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Will Vancouver-Style Foreign Buyers Tax (Bill 28) Come To Victoria?

Geoffrey

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In 2016 housing prices in Vancouver plummeted after the BC Government brought in the the Miscellaneous Statutes (Housing Priority Initiatives) Amendment Act, 2016.

Some local Victoria politicians support a new tax in the Capital Regional District. There could also be other measures brought in to cool Victoria off.

http://globalnews.ca/news/3196388/v...ision-on-foreign-buyer-tax-in-capital-region/

The big question is: will a new tax be brought in, when, and what affect will it have on Victoria? I have major doubts that tax or any other measure will make much difference to Victoria's market over the next 2 or 3 years. There is just very low inventory, high immigration and in-migration, and frankly the cities profile is increasing.

Would be great to hear some views. Media article posting welcome.
 

BrentRoberts

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At the current time they have opted not to charge this tax in Victoria, similar to Chilliwack and Whistler. Once the government recognizes how profitable the tax is, and that implementing this tax to other growing regions may slow down rising house prices, there is a strong possibility they will go for other untapped revenue sources.
 

Thomas Beyer

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In time we will see this foreigner tax, for sure, in many BC cities but also capital gains taxes and higher land transfer taxes in many if not most provinces and on the federal level.

Governments are too strapped for cash and too afraid to do the right thing such as privatize healthcare more, cut civil servants salaries & benefits drastically or moderate spending growth. They will chose more taxes on things that can't move ie real estate.

And yes you are right it will not affect Victoria, Whistler or Kelowna much yet, but just like in Vancouver the last buyer at the peak will look naked for a year or three as prices flatline or moderate !
 

Geoffrey

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Very good to know. Hopefully we are not looking at an adjustment for some time. On the whole expecting more punishing expenses eventually is par for the course, isn't it? Maybe there is some recommended literature on the topic...

To be honest, I'm concerned about the affect of future interest rates on rent/housing cost ratios as well, which is why places like Nanaimo and maybe even Courtenay could be better investment options than Victoria (my principal residence), at least past the next two or three years. Fundamentals work fairly well in both Victoria and Nanaimo, wouldn't you agree? This is slight different topic from the post, I know.
 

Geoffrey

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And yes to your last point, always better to sell before it peaks. Leave something for someone else, and avoid the drop. However you also want to thoroughly research your alternatives. I sold in Brampton a little early and missed out on some good appreciation although still came out well ahead.
 

Thomas Beyer

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All desirable markets in an in-migration country will see appreciation. Some more than others, of course. Only ex-migration markets will see price drops and those markets are either very temporary, like AB between 2014 and 2016, or systemic like Canada's East Coast or many small northern communities as the weather sucks and there are no jobs !
 

Geoffrey

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It is true. People tend to migrate towards the cities, the liveable ones anyway. However I always have a soft spot for the small towns!

Just purchased in Vic West today. Many market fundamentals point to good appreciation in that area. Johnson St bridge expansion, new building complexes, some urban developments, low vacancy rate.
 
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