Luxury Brokers in Vancouver Wary as Property Taxes Hiked | Mansion Global

Parliament

Vancouver’s luxury market, already experiencing a downturn since 2016, will likely take another hit with the introduction of higher tax rates for foreign and luxury home buyers, experts say.

The provincial government of British Columbia on Tuesday announced a basket of measures as part of its 2018 budget; among them was a hike, effective immediately, on property transfer taxes for foreign buyers and buyers of $3-million-plus homes (US$2.36 million and above).

Starting Wednesday, tax rates for foreign buyers were raised to 20% from 15%, while all C$3-million-plus home purchasers must now pay 5%, instead of the current 3% property transfer tax.

Not only will these taxes be applied to homes in Metro Vancouver, but they’ll also be levied in the Capital Regional District, the Fraser Valley, the Central Okanagan and the Nanaimo Regional District.

[Read more…]

Luxury Brokers in Vancouver Wary as Property Taxes Hiked | Mansion Global

Parliament

Vancouver’s luxury market, already experiencing a downturn since 2016, will likely take another hit with the introduction of higher tax rates for foreign and luxury home buyers, experts say.

The provincial government of British Columbia on Tuesday announced a basket of measures as part of its 2018 budget; among them was a hike, effective immediately, on property transfer taxes for foreign buyers and buyers of $3-million-plus homes (US$2.36 million and above).

Starting Wednesday, tax rates for foreign buyers were raised to 20% from 15%, while all C$3-million-plus home purchasers must now pay 5%, instead of the current 3% property transfer tax.

Not only will these taxes be applied to homes in Metro Vancouver, but they’ll also be levied in the Capital Regional District, the Fraser Valley, the Central Okanagan and the Nanaimo Regional District.

The taxes are expected to have a direct, negative impact on the area’s luxury markets, many brokers say.

“They are going to kill an already very, very slow market,” said Brock Smeaton, a veteran broker with Royal LePage West Vancouver.

In West Vancouver, arguably the most expensive housing market in British Columbia and even across Canada, according to Mr. Smeaton, there were only 505 single-family sales in 2017, down from 817 in 2016. On busy years, it used to reach 1,000 sales.

The area’s homes, for which an estimated 80% to 90% of buyers are Chinese, have a starting price point of C$2 million (US$1.58 million) and an average price of over C$3 million, Mr. Smeaton said.

“The market has been extremely slow ever since July 2016, when the 15% foreign buyers’ tax was introduced,” he said, “So far this year, only 18 homes were sold in the area, the lowest level on record since the 1980s; adding 5% transfer tax for foreign buyers will make it worse.”

In 2016, British Columbia imposed the extra 15% on foreign buyers in Metro Vancouver and hiked the “luxury home” tax rate to 3% from the previous 2%, amidst public outcry that foreign buyers pushed up home prices to levels locals couldn’t afford.

The New Democratic Party government was formed last May and promised to prioritize the housing affordability issues.

The new budget plan lays out “a comprehensive housing plan that introduces new taxation measures to tackle foreign and domestic speculation, to close loopholes and crack down tax fraud, and to stabilize housing prices,” said Finance Minister Carole James in a news release.

A speculation tax, a levy on non-resident property buyers who own vacant homes, will be revealed later this year.

However, while all of these taxes were put in place to improve housing affordability, they’re going to do just the opposite, said Dan Scarrow, vice president of Macdonald Realty, an affiliate with Leading Real Estate Companies of the World.

“They will slow down the luxury segment of C$3 million and above but increase competition for homes at a lower price range,” he said.

To Mr. Scarrow, the housing affordability crisis in Greater Vancouver was caused by a lack of supply. “We have many millennials living in the basement of their parents’ houses, but not many starter homes are being built. The supply constraints need to be alleviated,” he said.

The British Columbia Real Estate Association, which represents approximately 23,000 realtors in the western province, took a similar stand.

