Bro, think about it. People have to now hold property for 2 years to avoid tax. Lower supply means higher prices. Not to mention anyone who is flipping professionally will be going through an LLC so really this solves nothing and is political posturing.
The tax is a big nothingburger for the average home purchase, they missed the boat on the speculation in our market by a few years and it's just a vote-buying policy at this point. However, the impact could be felt in the pre-sale area since there is more investment in presale as most people when home shopping aren't looking to leave a deposit tied up for 4-5 years awaiting completion. With construction financing being based on a certain % of the building sold before breaking ground, scaring potential investment away there isn't a great way to incentivize building in what is a pretty poor time to build in to begin with.
I wonder how that will make investors and developers feel. Especially with this push to build more density. Unless they can change things and allow for larger bank approvals for developers upfront.
Like - BC Governments. More Taxes - on 2nd and more owning Properties. No Taxes - Liberal Governments - will HOLD ON - 2nd and more rental properties. More Taxes - on Foreign Investments.
Home flippers create housing supply by buying the houses retail buyers don't want, solve problems that contractors charge rape rates to fix more cheaply, then sell a house that retail buyers want, thus creating more desirable housing supply in the market.
@@SteveKarrasch so my comment that had no racism, no profanity, no sexist comment just didn’t cut it by RUclips?? Come on. Apparently saying millennials are locked out of the housing market RUclips algorithm stops that?? Ya right.
C,mon I bought 2 fixer uppers in my life. Me and my buddies all helped each other with them. My niece is marrying a plumber in May, they are currently looking for one. False that no one wants them
Its not 1987 anymore boomer. The only people buying "fixer upers" in Vancouver are investors and instead of "fixing" they demolish and re-build with cheap materials and cheap labour and then flip for massive profits. Best part is they make it their primary residence so they dont pay capital gains tax.
How will airbnb changes coming in May effect the condo market? Will BC builders stop building as much because less investors? Lets be honest contractors build to maximize profit not so people have affordable homes. I am a bc real investors that keeps wanting prices to go up and up. I dont hide it
That's why people keep buying 1.4 million houses in Toronto and BC and nobody wants the 300k houses in alberta. People don't want houses they want "free money"
Does this make you excited as a first time home buyer in BC?
Bro, think about it. People have to now hold property for 2 years to avoid tax. Lower supply means higher prices. Not to mention anyone who is flipping professionally will be going through an LLC so really this solves nothing and is political posturing.
bought our house in oct for 600k, sucks we’re not eligible for that tax break😢
Congratulations on your buy. Sorry about the NDP.
Support comment 🎉
Thank you for explaining the fine print Steve !😀
Glad it was helpful!
The tax is a big nothingburger for the average home purchase, they missed the boat on the speculation in our market by a few years and it's just a vote-buying policy at this point. However, the impact could be felt in the pre-sale area since there is more investment in presale as most people when home shopping aren't looking to leave a deposit tied up for 4-5 years awaiting completion. With construction financing being based on a certain % of the building sold before breaking ground, scaring potential investment away there isn't a great way to incentivize building in what is a pretty poor time to build in to begin with.
This tax applies to presales and assignments. That is the game changer. 20% tax on top of the capital gains tax payable to the CRA.
Too little, too late.
Do we have any clarity on pre-sale's is it 2years from the date of purchase? Or is it 2 years from the day of completion? Thanks Steve
Great question. Its looking like from Completion.
I wonder how that will make investors and developers feel. Especially with this push to build more density. Unless they can change things and allow for larger bank approvals for developers upfront.
Like - BC Governments.
More Taxes - on 2nd and more owning Properties.
No Taxes - Liberal Governments - will HOLD ON - 2nd and more rental properties.
More Taxes - on Foreign Investments.
If the flipper adds a second unit, Is that an exemption? It creates supply, so in this case it would be a good thing
Maybe if it’s a legal unit??? Good question
Home flippers create housing supply by buying the houses retail buyers don't want, solve problems that contractors charge rape rates to fix more cheaply, then sell a house that retail buyers want, thus creating more desirable housing supply in the market.
🙏 Promo SM
Real classy dude. Deleting comments. I guess that’s how you role.
I don't, but I'm sure tempted to right now.
@@SteveKarrasch so my comment that had no racism, no profanity, no sexist comment just didn’t cut it by RUclips?? Come on. Apparently saying millennials are locked out of the housing market RUclips algorithm stops that?? Ya right.
Looks like you comment just couldn't afford the rent, evicted to the void FOREVER!! 🏠💨
C,mon
I bought 2 fixer uppers in my life.
Me and my buddies all helped each other with them.
My niece is marrying a plumber in May, they are currently looking for one.
False that no one wants them
Its not 1987 anymore boomer. The only people buying "fixer upers" in Vancouver are investors and instead of "fixing" they demolish and re-build with cheap materials and cheap labour and then flip for massive profits. Best part is they make it their primary residence so they dont pay capital gains tax.
How will airbnb changes coming in May effect the condo market? Will BC builders stop building as much because less investors? Lets be honest contractors build to maximize profit not so people have affordable homes. I am a bc real investors that keeps wanting prices to go up and up. I dont hide it
That's why people keep buying 1.4 million houses in Toronto and BC and nobody wants the 300k houses in alberta.
People don't want houses they want "free money"