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BC Introduces New 15% Foreign Buyers Tax - Update: Student Files Class Action Lawsuit


DonLever

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26 minutes ago, Realtor Rod said:

Realtor's affected pricing? Do tell...

 

Hey Rod, this house is for sale. We want to write an offer. We realize there are going to be more than 10 offers so we want to bid $175,000 more than the asking price. 

 

That is supply and demand. 

http://www.theglobeandmail.com/news/investigations/the-real-estate-technique-fuelling-vancouvers-housing-market/article28634868/

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1 hour ago, Beastmode33 said:

The old supply and demand argument, so the answer must be to build more houses and increase supply!  Like any developer is looking at our real estate prices thinking they'd like to sell for less, they are counting on these prices to fill their greedy pockets.

 

So lets say supply and demand is the answer, why is it not more acceptable to DECREASE DEMAND from foreign owners? Oh yes, because Realtor Rod and his chronies don't make as much that way.

 

It sure would be nice for you guys if there was more supply and you didnt have to put in any real work representing buyers and visiting open houses, instead you can sit back and sell to lineups of people!

 

Our city is beautiful because of nature, so lets destroy it in order for realtors and developers to get even more rich while prices stay the same and foreign buyers buy more land. 

 

 

Every realtor I know is saying the exact same thing, its getting old.

 

 

You are wrong all over the place. Supply and demand is the reason. The stats prove it. Less houses on the market, more buyers competing for those houses. 

 

You have no idea what I do. If it's so easy, why don't you do it? I am sure the reason is some noble cause. I work all hours of the night. 

 

So the developers are to blame? What about the trades getting rich? Truck drivers hauling dirt and concrete? Anyone else you want to 'blame'. 

 

My above post was real world, how was it responsible for their willingness to pay 175k over list? You won't have an answer except to complain about lazy realtor's  (I work more hours a week than you, guaranteed) or greedy developers. 

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1 hour ago, StealthNuck said:

Old article, done by shady agents and loophole closed. The one transaction had nothing wrong with it (sold, closed, resold). Assignments now have the profits go the original seller. That is a tiny fraction and 12 realtor's from 10,000+ in Vancouver doesn't shape a market. 

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23 minutes ago, Realtor Rod said:

You are wrong all over the place. Supply and demand is the reason. The stats prove it. Less houses on the market, more buyers competing for those houses. 

 

You have no idea what I do. If it's so easy, why don't you do it? I am sure the reason is some noble cause. I work all hours of the night. 

 

So the developers are to blame? What about the trades getting rich? Truck drivers hauling dirt and concrete? Anyone else you want to 'blame'. 

 

My above post was real world, how was it responsible for their willingness to pay 175k over list? You won't have an answer except to complain about lazy realtor's  (I work more hours a week than you, guaranteed) or greedy developers. 

I get how supply and demand works Rod, and I understand how it affects home prices.  Im not even arguing that supply and demand is the problem, what I am arguing is that more supply is not the solution as you propose.

 

Sure, some already rich trade company/developers get even richer while the actual employees can't afford to buy a home near the developments they work on.  Unless of course us peons in your reality are only to ever own a one bedroom condo, and raise our families in 400 sq ft junior one bedrooms. 

 

Then our children are in even worse shape because hey, Realtor Rod promises that in his reality prices will stay flat or go up.

 

But I guess if you believe in Trickle down economics and don't believe in greed, you may be correct...

 

Of course you would be out of line to advise your client who is about to bid $175,000 over asking to wait it out and rent, to save them their retirement fund or life savings.

 

But your right Rod, lets increase supply and ignore the factors of extreme demand so that you can work so hard all night making thousands of dollars off people who stand to lose everything if you are wrong. 

 

I hope you have more than one foreign deal on your desk with a closing date after August 2nd.  Maybe then you can guarantee you work harder than me.

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2 hours ago, Realtor Rod said:

Realtor's affected pricing? Do tell...

 

Hey Rod, this house is for sale. We want to write an offer. We realize there are going to be more than 10 offers so we want to bid $175,000 more than the asking price. 

 

That is supply and demand. 

