Below is the current government’s answer to “cooling” the over-heated housing market.
The debate about British Columbia’s overheated housing market, particularly in the Vancouver region, has focused on concerns over speculation, foreign ownership and flipping – which many believe have all conspired to drive up costs so much that many people will simply never be able to afford to buy a home.
The latest budget includes several measures intended to increase housing supply, allow first-time buyers to enter the market, and finally measure the prevalence of foreign ownership.
Here are my thoughts:
– An increase in property transfer tax over $2M will impact local buyers (a family with 2 kids who now want to stretch to get into a single family home). It is unlikely that the additional 1% will curtail offshore buyers looking for a safe haven to invest in real estate.
– Why not exempt all homes below $750,000 from property transfer tax? I haven’t heard of, or read any documentation about local developers putting a break on building lately, so why just new builds? The buyer should be the one to decide what they want to buy old or new – and still be able to take advantage of the incentive.
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