Thousands of Metro Vancouver real estate deals caught by tax deadline
‘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.
Up to 4,000 deals affected by new tax
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.