“The new tax measures introduced by the government to ‘stabilize the housing market’ are unlikely to achieve the intended objective,” the association said in a news release Tuesday.

“Additional taxes, whether targeted at foreign buyers or speculators, do not reduce the gap between when a housing project starts, and when it is available to purchase,” it stated.

This article was originally posted on mansionglobal.com | February 21, 2018. | Written by Fang Block. | Please click on the link to view original 

Luxury Brokers in Vancouver Wary as Property Taxes Hiked | Mansion Global

Parliament

Vancouver’s luxury market, already experiencing a downturn since 2016, will likely take another hit with the introduction of higher tax rates for foreign and luxury home buyers, experts say.

The provincial government of British Columbia on Tuesday announced a basket of measures as part of its 2018 budget; among them was a hike, effective immediately, on property transfer taxes for foreign buyers and buyers of $3-million-plus homes (US$2.36 million and above).

Starting Wednesday, tax rates for foreign buyers were raised to 20% from 15%, while all C$3-million-plus home purchasers must now pay 5%, instead of the current 3% property transfer tax.

Not only will these taxes be applied to homes in Metro Vancouver, but they’ll also be levied in the Capital Regional District, the Fraser Valley, the Central Okanagan and the Nanaimo Regional District.

The taxes are expected to have a direct, negative impact on the area’s luxury markets, many brokers say.

“They are going to kill an already very, very slow market,” said Brock Smeaton, a veteran broker with Royal LePage West Vancouver.

In West Vancouver, arguably the most expensive housing market in British Columbia and even across Canada, according to Mr. Smeaton, there were only 505 single-family sales in 2017, down from 817 in 2016. On busy years, it used to reach 1,000 sales.

The area’s homes, for which an estimated 80% to 90% of buyers are Chinese, have a starting price point of C$2 million (US$1.58 million) and an average price of over C$3 million, Mr. Smeaton said.

“The market has been extremely slow ever since July 2016, when the 15% foreign buyers’ tax was introduced,” he said, “So far this year, only 18 homes were sold in the area, the lowest level on record since the 1980s; adding 5% transfer tax for foreign buyers will make it worse.”

In 2016, British Columbia imposed the extra 15% on foreign buyers in Metro Vancouver and hiked the “luxury home” tax rate to 3% from the previous 2%, amidst public outcry that foreign buyers pushed up home prices to levels locals couldn’t afford.

The New Democratic Party government was formed last May and promised to prioritize the housing affordability issues.

The new budget plan lays out “a comprehensive housing plan that introduces new taxation measures to tackle foreign and domestic speculation, to close loopholes and crack down tax fraud, and to stabilize housing prices,” said Finance Minister Carole James in a news release.

A speculation tax, a levy on non-resident property buyers who own vacant homes, will be revealed later this year.

However, while all of these taxes were put in place to improve housing affordability, they’re going to do just the opposite, said Dan Scarrow, vice president of Macdonald Realty, an affiliate with Leading Real Estate Companies of the World.

“They will slow down the luxury segment of C$3 million and above but increase competition for homes at a lower price range,” he said.

To Mr. Scarrow, the housing affordability crisis in Greater Vancouver was caused by a lack of supply. “We have many millennials living in the basement of their parents’ houses, but not many starter homes are being built. The supply constraints need to be alleviated,” he said.

The British Columbia Real Estate Association, which represents approximately 23,000 realtors in the western province, took a similar stand.

“The new tax measures introduced by the government to ‘stabilize the housing market’ are unlikely to achieve the intended objective,” the association said in a news release Tuesday.

“Additional taxes, whether targeted at foreign buyers or speculators, do not reduce the gap between when a housing project starts, and when it is available to purchase,” it stated.

This article was originally posted on mansionglobal.com | February 21, 2018. | Written by Fang Block. | Please click on the link to view original 

Luxury Brokers in Vancouver Wary as Property Taxes Hiked | Mansion Global

Parliament

Vancouver’s luxury market, already experiencing a downturn since 2016, will likely take another hit with the introduction of higher tax rates for foreign and luxury home buyers, experts say.

