Below are some need to know information about the future of housing in our province that the BC Government released yesterday.
- The province is investing $6 billion in affordable housing to create 114,000 homes over the next 10 years.
- The province will enhance local government capacity to build and retain affordable housing.
- The province will require developers to collect and report comprehensive information about the assignment of pre-sale condo purchases.
- The province intends to track beneficial ownership information.
- The province will collect additional information to increase transparency and strengthen enforcement in real estate.
- The province will implement a new speculation tax on residential properties, targeting foreign and domestic homeowners who don't pay income tax in BC. This includes those who leave homes vacant.
- The tax will apply to the 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. In 2019, the tax rate will rise to $20 per $1,000 of assessed value.
- The province will administer the tax and will collect data to enforce it including, social insurance numbers, household information, and worldwide income information.
Foreign buyer tax
- Effective Feb. 21, 2018, the foreign buyer tax will increase to 20 percent from 15 percent and will be extended to the Fraser Valley, Capital, Nanaimo, and Central Okanagan Regional Districts.
- If the property is located 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 available here
Property transfer tax
- Effective Feb. 21, 2018, the Property Transfer Tax on residential properties above $3 million will increase to five percent from three percent.