1003 replies to this topic

[LeoVictoria]

It'll be amazing to see those $1.6 million suburban tract houses in the lower mainland drop to an affordable $1.3 million. Problem solved.

 

There is no such thing as solving the problem.  But there is such a thing as making it better.   $1.6M -> $1.3M is indeed great progress in making housing more affordable because it doesn't happen in isolation.  Properties that are cheaper also drop in that situation. 

 

That’s not entirely fair, though. We’re on an upwards trajectory for listings with or without the spec tax. Unless we can definitively quantify which listings are a result of the tax just looking at the listings in isolation won’t support the theory that the tax is effective.

You mean in the spring?   Either you compare the same months or you seasonally adjust the data to fix that.  

However I agree that it isn't clear why new listings are sometimes high and sometimes low.   I've yet to come up with a theory to explain it since it doesn't seem to correlate with market conditions.  I spoke to an economist at the CMHC about it and he was also not aware of any theory that explains why people sometimes list in greater numbers than others.    Currently new listings are quite low, historically speaking. 

 

 

Interesting, the impact has to cool the market significantly, but those combined with rising interest rates are in direct conflict with making homes affordable for the first time buyer as well as the 'average' Joe & Jane. The $450k condo is now $500k and the $3million property is now $2.5 million....what it has done is make higher end homes cheaper for those that have the cash.

 

Sure, higher prices with higher interest rates are bad, but prices in the lower mainland are declining.   And even if the monthly payment is the same, it's better to borrow less at a higher rate than more at a lower one.   Interest rate risk is lower, and ability to repay is higher.

 

If we assume that the NDP and Greens are right and that there are thousands of homes owned by wealthy Chinese owners who don't live here, why would anyone believe that they would sell their homes because of a tax? If you are so rich that you can afford to own million dollar houses around the world and have them sit empty would a few thousands dollars in tax force you to change your behaviour? 

 

Ok so the Government takes some of the extra tax money and builds a few subsidized homes, how does that help you afford a house to buy? 

 

I believe the idea is that some will sell, adding to inventory, and the others will pay, adding to subsidized housing funding.   More inventory is good for affordability even if you don't buy those homes.   Someone buys them and that reduces pressure on remaining inventory.

 

Want to help British Columbians buy their first home? Get rid of purchase taxation that cops out at $500k. You can barely buy a two-bedroom condo for that price in the big cities. Furthermore, remove the ridiculous requirement that in order to even receive the credit the property must be below a certain size. Can’t a British Columbian buy an acreage (I think the limit is 1.5 or 1.75 acres) as their first home and receive the tax break?

 

Kind of just kicks the can down the road.  You can incentivize ownership which helps briefly but then prices are driven up to compensate.   We used to have zero down 40 year mortgages for that reason but it turned out to be a bad idea, and got people into the market over their heads.   

 

The constant tinkering is a problem though.  They should just choose one set of regulations and stick with it. 

[tjv]

And the year previously they had a -21% return which trailed the market by 40+%.

Ah, I didn't know that

[Mike K.]

Kind of just kicks the can down the road.

 

And using taxpayers to fund more government-built, government-subsidized and government-maintained housing doesn't?

 

At least some incentives from the province should be directed at removing reliance on government, not creating more reliance on government.

[Nparker]

People have no idea how much crap we got out of that speculation tax,” he told DeRosa. “Now my job is to get the NDP to recognize it’s a stupid tax and get rid of it.

- Andrew Weaver

https://victoria.cit...-new-tax-nixed/

Actions speak louder than words Mr. Weaver. Give the NDP an ultimatum: nix the tax or you won't support them in the upcoming budget votes.

[rjag]

Actions speak louder than words Mr. Weaver. Give the NDP an ultimatum: nix the tax or you won't support them in the upcoming budget votes.

 

Unfortunately that wont happen. Pensions vest in July so nobody wants an election til after that, plus taxpayer subsidized funding for political parties vests after July 1st and they are all basically broke and couldn't run a campaign without that money.

