Sales involving foreign buyers drops after 15 per cent tax: BC gov’t
Posted October 28, 2016 12:07 pm.
Last Updated October 28, 2016 12:09 pm.
This article is more than 5 years old.
VICTORIA (NEWS 1130) – It seems the provincial government’s foreign buyers tax is still having an effect on the market according to the latest real estate data released by the finance ministry.
It says foreign buyers were involved in 1.8 per cent of real estate transactions in Metro Vancouver in September, compared to over 13 per cent before the tax was brought in on August 2nd. The total value of those deals slipped from over $14 billion between June 10th and August 1st to $4.5 billion last month.
Province-wide there were 29,000 residential home sales worth $18 billion from August 2nd to the end of September.
Since the 15 per cent foreign buyers tax was introduced, the government has received 166 additional property transfer tax returns, totalling $10.1 million in additional property transfer tax paid. The finance ministry says auditors have also sent 150 letters to buyers and sellers to verify their citizenship or permanent residency status.
Ottawa says it will continue to monitor the real estate market to ensure an uptick in interest rates or a decline in home prices doesn’t threaten the country’s financial stability.
“I will continue to act to ensure that household debt levels are sustainable, that lenders are acting prudently and that increases in interest rates or a housing market downturn don’t risk the economic growth we are working so hard to accelerate,” says Federal Finance Minister Bill Morneau.
He adds he’s “ultimately responsible” for maintaining the stability of the country’s financial system and highlighted mortgage rules as a “key tool” to help him do that.
