Foreign buyers tax in the Okanagan

Re: Foreign buyers tax in the Okanagan

Postby monilynno » Mar 6th, 2018, 8:48 am

Must at all cost keep the biggest housing bubble in the world going, 70% of Canada's GDP is mortgage debt. We are so screwed. https://www.zerohedge.com/news/2018-03- ... c-meltdown

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Re: Foreign buyers tax in the Okanagan

Postby sublime » Mar 6th, 2018, 10:32 am

vegas1500 wrote: Do you really think a 10 million dollar lake front home where the property taxes are already 60-70k should pay an additional 200k a year? Does that even make sense? No person with a good financial sense would carry those costs.


Unfortunately 10 million is an already severely inflated number. Travel around NA to similar size cities and see what 10 million can get ya. It goes to show you even the peak value properties are terribly overpriced. Hopefully he didn't buy at its current value.
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Re: Foreign buyers tax in the Okanagan

Postby W105 » Mar 6th, 2018, 10:52 am

read the letter "Tenant's Rights" in today's letters...

https://www.castanet.net/news/Letters/2 ... ant-rights

$2250 rental for a 1972 moldy mobile...bloody insane !! this is the kind of crap that residents who live and work here yr round have to pay..me thinks that more "long term" rentals being forced on the market will actually help a full time "resident" like this...

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Re: Foreign buyers tax in the Okanagan

Postby OgopogoO » Mar 6th, 2018, 11:13 am

To all entitled snowflakes whining about the new FBT: cry me a river. The Okanagan desperately NEEDS a severe correction (though fingers crossed for an all-out crash). This toxic situation was engineered by the corrupt government of the heinous Christy Clark and fueled by emergency interest rates. Those who won the housing lottery by buying when prices were a historically normal levels have nothing to fear. Specuvestors and the misguided sheep who bought since the bubble inflated to grotesque levels will pay a heavy price for their folly. Can't make an omelette without breaking eggs.

Meanwhile, our ridiculous mayor worries that new legislation will actually accomplish its intended goal:

https://www.castanet.net/edition/news-s ... htm#220355

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Re: Foreign buyers tax in the Okanagan

Postby OspreyHomeInspection » Mar 6th, 2018, 11:56 am

I question where the line will be drawn. Lots of low hanging fruit left for the government. How about all the vacation properties owned by Lower Mainland folks? How about the Kootnays, Shuswap, rest of the valley, Comox/Courtney areas, Area 27 in Oliver?

Easy pickins' for tax dollars and it won't take long for them to figure it out.

We all want to see our kids succeed and afford a place here, but driving up taxes (on everything) is not the answer. There is SO MUCH vacant land left to build on. A development with restrictions on the buyers (proof of income under $75k for example) wouldn't be so hard, would it? Actually use the Foreign buyer tax to subsidize the developments.

The 55+ communities are lower priced due to these buyer restrictions.

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Re: Foreign buyers tax in the Okanagan

Postby Catri » Mar 6th, 2018, 1:19 pm

It's pathetic that our mayor thinks foreign speculators are "part of our community". He's specifically referencing foreigners here, not Canadians from other provinces. Sad if we've come to a point where we have so little going for us economically that foreign investment in housing is important to our local economy.

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Re: Foreign buyers tax in the Okanagan

Postby wisdom01 » Mar 6th, 2018, 1:31 pm

Catri wrote:It's pathetic that our mayor thinks foreign speculators are "part of our community". He's specifically referencing foreigners here, not Canadians from other provinces. Sad if we've come to a point where we have so little going for us economically that foreign investment in housing is important to our local economy.


Ha ... it's all about the today money for the Mayor ... heaven forbid he'd look past a 4 year planning horizon ... pathetic.

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Re: Foreign buyers tax in the Okanagan

Postby vegas1500 » Mar 6th, 2018, 6:41 pm

Jack DeBear wrote:Hi vegas1500,

I see several posts where you say, "If this tax goes through . . .."

Has it not 'gone through?"

According to this, "The speculation tax will be effective for the 2018 tax year. Homeowners will receive their first tax notice in the fall of 2018."

http://www2.gov.bc.ca/assets/gov/taxes/ ... on-tax.pdf


It’s my understanding that the details haven’t been “ironed” out. I have spoken to a couple of real estate attorneys that have told me there is a lot of pushback from all levels and there is the possibility that it may not go through. Maybe it’s partly wishful thinking. I have even been reading of class action lawsuits a possibility. I know many people on here think “good for them if they can afford two homes”. What people don’t know is how they became to own Two Homes. Also, when one buys a vacation property they do so with a budget in mind. When you all the sudden add 10, 20 or even 30k a year to that budget, it can have disasterous effects. And yes, even people that can afford two homes have budgets.
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Re: Foreign buyers tax in the Okanagan

Postby Veovis » Mar 6th, 2018, 7:16 pm

As a sidebar, a tax is a money grab in the guise of a solution.

What would a foreign investment cap look like? IF you as a Canadian have over % of foreign investment you need to report it to CRA, could not caps of foreign ownership work in a similar way, I'm not sure, but other than "grab grab grab" maybe evaluate concepts might be nice.

