There are already signs the 15% property tax for non-Canadian citizens and non-permanent residents in Metro Vancouver is putting a chill on sales, and now there are calls to investigate how it was implemented.
‘Last week was pretty hectic,’ realtor said of rush to avoid new tax by midnight cutoff
For some the last few weeks was a rush to wrap up real estate deals before Aug. 2 tax was imposed on Metro Vancouver property deals. (DeWitt Clinto/Flickr)
Thousands of home buyers and sellers in Metro Vancouver reacted with ‘shock and disbelief,’ madly rushing to beat the Aug. 2 deadline of the new 15 per cent foreign buyer real estate tax.
Realtors estimate 3,000-to-4,000 deals were affected.
“It’s so fast. Just everyone is shocked,” said Jin Liu, a realtor with Remax.
After the legal documents flutter to the floor industry watchers warn there will be challenges to the new tax, seen by many as unfair.
Some say it violates the North American Free Trade Agreement (NAFTA) which prohibits governments from imposing policies that punish foreigners. Top lawyers say the tax is ripe for a constitutional challenge.
The foreign buyer tax, aimed at cooling Vancouver’s torrid housing market, was announced July 25. The aim was to chill speculative investing and preserve affordable homes for people living and working in Canada.
Buyers and sellers were caught in the sting of the Aug. 2 tax that has been applied even to deals struck long before it existed.
“We weren’t given notice …. so most likely the deals will collapse. It’s not fair for everyone,” added Liu.
Vancouver’s sky-high real estate prices are changing the shape of its retail districts – with pricey neighbourhoods feeling some pain, and formerly neglected pockets of the city getting a boost.
Several long-time businesses on the city’s expensive west side are either closing down or moving as retail strips transform under the pressures of rent and tax increases, redevelopment and a shifting demographic. The shopping strip along West Broadway, in the once-trendy heart of Upper Kitsilano, suddenly has vacant storefronts. Long-time shops are moving or shutting down.
“There is something wrong with West Broadway – an unprecedented number of businesses are closing their doors,” said Marion Jamieson, director of the Upper Kitsilano Residents Association. “I think the kinds of issues we’re facing in the residential areas of gentrification are also having an impact on commercial areas.”
Jonathan Cooper, Vice President of Operations at Macdonald Real Estate Group joins Business News Network (BNN) for reaction to B.C.’s housing data as well as OSFI’s warnings to mortgage underwriters.
(To view the video on mobile devices, please click here for direct play on BNN.)
Business News Network (BNN) speaks with Jonathan Cooper, Vice President of Operations at Macdonald Real Estate Group about David Rosenberg of Gluskin Sheff + Associates comments on policymakers and housing supply constraints and how they would relate to the Vancouver real estate market. What change are needed to address the Vancouver housing supply problem?
It is time for HGTV.com’s Ultimate House Hunt once again!
This year Macdonald Realty is nominated in the Best International Home category for a spectacular Three-Level Penthouse in Vancouver, Canada. This is the category we won last year for The Sanctuary, a luxury home we listed and sold in Squamish B.C.
SENSATIONAL TROPHY VANCOUVER PENTHOUSE – Atop a 32 storey skyscraper this three level sky mansion sprawls over 6,000 square feet of living space and 1,700 square feet of terraces. Outstanding first impressions from the direct elevator access leading to a grand living room featuring soaring 16 foot ceilings, panoramic English Bay views and a grand curved staircase. Master boasts gas fireplace, large steam shower and a two person jetted tub situated mid room. Main level offers second master suite with fireplace and numerous built-in cabinets. Bespoke chef’s kitchen with 48 inch Décor six burner range, numerous built-in ovens and appliances anchored by huge granite island and access to 700 square foot terrace with fireplace and built-in Viking BBQ. Family room with grand wet bar, air conditioning, concierge and six-car private garage. LP $7,838,000
Tour amazing homes across the globe, vote for your favourites, and enter for your chance to win a $10,000 cash prize! And remember you can vote for your favourites once a day. Follow the instructions below to vote for Macdonald Realty’s Nominee for HGTV’s Ultimate House Hunt 2016:
Step 1: Tour the homes in the category.
Step 2: When you’ve found your favorite, click “I’m Ready to Vote.”
Step 3: Choose your favorite by clicking “Vote.”
Step 4: Click “Continue to Next Category” to tour more homes.
