Foreign buyers tax in the Okanagan

[Snowbound]

LANDM, this is the article I read, though it is a couple years old:

https://www.theglobeandmail.com/news/in ... e32923810/

So it looks like the assessed value of the land is what is being overlooked. Still a big gap in taxation, not to mention the loss of valuable farm land across the region.

[OgopogoO]

Breaking news:

"City of Vancouver to collect $30M from empty homes tax"
https://globalnews.ca/news/4161786/vanc ... um=Twitter

Some highlights:

On average, homeowners paid about $9,900 for the empty homes tax.

Failing to submit would result in an automatic assumption that the home is vacant and will be subject to the tax, which is one per cent of the assessed home value. Homeowners will also be subject to a $250 penalty for not declaring on time.

Can't wait to see results in Kelowna.

[atenbacon]

Can't wait to see results in Kelowna.

Why exactly? What do you stand to gain as a renter in Kelowna once the buyers tax takes effect?

Do you actually think you will reap some reward that will make you realize vast financial gains?

So many others out there willing to buy before you and you can't wait? Erm... OK then, best of luck in you getting to see results. Haha.

I don't rent and my home is paid for and not empty so I guess that is why people like yourself mystify me with your excitemnent towards things that really have little or no effect on your situation. Please, explain your can't wait attitude it would be interesting to see from your point of veiw what gives you these feelings of hope and dreams.

Kelowna will not be collecting 30 Million dollars, and unless you fit into the category of qualifying for affordable housing, I really see nothing that will help you in any single way.

[sublime]

"To date, there have been 183,911 declarations of empty homes in the city, which Robertson said is about 99 per cent of all empty homes."

That Vancouver stat is disturbing. Wonder what Kelowna's will be.

[atenbacon]

"To date, there have been 183,911 declarations of empty homes in the city, which Robertson said is about 99 per cent of all empty homes."

That Vancouver stat is disturbing. Wonder what Kelowna's will be.

Roughly 15,464 if based on a housing quantity comparison from the 2016 census, and assuming that the percentage of empty homes is similar in Kelowna to Vancouver which sits at 20.67%

In comparison, Vancouver expects to collect $30 Million dollars, Kelowna (all details the same) could expect to collect $2.53 Million. Since value is considerably lower in Kelowna, I suspect it would be even less.

That should help HUGE towards maintaining the winter heat shelters, the rent bank or buying more land for affordable housing. Heck, you could almost buy 4 houses a year for that.

[LANDM]

LANDM, this is the article I read, though it is a couple years old:

https://www.theglobeandmail.com/news/in ... e32923810/

So it looks like the assessed value of the land is what is being overlooked. Still a big gap in taxation, not to mention the loss of valuable farm land across the region.

That article typifies a typically incendiary view of the situation.

It’s really simple. If you qualify by producing farm income above a certain amount, the government gives "farm status" by reducing the assessed value of the farm component (typically just the land, but it can certainly contain the value of farm related improvements) to an extremely low value. Therein lies the sole benefit of having farm status and, in our area, the benefits are smaller than what people typically imagine. And it will not reduce the taxation of the "mansion" value in any way.

The article says things like "barely meeting the minimum".......they could have said that they exceeded the necessary threshold for attaining farm status. They talk about comparisons in the taxation levels that, frankly, are not enumerated and appear to be vastly overstated. However, since they are being sensationistic, it is impossible to verify the accuracy.

[vegas1500]

Can't wait to see results in Kelowna.

Why exactly? What do you stand to gain as a renter in Kelowna once the buyers tax takes effect?

Do you actually think you will reap some reward that will make you realize vast financial gains?

So many others out there willing to buy before you and you can't wait? Erm... OK then, best of luck in you getting to see results. Haha.

I don't rent and my home is paid for and not empty so I guess that is why people like yourself mystify me with your excitemnent towards things that really have little or no effect on your situation. Please, explain your can't wait attitude it would be interesting to see from your point of veiw what gives you these feelings of hope and dreams.

Kelowna will not be collecting 30 Million dollars, and unless you fit into the category of qualifying for affordable housing, I really see nothing that will help you in any single way.

Why? its the have and have nots....people cant stand to see other people better themselves. Pure jealousy over the haves............

[OgopogoO]

Can't wait to see results in Kelowna.

Why exactly? What do you stand to gain as a renter in Kelowna once the buyers tax takes effect?

Do you actually think you will reap some reward that will make you realize vast financial gains?

So many others out there willing to buy before you and you can't wait? Erm... OK then, best of luck in you getting to see results. Haha.

I don't rent and my home is paid for and not empty so I guess that is why people like yourself mystify me with your excitemnent towards things that really have little or no effect on your situation. Please, explain your can't wait attitude it would be interesting to see from your point of veiw what gives you these feelings of hope and dreams.

Kelowna will not be collecting 30 Million dollars, and unless you fit into the category of qualifying for affordable housing, I really see nothing that will help you in any single way.

I'm only a renter because it has made vastly more financial sense, both from the point of view of opportunity cost but also as a way to reap the benefits of the best bull market in equities in a generation. Why wouldn't I want a tax that may potentially pop the bubble and deflate prices? Both myself and my renter-investor clients stand to benefit from a correction or collapse in housing prices.

