{"id":2957,"date":"2016-08-08T11:11:15","date_gmt":"2016-08-08T18:11:15","guid":{"rendered":"http:\/\/www.roryc.ca\/blog\/?p=2957"},"modified":"2016-08-05T20:57:25","modified_gmt":"2016-08-06T03:57:25","slug":"heres-why-vancouvers-property-tax-on-foreigners-wont-work","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2016\/08\/heres-why-vancouvers-property-tax-on-foreigners-wont-work\/","title":{"rendered":"Here\u2019s Why Vancouver\u2019s Property Tax on Foreigners Won\u2019t Work"},"content":{"rendered":"<p style=\"text-align: justify;\">Moody\u2019s Analytics says British Columbia\u2019s new tax on foreigners in the metro Vancouver area will do little to improve affordability for the middle class.<\/p>\n<p style=\"text-align: justify;\">In a research note out Friday, economist Adam Goldin poked fun at the provincial government\u2019s new law, which took affect Aug. 2 and has led to reports of deal cancellations because of the additional property transfer tax of 15% being charged to foreign buyers.<\/p>\n<p style=\"text-align: justify;\">\u201cThe indefatigable law of unintended consequences has traveled to Vancouver,\u201d wrote Goldin, noting the reports of widespread deal cancellations. Buyers had also pushed forward deals after the July 25 announcement to beat the tax, wreaking havoc on the province\u2019s online land registry system which couldn\u2019t handle the inquiries.<\/p>\n<p style=\"text-align: justify;\">\u201cBritish Columbia\u2019s new 15% tax on foreign buyers of residential real estate is designed to rein in galloping house price inflation to make housing more affordable for middle-class buyers,\u201d wrote the economist. \u201cForeign demand, particularly from Chinese citizens, has been blamed for fuelling Vancouver\u2019s rapid house price gains. The tax was meant to siphon demand to ease price pressures. Unfortunately, the poorly designed law has invited the law of unintended consequences to feature prominently in this tale, with the tax spurring a torrent of canceled deals.\u201d<\/p>\n<p style=\"text-align: justify;\">Goldin said there are two reasons the policy won\u2019t have its intended consequences, adding that the tax change addresses the \u201cwrong end\u201d of Vancouver\u2019s supply imbalance.<\/p>\n<p style=\"text-align: justify;\">\u201cInadequate supply, rather than inflated demand, is driving prices higher. The single-family housing stock has been relatively unchanged since 1991, although multifamily stock has more than doubled over the same period,\u201d he said, adding that, to make housing affordable, the average price of a single family detached home would need to be cut in half to $700,000. He doesn\u2019t believe Premier Christy Clark and her government are looking for that type of price decline.<\/p>\n<p style=\"text-align: justify;\">Goldin also took aim at something the real estate industry has complained about, namely that deals negotiated before July 25 but closing after Aug. 2 will face the tax, adding a huge unexpected bill for foreign purchasers.<\/p>\n<p style=\"text-align: justify;\">\u201cBecause the new tax law did not grandfather in deals that were already under contract, anecdotal evidence of foreign buyers cancelling their transactions is pouring in, leaving sellers alone at the altar. What\u2019s more, many resident buyers have pulled offers because they expect prices to decline,\u201d he said. \u201cThese cancellations have knock-on effects because many abandoned sellers then have to cancel their own purchase. It may take several months to see how this plays out, but the law\u2019s designers likely did not mean to cause such havoc.