Vancouver Foreign Buyers Tax - Mostly Media Hype & Lefty Politics?
(October 22, 2017
)
Have you heard the one about the Mayor of Vancouver pandering to every far left inner city social justice group to get elected? Well folks here is yet another stellar example: the attack on home owners and investors to make dippers feel better about themselves. What are the facts? Here is another recent evidence based report on the "facts."The new study from the University of British Columbia shows foreign buyers definitely do not have as big of an impact on Vancouver’s housing market as the media, politicians and special interest groups are forcing you to believe.
Jack Favilukis, assistant professor with UBC’s Sauder School of Business, said the review found foreign buyers have only “SLIGHTLY" increased the price of real estate.
Jack Favilukis, assistant professor with UBC’s Sauder School of Business, said the review found foreign buyers have only “SLIGHTLY" increased the price of real estate.
The study, also written by New York University, studied the effects of foreign ownership by building a fake city.
The model was calibrated to look like Vancouver, so “within that model, we can ask how much is each household worse off or better off. And then we can group that by renters or owners, young adults, and so on.”
He said the study examined what would happen if international buyers came in and bid up housing prices.
“So we found that the price effect is modest… so we think that prices due to foreign buyers have increased by five to 10 per cent, and the same with rents. But the more interesting thing we found has to do with the consequences for local households.”
The model was calibrated to look like Vancouver, so “within that model, we can ask how much is each household worse off or better off. And then we can group that by renters or owners, young adults, and so on.”
He said the study examined what would happen if international buyers came in and bid up housing prices.
“So we found that the price effect is modest… so we think that prices due to foreign buyers have increased by five to 10 per cent, and the same with rents. But the more interesting thing we found has to do with the consequences for local households.”
He said even though the research shows prices have not been as affected as some may think, some residents will benefit from foreign investment more than others. “We found that the average household in Vancouver is made worse off by these international capital flows to the tune of about $200 per year. But this masks a much larger difference within the winners and the losers,” said Favilukis.
“We think the winners went up by about $600 per year and the losers are worse off by about $900 per year.”
He said some of the benefits from international investment also include a spur in construction, which requires local labour, as well as additional property tax revenue that can be re-injected into the community.
But he said it’s very important to be able to share the benefits and burdens of foreign investment, adding that if that’s not possible, more supply and measures such as a foreign buyers’ tax are necessary.
He said some of the benefits from international investment also include a spur in construction, which requires local labour, as well as additional property tax revenue that can be re-injected into the community.
But he said it’s very important to be able to share the benefits and burdens of foreign investment, adding that if that’s not possible, more supply and measures such as a foreign buyers’ tax are necessary.
He said Vancouver needs to remove the red tape so more supply can be created. We are all very well aware that dealing with the city of Vancouver is an absolute nightmare whether your a builder, renovator or developer. The costs are staggering as are the waits, red tape, politics and drama. It is indeed the twilight zone of cities for anyone 
in business, especially real estate and construction. The fault lays solely at the feet of the mayor, special interest groups that do not generate taxes or jobs, as well as the "news" media for perpetuating myths to sell advertising and their own social agendas. None of which helps those that need it. Neither does the massive entitlement system Vancouver and the province are responsible for having built that is taxing to death home and business owners alike simply to buy votes and push the leftist agenda's.
in business, especially real estate and construction. The fault lays solely at the feet of the mayor, special interest groups that do not generate taxes or jobs, as well as the "news" media for perpetuating myths to sell advertising and their own social agendas. None of which helps those that need it. Neither does the massive entitlement system Vancouver and the province are responsible for having built that is taxing to death home and business owners alike simply to buy votes and push the leftist agenda's. There you have it folks, the truth about real estate yet again. If you or anyone you know are considering the purchase or sale of any of our beloved BC real estate don't hesitate to call Mandeep Sendher and our passionate BCHH real estate experts anytime, 604-767-6736. The spin stops here because - we are looking out for you!
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