If anyone shouldn't be popping a gasket over the tax is a guy who supposedly has his home paid for and not empty, as you claim to be. But keep promoting pro-bubble anti-tax hysterics.

[OgopogoO]

The sky is falling, the sky is falling!!!! Castanet's favourite drama queen is at it again. Bill Ferguson is obsessed with Horgan. Just check out his Facebook page. His take away is nothing but sheer hilarity: "Either the tax must go or Horgan must go, or both. This can't go on or Kelowna will slip into a recession that will hurt us all." Time to send in your Clown College application, Bill.

https://www.castanet.net/edition/news-s ... htm#224653

Pro-bubble anti-taxers can't seem to decide between "this tax won't do nothing!" and "this tax will destroy us all!"

[Sparki55]

Pro-bubble anti-taxers can't seem to decide between "this tax won't do nothing!" and "this tax will destroy us all!"

The tax will not bring down prices of normal single family homes in the $350,000 to $500,000 range (becasuse homes under $400,000 aren't affected and demand to move here full time is up) but will affect all construction of vacation places (this is true, it's been in the news look it up, no one wants to pay a 2% tax of 20,000 a year on a million dollar home) which will hurt our economy.

[alanjh595]

Here is what available today under $400K in the Kelowna area.

[Sparki55]

Here is what available today under $400K in the Kelowna area.

Capture.JPG

Tell me more please...

3 bed townhome $379,000
https://classifieds.castanet.net/details/open_house_sun_29th_1-23pm/3441694/

2 bed 2 bath condo $384,000
https://classifieds.castanet.net/details/top_floor_east_west_facing_condo/3448047/

2 bed townhome $429,000
https://classifieds.castanet.net/details/2_bdrm_townhome_at_dogwood_estates/3447235/

2 bed condo $249,000
https://classifieds.castanet.net/details/view_now_before_its_gone/3416154/

3 bed 3 bath townhome $419,000
https://classifieds.castanet.net/details/131-1355_findlay_road/3442415/

half duplex $414,000
https://classifieds.castanet.net/details/1675_hollywood_road_s_kelowna/3439472/

2 bed 2 bath house $399,000
https://classifieds.castanet.net/details/updated_top_to_bottom/3432267/

The homes listed are not the type of home a vacationer from out of town would buy. What makes you think their demand is driven by short term rental investors or vacationers? The demand for the homes linked above are for people living full time in the okanagan and as our population grows, so will the demand for these homes.

[alanjh595]

OH.......BUT....the millenials don't want condos, duplexes, and town houses. They all want stand alone houses, build post 2016, and with the floor plan that they like. Who wants to buy at the bottom and work their way up? THEY just want to buy at the top to impress their friends and relatives.

[OgopogoO]

Pro-bubble anti-taxers can't seem to decide between "this tax won't do nothing!" and "this tax will destroy us all!"

The tax will not bring down prices of normal single family homes in the $350,000 to $500,000 range (becasuse homes under $400,000 aren't affected and demand to move here full time is up) but will affect all construction of vacation places (this is true, it's been in the news look it up, no one wants to pay a 2% tax of 20,000 a year on a million dollar home) which will hurt our economy.

Ah, but here's the thing: the spec tax is just one of a suite of measures designed to curb the housing bubble. Federal and provincial governments are terrified of a housing crash, as is obvious by the relentless round of new policies. B20, rising interest rates, etc., will likely hammer further nails into the coffin of housing unaffordability.

In the meantime, expect to hear more panic and fear mongering from those most to gain from other people's financial enslavement to the housing cult.

[alanjh595]

Here you go, just as you wanted.....

Housing for locals first

A Kelowna developer group is taking a unique approach to marketing a new project – by specifically not targeting buyers from outside the area.

The team behind Glenmore Central, a 105-unit condo complex in North Kelowna, isn't going to advertise outside the region, in an attempt to make it more accessible to locals eager to enter the housing market.

“The Glenmore Central project comes at a time when practical and affordable home ownership is what Kelowna desperately needs. We are very excited to be able to work on a project that will provide exactly that in a location central to everything,” said project partner Rob Haberman.

“We made the decision not to market this project nationally, to give Okanagan residents the chance to purchase ahead of others. It’s the right thing to do for Kelowna, and it will help to build the community,” added Sam Brovender, a partner with West Point Projects.

West Point is undertaking the project with Traine Construction.

The project will feature studio, one-bedroom, one-bedroom-plus-den, and two-bedroom units, priced to put them in reach of potential buyers otherwise priced out of the market.

It should be finished in the fall of 2019. A Summit Drive sales centre opens this weekend.

The developers also plan to limit rentals to 30 days or longer in an effort to encourage owners to occupy the units, rather than rent them out.

“Rising real estate prices mean many Kelowna residents are feeling shut out of the market, and we want to be part of the solution,” Brovender says.

Glenmore Central is part of the Glenmore Valley Landing project which, when complete, will feature townhomes, rentals, condos, and a senior’s assisted-living condo

Let's see how successful this turns out. For those of us that are nearby and have been here for more than 20 years, our property values are about to go down like a brick in a sauce pan of water.