Those living in Metro Vancouver are quickly becoming priced out of the market with the massive influx of Foreign investors.
Contrary to public outcry on the issue, Christy Clark is not about to Tax foreign real estate investors.
By: Chris Slattery
METRO VANCOUVER – Many local Canadians living in the province are fed up with the inequality and Vancouver’s sky high real estate prices. Both homeownres and first time home buyers are asking for help from municipal government, but to no avail.
Clark doesn’t seem phased by public opinion and is satisfied with the current market – Taxes on foreign real estate investors are only going to hurt investors when implemented,
“housing prices will drop.” Said Clark
The public are shocked by the sudden reversal – As Clark was open to this proposal in early February, 2016
Social Media has been a powerful platform for the public, but the message is not getting through to government leaders. To date: 18,000 people have now signed an online petition to restrict foreign investment, as the overwhelming majority of investors are from China (with money laundering suspicions)
“It’s time to stand up and protect our community—Vancouver is not for sale,” the petition reads. “The housing needs of Greater Vancouver residents are more important than the profit margins of foreign speculators.”
What are other world class cities doing about foreign tax?
Australia has also seen a surge in Real Estate investors (from China). There, the government recently proposed a policy that would fine or jail foreign investors over illegal home sales. The crackdown calls for fines of CAD$121,000 and up to three years jail for individuals found breaking the rules. Companies will face higher fines of CAD$605,000. Third parties, such as real estate agents, who assist foreigners in breaching the laws could be fined up to CAD$40,400 for individuals and CAD$202,000 for companies.
But in Canada, no such law exists for a foreign tax proposal
Some now fear the only way to get their message across, is to hold a public rally. The Vancouverites for Affordable Housing organization is now planning an Affordable Housing Rally to take place on Sunday, May 24 at the Vancouver Art Gallery. Some using social media have started the hash tag #VancouverRobinHood to vent their frustrations and the lack of government intervention.
The Fraser Valley Real Estate Board processed 1,338 sales on its Multiple Listing Service® (MLS®) in January, an increase of 57 per cent compared to January 2015 and 13 per cent fewer then were processed in December. Sales
in January ranked at the top for the last ten years coming in 57 per cent over the 10-year average, and 5 per cent higher than the previous record of 1,270 sales in January 1992.
Jorda Maisey, President of the Board said,
“Typically, we see January numbers slow down post-holiday season, but so far demand for Fraser Valley homes hasn’t let up. Homebuyers are reluctant to wait when the market is moving...” See Full Report