Following the B.C. government’s announcement of a 15 percent tax on foreign buyers of Canadian homes, real estate experts have publicized their opinion, reiterating the fears of many Chinese would-be buyers’ fears.
Anne McMullin, Urban Development Institute CEO told Business in Vancouver, “It’s unfair to the buyers and it’s also unfair to the sellers.”
“People sold and bought in good faith, knowing what the rules were. Now the government is coming in and completely changing the rules,” she added.
Warning was given by the executive, saying that the new tax which is scheduled to be implemented on August 2nd will lead to uncertainty and would make many investors cautious in pouring money into the Canadian markets.
“You could buy something and then, two years later, they’re going to completely change the rules with no warning, consultation or grandfathering. There could be economic fallout,” McMullin said.
Adil Dinani, Royal LePage West agent echoed that the consequences have already started showing.
“I’ve had calls in the last 24 hours from agents representing foreign buyers who are backing out of deals because of this new tax,” Dinani stated on Tuesday, the day following the announcement of the new tax by the B.C. government.
“The provincial government really should have looked downstream to see all the different groups that would be impacted by this retroactive tax. I’m just not sure this was thoroughly thought out,” he stated.
Mike de Jong, the Finance Minister stood by the decision and in his Tuesday statement said there would be no exemptions or special treatment for transactions signed before August 2nd (with title transfers scheduled for the following day.