Homebuilders, real estate board says new B.C. property tax hurts province
VICTORIA — British Columbia’s plans to dampen the influence of foreign investment in Metro Vancouver’s scorching housing market with a new tax on foreign buyers is causing widespread panic and confusion, say industry insiders.
Premier Christy Clark’s Liberals are poised to adopt legislation that includes an additional 15 per cent property transfer tax on foreign nationals who buy residential real estate in Metro Vancouver. The tax, which takes effect next Tuesday, would add $300,000 to the price of a $2 million home.
Bob de Wit, the chief executive of the Greater Vancouver Home Builders’ Association, said Wednesday there is much concern among foreign buyers who signed pre-sale properties agreements and are now trying to avoid paying the tax before it becomes law on Aug. 2.
“So far, in the first two days it’s sort of mass panic of buyers worried about whether they can close and wanting to sign (before Aug. 2), which may or may not be available in the contract they’ve signed,” he said. “There’s basically a lot of panic out there and we’re trying to keep people calm.”