According to Realtors, the real estate market in Metro Vancouver has been going down the drain ever since the 15 percent foreign buyers’ tax on real estate came into effect on the 2nd of August. Could it be that the tax is really doing wonders? The tax which requires anyone that is not a Canadian citizen buying within the Metro Vancouver real estate market to pay an extra 15 percent tax on property transfer, was introduced as a means to regulate the high prices in the Lower Mainland real estate.
Ever since the tax was imposed and officially declared on the 2nd of August, it has been a crucial and unnerving moment for the real estate market. Unfortunately for some buyers that are not from Canada, they had to forsake their bids and face legal actions, while some lost huge amounts of cash and others had to strive to see if they could get enough money to cover their shortage. On the other hand, for those Canadian citizens that had their houses sold off to foreign buyers, they lost their deals with the purchasers because they were unable to pay the extra 15 percent tax.
Most locals ended up filing a lawsuit over contracts that were broken off. When it comes to the sales in the real estate market, it has declined over the weeks said a Vancouver realtor, Steve Sarestsky.
“The market has been slowing down since April … Since the tax came, it’s pretty much put a screeching halt on things.”
He added, ‘The market was totally out of hand.”