Example one

 

A foreign buyer bought a presale. The realtor makes money of that sale. Now the realtor recommends to sell the presale as an assignment by that realtor. When he sells that assignment, he takes another cut. This is the case if the foreign buyer had no family or friends with Canadian citizenship or permanent residency. If they do, they can transfer the presale to family or friends to get around the 15% transfer. Result, either the realtor wins or the foreign buyer gets around this law.
 
Example 2.
 
Shadow flipping.  Something so prevalent and standard among realtors in BC that the government had to bring in rules simply to stop this.
 
Example 3.  Double Ending
 

In May 2014, Kong listed a property in Burnaby and the following month, a buyer made an offer to purchase the home for $1.35 million. The buyer told Kong he did not have a Realtor representing him, and Kong “informed him that she would be acting for both him and the seller,” according to a signed agreed statement of facts.

 

Kong explained to the client that she would add her business partner’s name to the paperwork as the buyer’s agent, “so the seller would not attempt to negotiate the commission payable,” according to the statement. The buyer said Kong listed her business partner, a Mr. Yang, as the buyer’s agent on the contract of purchase and sale, without his knowledge or consent and despite the fact he had never met Mr. Yang.

 

Example 5.

 

http://www.theglobeandmail.com/news/investigations/the-real-estate-technique-fuelling-vancouvers-housing-market/article28634868/

 
Finally, realtors are under so much fire that for the first time in the history of the BCREA the government and almost universally all boards are requesting an increase in fines, stiffer penalties and potential criminal legislation.
 
So yes, realtors are in fact affecting prices to a point.  This is without mentioning property management companies not advertising rentals but taking bids on them instead which further drives up the cost of housing.
 
Please don't pretend you don't know these issues are happening as these are not one of issues that occur a single time, they are massively lucrative and have been occurring for years without oversight or interference from the government or governing boards.
 
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Mayors outside Metro Vancouver are concerned about the impact of a new 15 per cent tax on their communities. The tax only applies to purchases made by foreign nationals on properties in Metro Vancouver.

Whistler Mayor Nancy Wilhelm-Morden warns the tax could have "unforeseen consequences" in the communities where it is not applied. The largest worry is that foreign buyers priced out of Vancouver will shift money elsewhere in B.C.

"If we receive a significant amount of foreign investment for the mere fact of making an investment that may have a similar impact as it has had in Vancouver, we would like to avoid those types of results," said Wilhelm-Morden.

Whistler is already a popular place for foreign buyers to purchase property, but Wilhelm-Morden said many of those buyers don't just use their properties as investments but also enjoy the outdoor activities Whistler offers.   

 

Victoria mansion

The Grierson Mansion, built in 1910, was one of the many properties put on sale during Victoria's latest housing boom. (Megan Thomas/CBC)

The provincial government has the ability to expand jurisdictions covered by the tax, which is expected to be passed by the legislature on Thursday.

Finance Minister Mike de Jong says he would like to wait and assess the impact outside of Metro Vancouver before making any changes. 

"On measures of this importance, I always feel the government is better off when it can make decisions based on fact, as opposed to theory," said de Jong.

The Capital Regional District has already seen some influence from foreign home buyers. Data released Tuesday by the provincial government showed 3.5 per cent of CRD properties were purchased by foreign buyers.

"I am concerned that it is already unaffordable for a regular working person or a young family to buy a home in Victoria. I am already concerned," said Victoria mayor Lisa Helps. "Am I going to become more concerned about a new tax? I think it is something to watch."

Mike de Jong

B.C. Finance Minister Mike de Jong says the province has the ability to apply the foreign owners tax to jurisdictions outside of Metro Vancouver. (CBC)

Helps has worked with other politicians to put together a resolution to be debated at the Union of British Columbia Municipalities annual general meeting in September. The resolution calls on the provincial government to "implement creative, innovative and flexible tools to create solutions" in B.C.'s housing markets. 

The resolution also includes the 13 housing-related policies the UBCM has passed over the last eight years as an example of how current policies are not working. 

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15 minutes ago, Beastmode33 said:

I get how supply and demand works Rod, and I understand how it affects home prices.  Im not even arguing that supply and demand is the problem, what I am arguing is that more supply is not the solution as you propose.

