Royal LePage released the findings from its Advisor Survey on B.C.'s 2018 real estate tax policies, which highlight the significance of the speculation tax.
The new taxes introduced by the British Columbia government include a speculation tax on qualifying secondary homes, an increase to the foreign buyer tax as well as an expanded list of affected regions and an increase to the property-related school taxes and land transfer taxes on homes worth over $3 million.
Key findings from the Royal Lepage Advisor Survey are as follows:
- Widespread implications: The implications of the new tax policies are expected to be much more widespread than the previous provincial measures that targeted foreign homebuyers, primarily affecting domestic homeowners located in B.C., Alberta and other parts of Canada who have made the tourist-focused region their second home.
- Lower consumer confidence: 85% of advisors operating in B.C. said that the new tax policies have hurt consumer confidence in residential real estate across the province.
- Reduced home sales: The majority (a further 78% of respondents) believe that home sales will decrease within the first three months of the announcement of the new policies.
- Impact extra-provincial home sales: Four out of five people (81%) believe that Alberta-based interest in B.C. recreational properties will decrease, and that Albertans will now increasingly look within their own province (73%) or south of the border (47%) for secondary properties.