Below are some important information regarding the future of housing in BC, recently released by the BC government.
- Over the next 10 years, a total of $6.2 billion will be invested in affordable housing by the province to create 33,700 housing units
- To build and consistently offer affordable housing, the province will enhance local government capacity
- Developers will need to collect and report comprehensive information about the assignment of pre-sale condo purchases, as per request by the province
- The province intends to track beneficial ownership information
- To help increase transparency in real estate, as well as strengthen laws and enforcement, the province will be collecting additional information
- The province will implement a new speculation tax of 2 per cent on residential properties. This is targeted towards foreign and domestic homeowners who don’t pay income tax in BC. Those who leaves home vacant will also be subject to this tax. Areas that will adopt the new tax include: Metro Vancouver, Fraser Valley, Capital, and Nanaimo Regional districts and in the municipalities of Kelowna and West Kelowna
- In 2018, the tax rate will be $5 per $1,000 of assessed value. By 2019, the tax rate will then rise to $20 per $1,000 of assessed value
- The province will administer the tax and will collect data to enforce it, which includes social insurance numbers, household information, and world-wide income information
Foreign buyer tax
- Effective Feb. 21, 2018, the foreign buyer tax will increase to 20 per cent from 15 per cent. This tax increase will extend to Kamloops, Kelowna, Greater Victoria and the Fraser Valley
- For properties that are in the Capital Regional District, Fraser Valley Regional District, Regional District of Central Okanagan, or Nanaimo Regional District, and the property transfer is registered on or after February 21, 2018, there are transitional rules
Property transfer tax
- Effective Feb. 21, 2018, the Property Transfer Tax on residential properties above $3 million will increase from 3 per cent to 5 per cent, along with that an increase on school taxes.