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Mortgage Broker News | 27 Jul 2016, 08:15 AM Agree 0
One leading industry economist weighs in on the concerns around Vancouver’s pending tax on foreign buyers
  • Omer Quenneville | 27 Jul 2016, 09:53 AM Agree 0
    The tax is meant to be "hefty". It would have to be hefty to be effective. My concern is not the tax, those that have the ability to bring money over to purchase real estate can afford to pay it. My concern is what will be done with the tax revenue. It should be used to open the door to residence needing access to the market. In Toronto with the double land transfer tax many are not moving simply because they can't afford the double land transfer tax causing listing supply to be low. Removing the provincial land transfer tax and replacing it with this non-residence tax would provide incentive to the trade up market and would increase the available properties for sale. Increased inventory would slow the market down.
  • Warren Ross | 27 Jul 2016, 09:54 AM Agree 0
    It's pretty sad that with the new tax in Vancouver, and a suggested tax for Toronto, there is no suggestion of the possibility of increased foreign investment in Quebec. Our property values are a third of Vancouver prices.
  • Rick Robertson | 27 Jul 2016, 10:41 AM Agree 0
    There are several challenges with the "Canadian resident buyer" theory. A couple being: current proof of down payment requirements would make the transaction cumbersome, and capital gains tax would apply to that Canadian resident's income at the time of the property sale/transfer.
  • John | 27 Jul 2016, 12:39 PM Agree 0
    To pay 15% tax or fee you would expect prices to rise above that to justify purchasing real estate. No sane person would do it, for most people this is NO GO. The only buyers that would still proceed are those who are laundering illicit money: criminals, fraudsters and corrupt officials.
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