 

Sure, some already rich trade company/developers get even richer while the actual employees can't afford to buy a home near the developments they work on.  Unless of course us peons in your reality are only to ever own a one bedroom condo, and raise our families in 400 sq ft junior one bedrooms. 

 

Then our children are in even worse shape because hey, Realtor Rod promises that in his reality prices will stay flat or go up.

 

But I guess if you believe in Trickle down economics and don't believe in greed, you may be correct...

 

Of course you would be out of line to advise your client who is about to bid $175,000 over asking to wait it out and rent, to save them their retirement fund or life savings.

 

But your right Rod, lets increase supply and ignore the factors of extreme demand so that you can work so hard all night making thousands of dollars off people who stand to lose everything if you are wrong. 

 

I hope you have more than one foreign deal on your desk with a closing date after August 2nd.  Maybe then you can guarantee you work harder than me.

Wow, you just don't get it. I have never said "add more houses". 

 

Trades are charging more than ever. All trades. Prices have gone up in real estate  since 1977, I posted the graph earlier.

 

I have advised lots of clients to rent, again, you assume we are all the same. 

 

My commissions are 100% negotiable. If I don't like what you are willing to pay me, then I don't have to work with you and vice versa.

 

I work in Abbotsford, we are exempt from the foreign investment tax. I did receive 2 calls today from foreign investors about the Abbotsford market. I guess we will see.

 

You know what I do, why don't you share what you do for work. 

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5 minutes ago, Realtor Rod said:

Wow, you just don't get it. I have never said "add more houses". 

 

Trades are charging more than ever. All trades. Prices have gone up in real estate  since 1977, I posted the graph earlier.

 

I have advised lots of clients to rent, again, you assume we are all the same. 

 

My commissions are 100% negotiable. If I don't like what you are willing to pay me, then I don't have to work with you and vice versa.

 

I work in Abbotsford, we are exempt from the foreign investment tax. I did receive 2 calls today from foreign investors about the Abbotsford market. I guess we will see.

 

You know what I do, why don't you share what you do for work. 

You are really grasping at straws Rod.

 

What else do you call increasing supply?

 

Trades are charging more? 30% per year more?  Strange that income levels haven't gone up that much.  Those owners must be donating extra profits to charity as they wouldn't dare keep the money to themselves.

 

You gave a "real life" example of not suggesting a client rent instead of over bidding $175,000 on ABBOTSFORD REAL ESTATE!  That's cold Rod, I figured you would be a downtown Realtor at those bids and with your heavy workload.

 

I don't feel I need to tell you what I do as if it's any more important than anyone else's job.

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10 minutes ago, Beastmode33 said:

You are really grasping at straws Rod.

 

What else do you call increasing supply?

 

Trades are charging more? 30% per year more?  Strange that income levels haven't gone up that much.  Those owners must be donating extra profits to charity as they wouldn't dare keep the money to themselves.

 

You gave a "real life" example of not suggesting a client rent instead of over bidding $175,000 on ABBOTSFORD REAL ESTATE!  That's cold Rod, I figured you would be a downtown Realtor at those bids and with your heavy workload.

 

I don't feel I need to tell you what I do as if it's any more important than anyone else's job.

What straws? Trades are charging way more than 30%. You sound like an ignorant kid. 

 

What's cold about my real world example? You obviously don't know enough about the market, maybe you shouldn't be commenting on it. 

 

I am shocked you won't share your employment. I know Warhippy is a photographer. 

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11 minutes ago, Realtor Rod said:

What straws? Trades are charging way more than 30%. You sound like an ignorant kid. 

 

What's cold about my real world example? You obviously don't know enough about the market, maybe you shouldn't be commenting on it. 

 

I am shocked you won't share your employment. I know Warhippy is a photographer. 

Name calling Rod? Thats not nice.

 

The majority of your post is just angry typing with no real point so Im not even going to acknowledge it.

 

I am the CEO of an insurance provider and owner of an insurance software business.  Not sure how that helps you or why you are so "shocked" I didn't feel the need to share that with the internet using my forum user name.

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23 minutes ago, Beastmode33 said:

Name calling Rod? Thats not nice.

 

The majority of your post is just angry typing with no real point so Im not even going to acknowledge it.