The provincial government of British Columbia on Tuesday announced a basket of measures as part of its 2018 budget; among them was a hike, effective immediately, on property transfer taxes for foreign buyers and buyers of $3-million-plus homes (US$2.36 million and above).

Starting Wednesday, tax rates for foreign buyers were raised to 20% from 15%, while all C$3-million-plus home purchasers must now pay 5%, instead of the current 3% property transfer tax.

Not only will these taxes be applied to homes in Metro Vancouver, but they’ll also be levied in the Capital Regional District, the Fraser Valley, the Central Okanagan and the Nanaimo Regional District.

The taxes are expected to have a direct, negative impact on the area’s luxury markets, many brokers say.

“They are going to kill an already very, very slow market,” said Brock Smeaton, a veteran broker with Royal LePage West Vancouver.

In West Vancouver, arguably the most expensive housing market in British Columbia and even across Canada, according to Mr. Smeaton, there were only 505 single-family sales in 2017, down from 817 in 2016. On busy years, it used to reach 1,000 sales.

The area’s homes, for which an estimated 80% to 90% of buyers are Chinese, have a starting price point of C$2 million (US$1.58 million) and an average price of over C$3 million, Mr. Smeaton said.

“The market has been extremely slow ever since July 2016, when the 15% foreign buyers’ tax was introduced,” he said, “So far this year, only 18 homes were sold in the area, the lowest level on record since the 1980s; adding 5% transfer tax for foreign buyers will make it worse.”

In 2016, British Columbia imposed the extra 15% on foreign buyers in Metro Vancouver and hiked the “luxury home” tax rate to 3% from the previous 2%, amidst public outcry that foreign buyers pushed up home prices to levels locals couldn’t afford.

The New Democratic Party government was formed last May and promised to prioritize the housing affordability issues.

The new budget plan lays out “a comprehensive housing plan that introduces new taxation measures to tackle foreign and domestic speculation, to close loopholes and crack down tax fraud, and to stabilize housing prices,” said Finance Minister Carole James in a news release.

A speculation tax, a levy on non-resident property buyers who own vacant homes, will be revealed later this year.

However, while all of these taxes were put in place to improve housing affordability, they’re going to do just the opposite, said Dan Scarrow, vice president of Macdonald Realty, an affiliate with Leading Real Estate Companies of the World.

“They will slow down the luxury segment of C$3 million and above but increase competition for homes at a lower price range,” he said.

To Mr. Scarrow, the housing affordability crisis in Greater Vancouver was caused by a lack of supply. “We have many millennials living in the basement of their parents’ houses, but not many starter homes are being built. The supply constraints need to be alleviated,” he said.

The British Columbia Real Estate Association, which represents approximately 23,000 realtors in the western province, took a similar stand.

“The new tax measures introduced by the government to ‘stabilize the housing market’ are unlikely to achieve the intended objective,” the association said in a news release Tuesday.

“Additional taxes, whether targeted at foreign buyers or speculators, do not reduce the gap between when a housing project starts, and when it is available to purchase,” it stated.

This article was originally posted on mansionglobal.com | February 21, 2018. | Written by Fang Block. | Please click on the link to view original 

Greater Vancouver Real Estate Market Statistics – February 2018

Here are the latest real estate market statistics from Macdonald Realty on the Greater Vancouver listings and sales in February 2018.

Vancouver – Westside

In the Vancouver Westside, there were 53 sales of detached homes and 772 active listings at the end of the month. The benchmark sale price was $3,500,600, with an average days on market of 52. The hottest market for sales was Dunbar with 8 sales.

In comparison, the condo market had 331 sales, 665 active listings and a benchmark sale price of $835,800 with an average of 21 days on market. The hottest market for sales was Downtown VW, 84 sales.

Townhome sales were 34, active listings were 129. The benchmark sale price was $1,250,100 with an average days on market of 21. Fairview and Kitsilano with 7 sales each were the hottest markets of the month.

