Many of our clients have asked us if the new foreign buyers tax has impacted our local market and people moving from Vancouver. Of course, it is too early to see the impact of the Vancouver tax on the Victoria area. However, we can tell you that the highly charged Vancouver real estate market and the media attention focus on Victoria and the Peninsula has had a definite impact on our “helmsinghomesforsale” business.
When we look at our sales since spring, we have sold two homes in Dean Park, two waterfront homes and a new build home, both in Sidney, all to buyers moving from Vancouver.
The feed back we have received is that price was not a factor in each move from Vancouver, however, lifestyle was the determinate in each of the decisions.
Province to tax foreign buyers of Metro Vancouver homes
CBC News Posted: Jul 25, 2016 10:42 AM PT
The B.C. government took steps Monday to reduce some of the pressure in Metro Vancouver’s overheated real estate market, introducing legislation that would add a 15 per cent property transfer tax for foreign nationals buying real estate there.
The new rules take effect Aug. 2 and only apply to home purchases in Metro Vancouver, excluding the treaty lands of the Tsawwassen First Nation.
Provincial Finance Minister Mike de Jong unveiled the tax as part of legislation aimed at addressing low vacancy rates and high real estate prices in southern B.C.
“For example, the additional tax on the purchase of a home selling for $2 million to a foreign national will amount to an additional $300,000,” de Jong told members of the legislature.
All B.C. residents currently pay a one per cent tax on the first $200,000 of their purchase, two per cent on the remaining value up to $2 million and three per cent on any portion above that.