 

I am the CEO of an insurance provider and owner of an insurance software business.  Not sure how that helps you or why you are so "shocked" I didn't feel the need to share that with the internet using my forum user name.

What name? Ignorant kid? No, that's a simile but you are CEO of a company so I am sure you know that is not name calling.

 

Insurance, there is an industry void of corruption. No wonder you didn't want say.

 

Nothing angry about it, I just don't like being lumped in with the corrupt agents in the industry. I don't care about the changes because they don't affect me. I run a clean upstanding business. 

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40 minutes ago, Realtor Rod said:

What name? Ignorant kid? No, that's a simile but you are CEO of a company so I am sure you know that is not name calling.

 

Insurance, there is an industry void of corruption. No wonder you didn't want say.

 

Nothing angry about it, I just don't like being lumped in with the corrupt agents in the industry. I don't care about the changes because they don't affect me. I run a clean upstanding business. 

Ok Rod thats enough, we get it.  Realtors Rule!

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Here's the deal, Rod...you are getting hostile and defensive but if things are so credible, no need to be?

 

Supply and demand...let's look at that, shall we?  Because I think you've made a point.

 

The demand is a lot of foreign investors trying to make a buck off property here.  Your own admission to receiving two calls just today supports that.

Quote

I did receive 2 calls today from foreign investors about the Abbotsford market

 

Problem is...there is a demand for homes as well.  You know, people who actually want to live here.

 

So you tell me which is more important?  For communities.  Security.  Business in the area.

 

Empty homes owned by offshore investors who have no interest in the area beyond how much their piece of the pie is worth, or those with people actually living in them trying to build lives here?   I'm pretty sure I know which one seems more beneficial.  If money is all that matters, sure.....but it's not.  It's quality of living.  It's growing up in neghbourhoods instead of vacant ghost towns.

 

I respect that this is your living and so you are obviously going to defend it.  It's taking a hit because there are so many loopholes and people exploiting real estate to dump dirty money in untraceable cash sales.  Its developers bulldozing every single thing in their wake to create monster homes that often become anything but "home" to "families".  B & B's.  Hotels.  Accupuncture clinics.  Birthing homes.  It's students and homemakers collecting low income subsidies in million dollar homes with luxury cars parked outside.  Working the system because there ARE loopholes.  And we shouldn't look into it?  There IS something wrong with this picture, and it's high time it started being corrected because it's out of control.

 

You won't convince many of us NOT in the business of selling property that we're wrong. 

 

And I will tell you that, in my short block of 16 houses, 7 remain ... all the rest have been bought up by developers and are being leveled, with gawdy massive homes built in replacement of them.  And then they're often snapped up and sit empty.

 

Around the corner?  More of this.  Houses with blinds drawn, never to be opened, grass and weeds growing knee high and no activity at all.  Living next door gets kind of creepy.

 

Schools are closing, it's heartbreaking.  They bear the names of people who contributed a great deal here.  Why is this happening?  Because when houses are bought as investment property, there are not families or children to speak of and enrollment in neighbourhood schools goes down as a result.  It's having a huge impact.

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3 hours ago, Realtor Rod said:

What straws? Trades are charging way more than 30%. You sound like an ignorant kid. 

 

What's cold about my real world example? You obviously don't know enough about the market, maybe you shouldn't be commenting on it. 

 

I am shocked you won't share your employment. I know Warhippy is a photographer. 

Can argue with that.  Before my accident my wage jumped $13 an hour in 6 years doing structural flange and Ibeam ironwork but even then at $86k a year I couldn't have afforded a place in vancouver and the commute was terrible.

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5 hours ago, debluvscanucks said:

Here's the deal, Rod...you are getting hostile and defensive but if things are so credible, no need to be?

 

Supply and demand...let's look at that, shall we?  Because I think you've made a point.

 

The demand is a lot of foreign investors trying to make a buck off property here.  Your own admission to receiving two calls just today supports that.

 

Problem is...there is a demand for homes as well.  You know, people who actually want to live here.

 

So you tell me which is more important?  For communities.  Security.  Business in the area.