\u201d<\/p>\n<p><a href=\"http:\/\/business.financialpost.com\/personal-finance\/mortgages-real-estate\/heres-why-vancouvers-property-tax-on-foreigners-wont-work\" target=\"_blank\">Here\u2019s Why Vancouver\u2019s Property Tax on Foreigners Won\u2019t Work<\/a> by Garry Marr | Financial Post<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Moody\u2019s Analytics says British Columbia\u2019s new tax on foreigners in the metro Vancouver area will do little to improve affordability for the middle class. In a research note out Friday, &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2016\/08\/heres-why-vancouvers-property-tax-on-foreigners-wont-work\/\">read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-2957","post","type-post","status-publish","format-standard","hentry","category-real-estate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Here\u2019s Why Vancouver\u2019s Property Tax on Foreigners Won\u2019t Work &#8226; Rory C Real Estate | Oakwyn Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.roryc.ca\/blog\/2016\/08\/heres-why-vancouvers-property-tax-on-foreigners-wont-work\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Here\u2019s Why Vancouver\u2019s Property Tax on Foreigners Won\u2019t Work &#8226; Rory C Real Estate | Oakwyn Realty\" \/>\n<meta name=\"twitter:description\" content=\"Moody\u2019s Analytics says British Columbia\u2019s new tax on foreigners in the metro Vancouver area will do little to improve affordability for the middle class. In a research note out Friday, &hellip; [read more]\" \/>\n<meta name=\"twitter:creator\" content=\"@RoryClipsham\" \/>\n<meta name=\"twitter:site\" content=\"@RoryClipsham\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Rory Clipsham\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/08\\\/heres-why-vancouvers-property-tax-on-foreigners-wont-work\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/08\\\/heres-why-vancouvers-property-tax-on-foreigners-wont-work\\\/\"},\"author\":{\"name\":\"Rory Clipsham\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"headline\":\"Here\u2019s Why Vancouver\u2019s Property Tax on Foreigners Won\u2019t Work\",\"datePublished\":\"2016-08-08T18:11:15+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/08\\\/heres-why-vancouvers-property-tax-on-foreigners-wont-work\\\/\"},\"wordCount\":459,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"articleSection\":[\"Real Estate\"],\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/08\\\/heres-why-vancouvers-property-tax-on-foreigners-wont-work\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/08\\\/heres-why-vancouvers-property-tax-on-foreigners-wont-work\\\/\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/08\\\/heres-why-vancouvers-property-tax-on-foreigners-wont-work\\\/\",\"name\":\"Here\u2019s Why Vancouver\u2019s Property Tax on Foreigners Won\u2019t Work &#8226; Rory C Real Estate | Oakwyn Realty\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#website\"},\"datePublished\":\"2016-08-08T18:11:15+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/08\\\/heres-why-vancouvers-property-tax-on-foreigners-wont-work\\\/#breadcrumb\"},\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/08\\\/heres-why-vancouvers-property-tax-on-foreigners-wont-work\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/08\\\/heres-why-vancouvers-property-tax-on-foreigners-wont-work\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Here\u2019s Why Vancouver\u2019s Property Tax on Foreigners Won\u2019t Work\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/\",\"name\":\"Rory C Real Estate | Oakwyn Realty\",\"description\":\"Rory C Real Estate Updates | Home Selling &amp; Buying\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-CA\"},{\"@type\":[\"Person\",\"Organization\"],\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\",\"name\":\"Rory Clipsham\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-CA\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"contentUrl\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"width\":504,\"height\":504,\"caption\":\"Rory Clipsham\"},\"logo\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\"},\"sameAs\":[\"http:\\\/\\\/www.roryc.ca\\\/\",\"https:\\\/\\\/www.facebook.com\\\/pg\\\/BurnabyandCoquitlamHomes\\\/about\\\/?ref=page_internal\",\"https:\\\/\\\/www.instagram.com\\\/roryclipshamhomes\\\/\",\"https:\\\/\\\/x.com\\\/RoryClipsham\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Here\u2019s Why Vancouver\u2019s Property Tax on Foreigners Won\u2019t Work &#8226; Rory C Real Estate | Oakwyn Realty","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.roryc.ca\/blog\/2016\/08\/heres-why-vancouvers-property-tax-on-foreigners-wont-work\/","twitter_card":"summary_large_image","twitter_title":"Here\u2019s