Foreign buyers tax in the Okanagan

[eires37]

So you are saying they are Hypocrites? what a shock... Kelowna will always be, and always has been, a service community to Alberta $$$.Live with it and deal with it. They tip you when you serve them, so stop looking gift horse in the mouth.

Back to 'Berta with your *bleep* *bleep* attitude.

Don't worry, I may tip you when I pass through. Put it towards your 'medical weed'

[vegas1500]

If we extrapolate the situation to include a majority of Kelowna residents that did this for example, then would that mean Kelowna would become a ghost town when all these people left for the winter? Nobody to buy goods and services locally? These people then do not support local business and services year round. They do not rent out these houses when they are vacant so we have a situation where precious living space is taken up by people who only live here part time , muscling out people who do live here year round and who need a place to live and who support local businesses all year long. So i can see a tax would at least help offset some of this? Maybe I have it wrong. Please enlighten.

the people that have no where to live now won't have any place to live if even half of the vacation homes are sold. They need an approach to affordable living not a discriminatory borderline illegal tax to solve this. The affordable living needs to come from the municipality or province, not the developers, home owners or vacation home owners.

[Urban Cowboy]

If we extrapolate the situation to include a majority of Kelowna residents that did this for example, then would that mean Kelowna would become a ghost town when all these people left for the winter? Nobody to buy goods and services locally? These people then do not support local business and services year round. They do not rent out these houses when they are vacant so we have a situation where precious living space is taken up by people who only live here part time , muscling out people who do live here year round and who need a place to live and who support local businesses all year long. So i can see a tax would at least help offset some of this? Maybe I have it wrong. Please enlighten.

the people that have no where to live now won't have any place to live if even half of the vacation homes are sold. They need an approach to affordable living not a discriminatory borderline illegal tax to solve this. The affordable living needs to come from the municipality or province, not the developers, home owners or vacation home owners.

Exactly!

The statement Mark5 made "They do not rent out these houses when they are vacant so we have a situation where precious living space is taken up by people who only live here part time, muscling out people who do live here year round and who need a place to live and who support local business all year long" demonstrates an inability to see the big picture, and takes much for granted.

First of all let's keep in mind this "precious living space" is bought, built, owned and maintained by someone, thus it's not quite right to view it as if someone is hogging resources, especially ones that wouldn't even exist had the owners not come here to spend their money.

Since these people came from elsewhere and purchased or built a vacation home, it stands to reason that one must point out that no one is stopping any locals from doing the same thing, if they have the money, which is really the problem at the end of the day isn't it? Those who can't afford or qualify for a mortgage around here now, likely aren't going to be in a position to cover the rent in many of these vacation homes either.

Even if these absentee vacation home owners do decide to rent out their property, it's not going to be at fire sale prices, so how exactly is that supposed to help, those who feel they are entitled to these places, that aren't used all year?

Part of the big picture is also remembering that for the most part this is a service based community, so if we alienate our tourists, scare off out of province vacation home owners, the end result is going to be less demand for these services, which in turn equates to job losses, and likely even business closures. Now the people that need housing don't have a job to pay rent or a mortgage with. How is that helpful?

Mark5 you'd do well to also recognize that even if these owners are not here all year, they still spend money even in their absence, and I can assure you of that, as we have clients in that category. Often these folk use a property manager to keep an eye on things, and take care of business for them. If something breaks or needs replacing they hire local contractors to do it.

What is true however, is that these people pay the same taxes as those who live here year round, yet don't avail themselves of the services those taxes provide, near as much as the permanent residents. I'd say in that regard they are already contributing more to the local economy than many of the full time residents. So now to show our appreciation we're going to whack them with a penalty tax, for homes that in the majority of cases are NOT speculation properties? Heck of a way to treat our neighbors!

Strikes me personally as a very unCanadian thing to be doing.


In an earlier post sublime accused me of not offering solutions to the problem. Well I've given it some thought and feel there are actually solutions, but it requires progressive thinking on the part of government and municipalities.

I feel one solution would be to set aside areas where people can build or place tiny homes, which has become quite a thing in the US. From what I see they appear to be frowned upon, mostly because people living in a 5000sq ft home don't want such a thing for a neighbor as it would affect their property values. Personally I feel this is often an excuse resorted to when people simply don't wish to support something they don't like.

In that case fine then locate certain areas, Crown land possibly even, where these things are allowed and people content to live in a few hundred square feet can do so with pride. Not everyone shares the same vision as to what affordable or acceptable housing is.

Locally there's a whole area up by the land fill that isn't highly prized yet could easily accommodate a bunch of tiny houses.

Part of the reason there's even a problem here isn't people owning vacation homes, it's the fact that many who were once housed in mobile home parks were displaced, and there never seems to be any more spaces added to the inventory. Why not?
Again some folk are quite content to live in a mobile home, and it's certainly more affordable than a lakefront mansion.

[one wheel]

Isn't the very idea in Canada that - if you work hard you will succeed ? It's no ones business what people do with their money - it's theirs. How daft to think that absent owners should be taxed even more because they don't live there year round. To say they don't pay their share is ridiculous, keeping a second home costs plenty. Everything has a limit & when taxes get too high these people sell & move on. Don't be envious or resentful because it won't help.

[jsytnick]

Don't worry, I may tip you when I pass through. Put it towards your 'medical weed'

You’ll probably hit the ditch before you even make it here, cans of lucky strewn across the roadside.

