Ottawa agrees with you that 15% won't slow the market.asa1973 wrote: ↑If "investor" has a any legal "permanent" status in Canada (PR, studying) or someone with such status, he will NOT pay this 15% (as we already saw a lot of properties registered on "students" )craftsman wrote: ↑
But remember those are just the raw price without taxes, fees... So, if you add another 15% on top of the $1.4 million, that's a much higher number. And since we are talking median prices here, the $1.4 million number is for the GVRD and not just Vancouver where the $1 million US number was for just San Jose. I believe if you just look at Vancouver, the figure would be higher than $1.4 million.
I'm still standing on such point that this tax will change a little in terms of price and affordability. Some turbulence and slowing while re-routing but this do NOT change the core reason for price growth - supply&demand issue. With quite limited possibilities to build new housing (especially in Van itself) and stable stream of new PERMANENT residents, price growth unavoidable. Either limit\stop immigration or build more premises (or increase rates to 5-6% and receive a lot of economical and social problems).
Actually the only "soft" way to stop prices AND avoid social problems - build more houses Beside developers greed (rumored that they build less then they could) I was told there is problems to get permissions from local authorities (also some the greed from municipalities imo)
As Ottawa doubts effectiveness of Vancouver tax to slow housing market, Trudeau finds himself in a bind
So far, you have real estate agents reporting what you would expect them to say. In the meanwhile, reality is still in effect: limited land, restrictive zoning, immigration, and students buying $8,000 luxury purses from Nordstrom.