BC Adds 15% Property Tax to Foreign Buyers

The new 15% Property Tax to Foreign Buyers comes into effect on Tuesday, August 02, 2016. This new tax applies to all Metro Vancouver residential properties purchased by foreign nationals. The bill was passed unanimously without any proposed amendments brought forward by the Official Opposition and despite concerns expressed by many groups.

That means residential real estate transactions involving foreign buyers in the Greater Vancouver and the Fraser Valley Communities like North Delta, Langley, Surrey and White Rock will be subject to the additional 15% PTT as of August 2. Real Estate transactions, including pre-sales, which complete on August 2 or after will be subject to the tax.

The foreign buyers who are caught in the middle of all this will have to come up with an extra $300,000 on a $2 million purchase on closing.

What really gets me is that, even those who have had signed contracts in place for weeks or months prior to this new law, will find they are in line for an unexpected 'kick in the teeth' if their completion dates are after today (Aug 2).  It wouldn't surprise me if our government will be in line for a multitude of lawsuits shortly.

Personally, I feel that is totally unfair and it puts a black mark on all Canadians.  Is it fair play to change the rules after a contract has been signed?  How would you feel if you were buying a house, had all subjects removed and were just waiting for the completion date and then found out you need to pay another 15%?

Please read the rest of the article here

Despite the concerns shared by many in the industry, the provincial government has decided to implement a tax in a way that will negatively affect our local communities' ability to attract workers, and will generate more stress and confusion in an already busy housing market and result in unexpected domino effects

The other issue which is coming up is our provincial government could be in violation of NAFTA with the implementation of this new tax. Hope fully we taxpayers don't end up paying for the government's mistake.

Read more on the NAFTA violation here as reported by Financial Post