 

Empty homes owned by offshore investors who have no interest in the area beyond how much their piece of the pie is worth, or those with people actually living in them trying to build lives here?   I'm pretty sure I know which one seems more beneficial.  If money is all that matters, sure.....but it's not.  It's quality of living.  It's growing up in neghbourhoods instead of vacant ghost towns.

 

I respect that this is your living and so you are obviously going to defend it.  It's taking a hit because there are so many loopholes and people exploiting real estate to dump dirty money in untraceable cash sales.  Its developers bulldozing every single thing in their wake to create monster homes that often become anything but "home" to "families".  B & B's.  Hotels.  Accupuncture clinics.  Birthing homes.  It's students and homemakers collecting low income subsidies in million dollar homes with luxury cars parked outside.  Working the system because there ARE loopholes.  And we shouldn't look into it?  There IS something wrong with this picture, and it's high time it started being corrected because it's out of control.

 

You won't convince many of us NOT in the business of selling property that we're wrong. 

 

And I will tell you that, in my short block of 16 houses, 7 remain ... all the rest have been bought up by developers and are being leveled, with gawdy massive homes built in replacement of them.  And then they're often snapped up and sit empty.

 

Around the corner?  More of this.  Houses with blinds drawn, never to be opened, grass and weeds growing knee high and no activity at all.  Living next door gets kind of creepy.

 

Schools are closing, it's heartbreaking.  They bear the names of people who contributed a great deal here.  Why is this happening?  Because when houses are bought as investment property, there are not families or children to speak of and enrollment in neighbourhood schools goes down as a result.  It's having a huge impact.

Deb, I don't disagree with some of  what you are saying. However, the problem comes when people paint us all with a broad brush. I am a father of three who is trying to raise a family. I bust my a$$ day and night to help people. People who say things like these http://www.rodfriesen.com/client-testimonials-2

 

Like any industry there are bad seeds. If the government implementations rid us of bad realtor's I am all for it. Developer's tearing down houses is not a great thing, but there is also a demand for bigger houses. The older homes are smaller and many are no longer up to code. Many of the new homes have suites and multiple families live in them. 

 

Your school closure data seems askew. https://bctf.ca/data.cfm?page=SchoolClosures shows a different story. Also, schools as I see them have too many students for the teachers. This is a government issue that they should addressed, not point fingers at other industries. Anyways, it's 4am and I am off to work. 

 

Just an FYI, the real estate council had been trying to raise fines and penalties for years while self regulating and this Liberal government said no, multiple times. The maximum disciplinary fine limits are set by the Real Estate Services Act and any increase would require a legislative amendment. 

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2 hours ago, Realtor Rod said:

Like any industry there are bad seeds. If the government implementations rid us of bad realtor's I am all for it. Developer's tearing down houses is not a great thing, but there is also a demand for bigger houses. The older homes are smaller and many are no longer up to code. Many of the new homes have suites and multiple families live in them. 

 

Your school closure data seems askew. https://bctf.ca/data.cfm?page=SchoolClosures shows a different story. Also, schools as I see them have too many students for the teachers. This is a government issue that they should addressed, not point fingers at other industries. Anyways, it's 4am and I am off to work. 

 

Just an FYI, the real estate council had been trying to raise fines and penalties for years while self regulating and this Liberal government said no, multiple times. The maximum disciplinary fine limits are set by the Real Estate Services Act and any increase would require a legislative amendment. 

http://vancouversun.com/news/local-news/richmond-names-16-schools-to-be-considered-for-closure

 

Current proposals in the works to close schools based on declining enrollment and upgrades.  Your link actually helps to make my point if anything.  In 12 years 3 schools were closed since 2003...Steveston Secondary was on property shared with London and there was no need for two schools on the property.  Sidaway is a remote area with blueberry farms, so that had limited use.   Now they want to close 16 all in one shot?  Unheard of.  And, due to the changing demographics.

 

You're in Abbotsford, so likely don't understand the magnitude of the problem here (in Richmond).  And I'd imagine that you don't see the foreign ownership there because most people being pushed out of here are migrating your way....so it's more displaced people who can still afford homes in the valley.  Doesn't mean there isn't a problem...and it's spreading.  Won't be long before areas on the outskirts see a ripple affect if it's unchecked.

 

The data isn't askew, but I believe you're relying on data that's limited and outdated.

