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Old 11-09-2017, 07:04 AM
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Default Vacant Home Tax

Vancouver implements new Vacant Home Tax to free up 25000 homes for rent.
I would think rest Canadian cities will follow.
http://www.greaterfool.ca/2017/11/08/too-late-4/

http://r.search.yahoo.com/_ylt=AwrSb...ORojMh0yYJm2E-
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Old 11-09-2017, 08:08 AM
sillyak sillyak is offline
 
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You paid for a property and you pay property tax on it. Why on earth should the government care what you use your property for. Sounds like Soviet Russia.
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Old 11-09-2017, 08:29 AM
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You paid for a property and you pay property tax on it. Why on earth should the government care what you use your property for. Sounds like Soviet Russia.
Good call!

Is this really a measure to get more housing available or a veiled tax grab? The people who can afford to leave a home vacant in high rent districts can afford more taxes. This will do nothing to help the housing crisis, but will give the government’s more money to continue their anti business crusade.
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Old 11-09-2017, 08:30 AM
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I applaud this as it is designed to get rid of forgiven owners who are over inflating the value of homes in Va and TO. Chinese billionaires have been scooping up property and then just sitting on it because they know the value will rise when the he market is so strong because of there purchases. Regular residents can't afford a place to live all because some wealthy person in another country is playing games.
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Old 11-09-2017, 09:32 AM
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I applaud this as it is designed to get rid of forgiven owners who are over inflating the value of homes in Va and TO. Chinese billionaires have been scooping up property and then just sitting on it because they know the value will rise when the he market is so strong because of there purchases. Regular residents can't afford a place to live all because some wealthy person in another country is playing games.
Exactly the problem is foreigners are buying houses by the dozen then boarding them creating a shortage to drive prices up.
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Old 11-09-2017, 09:46 AM
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Foreigners are doing the leg work, driving up the prices. Roll the dice, throw down some of your own cash, buy a house and wait for the dollars to roll in. After all it’s easy.
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Old 11-09-2017, 10:10 AM
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We got the same problem here in Canmore, but if you can afford a weekend home here you could afford any kind of tax. If you own a yacht do you really care how much it costs to fuel it up.
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Old 11-09-2017, 11:24 AM
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Foreigners are doing the leg work, driving up the prices. Roll the dice, throw down some of your own cash, buy a house and wait for the dollars to roll in. After all it’s easy.
Except that it's dirty money coming in from China and laundered through casinos. Yhey are well versed on how to pay no taxes and yet milk the system for as much as they can get. They are now buying up farm land and doing the same thing. I don't think the tax will work because it counts on a certain degree of honesty that is completely lacking in this group of immigrants.
Once the Chinese zero in on Alberta it will become more obvious for you
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Old 11-09-2017, 10:43 AM
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Exactly the problem is foreigners are buying houses by the dozen then boarding them creating a shortage to drive prices up.
Now that you've explained it to me, its so clear.
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Old 11-09-2017, 12:32 PM
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Originally Posted by greendrake View Post
I applaud this as it is designed to get rid of forgiven owners who are over inflating the value of homes in Va and TO. Chinese billionaires have been scooping up property and then just sitting on it because they know the value will rise when the he market is so strong because of there purchases. Regular residents can't afford a place to live all because some wealthy person in another country is playing games.
Great answer, nailed it.

Another reason; a great number of houses/condo's are rented out and the proceeds of rental are never claimed as income. In CRA's eyes this will be a godsend, the implications of this will mean countless millions now being claimed and paid on.
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Originally Posted by Twisted Canuck
I wasn't thinking far enough ahead for an outcome, I was ranting. By definition, a rant doesn't imply much forethought.....
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Old 11-09-2017, 03:32 PM
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Originally Posted by greendrake View Post
I applaud this as it is designed to get rid of forgiven owners who are over inflating the value of homes in Va and TO. Chinese billionaires have been scooping up property and then just sitting on it because they know the value will rise when the he market is so strong because of there purchases. Regular residents can't afford a place to live all because some wealthy person in another country is playing games.
Less than 10% of Vancouver Real Estate purchased by foreigners. Means 90% is purchased by Canadians (Home ownership/Speculators).