Why Vancouver\u2019s Property Tax on Foreigners Won\u2019t Work &#8226; Rory C Real Estate | Oakwyn Realty","twitter_description":"Moody\u2019s Analytics says British Columbia\u2019s new tax on foreigners in the metro Vancouver area will do little to improve affordability for the middle class. In a research note out Friday, &hellip; [read more]","twitter_creator":"@RoryClipsham","twitter_site":"@RoryClipsham","twitter_misc":{"Written by":"Rory Clipsham","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.roryc.ca\/blog\/2016\/08\/heres-why-vancouvers-property-tax-on-foreigners-wont-work\/#article","isPartOf":{"@id":"https:\/\/www.roryc.ca\/blog\/2016\/08\/heres-why-vancouvers-property-tax-on-foreigners-wont-work\/"},"author":{"name":"Rory Clipsham","@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"headline":"Here\u2019s Why Vancouver\u2019s Property Tax on Foreigners Won\u2019t Work","datePublished":"2016-08-08T18:11:15+00:00","mainEntityOfPage":{"@id":"https:\/\/www.roryc.ca\/blog\/2016\/08\/heres-why-vancouvers-property-tax-on-foreigners-wont-work\/"},"wordCount":459,"commentCount":0,"publisher":{"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"articleSection":["Real Estate"],"inLanguage":"en-CA","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.roryc.ca\/blog\/2016\/08\/heres-why-vancouvers-property-tax-on-foreigners-wont-work\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.roryc.ca\/blog\/2016\/08\/heres-why-vancouvers-property-tax-on-foreigners-wont-work\/","url":"https:\/\/www.roryc.ca\/blog\/2016\/08\/heres-why-vancouvers-property-tax-on-foreigners-wont-work\/","name":"Here\u2019s Why Vancouver\u2019s Property Tax on Foreigners Won\u2019t Work &#8226; Rory C Real Estate | Oakwyn Realty","isPartOf":{"@id":"https:\/\/www.roryc.ca\/blog\/#website"},"datePublished":"2016-08-08T18:11:15+00:00","breadcrumb":{"@id":"https:\/\/www.roryc.ca\/blog\/2016\/08\/heres-why-vancouvers-property-tax-on-foreigners-wont-work\/#breadcrumb"},"inLanguage":"en-CA","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.roryc.ca\/blog\/2016\/08\/heres-why-vancouvers-property-tax-on-foreigners-wont-work\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.roryc.ca\/blog\/2016\/08\/heres-why-vancouvers-property-tax-on-foreigners-wont-work\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.roryc.ca\/blog\/"},{"@type":"ListItem","position":2,"name":"Here\u2019s Why Vancouver\u2019s Property Tax on Foreigners Won\u2019t Work"}]},{"@type":"WebSite","@id":"https:\/\/www.roryc.ca\/blog\/#website","url":"https:\/\/www.roryc.ca\/blog\/","name":"Rory C Real Estate | Oakwyn Realty","description":"Rory C Real Estate Updates | Home Selling &amp; Buying","publisher":{"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.roryc.ca\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-CA"},{"@type":["Person","Organization"],"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7","name":"Rory Clipsham","image":{"@type":"ImageObject","inLanguage":"en-CA","@id":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","url":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","contentUrl":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","width":504,"height":504,"caption":"Rory Clipsham"},"logo":{"@id":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg"},"sameAs":["http:\/\/www.roryc.ca\/","https:\/\/www.facebook.com\/pg\/BurnabyandCoquitlamHomes\/about\/?ref=page_internal","https:\/\/www.instagram.com\/roryclipshamhomes\/","https:\/\/x.com\/RoryClipsham"]}]}},"_links":{"self":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/2957","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/comments?post=2957"}],"version-history":[{"count":2,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/2957\/revisions"}],"predecessor-version":[{"id":2959,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/2957\/revisions\/2959"}],"wp:attachment":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/media?parent=2957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/categories?post=2957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/tags?post=2957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}