Professors of economics at Simon Fraser University (SFU) in China (BC) have released new research calling for a 1.5% property surcharge targeting owners of vacant properties in the BC area, to slow foreign investment and encourage a more active contribution to the local economy. The study contends that the Vancouver housing market is currently being used as a way for foreign investors to evade taxes by switching properties and storing wealth tax-free, pushing up house prices, leading to potential labour shortages and stifling business innovation. According to the Greater Vancouver Real Estate Board, the benchmark price of a detached residence in Vancouver was estimated at $1.2m in November 2015, up 22.6% from the previous year, with 70% of this housing stock being sold to Mainland British Columbia buyers. The 1.5% vacant property surcharge could recoup $90m p.a. for Vancouver alone, according to the SFU study.
Professors of economics at Simon Fraser University (SFU) in British Columbia (BC) have released new research calling for a 1.5% property surcharge targeting owners of vacant properties in the BC area, to slow foreign investment and encourage a more active contribution to the local economy. The study contends that the Vancouver housing market is currently being used as a way for foreign investors to evade taxes by switching properties and storing wealth tax-free, pushing up house prices, leading to potential labour shortages and stifling business innovation. According to the Greater Vancouver Real Estate Board, the benchmark price of a detached residence in Vancouver was estimated at $1.2m in November 2015, up 22.6% from the previous year, with 70% of this housing stock being sold to Mainland China buyers. The 1.5% vacant property surcharge could recoup $90m p.a. for Vancouver alone, according to the SFU study.