It’s a seller’s market for condos and townhomes.

MarketHotSheet_February2018_Vancouver-West

[Read more…]

Greater Vancouver Real Estate Market Statistics – February 2018

Here are the latest real estate market statistics from Macdonald Realty on the Greater Vancouver listings and sales in February 2018.

Vancouver – Westside

In the Vancouver Westside, there were 53 sales of detached homes and 772 active listings at the end of the month. The benchmark sale price was $3,500,600, with an average days on market of 52. The hottest market for sales was Dunbar with 8 sales.

In comparison, the condo market had 331 sales, 665 active listings and a benchmark sale price of $835,800 with an average of 21 days on market. The hottest market for sales was Downtown VW, 84 sales.

Townhome sales were 34, active listings were 129. The benchmark sale price was $1,250,100 with an average days on market of 21. Fairview and Kitsilano with 7 sales each were the hottest markets of the month.

It’s a seller’s market for condos and townhomes.

MarketHotSheet_February2018_Vancouver-West

[Read more…]

Greater Vancouver Real Estate Market Statistics – February 2018

Here are the latest real estate market statistics from Macdonald Realty on the Greater Vancouver listings and sales in February 2018.

Vancouver – Westside

In the Vancouver Westside, there were 53 sales of detached homes and 772 active listings at the end of the month. The benchmark sale price was $3,500,600, with an average days on market of 52. The hottest market for sales was Dunbar with 8 sales.

In comparison, the condo market had 331 sales, 665 active listings and a benchmark sale price of $835,800 with an average of 21 days on market. The hottest market for sales was Downtown VW, 84 sales.

Townhome sales were 34, active listings were 129. The benchmark sale price was $1,250,100 with an average days on market of 21. Fairview and Kitsilano with 7 sales each were the hottest markets of the month.

It’s a seller’s market for condos and townhomes.

MarketHotSheet_February2018_Vancouver-West

[Read more…]

Okanagan Real Estate Market Statistics – February 2018

Here are the latest real estate market statistics from Macdonald Realty on Okanagan listings and sales in February 2018.

Central Okanagan: Kelowna and Lake Country

There were 138 sales, 680 active listings, and a $678,156 average sale price for detached homes in the Central Okanagan market, including Kelowna and Lake Country. The average days on market were 59.

The condo market featured 111 sales and 305 active listings at the end of the month. The average sale price was $355,047 with 54 average days on market.

Townhome sales were 59, active listings were 178, average sale price was $460,814, and the average days on market were 49.

MarketHotSheet_February2018_Central-Okanagan

[Read more…]

Okanagan Real Estate Market Statistics – February 2018

Here are the latest real estate market statistics from Macdonald Realty on Okanagan listings and sales in February 2018.

Central Okanagan: Kelowna and Lake Country

There were 138 sales, 680 active listings, and a $678,156 average sale price for detached homes in the Central Okanagan market, including Kelowna and Lake Country. The average days on market were 59.

The condo market featured 111 sales and 305 active listings at the end of the month. The average sale price was $355,047 with 54 average days on market.

Townhome sales were 59, active listings were 178, average sale price was $460,814, and the average days on market were 49.

MarketHotSheet_February2018_Central-Okanagan

[Read more…]

Okanagan Real Estate Market Statistics – February 2018

Here are the latest real estate market statistics from Macdonald Realty on Okanagan listings and sales in February 2018.

Central Okanagan: Kelowna and Lake Country

There were 138 sales, 680 active listings, and a $678,156 average sale price for detached homes in the Central Okanagan market, including Kelowna and Lake Country. The average days on market were 59.

The condo market featured 111 sales and 305 active listings at the end of the month. The average sale price was $355,047 with 54 average days on market.

Townhome sales were 59, active listings were 178, average sale price was $460,814, and the average days on market were 49.

MarketHotSheet_February2018_Central-Okanagan

[Read more…]