year.. The province’s elections overseer says the NDP failed to follow those rules in four separate cases in 2017.

https://globalnews.ca/news/4514721/b-c-ndp-fined-4000-for-late-filing-of-political-donations/

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Best place on meth

Who do we choose then?

Same old corrupt NDP or the same old corrupt LibCreds?

I’d like to hear the thoughts of a non partisan like yourself, YVR.

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MAKE TRUDEAU A DRAMA TEACHER AGAIN

Yuan declined nearly 10% against the C$ since the spring. This is a big deal. It’s like the foreign buyers tax is 30%. It might also encourage owners to sell and convert back.

I get the feeling that the big scam of leverage and HAM buying with ‘cash’ is coming apart.

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Best place on meth

It’s also declined vs USD 10% since then, which will make Trump very, very angry.

How dare those shifty currency manipulators try to get around his tariffs like that.

If that all important level of 7.0 is breached, all hell will break loose….and it’s very close right now.

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Laibach

“It might also encourage owners to sell”

Sell, to whom?

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Selective Memory

In today’s print edition of the Georgia Straight there’s a full-page ad for Hector Bremner and Yes Vancouver on page 6. By far the largest of the 5 or 6 election ads in this issue. It also happens to be missing the required sponsor statement giving the name and contact info for whoever authorized the ad.

Is this another injection of under-the-table developer cash into puppet Bremner’s campaign? Aided and abetted by the ever-more-compromised Georgia Straight?

If you’re inclined to complain about this violation of election advertising law, feel free to phone BC Elections at 1-855-952-0280 (Mon to Fri, 8:30-4:30.)

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paulb

New
173
Price Change
92
Sold
70
TI:13763

http://www.clivestevepaul.com

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Laibach

Incapable and gutless governments in case of BC are just wind in the back for all kind of scumbags in this town, almost like providing support for their fuckups.

“The shark-infested pool represents scammers and swindlers looking to capitalize on Vancouver’s white-hot rental market that hasn’t gone above a one percent vacancy rate since last year.”

https://www.vancourier.com/news/this-is-what-a-vancouver-rental-scam-looks-like-1.23468775

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Best place on meth

Fake Craiglist ads are pretty easy to spot, just look for 3 major red flags.

1. Obviously too cheap
2. Dog are ok – woof
3. Blatant geographical errors.

https://vancouver.craigslist.ca/van/apa/d/new-wave-of-living/6726992439.html

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Oracle

Future Speculation Tax changes:

All tax rates to stay at 0.5%. Not increased. This will be announced next year. Watch and see.

Exemptions everyone except Martians qualify for.

Any municipality can opt out next year. Wait and see.

Now this site is silent with today’s changes. Anyone going to defend the antics of the NDP and Greens on this? I’m all ears.

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southseacompany

“Minutes from U.S. Federal Reserve meeting reveal talk of more rate hikes”, CBC News

https://www.cbc.ca/news/business/federal-reserve-hike-rates-1.4867293

“The Fed released an updated economic forecast at the September meeting. The median view of all Fed officials was that rates should be increased one more time this year and three times next year and a final quarter-point rate hike in 2020. At that point, the policy rate would be at 3.4 per cent, according to the median of Fed officials’ individual forecasts. That would put it above the three per cent level which the Fed currently pegs as its “neutral rate.” The three per cent level is the point where officials believe Fed policy is neither boosting growth or holding it back”

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southseacompany

“September Home Sales Decline in Nearly 70% of Local Markets Across Canada”, Better Dwelling

https://vancitycondoguide.com/september-home-sales-decline-across-canada/

‘”It appears higher borrowing costs and tighter lending conditions are working their way through the Canadian housing market.”

“According to the Canadian Real Estate Association, home buyers retreated across the country, “About 70% of local markets were down on a y-o-y basis, led primarily by declines in major urban centres in British Columbia, along with Calgary, Edmonton and Winnipeg.”’

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Oracle

BREAKING NEWS!!!!!!!!!

WOW! I’m not surprised.

NDP has done a major backtracking of the Speculation Tax. Told you minions so. This was just announced today at noon. It’s all over the news. Press conferences to come.

Going forward, the tax rate will be 0.5% for all.

Foreigners who live here or call Vancouver home for more than 6 months of the year don’t pay. I guess this includes the 100,000’s of temp residents here.

Told you so. And don’t I deserve to say WOWowow.

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TrollerOfTrolls

BREAKING BREAKING NEWS!!!

If you read The next line.

1% for residents outside BC
2% for non-Canadians.

BAZINGA! YOWZA!! SHAKE AND BAKE!!!!

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Oracle

Wrong. Just reduced less than an hour ago.

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CRA221

It’s still 2% for non-Canadians.

It was just reduced from 1% to 0.5% for residents outside of BC

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Oracle

the 2% is void now if a non-Canadian lives here 6 months 1 day of the year now.

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Oracle

And the problem now is that the locals who have PR are buying multiple homes with illegal Chinese money.

This spec tax now does little to change that.

I seriously think some people here are developer shills.

