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British Columbia real-estate and foreign buyer taxes


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#901 LJ

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Posted 20 March 2019 - 07:44 PM

And if this useless tax had to be implemented, the logical means of collecting the information would have been a minor modification to the HOG application. There was no need to re-invent the wheel.  :whyme:

Yeah, but then somebody's son/daughter/friend wouldn't have a high paying government job in the new bureaucracy. 


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#902 Jackerbie

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Posted 11 December 2019 - 08:46 AM

Speculation tax is going up up up! Changes coming into effect include:

  • Foreign owners will be paying 2% versus the current 0.05%
  • Active service Canadian Armed Forces members will be exempt (how was this overlooked before???)
  • Properties only accessible by water will be exempt
  • Vacant properties owned by foreigners will no longer be exempt

And probably most importantly to members of this board, strata units located in buildings where rentals are banned will not be exempt after Dec 31 2021

 

via https://www.cbc.ca/n...-to-2-1.5391309



#903 Mike K.

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Posted 11 December 2019 - 08:49 AM

Yikes, the military service one was indeed a goof-up.

 

So what, exactly, has this done to affordability, and what, exactly, has this done to help people enter the housing market in BC's largest cities? Because the same people who last year said they couldn't afford to buy a home in Victoria still can't afford to buy a home in Victoria. In fact they would have been better off had they been able to buy last year.


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#904 Nparker

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Posted 11 December 2019 - 08:55 AM

...strata units located in buildings where rentals are banned will not be exempt after Dec 31 2021...

I bet someone challenges the legality of this.


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#905 Jackerbie

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Posted 11 December 2019 - 09:17 AM

Yikes, the military service one was indeed a goof-up.

 

So what, exactly, has this done to affordability, and what, exactly, has this done to help people enter the housing market in BC's largest cities? Because the same people who last year said they couldn't afford to buy a home in Victoria still can't afford to buy a home in Victoria. In fact they would have been better off had they been able to buy last year.

 

The government collected $155 million. Carol James has said that "It's working," but I don't know what metric she is going by. The Condo Home Owners Association is saying that most people are just paying the tax, and if anything the difference is that they're renting on Airbnb for a couple weeks just to cover the bill, versus leaving the unit empty. via https://vancouversun...r-strata-owners

 

What would be more interesting to know is what effect the tax has had on the detached and semi-detached housing markets. 


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#906 Nparker

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Posted 11 December 2019 - 09:18 AM

The government collected $155 million. Carol James has said that "It's working," ...

If the measure is additional government revenue, then yes, it's working.


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#907 Mike K.

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Posted 11 December 2019 - 09:24 AM

$155 million fewer dollars going into the economics of BC's largest cities.

 

The tens of millions that are Victoria's share in all of this have disappeared from our local economy, and perhaps the job losses we're seeing are a result in the job market's overall unease as we inch ever closer to a recession.


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#908 DavidL

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Posted 11 December 2019 - 09:49 AM

$115 million, not $155 million.  That's also gross, not net of running the program.  It's also projected, not collected.  There's nothing to say that the strata exemption won't be extended again, the government just doesn't want second home owners to figure out that they can safely buy in a rental exempted building.


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#909 Mike K.

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Posted 11 December 2019 - 09:50 AM

Do we know what the other variables are at this time?


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#910 VIResident

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Posted 11 December 2019 - 09:58 AM

The government collected $155 million. Carol James has said that "It's working," but I don't know what metric she is going by. The Condo Home Owners Association is saying that most people are just paying the tax, and if anything the difference is that they're renting on Airbnb for a couple weeks just to cover the bill, versus leaving the unit empty. via https://vancouversun...r-strata-owners

 

What would be more interesting to know is what effect the tax has had on the detached and semi-detached housing markets. 

Cat-is-outta-the-bag, thanks for that Jackerbie.  Exactly what one management co. said that we deal with - ramp up the 'rental nights', cut into your personal 'vacation' days you spend in the place to pay for the 'extra' tax - no sweat. 



#911 sebberry

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Posted 11 December 2019 - 10:23 AM

And probably most importantly to members of this board, strata units located in buildings where rentals are banned will not be exempt after Dec 31 2021

 

It's time we just get rid of a strata's ability to enact rental prohibitions altogether.  

 

We're limited to 5 rentals (was 9 when I moved in but someone had the bright idea to push to change that) out of 27 strata lots in my building.  It's unfair to those who must sit on a waiting list if they want to rent out their unit.  It also has other unintended consequences - instead of renting to a quiet middle-aged professional or retiree, parents buy suites for their university student sons/daughters to live in.


