How Will Vancouver's New Foreign Home-Buyers Tax Affect the Real Estate Market?

27 July 2016

The BC Government has announced a 15% tax on buying properties for non-residents in Vancouver effective August 1st. The big question is, will this new tax curb property prices in Vancouver? No. The problem is still a lack of supply and non-residents represent only a small minority of buyers.

Here is what it will do!

  1. First, it's a tax grab for the BC Government that will not offend voters.
  2. Secondly, it's a public relations win. It looks like the government is doing something even if it is doing nothing.

Will this new tax come to Ontario? They are already studying it and my guess is 'yes'. Just because it's an easy tax grab that won't affect voters and it looks like they are being proactive.

What the Ontario Liberals need to do is to encourage more housing to be built. Now that takes some planning.