Re: $$$ homes for sale

by DaveP Mon Aug 15, 2016 9:05 am

ferret wrote:You said it much better than I could have Dave.

I would like to add that in Canada, your principal residence is NOT taxed even if you've only lived in it for a year. In Mexico, as you stated, your principal residence IS taxed unless you meet stringent criteria.
It was stated by a real estate agent here that the stringent criteria have somewhat messed up what some people were previously doing... which is buy a dump, fix it up and sell it. Bye Bye to all the jobs that construction workers, plumbers and electricians were enjoying.

That brings up a question Ferret.

Any person who is carrying on a business of buying properties, restoring them and reselling them is supposed to be taxed at regular tax rates not at the reduced capital gain tax rates. The new tax will not make any difference to them. Many file as a capital gains but it hurts when you are caught.

I have seen many caught during my 20+ years doing tax returns in Canada

by ferret Mon Aug 15, 2016 9:16 am

DaveP wrote:
ferret wrote:You said it much better than I could have Dave.

I would like to add that in Canada, your principal residence is NOT taxed even if you've only lived in it for a year. In Mexico, as you stated, your principal residence IS taxed unless you meet stringent criteria.
It was stated by a real estate agent here that the stringent criteria have somewhat messed up what some people were previously doing... which is buy a dump, fix it up and sell it. Bye Bye to all the jobs that construction workers, plumbers and electricians were enjoying.

That brings up a question Ferret.

Any person who is carrying on a business of buying properties, restoring them and reselling them is supposed to be taxed at regular tax rates not at the reduced capital gain tax rates. Many file as a capital gains but it hurts when you are caught.

I have seen many caught during my 20+ years doing tax returns in Canada

If they're doing it as a business, then they should be. But, if it's your principle residence and you're living in it while the renovations are ongoing? Crap, you should get hazard pay for even living through it...imho.

by gringal Mon Aug 15, 2016 9:32 am

"If they're doing it as a business, then they should be. But, if it's your principle residence and you're living in it while the renovations are ongoing? Crap, you should get hazard pay for even living through it...imho." (ferret)
Amen to that! Did that for years. Painful, though profitable.

by Playaboy Mon Aug 15, 2016 10:19 am

I am far from an expert but I have read up on this.

It reads like a repeat of the 80's when the Iranians bought up Beverly Hills or the Japanese buying up Manhattan at inflated prices only to lose big time when the bubble they created burst.

Most of that money buying those properties is legal money. The Chinese are looking for a safe haven, outside of China, to park their money. They thought Vancouver and Canada was a safe place. I guess it is not a good country for foreigners to invest.

In Vancouver, it appears the government wants to manipulate a free market, exclude Asians from participating in that market and prick the balloon prematurely. Let the crash begin.

It is easy blaming foreigners for not being able to buy a home. Let ‘s keep the Asians out and everything will be back to normal. It kind of sound like something Trump would do.

I hope that money goes to the USA now.

I wouldn’t want to compare Canada with its xenophobic commonwealth cousins in Australia. That would be a giant step backwards for Canada.

http://www.latimes.com/world/africa/la-fg-australia-nauru-refugees-abuses-20160810-snap-story.html

by CanuckBob Mon Aug 15, 2016 10:35 am

No where was it stated that this tax is only for Asians. It is for ALL foreign NON RESIDENT buyers. Why are you trying to twist it??? You know very little of the situation.

by islandiver Mon Aug 15, 2016 10:45 am

Playaboy wrote:I am far from an expert but I have read up on this.

Canada is struggling to house 25,000 refugees, and the essential services (servants), we don't need houses laying vacant.

But play boy you could try renting out hammocks in Stanley park to the needy you are so concerned about.Eh

by Lady Otter Latté Mon Aug 15, 2016 11:45 am

Sounds more like Canada wants everyone to pay a fair share, even the rich investors. That is not Trumpian at all.

by DaveP Mon Aug 15, 2016 12:02 pm

Lady Otter Latté wrote:Sounds more like Canada wants everyone to pay a fair share, even the rich investors. That is not Trumpian at all.

That is exactly correct Lady O. Non-resident non-Canadian investors have got away without paying taxes for too many years. The only way to overcome that is by tax at source. Seems fair to me

by Zedinmexico Mon Aug 15, 2016 4:47 pm

If it works great but should Seattle and Portland put a 15% sales tax for Foreign folks buying houses?? Or say buy a house here and save the tax and pay less for your house and please bring us your jobs. Its a very interesting thing Vancouver is trying but I think it is a desperate situation. Not very good for PNW high tech and sharing talent. Not much better in Seattle and Portland to be honest. Once you get over the first million it gets kinda silly unless you sold out in Bay Area.

by CanuckBob Mon Aug 15, 2016 5:04 pm

Yes, they should put a tax for foreign, non resident investors. This has nothing what so ever to do with jobs or workers who are RESIDENT!!!

by islandiver Mon Aug 15, 2016 5:22 pm

CanuckBob wrote:Yes, they should put a tax for foreign, non resident investors. This has nothing what so ever to do with jobs or workers who are RESIDENT!!!

are we just talking about the (City of Vancouver Canada 15% tax) or the greater Vancouver area?

"Foreigners who buy residential property in the Vancouver area will have to pay an extra 15-per-cent tax as part of a B.C. government plan to slow the foreign speculation that many blame for making the region’s homes the most unaffordable in Canada."

by islandiver Mon Aug 15, 2016 5:53 pm

CanuckBob wrote:Yes, they should put a tax for foreign, non resident investors. This has nothing what so ever to do with jobs or workers who are RESIDENT!!!

Was still thinking the tax was to help the lack of rental accommodation!

"Mayors in cities neighbouring Vancouver say its vacancy tax aimed at reining in housing prices will be a bureaucratic nightmare and they won’t impose it, leading to concerns there will be a patchwork of regulations across the region.

Instead, regional mayors say, it would be easier to administer a non-resident tax that would directly tackle the issue of foreign investment.

Next Monday, the B.C. government is recalling the legislature for a brief, rare summer sitting to amend provincial law to give Vancouver the authority to impose the tax after Mayor Gregor Robertson lobbied hard for the solution."

by CanuckBob Mon Aug 15, 2016 6:13 pm

I don't believe the tax has anything to do with rental accommodation although it is aimed at those non resident foreigner's who buy (several) multimillion dollar houses and leave them vacant.

by Zedinmexico Mon Aug 15, 2016 6:32 pm

CanuckBob wrote:Yes, they should put a tax for foreign, non resident investors. This has nothing what so ever to do with jobs or workers who are RESIDENT!!!

Oh I had not heard this. So if I am in Vancouver and a have a Canadian resident visa no tax? Well that if true does take some sting out of it for the foreign residents.

by CanuckBob Mon Aug 15, 2016 6:48 pm

If you have a residency visa or citizenship and it will be your primary residence then the tax wouldn't affect you.

by islandiver Mon Aug 15, 2016 10:24 pm

CanuckBob wrote:I don't believe the tax has anything to do with rental accommodation although it is aimed at those non resident foreigner's who buy (several) multimillion dollar houses and leave them vacant.

Not just rental accommodation near place of work...Sechelt has been a bedroom community for a long time, but now would you believe Nanaimo, evidently it's not unusual to pay 1/3 to a 1/2 their earnings on a place to live, and then all that travelling on top.

by CanuckBob Tue Aug 16, 2016 7:51 am

Well if the RE prices drop the rents are likely to follow. My daughter pays $1100 per month for a 500 sq ft apartment in Vancouver. My son pays $750 per month for a 800 sq ft basement suite in Delta (about 30 minutes from Vancouver).

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