Foreign buyers tax in the Okanagan

[jsytnick]

I'm all for out of province/country absentee owners getting taxed, so long as that tax money goes directly into more housing for low income families/people. Developers don't build low end because there's not enough profit in it, so with this tax money they should be subsidized to build more affordable housing options. Then there's the whiners, the 'Bertans crying foul. Just shut up for once. Most come here and just *bleep* on this province and head home. I for one hope that they keep selling off and leaving back across the Rockies. Byeeee.

[Bpeep]

so long as that tax money goes directly into more housing for low income families/people.

Except we all know that would never happen.
The best you can expect is some small underfunded yet overhyped program created that's really nothing more than a temporary vote grabber.

[jsytnick]

Except we all know that would never happen.
The best you can expect is some small underfunded yet overhyped program created that's really nothing more than a temporary vote grabber.

Yea, I know where the money will go. We all do. Another tax grab to try and balance the budget. Pretty sad when the majority are brainwashed into thinking more taxes will solve all our problems.

[Mytown]

The NDP naming this a "speculation tax" is a joke. The NDP knows tax-paying voters believe real estate speculation is a leading cause of high home prices, and this way the party is seen to be doing something about it.This tax after all won't impact speculators at all as they are in and out of the market within a few months and in some pre construction purchases less than a month. They are impacting long-term, non-resident owners who are not speculating on the housing market – they simply own the home and will pay this tax in perpetuity. Many out of province purchasers buy in the Okanagan with the full intention of retiring here. If they wanted to address speculative buying why not limit the tax to those out of province buyers who sell within 12-24 months. I believe this is more of a *bleep* for tat between our two NDP governments between BC and Alberta. I fully expect to see another missile coming over the rockies from our friends in Alberta.

[lesliepaul]

Don't worry folks................A.J. Hassi of Vantage West Realty is all over this!

How can a guy who paid Barbara Corcaran from "Shark Tank" to speak on his behalf fail us all. Just watch TV stations from other cities across Canada and see her hyping other R.E. agents across the whole country. Sorry A.J.........your just not that special.https://www.castanet.net/edition/news-s ... htm#220146

[Urban Cowboy]

[AlienSoldier]

To all those that think developers don’t build low end because of the profit need to realize that if a de eloped started building homes at $150,000, there would be a rush to buy them and thus push there price up again making them unaffordable. Canadians owe over 2 trillion dollars in debt with most of it in mortgages and B.C. has a negative savings rate. It wasn’t people from Alberta who did this, it was locals pure and simple wanting to investing in an upward moving market.

In addition, anyone who buys a house in the Okanagan pays property tax, buys food and gas when they are here so they do pay taxes, but do not use the hospital, roads and other facilities year around. So they are contributing more to the tax base and using less resources.

[Tradesman]

So our plan was to sell our house in a few years and use the equity to help our kids buy houses. If the house decreases in value the equity is not there and our kids will be unable to afford housing.

I thought there was no problem with our plan but the NDP seems to think we can't take care of ourselves.
... how much longer until the next election?

[birdsandbeetles]

https://www.castanet.net/edition/news-s ... htm#220146
"Hazzi thinks it could actually have the opposite effect over time by taking away the incentive to buy rental properties, which could shrink supply even further and force rents upward."

This doesn't make sense. People don't buy rental properties to have them sit empty - they rent them out.

[Merry]

I don't have a problem with foreign buyers (who don't pay income tax in this country) being charged some sort of vacant house tax. However, I DO have a problem with treating Canadians from other Provinces differently than Canadians from this Province, because we are all Canadian and the last time I checked BC was still part of Canada.

If the Government wants to impose a vacant house tax on Canadians, the tax should apply to ALL Canadians, including those from BC.

[Jack DeBear]

<snip>

The new "speculation tax" they have proposed would apply to our home in West Kelowna. Under the current proposal, it will be equal to 0.5% of the assessed value of our property in 2018 and 2% of the assessed value per year thereafter. The total taxes we will pay just for owing a home in West Kelowna will double this year and will increase to $18,000 per year after this year (in total taxes). That's $18,000 in taxes on a home with a current assessed value of $700,000!

<snip>

viewtopic.php?f=23&t=77291#p2314271

And

Kelowna real estate developer and founder of Vantage West Realty, AJ Hazzi . . ..

<snip>

Okanagan residents and Albertans, in particular, are impacted by the province's existing foreign-buyers tax, which will rise from 15 per cent to 20 per cent.

The tax equals 0.5 per cent of the assessed value of a home in 2018, and two per cent in the following years.

The new speculation tax is expected to kick in next fall and is designed to target property buyers who don’t pay income tax in British Columbia.

Property owners like Jim Daynard, who plans to sell his lakefront property in the spring, says he's worried he won't be able to.
"This was my dream to have a place on the lake and the government is screwing it up," he says.

Daynard says his neighbour is from Alberta and may have to sell his lakefront property, "if he gets taxed it could cost him $30 to $ 40 thousand dollars and he can't afford that."

<snip>

https://www.castanet.net/news/Kelowna/2 ... tax-impact

I'm lost. Would someone please kindly explain the math and its application behind the above cost claims?

Thanks.

And aside from that, on a possibly humours note, if Daynard can’t sell his property, well then, how about this? http://www.youtube.com/watch?v=f7RDpfxQAjY

[goalie]

They should restrict the speculation tax to people who have 3 or more properties. Doesn't make sense to penalize Albertans who have a second home here. They are not speculating. I think they did it mainly to screw under-the-table rentals. If you don't declare it as rented then you pay speculation tax and if you declare it as rental you have to pay rental income tax.

[L90D]

If this legislation is passed as the NDP intends I'd be surprised if the westcorp tower proceeds, as out of province buyers would have likely made up a high percentage of buyers of the condo units.

[vegas1500]

If this legislation is passed as the NDP intends I'd be surprised if the westcorp tower proceeds, as out of province buyers would have likely made up a high percentage of buyers of the condo units.

I wouldn’t be shocked to see many of the new developments delayed or cancelled.

[sublime]

If this legislation is passed as the NDP intends I'd be surprised if the westcorp tower proceeds, as out of province buyers would have likely made up a high percentage of buyers of the condo units.

I wouldn’t be shocked to see many of the new developments delayed or cancelled.

And no guarantee though the hope that would persuade developers to market/build for the live and work in BC demographic... let's say not the 600k+ plus condo crowd that they seem to be building for at this point.