[jsytnick]

love comments like this...makes me realize there are holes in all provinces.

I know right, what an *bleep* for suggesting all Kelowna residents bow down to their 'Berta masters. Guy's a right prick.

[adionline]

Isn't the very idea in Canada that - if you work hard you will succeed ? It's no ones business what people do with their money - it's theirs. How daft to think that absent owners should be taxed even more because they don't live there year round. To say they don't pay their share is ridiculous, keeping a second home costs plenty. Everything has a limit & when taxes get too high these people sell & move on. Don't be envious or resentful because it won't help.

What you're referring to comes from an entitlement type mentality. Sadly, too many folks think life owes them something and these are the same people who have knee-jerk reactions to taxing Albertans. It's horrible to see Canadians getting behind taxes that hurt other Canadians (only making it worse for themselves and everyone who lives here) when foreign investors are STILL allowed to buy as many properties in Canada as they wish. And here is the kicker, if you were to go to China to try and do the same thing there as they do here, you wouldn't be able to. You know why? Because China has restricted foreign investors. Not only do you have to spend a year in China before you can buy anything, you are also limited to one property until you are a permanent resident. Yet, here we are, selling off our own country to whoever wants it, turning on our own residents thinking it will solve our problems. What a sad state of affairs.

[kgcayenne]

What if we were talking about absent people buying and holding downtown parking lots unusable for 6 months of the year?

[Snowbound]

I'm really curious what you folks that think this tax is a good idea will see as the likely outcome.

Let's say the market drops 10%. A quick look at the typical non-resident home - a 2 bedroom unit at Two Eagles golf course. I golf there once in a while, and have met many people from AB and Vancouver who own in there. Units are about $290k, some higher, some lower.

So a 10% discount on that puts the price at about $260k, which is about $1150/month mortgage with 5% down @ 3.0 rate. Add the $250/mth condo fee and $2k per year in property taxes. By my quick math that is $1575 per month to break even on a rental. Would you buy the condo at a $30k discount?

My daughter just rented a 2 bedroom for $1350, and there was people lined up out the door to see it.

What will it take for the tax advocates to call a rent/purchase price reasonable for this area of BC? A 20% drop in real estate?

[Tradesman]

The past 10 years I've owned a home in kelowna and work all year in BC. I'm currently working on an affordable housing development in Kelowna but it looks as though construction is going to slow as developers can't account for this tax. I'm going to move to Alberta and sell my home as it is going to depreciate as the market just got a lot smaller not being able to sell to out of province people. The Equity I was building in my home was the only reason left to stay in the Okanagan. The wages and sunshine tax was a load of garbage but this one takes the cake.

There's nothing left and no point to stay, no work no equity no point.

Is this what you intended NDP!?

[eires37]

love comments like this...makes me realize there are holes in all provinces.

I know right, what an *bleep* for suggesting all Kelowna residents bow down to their 'Berta masters. Guy's a right prick.

Lol I've lived her for 13 years, I just love getting a rise out of the occasional D-bag... truth hurts most to those green with envy.

[alanjh595]

The past 10 years I've owned a home in kelowna and work all year in BC. I'm currently working on an affordable housing development in Kelowna but it looks as though construction is going to slow as developers can't account for this tax. I'm going to move to Alberta and sell my home as it is going to depreciate as the market just got a lot smaller not being able to sell to out of province people. The Equity I was building in my home was the only reason left to stay in the Okanagan. The wages and sunshine tax was a load of garbage but this one takes the cake.

There's nothing left and no point to stay, no work no equity no point.
Is this what you intended NDP!?

I got the very same responses from 3 other of my contractor friends that I ran into at HD the other day. They are all pulling up stakes and moving on.
Their common complaint was that they can't find reliable employees.

[Urban Cowboy]

What if we were talking about absent people buying and holding downtown parking lots unusable for 6 months of the year?

If someone from another province has the money to purchase a downtown parcel of land, pave it over, and keep it vacant for 6 months of the year, that's their prerogative.

Who the heck are you to whine about how someone else spends their hard earned money?

Knowing how much you enjoy pot smoke, how would you like it if the NDP came along, and decided you had to contribute half your yard to a medical grow operation, because there was a shortage of land, and you were only using it as a lawn for part of the year, and if you don't agree you get whacked with a hefty tax on top of your current property taxes?

Got a different viewpoint in that scenario I'll bet, yet it's just as relevant an example, as what you expect out of province home owners to accept. Your home is your own private domain, and as long as you pay your taxes, and behave as a law abiding citizen, no one should have the right to tell you, what you have to do with your property, at risk of penalty for non compliance.

Create zones where tiny homes are allowed, and create some more mobile home parks. Housing problem solved!

[vegas1500]

love comments like this...makes me realize there are holes in all provinces.

I know right, what an *bleep* for suggesting all Kelowna residents bow down to their 'Berta masters. Guy's a right prick.

If the shoe fits..............

[Snowbound]

I know a couple that bought a mobile needing work for $25k in Westbank and they are more than happy to spend the summers in it. I still see them for sale for $50-75k and these would be a good option for people to get a first home.

I see a lot of young people turn their noses up at mobiles, or leased land and other affordable options. Too much DIY television where they all expect granite counters and hardwood flooring as a first home.