http://r.search.yahoo.com/_ylt=AwrSb...638stAPB2CpPI-
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Old 11-09-2017, 03:39 PM
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If you have two vehicles, one sits in your driveway (collector car, never depreciating). Should you pay a extra tax for the sitting unused vehicle? Many people need transportation, but cannot afford it.
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Old 11-09-2017, 03:59 PM
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If you have two vehicles, one sits in your driveway (collector car, never depreciating). Should you pay a extra tax for the sitting unused vehicle? Many people need transportation, but cannot afford it.
A lot of States charge property tax on everything you own. I would not be surprised if it happened here. You want to see vehicles up for sale cheap the day after that happens
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Originally Posted by Twisted Canuck
I wasn't thinking far enough ahead for an outcome, I was ranting. By definition, a rant doesn't imply much forethought.....
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Old 11-09-2017, 03:43 PM
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Originally Posted by lmtada View Post
Less than 10% of Vancouver Real Estate purchased by foreigners. Means 90% is purchased by Canadians (Home ownership/Speculators).

http://r.search.yahoo.com/_ylt=AwrSb...638stAPB2CpPI-
Be interesting to see how much of that 10% sits empty.
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Old 11-09-2017, 12:24 PM
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Originally Posted by sillyak View Post
You paid for a property and you pay property tax on it. Why on earth should the government care what you use your property for. Sounds like Soviet Russia.
+1 i know a few snow birds that paid for a snow removal and have their kids/reletives come to check up on the place .. but iam sure they dont want anyone else living there .
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Old 11-09-2017, 12:35 PM
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You paid for a property and you pay property tax on it. Why on earth should the government care what you use your property for. Sounds like Soviet Russia.
Because in this country we penalize the successful and the entrepreneurial, whether they be individuals or companies. We confiscate the rewards of their success and give it to the unsuccessful. We call it "levelling the playing field" or "equalization".
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Old 11-09-2017, 12:49 PM
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Because in this country we penalize the successful and the entrepreneurial, whether they be individuals or companies. We confiscate the rewards of their success and give it to the unsuccessful. We call it "levelling the playing field" or "equalization".
Close, but 'WE' don't, HE does.

Buying votes is lucrative apparently.
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Originally Posted by Twisted Canuck
I wasn't thinking far enough ahead for an outcome, I was ranting. By definition, a rant doesn't imply much forethought.....
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Old 11-09-2017, 01:00 PM
midgetwaiter midgetwaiter is offline
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Originally Posted by Ken07AOVette View Post
Great answer, nailed it.

Another reason; a great number of houses/condo's are rented out and the proceeds of rental are never claimed as income. In CRA's eyes this will be a godsend, the implications of this will mean countless millions now being claimed and paid on.
Quote:
Originally Posted by Ken07AOVette View Post
Close, but 'WE' don't, HE does.

Buying votes is lucrative apparently.
So which is it? A reasonable action put in place to deal with a significant problem or a an attempt to buy votes? Your posts conflict with each other, are you sure you understand what's being discussed?

Also it's not clear to me how your boogeyman can be held responsible for taxes enacted by the provinces.
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Old 11-09-2017, 12:54 PM
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Originally Posted by thumper View Post
Because in this country we penalize the successful and the entrepreneurial, whether they be individuals or companies. We confiscate the rewards of their success and give it to the unsuccessful. We call it "levelling the playing field" or "equalization".
Nailed that one. All we have to do is compare the Liberals offshore tax havens to their new tax increases on working Canadians.
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Old 11-09-2017, 12:57 PM
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They aren't talking about vacation or rental homes the target is houses and condos bought by foreign conglomerates that buy dozens of dwellings then board them up no utilities are ever connected to them, In Toronto they estimate there could be as many as 65,000 driving prices up and making it unaffordable for most average people and causing as housing/rental shortage. It will eventually lead to the "bubble burst" everybody's been talking about for years