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YVR

The NDP are so weak. What an embarrassment they are.

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Oracle

Cemented my decision to NOT vote for ProRep. Too many games played by them and Greens.

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MAKE TRUDEAU A DRAMA TEACHER AGAIN

You have flipped flopped 20x’s.

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TrollerOfTrolls

Yah YVR! So weak!!! You know who’s strong????? The Liberals!!!!

#bringBackTheLiberalsWhoCreatedThisMess

They won’t screw us as bad the second time around. They already emptied ICBC and B.C. Hydro. What’s left?!?!!?! Only one way to go!!!

You and Oracle are smrt

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YVR

Are you saying someone could do worse? I doubt it. Go cry yourself to sleep. The NPD have failed again. It won’t be the last time. Same old NDP. It is in their DNA.

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Oracle

This is the problem with you guys. We point out that NDP has lied and then we get called Liberals. Tell me it’s clear to you now that the NDP is not going to do anything with housing.

I have been yelling at the top of my lungs and denigrating everyone here so you can see the light and pressure he GreeNDP. It was now or never.

Good luck ever owning now and good luck ever seeing lower rents.

And don’t call me a troll. Enjoy your wishful thinking lives.

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Oracle

Is 0.5% for Non-Canadians this year. They won’t increase it next year. Watch and see. They will play the same games.

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YVR

The NDP are complete gutless flunkies. Just another broken election promise. When does Eby’s recall start?

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Best place on meth

The balcony muppets are back, grumbling to each other in classic style.

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YVR

Another bad day for the NDP supporters. Are there any promises left to break or have they all been broken?

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Best place on meth

Still playing dumb, are we?

https://www.cbc.ca/news/canada/british-columbia/bc-government-ndp-promise-tracker-1.4669968

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YVR

The CBC. Good one. They are an arm of the left.

Lets review: spec tax reduced by 75% (2% to 0.5%) with a $400k exemption (90% reduction overall), Site C going through, LNG a go, no $10 day care, no foreign buyers tax on presales, no 120,000 affordable housing units, higher ICBC rates, higher housing prices, higher rents, higher hydro rates, higher gas prices, no rental rebate and on and on. What ever is left they will renege and flunk out at. Same old NDP.

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Oracle

It’s funny that the people supporting the NDP after all these failures don’t realize the NDP is digging their financial graves.

What’s just as perplexing is people like us who try to enlighten the minions to what’s going on call us Liberals.

Pathetic on both accounts.

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YVR

It took this same group 2 to 3 years to figure Trudeau is useless and screwing them over. They are slow studies. Give the NDP another year of kicking them directly in the balls and eventually they will figure it out.

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MAKE TRUDEAU A DRAMA TEACHER AGAIN

Your forgot a 2% increase to personal income taxes and 1% to corp.

These will go up again next budget. They have already telegraphed the move.

Same old NDP

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Oracle

So Media is saying Weaver forced the NDP.

Hahaha

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kabloona

“Majority of first-time buyers maxed out budgets to buy a home: CMHC”

https://www.cbc.ca/news/business/cmhc-budgets-homebuyers-1.4868418

“About 85 per cent of first-time buyers reported spending the most they could afford on their property
The Canadian Press · Posted: Oct 18, 2018 12:36 PM ET

More than half of those concerned say they worried that they paid too much for their home, while one third say they worry about rising interest rates and qualifying for a mortgage….”

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Doomcouver

I find it odd how politicians and people in general still believe you can solve the affordability crisis without completely crashing the price of real estate. It’s possible some politicians (including Carol James) understand that, but don’t want to let on that’s their intention. It’s extremely politically unpopular to intentionally try to destroy homeowner equity, but that’s the bitter medicine we need for economic sustainability in BC.

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Stand up for Canada

Exactly. I’ve spoken to a lot of leftist politicians, pundits and supporters who truly believe it’s somehow able to make housing “affordable” by not crashing prices. It’s of course impossible and leftists seem to want to blame the big banks and anyone but immigrants and ourselves for this mess.

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YVR

“It’s possible some politicians (including Carol James) understand that, but don’t want to let on that’s their intention.” If their intention was to crash prices they would have done it by now. The NDPs intention is to collect more taxes with as little impact as possible on housing prices. That is why prices are higher today for most housing stock since the NDP took power. There is a reason they have not banned foreign buyers or implemented B20 for credit unions. Both of those would lower prices instantly but they would not bring in taxes (which is the true objective). The “make things more affordable” is to justify the tax. Like the carbon tax is there to save the planet. Call it a carbon tax and dumb people just pay the higher gas and hydro prices without complaining,. I am… Read more »

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Selective Memory

No political party wants to crash housing. In BC, we have a party that would like to slowly deflate prices (NDP), and a party that would like to keep madly pumping (BC Libs).

Pretty simple.

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Oracle

NDP insiders and MLAs own tons of investment real estate. It’s clear by now they don’t want price declines.

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Best place on meth

Then why are prices declining?

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BBB

Prices at high end declining because of Chinese capital controls. Low end is at record high.

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