UnionCity Condos in Markham.Raise taxes to control house prices. British Columbia will impose a 15% property transfer tax on foreign buyers in the greater Vancouver area from August 2 to curb soaring house prices, the government of British Columbia announced today.Please Visit: UnionCity Condos in Markham to Get Your VVIP Registration Today!
Provincial Finance Minister Derong said the extra tax will be used to solve the housing problem in warm areas, including projects such as increasing the supply of rental housing and low-rent housing.
Derong said, for example, that foreigners have to pay an extra C $300000 for a house worth C $2 million ($0.76) and up to C $750000 for a C $5 million luxury house. Provincial residents and permanent residents enjoy a tiered tax system, in which the first C $200000 is subject to a 1 per cent purchase tax, a 2 per cent tax from C $200000 to C $2 million, and a 3 per cent tax over C $2 million.
Official statistics show that between June 10 and July 14 this year alone, foreign citizens bought property in British Columbia worth as much as C $1 billion, 86 per cent of which was concentrated in Vancouver and surrounding areas. House prices in Vancouver rose by about 30% last year, causing strong dissatisfaction among local residents.
In addition, in order to control house prices, the city of Vancouver also decided on the 25th to levy a vacant house tax in order to increase the supply of rental housing in Vancouver and encourage homeowners to rent out their houses.
The Philippines, India and China have long been the top three sources of Canadian immigrants, according to data published on the Canadian government website. Since 2012, as of the first quarter of 2016, nearly 100000 Chinese citizens have been granted permanent residency in Canada.
According to media reports, at the end of 2014, the number of Chinese students studying in Canada was as high as 110000, accounting for 1/3 of Canada’s total foreign student population and three times the number of the second Indian student.
According to the 2015 Chinese returnee Development report released in July by the China and Globalization think tank, the least number of Chinese students studying in Canada returned home because many of them studied abroad for the purpose of emigration. These people are “invisible” buyers in the Canadian property market.
The Bank of Canada also pointed out in its 2016 semi-annual report that demand from foreigners “has indeed led to a rise in house prices, which has led to a rise in home loans.”
Long before Vancouver levied the property tax, domestic and foreign media repeatedly reported the “buying” behavior of the Chinese in Vancouver, and some news headlines said that “the Chinese bought the whole of Vancouver.”