Foreign residential property buyers to be taxed at 15% in Vancouver
1–10 of 80 posts
Re: Foreign residential property buyers to be taxed at 15% in Vancouver
#2What's the reason for this?
Is it because it's bad for real estate in a living city to be used as an investment vehicle?
Re: Foreign residential property buyers to be taxed at 15% in Vancouver
#3There is nowhere for people to live that is affordable and it's hurting the economy (particularly tech). Young people are commuting up to 2 hours each way to work while tons of condos sit vacant as foreigners park their cash in the market. Even those wanting to buy with traditional financing are losing out to all-cash buyers above asking.
Re: Foreign residential property buyers to be taxed at 15% in Vancouver
#4What's the reason for this? Is it because it's bad for real estate in a living city to be used as an investment vehicle?
...as the article states...
Foreign investors drive up costs for locals. Locals unhappy, add tax for foreign investors. Foreign investors potentially wronged because of various agreements Canada has joined limiting protectionist actions like these.
Or read the article, that'll answer your question.
Re: Foreign residential property buyers to be taxed at 15% in Vancouver
#5What's the reason for this? Is it because it's bad for real estate in a living city to be used as an investment vehicle?
It's free money, and it looks really good as protecting local interests. A Chinese or Russian millionaire looking to buy property in Vancouver is going to buy whether it's $5 million or $5.75 million
Re: Foreign residential property buyers to be taxed at 15% in Vancouver
#6What's the reason for this? Is it because it's bad for real estate in a living city to be used as an investment vehicle?
Property ownership is often subsidized, maybe they feel this is just rebalancing the subsidy for the people they don't want to subsidize? (Just a guess, I don't actually know)
Re: Foreign residential property buyers to be taxed at 15% in Vancouver
#7There is nowhere for people to live that is affordable and it's hurting the economy (particularly tech). Young people are commuting up to 2 hours each way to work while tons of condos sit vacant as foreigners park their cash in the market. Even those wanting to buy with traditional financing are losing out to all-cash buyers above asking.
Why don't they hire a property management company to rent it out? Whatever's preventing that sounds like the real problem here.
Re: Foreign residential property buyers to be taxed at 15% in Vancouver
#8LLC with one Canadian involved gets around this I believe.
Re: Foreign residential property buyers to be taxed at 15% in Vancouver
#9There is nowhere for people to live that is affordable and it's hurting the economy (particularly tech). Young people are commuting up to 2 hours each way to work while tons of condos sit vacant as foreigners park their cash in the market. Even those wanting to buy with traditional financing are losing out to all-cash buyers above asking.
Why don't they hire a property management company to rent it out? Whatever's preventing that sounds like the real problem here.
Well because the property is extremely overpriced when you consider market rate rents the yields are extremely low. You can only charge as much rent as the market will bear, which in some ways makes rental completely different to ownership prices.
Basically the people buying it don't deam the return on renting it worth the risk of a bad tenant or worth the hassle.
They don't need cashflow, are either using it as a safe holding of value or as a quick escape property if they need to leave insert country here for political reasons.
It's happening the world over.
Re: Foreign residential property buyers to be taxed at 15% in Vancouver
#10LLC with one Canadian involved gets around this I believe.
AKA tax evasion