Vancouver demanded that B.C. amend that city's charter to allow it to impose a first-in-North-America vacancy tax that will go fully into effect in 2018. Homeowners are getting mailed notices warning them that they will have to make a declaration about the occupation of their property in 2017 by February of next year. If their property was not occupied by the owners or family and if it was not rented for at least six months in 2017, they will have to pay an additional 1 per cent of their home's assessed value in property tax.

https://beta.theglobeandmail.com/new...beandmail.com&
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Old 11-09-2017, 01:02 PM
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Vancouver demanded that B.C. amend that city's charter to allow it to impose a first-in-North-America vacancy tax that will go fully into effect in 2018. Homeowners are getting mailed notices warning them that they will have to make a declaration about the occupation of their property in 2017 by February of next year. If their property was not occupied by the owners or family and if it was not rented for at least six months in 2017, they will have to pay an additional 1 per cent of their home's assessed value in property tax.

https://beta.theglobeandmail.com/new...beandmail.com&
China has also been making moves to restrict capital moving out of the country, this will probably have a bigger impact than the occupancy taxes.

https://beta.theglobeandmail.com/rea...beandmail.com&
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Old 11-09-2017, 01:08 PM
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They aren't talking about vacation or rental homes the target is houses and condos bought by foreign conglomerates that buy dozens of dwellings then board them up no utilities are ever connected to them, In Toronto they estimate there could be as many as 65,000 driving prices up and making it unaffordable for most average people and causing as housing/rental shortage. It will eventually lead to the "bubble burst" everybody's been talking about for years

Vancouver demanded that B.C. amend that city's charter to allow it to impose a first-in-North-America vacancy tax that will go fully into effect in 2018. Homeowners are getting mailed notices warning them that they will have to make a declaration about the occupation of their property in 2017 by February of next year. If their property was not occupied by the owners or family and if it was not rented for at least six months in 2017, they will have to pay an additional 1 per cent of their home's assessed value in property tax.

https://beta.theglobeandmail.com/new...beandmail.com&
A 1% increase in property taxes isn’t going to discourage anything. Property values in Vancouver are increasing at 15-20% per year, even adding the tax the ROI is staggering. This isn’t the kind of market even little guys can get in on and make a few bucks, but in true Canadian fashion the opportunity needs to be destroyed.
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Old 11-09-2017, 01:14 PM
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A 1% increase in property taxes isn’t going to discourage anything. Property values in Vancouver are increasing at 15-20% per year, even adding the tax the ROI is staggering. This isn’t the kind of market even little guys can get in on and make a few bucks, but in true Canadian fashion the opportunity needs to be destroyed.
It's not a 1% increase, it's 1% of the assessed value of the home. On your average 1 mil Richmond crack shack that's 10k a year.
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Old 11-09-2017, 03:05 PM
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Originally Posted by hillbillyreefer View Post
A 1% increase in property taxes isn’t going to discourage anything. Property values in Vancouver are increasing at 15-20% per year, even adding the tax the ROI is staggering. This isn’t the kind of market even little guys can get in on and make a few bucks, but in true Canadian fashion the opportunity needs to be destroyed.
I beg to differ. Single Family Home prices in Vancouver have been dropping for most of this year. However condo prices have increased.


Recent Sale Report.

This one is so fresh zolo hasn’t updated it yet.

3912 Napier St. Burnaby.

Originally asking 1.49 then 1.44 then 1.39

Sold for 1.34

Tax assessment 1.55

Drip ,drip on the wood chip…
https://www.zolo.ca/burnaby-real-est...-napier-street


PB43
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Old 11-09-2017, 03:44 PM
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A 1% increase in property taxes isn’t going to discourage anything. Property values in Vancouver are increasing at 15-20% per year, even adding the tax the ROI is staggering. This isn’t the kind of market even little guys can get in on and make a few bucks, but in true Canadian fashion the opportunity needs to be destroyed.
1% is fine for the introduction of the tax. You cannot add a 10 or even 5% of estimated property value tax for vacant properties because it would create a very real risk of blowing up the housing market. If introduced, all of the foreign investors would not only stop the purchasing (and thus killing demand), but would likely begin dumping their houses onto the market, causing a domino effect on first the local housing market areas, and then possibly the entire house of cards. People have been speculating that Canada is in a housing bubble for ages now, and something like that would be a sharp needle shooting right at it.

