Real Estate

Empty Tax

LAST NIGHT I WAS DOWN AT THE SIDNEY PIER AND LEARNED ABOUT ANOTHER WAY VANCOUVER IS TRYING TO DEAL WITH THEIR HOUSING SHORTAGES. A COUPLE TOLD ME ABOUT THE “EMPTY TAX” THEY NOW HAVE TO PAY ON THEIR VANCOUVER CONDO. THEY LIVE IN SIDNEY BUT LIKE TO BUZZ OVER TO VANCOUVER AND STAY A FEW NIGHTS. IN FACT THEY ARE HEADED THERE NEXT WEEKEND. THE NEW TAX OF 1 PERCENT OF ASSESSED VALUE APPLIES TO THEM. SO THIS YEAR ON TOP OF THEIR PROPERTY TAX THEY HAVE TO PAY $6000 EMPTY TAX. THEY HAVE A FRIEND WHO OWNS A NICER HOME THERE AND THEIR “EMPTY TAX” IS $40000 FOR THE YEAR ON TOP OF PROPERTY TAXES. OBVIOUSLY THEY ARE NOT HAPPY. THEY DO NOT WANT TO TURN THEIR HOMES INTO RENTALS. IT WAS INTENDED FOR THEIR OWN USE THROUGHOUT THE YEAR.

VANCOUVER NEEDS HOUSING FOR THE PEOPLE THAT LIVE AND WORK DOWNTOWN. THE CITY FATHERS WANT TO SEE THESE PROPERTIES TURNED INTO RENTALS. IT DOESN’T HELP THAT MANY CHINESE INVESTORS BOUGHT LOTS OF PROPERTY IN VANCOUVER SIGHT UNSEEN AND ARE LETTING THAT PROPERTY SIT EMPTY. A 15 PERCENT FOREIGN INVESTORS TAX WAS IMPLEMENTED TO STOP THIS PRACTICE WHICH WAS CAUSING THE MARKET PRICE TO GO SO HIGH CANADIANS COULD NOT AFFORD IT. ACCORDING TO THE TWO I WAS TALKING WITH THAT SLOWED THE INVESTING DOWN FOR AWHILE BUT THEY’VE APPARENTLY FIGURED A WAY AROUND THAT AND ARE NOW BACK AT IT.

LUCKILY FOR VANCOUVER ISLAND IS NOT SUFFERING SIMILAR PROBLEMS AT THE MOMENT. IT IS CRAZY HOW FAST THINGS ARE SELLING ON THE ISLAND. INTEREST RATES JUST WENT UP AND THE VALUE OF THE CANADIAN DOLLAR IS GOING UP.

LIFE IS SLOWING CHANGING AND EVERYONE ON THE ISLAND CAN SEE IT, BUILDING EVERYWHERE. THIS COUPLE TOLD ME THAT SIDNEY RANKS NUMBER THREE IN ALL OF CANADA FOR THE OLDEST POPULATION. THAT IS TRULY PART OF THE CHARM. HOWEVER I SEE YOUNG PEOPLE EVERYWHERE AND PEOPLE ARE COMING AND THEY STAY. MANY PEOPLE HAVE TOLD ME THEY JUST NEVER WENT BACK HOME.
SO PEOPLE ARE HOPPING THE FIRST FERRY TO VANCOUVER EVERY MORNING TO WORK AND BACK EVERY NIGHT. CREATING A TRAFFIC JAM EVERYTIME THE FERRY LET’S OUT.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s