VANCOUVER (NEWS 1130) – Suggestions from Vancouver’s mayor to bring in more regulations to make it more affordable for people to buy homes are worth exploring, says an expert, as the premier says she won’t be looking at adding more taxes for real estate investors.
Premier Christy Clark is dismissing calls from Vancouver Mayor Gregor Robertson to add new taxes on pricey property sales and on the practice of flipping houses because she says people have a lot of equity locked up in their houses.
But UBC professor Margot Young, who has researched housing affordability, wonders why we’re so worried about helping people cash in on their home.
“I don’t know that we ought to have so much concern about people being able to make reduced winfall profits… on their properties. But we should worry about people who bought in at the height of the market and are locked into a mortgage that reflects that price.”
She says the proposed measures are more about cooling speculation rather than sinking existing prices. “Part of what it’s going to do is put some form of minor breaks on the profit making that’s happening through the housing market.”