At 1%, it shows the government is no longer willfully ignorant about what is going on, and is no longer interested in having Vancouver/surrounding area's residents being gentrified out of their own city because of wealthy foreigners using the real estate as safe and high return investment vehicles. Ideally if the tax does not provide any disparagement in FDI into Van real estate, you up the tax incrementally until it does, or bring in another tax.

I am no fan of having the government involved in dictating what you can and cannot do with private property owned by citizens, but similarly to how zoning laws exist, the pros seem to outweigh the cons. Besides, if executed correctly, I don't really see how any law abiding Canadian citizens will be really affected by this. Allow exemptions within the tax for snowbirds and vacation homes owned by Canadian citizen's with proven Canadian full-time residency elsewhere in Canada, and perhaps some other conditions I have not yet considered, and it seems logical to me.

You can all cry wolf about the government taking your property rights, but something needs to be done about what is happening in Vanouver/Toronto/elsewhere, otherwise we as Canadians are going to be completely priced out of our own housing markets. Great for boomers who are betting on their house value appreciating as their retirement plan, brutal for anyone else.
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Old 11-09-2017, 03:03 PM
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Originally Posted by bat119 View Post
They aren't talking about vacation or rental homes the target is houses and condos bought by foreign conglomerates that buy dozens of dwellings then board them up no utilities are ever connected to them, In Toronto they estimate there could be as many as 65,000 driving prices up and making it unaffordable for most average people and causing as housing/rental shortage. It will eventually lead to the "bubble burst" everybody's been talking about for years

Vancouver demanded that B.C. amend that city's charter to allow it to impose a first-in-North-America vacancy tax that will go fully into effect in 2018. Homeowners are getting mailed notices warning them that they will have to make a declaration about the occupation of their property in 2017 by February of next year. If their property was not occupied by the owners or family and if it was not rented for at least six months in 2017, they will have to pay an additional 1 per cent of their home's assessed value in property tax.

https://beta.theglobeandmail.com/new...beandmail.com&

If the average home in Vancouver > $1,000,000.00 then vacancy tax a 1% > $10,000.00. Wow.
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Old 11-09-2017, 03:18 PM
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If the average home in Vancouver > $1,000,000.00 then vacancy tax a 1% > $10,000.00. Wow.
Wow unless you have 5-10million and risk losing a good chunk of that (>50%) to witch hunts and legitimate legal proceedings unless you get it out of your country. To understand the total picture one has to look at it from the foreigners perspective and what is behind this speculative money.

Putting it in terms of a local say making 100k/yr is meaningless although some of those people will get caught up in the net. Then yeah...ouch. Although renting to avoid the tax isn't that hard either.
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Old 11-09-2017, 01:59 PM
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Originally Posted by thumper View Post
Because in this country we penalize the successful and the entrepreneurial, whether they be individuals or companies. We confiscate the rewards of their success and give it to the unsuccessful. We call it "levelling the playing field" or "equalization".
I have to agree....

I bet most would feel different if they could invest in tropical properties and then have those investments penalized for no other reason than being foreign.

Sad world we reside in.
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Old 11-09-2017, 02:38 PM
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Simple to avoid the tax, rent out to an absentee tenant for exactly the value of your property taxes. No net income so no profit to tax by the gubmint. How can you hold a landlord responsible for a tenant to be present? I see a business here, I will be your absentee tenant for a very small fee.
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Old 11-09-2017, 02:47 PM
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Simple to avoid the tax, rent out to an absentee tenant for exactly the value of your property taxes. No net income so no profit to tax by the gubmint. How can you hold a landlord responsible for a tenant to be present? I see a business here, I will be your absentee tenant for a very small fee.
They are on to that by monitoring the utilities and usage most don't have water power (hydro) or gas connected
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