Concerns Raised Over B.C’s Foreign Home Buyers Tax
The recent declaration made by the British Columbia government to impose a 15% tax on foreigners looking to buy houses in the Metro Vancouver area has been met by strong opposition.
Foreigners are generally dictated in this scenario as non-Canadian residents, migrants without permanent residency, foreign workers, and/or international students seeking to buy homes in Metro Vancouver.
If the government’s plan goes on accordingly, those aforementioned will be asked to pay the tax from the 2nd of August when it is poised to become law. This means foreigners can pay up to $150,000 for a million dollar home strictly in taxes.
However, the tax’s proclamation has been met by strong criticism by realtors and industry insiders alike.
For starters, marketers are worried about foreign customers who might back out of current deals after learning of the tax’s imposition. The president of the Greater Vancouver Real Estate Board, Dan Morrison, has himself voiced out concerns about buyers taking such action. He, along with the chief executive of the Greater Vancouver Home Builders’ Association, Bob de Wit, have publicly stated that in order to prevent such complexities from arising, the tax needs to exempt sellers and buyers who have already been in agreement before the tax’s implementation.
According to CBC, Mr de Wit has expressed that there are roughly 2,300 homes in Vancouver that have been bought through pre-sales. Therefore, the tax has brought about inconveniences for those involved as customers now are in a frenzy to close off deals before August 2nd.