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Ten Thousand Dollar A Day Tax For Empty Homes In Vancouver

This was sure an interesting proposal. Here in Vancouver there have been a lot of talk about a housing market crisis of sort where a lot of foreign buyers are simply buying property as a form of investment as opposed to actually living in it. Apparently this is to blame for the skyrocketing cost of houses here where even many regular homes can cost like one million dollars nowadays. While there have been things implemented like a foreign owner’s tax, recently there has been a proposal where from what I gather every day that a home is left unoccupied or not rented the owner would have to pay a one percent tax fee. So a million dollar home can literally cost the owner like ten thousand dollars a day.

According to the mayor there were quotes such as “This is only going to apply to those with second or third homes that are sitting empty, or empty most of the year” which in essence is supposed to encourage people to rent their places out or discourage people from buying homes simply as an investment. That is kind of an interesting proposal in many ways as I guess in theory this would affect mostly wealthy people.

I was thinking too as I know quite a few people who bought say condos while still living in their parent’s home. Basically, they bought them simply to hold onto them with the intent to flip it for a higher price. For many they did this as a way to enable themselves to buy an actual house as an example. So I guess in many ways this proposal would kill that idea unless you actually decide to live or rent it out right away.

One thing is for sure, the fee is definitely high enough to make people not want to abuse the idea of buying a ton of homes because they can take advantage of the market. This must be a nightmare for like real estate agents who actually purchase homes with the full intent of selling it for higher. I guess this is why you should always diversify your income stream too huh?

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