 

I also challenge that the demand for bigger houses is based on a need for them.  Hogwash.  At least not out this way.  They are more "attractive/lucrative/desired" perhaps.  But unnecessary.  And we're talking about well maintained, newly renovated homes being torn down in many instances.  "Affordable".  The new mega homes are being advertised as hotels in China and rented on a nightly basis.  That shouldn't be...without regulations, safeguards and business taxes in place.  If revenue is being generated in home, that in itself is an issue and needs regulating.

 

I had stats (until the website was removed)...people are tracking these very issues in Richmond.  A home around the corner from me was twelve years old and demolished.  There have been numerous links being used as anything but.

 

We wouldn't have a housing crisis if people were building larger homes to rent/provide suites.  I'd like to see that data please/thanks. 

 

You are making excuses but there is a problem, and it's much more widespread than "a few bad apples".  It's rampant.

 

I don't doubt for a second that your aren't a hard working, dedicated family man...this isn't meant to be a personal attack.  But the fact that the bad apples have an avenue to perform as they are warrants an overhaul.  That the systems are being exploited....you don't not fix a leak in a roof because it's a small one and it isn't the entire roof.  You patch it up and start assessing things in a big picture way.

 

 

 

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2 hours ago, Realtor Rod said:

Deb, I don't disagree with some of  what you are saying. However, the problem comes when people paint us all with a broad brush. I am a father of three who is trying to raise a family. I bust my a$$ day and night to help people. People who say things like these http://www.rodfriesen.com/client-testimonials-2

 

 

I feel that you're defending your actions but that isn't necessary.  This isn't about "you" and if the industry was but one guy - Realtor Rod, there'd be no discussion.  I admire those in the business who are slugging it out to make a life for themselves...I have many friends who fall under that.

 

But it's this stuff, on a much bigger scale, that warrants changes.  I, too, can find many links and examples (and will when time permits).  Tip of the iceberg that we've run into and what lurks beneath it all is something that calls for changes and stricter policies.  It's not personal, but you're reducing it to that.  You're not a bad apple, but the ones that are in the game are huge.  This article is long so I'm only posting the start, but there are so many things like this surfacing here:

 

http://theprovince.com/business/real-estate/mysterious-wheeler-dealer-is-at-centre-of-a-web-of-b-c-real-estate-deals

Quote

 

A Chinese property tycoon linked to a massive banking scandal in China’s industrial north is at the centre of more than $500 million in B.C. property deals, a joint investigation by Postmedia and global due diligence firm IPSA International shows.

Chinese real estate magnate Kevin Sun — also known as Hong Sun, Kevin Lin, Hong Wei Sun and Sun Hongwei — founded Sun Commercial Real Estate in 2013. In addition to buying and selling hundreds of millions in B.C. property, the B.C. company, which focuses on immigrant investors, has raised over $200 million from investors...Read more

 

It's sad to me...the Illich home, now a hub for wheeling dealing.

 

When I get back I'll start posting my own links, stats (current ones) and reasons a handful of "good" guys with testimonials aren't really enough to not crack down on what is happening here.  Instead of defending things, you should be fighting for changes AS the hard working guy who isn't taking shortcuts.  Because you won't last in this cut throat game of dollars if you are just grinding it out.  I have a feeling supporting it is based on the very reason it's a problem....because it's bringing the highest bidders over.  That's a short term win for you, but one you'll certainly do better than the average Joe for.  In the big picture, it's not good for any of us to sell out and run away.  That will be an ongoing thing as people are pushed further out to find affordability.

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This 15% tax on foreign buyer will not work as they will simply add 15% more on the top of their original rent asking price to any renter who seeks a place to live to meet the owner expenses on housing and taxes and take advantage of 15% where the owner can simply hike the rent price to meet the 15% tax expense.   There are a few options the government can consider without discouraging Canadian citizens who want to buy a house to live in.  The original intention on owning a property is to live in it and to be useful to the community around here regardless of whether you are citizen or foreign who might have their vacation home in BC or becoming a landlord  I have three options I propose:

 

First, I prefer this option is to create a new ownership law in BC, cutting off the loopholes on any flipping flop houses tactics: once any foreigner buys a house, the property value freezes for 4 years.  If they want to sell the house before 4 years freezing expires, they must sell property for the same price that they bought for regardless of any market value on the same area and they must not be profited by the market.   They cannot sell the house for profit for 4 years and if they want to sell for the profit, they must wait for 4 years and it is on their own risk if the market value drops or rises after the 4th year and on the 5th year, they may sell the house for profit on their own risk.    The foreigners are free to buy any property they want and sell but they must be on a 4-year freezing period to verify their original intention of owning a property in Canada.  Any business/commercial property don't apply in the foreign ownership rules, only the residency zoning around the country.

