The report, written by Yu, said the Metro real estate slump is not related to the economy, which is expanding. Instead, it is being driven by government policy at all three levels of government. The federal government has put in place stress tests for new buyers, meaning they have to be able to afford payments at a higher interest rate than the rate on offer. The provincial government has increased its foreign-buyers tax to 20 per cent, forcing more foreign investors away from Vancouver housing, while the City of Vancouver has introduced a tax on high-value homes that are left vacant.
The speculation and vacancy tax is a key measure in tackling the housing crisis in major urban centres in British Columbia, where home prices and rents have skyrocketed out of reach for many British Columbians.
The provincial government is taking action because people who live and work in B.C. deserve an affordable place to call home.
The speculation and vacancy tax is a part of government’s 30-Point Plan to make housing more affordable for people in our province.
This new annual tax is designed to:
- Target foreign and domestic speculators who own residences in B.C. but don’t pay taxes here
- Turn empty homes into good housing for people
- Raise revenue that will directly support affordable housing
All owners of residential property in the designated taxable regions of B.C. must complete an annual declaration. Over 99% of British Columbians are estimated to be exempt from the tax.
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