 

Weaver hasnt really achieved much apart fro making a household name of himself, but he has one bullet in the chamber and one shot and this is not the reason to take that shot. The only way we will see an election anytime soon is if Nanaimo falls or Plecas/Eby are succesfully recalled

[tjv]

^I would agree, Weaver is proving every day that he is not a leader

[VIResident]

Unfortunately that wont happen. Pensions vest in July so nobody wants an election til after that, plus taxpayer subsidized funding for political parties vests after July 1st and they are all basically broke and couldn't run a campaign without that money.

 

Weaver hasnt really achieved much apart fro making a household name of himself, but he has one bullet in the chamber and one shot and this is not the reason to take that shot. The only way we will see an election anytime soon is if Nanaimo falls or Plecas/Eby are succesfully recalled

Or Weaver crosses the floor  

[VIResident]

B.C. has lost millions to undervalued commercial properties, former assessor says

 

KERRY GOLD

VANCOUVER

SPECIAL TO THE GLOBE AND MAIL

PUBLISHED JANUARY 22, 2019

https://www.theglobe...perties-former/

 

 

"for too long, large commercial properties, often slated for residential density, were being undervalued and money was left on the table. "

 

"When big properties aren’t taxed correctly, he says, residential property owners take on the extra tax burden."

 

"...Mr. Holloway says municipalities have done enough on the housing front and it’s past provincial governments that must be held accountable."

 

".....anyone concerned with the creation of affordable housing should consider this overlooked source of lost funding." "...“I don’t know of any housing advocates who have taken issue with low assessments, since the process is so insulated,”

 

“Cities have given enough – the province needs to step up. Housing is their charter mandate.”

 

".......former provincially owned Little Mountain property, for example, may have been under-assessed due to a lack of transparency, he says. The province sold it to a developer in 2007 as part of a secret deal, receiving payments in future installments.

“I’ll bet that BC Assessment has never seen the sale agreement,” Mr. Holloway says."

 

“Past provincial governments have not only screwed taxing jurisdictions by perennially under-assessing trophy properties – they’ve handed over massive amounts of prime real estate to developers, all whilst ignoring B.C.’s needs for affordable housing.”

 

(brings to mind today's troubles at the leg and the turn-a-blind-eye money laundering.  No the province isn't special, we need to look in our own backyards too, within our municipalities.  Enough? had enough?)

[Victoria Watcher]

“Past provincial governments have not only screwed taxing jurisdictions by perennially under-assessing trophy properties – they’ve handed over massive amounts of prime real estate to developers, all whilst ignoring B.C.’s needs for affordable housing.”



it’s not as if we have a land shortage. in community after community we simply have an unwillingness to allow high density residential building.

Edited by Victoria Watcher, 23 January 2019 - 05:40 AM.

[Mike K.]

The BC Gov just sent out this Tweet:

 

The deadline to share information about potential money laundering in B.C. real estate, luxury vehicles and horse racing has been extended until February 28. The secure and anonymous online tip portal can be found here.

 

 

I guess those horse racing tips are just flooding in, hey?

[Victoria Watcher]

horse #3 in the 5th to show. that's my tip.

[Nparker]

...I guess those horse racing tips are just flooding in, hey?

I would suggest they are galloping in.

[Nparker]

Just out of curiosity, has anyone received their speculation tax "self-identification" letter yet?

[jonny]

Not me. 

[Mike K.]

Still haven’t.

[Rob Randall]

Just out of curiosity, has anyone received their speculation tax "self-identification" letter yet?

 

It's about taxes? I read "self-identification" and thought it was some new gender thing so I wrote CIS Male and sent it in.

[Nparker]

It's about taxes? I read "self-identification" and thought it was some new gender thing so I wrote CIS Male and sent it in.

You gotta know that CIS male responses will be immediately shredded.

[Mattjvd]

Am I the only one who reads CIS as Confederacy of Independent Systems?

[Mike K.]

If the taxpayer ever needed proof that the government regards taxpayers as complete idiots, this advertisement is it.

 

Condescending, simplistic and most importantly, cutesy. Because parting hard working British Columbians and Canadians from their money is cute.

 

 

So is that dude casing the home without lights on? Or is that Sid Tafler conducting his latest survey?

[Nparker]

I am still waiting to receive my spec tax notice.

And yes, the above ad is terribly condescending.