The BC government implemented the Foreign Buyers’ 15% Tax which has resulted in a reduced number of sales in the Vancouver area for the first month it came into effect. This tax may encourage these buyers who are keen on buying in this part of Canada to buy properties in the Great Vancouver area and in suburban cities, as it does not apply to home purchases outside Vancouver City.
How does this impact the rest of Canada, or more specifically the GTA? The Toronto hot real estate market and the golden horseshoe will continue to be hot. The foreign buyers’ decision to buy a property in Greater Toronto area will be fueled by the Vancouver Tax.
Will Toronto or the GTA follow Vancouver’s example….in my opinion, no. Toronto has a land transfer tax already in place, in addition to the Provincial land transfer tax that the rest of Ontario has been paying now for several years.
August traditionally is a vacation month and may see the number of sales drop slightly, and this has happened in Vancouver when the new tax came into effect. However, I believe its too early to tell if this tax will truly hurt the Vancouver real estate market in the long run. Time will tell.
Stacey Robinson, Broker
Royal LePage Realty Plus