 

If they want to get out of the housing market by selling after 4th year, there are two options they must decide: they must pay 15% more tax when they are selling the property to another foreign buyer.  They must pay another 10% on taxes if the property is without any tenant for 4 years and must actually show any business transaction that they actually are renting or be physically in Canada using their passport/visas during their time of being a property owner in Canada.  If they are owning two houses, they must show any proof if they are actually using the property via tenancy or living in their own property.

 

No tax shall be imposed to the foreign owner if they are selling the property to Canadian citizen or permanent resident for profit after 4th year.  This rules do not apply to Canadian citizens or permanent resident owner that actually live in Canada and may impose 1-year freeze on property value, rather than 4 years freeze for foreign owner.  The 10% tax should not apply if a Canadian or permanent resident owner is selling the property off to a prospective foreign owner. 

 

The original spirit of this law will encourage the foreign owner to actually live in Canada and be useful to the community rather than taking advantage of the market around Vancouver and not actually care about Canada or the community itself.  Another acceptable intention is to help the Canadian citizen to find a place by affordable renting if they choose not to live in Canada.   By this law, we will be satisfy on their intention that they bought the property for their own use or renting to a tenant, not leave any house vacancy and sell them for higher price for profit as the housing should not be a business but their intention of buying a house is to live in it or helping to create an affordable renting to their property should be one of their two intention of owning a property in Canada.    Tenant moving out is inevitable so when this occurs, taxing them is unfair so I think that the owner should be given a 6-month grace period to find a new tenant and if they cannot find any new tenant within 6 months then taxes should be imposed for any unused property.  

 

This brings me to second option:

 

There should be more option to combat this problem related to foreign buyers. There should have cap the rent price proportional to the property market they dictate.  If any owner want a tenant then they should put a cap on any property that worth a million dollar and uncapped rent for any home that is 2 million or more on the market.  Put an affordable rent for everybody else. I can't think of any good idea on this capped situation as you don't want to stifle the ownership freedom on their own property.  The cap may not work well, this brings me to a final option that I propose:

 

Another solution: if any foreign or Canadian owner has a tenant then should be a tax write-off on a property tax to encourage affordable rental housing and if there is no tenant then they must pay an added 10% property tax per month that the house doesn't have any tenant unless they are living in it and no added cost to property tax if they live in their own property.  This does not apply to any Canadian owners.    Again, as I mentioned in my first proposal, tenant moving out is inevitable so when this occurs, taxing the owner is unfair so I think that the owner should be given a 6-month grace period to find a new tenant and if they cannot find any new tenant within 6 months then taxes should be imposed for any unused property until a new tenant has decided to rent a place at their property.     This will ensure that any foreign owner to lower their demand for any rental agreement to ensure that they don't pay any vacancy taxes on any foreign owners and to keep the housing low.  This is a carrot on the stick approach.

 

On conclusion to my opinion on the housing crisis is that if any Canadian / permanent resident wish to leave their property vacant is their business and should not pay any added property taxes but if any foreign owner wants to vacant their property then they must pay more taxes to protect the interests of Canadian as whole.  The government can then use the foreign vacancy taxes to help the low income families that can't afford to rent or to own a property.  I prefer the first option, rather than second/third option because the first option is the best way to ensure the spirit of owning a property is to have a freedom of choice on owning a property for any foreign buyer who wish to engage the business in Canada and at the same time protect the interests of all Canadian on affordable housing market whether it be rental market or ownership market by freezing the wealthy foreign buyers for a long-term investment and to close loopholes by freezing their asset for 4 years upon owning a property in Canada.  The freezing period law will slow down the market.

 

 

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