Local Community Advertising
The provincial government has announced new legislation to crack down on absentee homeowners with the hopes of making housing in the province more affordable.
Bill 28,Miscellaneous Statutes (Housing Priority Initiatives) Amendment Act, 2016, was introduced in the legislature on Monday as a special summer session was held in Victoria. According to the Liberal government, the legislation will help make home ownership more affordable, establishes a fund for market housing and rental initiatives, and strengthens consumer protection.
"Owning a home should be accessible to middle-class families, and those who are in a position to rent should be able to find a suitable home," Premier Christy Clark said. "These changes are about helping to make sure that British Columbians can continue to live, work and raise their families in our vibrant communities."
An additional property transfer tax rate of 15 per cent will apply to purchasers of residential real estate who are foreign nationals or foreign-controlled corporations. The additional tax will take effect Aug. 2, 2016, and will apply to foreign entities registering their purchase of residential property in Metro Vancouver, excluding the treaty lands of the Tsawwassen First Nation.
According to the province, for mixed-use property, the additional tax would apply on the residential component of the foreign interest in a property. For example, the additional tax on the purchase of a home valued at $2 million will amount to $300,000.
The province has created a new housing priority initiative fund for provincial housing and rental programs. The fund will receive an initial investment of $75 million. The government will also amend the Real Estate Services Act to implement key recommendations from an independent advisory group. The changes will see an end to self-regulation of the real estate industry.
Changes to amendments to the Vancouver Charter provide the legislative authority for the city to implement and administer a tax on vacant homes was also announced. The City of Vancouver will design the framework of the vacancy tax, including details, like the tax rate when it will apply and any necessary exemptions.
The province said it is working to address the rising housing prices in Metro Vancouver and in other regions of the province.
Local Community Advertising