In the wake of the growing concern of Vancouver’s much talked about housing crisis, the province finally put its foot down, so to speak.
On July 25th, B.C. announced the implementation of an increase in property tax to 15 percent to homes being purchased by foreign buyers.
The new tax would mean that foreign buyers looking to snatch up a classy B.C. property for, let’s say, around $2,000,000 would now have to pay approximately $300,000 in taxes for said classy B.C. property.
But why the new tax, you might be asking?
As Premier Christy Clark expressed, “I want to keep home ownership within the grasp of the middle class in British Columbia.”
Though, it wasn’t until the government decided to take a closer look at all residential real estate transactions across the province over a four week span from June to July.
Foreigners who were not considered to be Canadian citizens nor permanent residents purchased more than a billion dollars worth of property in the province.
While the new tax may help to regulate the erratic increasing in housing while inventory slips further down, some real estate agents aren’t too happy with the new increase in property tax.
Have a quick look the below infographic to learn some interest quick facts about B.C.’s housing market:
Should agents be worried about the new 15 percent tax? We'd like to hear your thoughts by commenting below!