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#912 Nparker

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Posted 11 December 2019 - 10:55 AM

It's time we just get rid of a strata's ability to enact rental prohibitions altogether....

If the needed majority of strata members want rental restrictions in their building government should not take away this right from private property owners.



#913 sebberry

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Posted 11 December 2019 - 11:13 AM

government should not take away this right from private property owners.

 

 

So if imposing a prohibition on rental restrictions infringes upon the rights of private property owners, how do rental restrictions not infringe on the rights of private property owners?  


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#914 Nparker

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Posted 11 December 2019 - 11:22 AM

The existing Strata Property Act allows for the majority of owners to vote-in rental restrictions if they so choose. There is no need to change this. To the best of my understanding no one is being forced to buy into a property where restrictions or the lack thereof exist.



#915 sebberry

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Posted 11 December 2019 - 11:58 AM

It's not just a majority, it's a 3/4 vote.  Which means when you still have one or two lingering holdouts still hanging around, the bar to remove or relax the restriction is still so high that even if a significant number of suites has changed hands over the years it can still be difficult to make any changes.

 

You've sort of phrased this around the rights of property owners to make a decision, but ignoring the rights of the individual strata lot owners is at odds with this.  Are you fundamentally opposed to some other aspects to rentals in condo buildings?  


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#916 grantpalin

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Posted 11 December 2019 - 10:51 PM

Speculation tax is going up up up! Changes coming into effect include:

  • Foreign owners will be paying 2% versus the current 0.05%
  • Active service Canadian Armed Forces members will be exempt (how was this overlooked before???)
  • Properties only accessible by water will be exempt
  • Vacant properties owned by foreigners will no longer be exempt

And probably most importantly to members of this board, strata units located in buildings where rentals are banned will not be exempt after Dec 31 2021

 

via https://www.cbc.ca/n...-to-2-1.5391309

That third item, bolded by myself, is interesting. I recall reading previously about owners of vacation cabins in areas such as Belcarra being subject to the tax, despite the cabins being off the grid, water-accessible only, and otherwise unrentable. Here's one such story. I'm not personally affected by this either way, but I'm pleased to see that the tax is undergoing some revision to exempt certain circumstances like the above.



#917 LJ

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Posted 12 December 2019 - 07:36 PM

All our our local islands would be exempt even though they have daily ferry service, hey just a minute the whole VI is only accessible by water, and air.


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#918 thundergun

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Posted 17 December 2019 - 01:41 PM

$155 million fewer dollars going into the economics of BC's largest cities.

 

 

Cat-is-outta-the-bag, thanks for that Jackerbie.  Exactly what one management co. said that we deal with - ramp up the 'rental nights', cut into your personal 'vacation' days you spend in the place to pay for the 'extra' tax - no sweat. 

 

If this is common, you could argue that more dollars are going through.



#919 Jackerbie

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Posted 17 December 2019 - 04:02 PM

^ I don't think that apartments made up much of the taxed properties, as the reporting from the Province indicated that the average taxed property was assessed 46% higher than the average non-taxed property. Likely dealing with a whole lot of single-family properties.

 

FWIW, BC residents made up 20% of those paying the tax. 38% foreign residents, 27% "satellite families," 13% other Canadian, and 2% corporations/trusts/developers.

 

via https://vancouversun...ers-hardest-hit



#920 VIResident

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Posted 13 January 2020 - 12:33 PM

Oh boy, can you imagine!  If they do this property owners will be at the politicians doorsteps with pitchforks - not because of the loss of the benefit but because of the high taxes! Drop the property transfer tax (est. projected to hold steady at $1.91 billion 2020) and remove this benefit at the same time. 

 

Editorial: Homeowner grant benefits those who have least need for it

Editorial Board

 

 Times Colonist

JANUARY 12, 2020 06:00 AM

 

The rationale behind the program is supposed to be that it helps lessen the impact of property taxes. Homeowners who qualify apply to their local municipality, which, in turn, is reimbursed by the province.  In 2020, the Finance Ministry estimates the all-in cost at $849 million.  https://www.timescol...r-it-1.24050919

 

 

But very little about this scheme makes sense. For a start, it’s enormously expensive.In 2020, the Finance Ministry estimates the all-in cost at $849 million.

Edited by VIResident, 13 January 2020 - 12:39 PM.


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