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Re: Foreign buyers tax in the Okanagan

Postby noremac » Mar 7th, 2018, 9:01 am

So, just out of curiosity, with the new mortgage rules just put in, who exactly will be buying all these homes that are possibly hitting the market? $700,000 to $10,000,000 that have been mentioned so far? What exactly is the difference between someone from AB buying and only spending 3 or 4 months and someone from Vancouver who does the same thing? Because at the moment that is probably where the money is going to come from. There will be no lowering of house prices if the houses are sold as soon as they get on the market.

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Re: Foreign buyers tax in the Okanagan

Postby csm » Mar 7th, 2018, 9:07 am

common_sense_guy wrote:I've said it before and I'll say it again. Non-canadians should not be allowed to buy Canadian property. That would also keep prices reasonable for the Canadians who want a house

BC IS NOT CANADA - THIS IS ABOUT THE REST OF THE SAME COUNTRY YOU LIVE IN!!

People from other parts of the country that have real estate here, for the most part, pay taxes, they come and they spend money supporting the local businesses and recreational sites. Problem is, they don't pay "Income Tax" to the government, which should have no bearing on it. If you want a united CANADA, then we all have equal opportunities - coast to coast - if you want your own country, then join a separatist organization, or move to the phillipines where your dream is alive, but then "you won't be able to own there either".
Apathy = the Death of Freedom - be accountable or be a slave!

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Re: Foreign buyers tax in the Okanagan

Postby csm » Mar 7th, 2018, 9:11 am

Catri wrote:It's pathetic that our mayor thinks foreign speculators are "part of our community". He's specifically referencing foreigners here, not Canadians from other provinces. Sad if we've come to a point where we have so little going for us economically that foreign investment in housing is important to our local economy.

Our "Mayor's" fore-fathers were once "Foreigners", and I'm sure he wouldn't even be here now if the same rules applied to them at that time - he would be cleaning out outhouses in the old country!
Apathy = the Death of Freedom - be accountable or be a slave!

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Re: Foreign buyers tax in the Okanagan

Postby csm » Mar 7th, 2018, 9:17 am

W105 wrote:read the letter "Tenant's Rights" in today's letters...

https://www.castanet.net/news/Letters/2 ... ant-rights

$2250 rental for a 1972 moldy mobile...bloody insane !! this is the kind of crap that residents who live and work here yr round have to pay..me thinks that more "long term" rentals being forced on the market will actually help a full time "resident" like this...

Hmm - remember about 15 years ago people working at whistler had to sleep in tents because they couldn't afford the rent to live where they worked? Landlords charge what the market will bear. If they can't afford to live here, there are plenty of communities nearby that have lower rents, and still serviceable by the taxpayer subsidized "Bus" system.
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Re: Foreign buyers tax in the Okanagan

Postby W105 » Mar 7th, 2018, 9:33 am

it's amazing how many people don't even have an ounce of empathy for the residents who live and work here full time that struggle to pay such high house prices and rents..yet they want empathy because it's gonna cost them more to vaca here ?? again...accept the same choices that the residents (who service your vacas here) are given..pay more or leave..

(and there you have it !! csm, just said..move somewhere else then and it's directed at the residents who have employment here..because someone who spends a few bucks on some entertainment and food (a few times a yr) here deserves the honor of vaca-ing over those who actually work here..now how f is that??)

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Re: Foreign buyers tax in the Okanagan

Postby dominik » Mar 7th, 2018, 10:41 am

Okay, just reading this thread I have to wonder what some are thinking when they put their thoughts down and press the submit key.

The Foreign Buyers Tax makes things more difficult yes. However difficult is sometimes a good thing, if we get everything we want easily we can run into some severe issues. Housing / Real Estate and affordability are case in point.

Sure we all want homes, we also want to be able to travel, and for some illogical reason people feel that housing is an investment which generates profit right away.

What bothers me is that most posting here saw what happened in the USA during the 2008 crash, and while different (due to the Sub-Prime Rate disaster) it had a similar outcome we could face here. We are already seeing people living in their cars in Kelowna alone (and to be clear the Foreign Buyers Tax is a Canadian Tax as all of Canada is affected), we are seeing people begging for rentals, all of which is something that should not be happening anywhere.

EDIT: Yes we (BC) hiked ours to 20% because we are seeing a severe impact of speculation here.

It blows my mind that the thinly veiled arguments of "well if they can't make it here leave" or "go back to school", which are commonly made to defend the "i want i want i want" attitude are still being made without seeing its impact.

Now to be clear, I have nothing against making profit by selling, or by renting. I do have a problem with trying to make a lot of profit by pushing prices of rents or homes to the point of un-affordable. As we have heard over the last few weeks, some of these hikes in prices had absolutely no economic basis but that of an artificial inflation throughout the country. Fueled by illegal money laundering, money stashing, drug trade and other acts, even legal ones, we had a small group in the market affect the whole of the Canadian Housing Market ( and rents being reflective of housing costs indicate that this affects everyone).

As pointed out yesterday by the President of RBC, these schemes do nothing to the local economy other than harm them, and on top of that the real estate sector is one of the least contributing in terms of local economies. At this point we are headed for an asset based crash if a correction isn't happening now.

So we are currently talking about a correction, not a crash, the correction is there to avoid the crash while it artificially slows down the markets in one segment, there will likely be more initiatives coming, and it will likely make things difficult for homeowners or someone trying to buy a home. However this is to ensure that Canadians (all of them) get a chance to live, work, save, and then buy a home with lower risk.

Now while some of the arguments are made on my perception and opinion of the case, most is pretty much based on historical review and facts.

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