5 ms·
I wonder how they picked the magic number of $10,000. (Edit: as mentioned below, the figure is actually 1% assessment.) Vancouver real estate prices jumped 20%
by brandur 10y ago
I wonder how they picked the magic number of $10,000. (Edit: as mentioned below, the figure is actually 1% assessment.)
Vancouver real estate prices jumped 20% in 2015 -- a $200k gain on a $1M house. If pricing trends continue along that trajectory then Vancouver real estate still looks like a great investment even if you just eat the entire tax.
Still, I'm impressed by how quickly Vancouver is moving forward with these measures (going into effect Jan 1st!). They're sorely needed, and it's great that they don't have to sit in limbo for years before being enacted.
- Zyst 10y ago>I wonder how they picked the magic number of $10,000. As per the article: They didn't, it's 1% of the property value. The title is misleading.
- huangc10 10y agoAgreed, perhaps the title is misleading, but keep in mind a lot (if not most) houses in Vancouver are greater than 1 million.
- brandur 10y agoThanks, I missed that. It's strangely written because it re-iterates the $10,000 figure in the first paragraph of the article, but then notes 1% in the second.
- detaro 10y agoIt's 1 percent of the assessed home value, not a fixed fee. Bad headline...
- serge2k 10y agoBut you get rental income and don't get docked 10k if you just rent it out. That's the goal with this tax. The earlier tax by the province is to discourage investors.
- soperj 10y agoSince they've gone ahead with the 15% foreign buyers tax, things have started to tank.
- jewbacca 10y agoVolume has tanked. Prices are unclear. Everybody's waiting to see what happened. My intuition, as well as pretty much everybody else's, is that prices will fall, when things start moving again. But it's far from certain yet, because that hasn't happened yet. http://www.theglobeandmail.com/real-estate/the-market/vancouver-home-sales-drop-nearly-33-in-september/article32229083/ http://www.theglobeandmail.com/real-estate/the-market/vancou...
- soperj 10y agoPrice seems pretty clear to have tanked. Just look at the actual statistics package from the Vancouver real estate board[0]. The last page of that pdf shows a massive drop of about $300000 for the average price of a SFH. [0]http://www.rebgv.org/sites/default/files/9.%20REBGV%20Stats%20Pkg%20September%202016%20%28Updated%20HPI%29.pdf http://www.rebgv.org/sites/default/files/9.%20REBGV%20Stats%...
- jewbacca 10y agoI have no idea how to read the tables in there, so maybe they cover this, but: Too much information is lost, in the "average selling price" statistic that graph is using, to be able to use it to definitively claim anything like "an equivalent house is selling for less than it would have before". For example, that graph could just as well be caused by fewer high-end houses being sold, but the houses that are being sold going for the same amount they would have before. Again, I think it's very likely bordering on totally inevitable that prices will drop, and that that graph is probably showing that. But it's not enough information by itself to make that claim.
- soperj 10y agoAgreed, but it's the same tables they're using to say the price is going up, with the same flaws.
- riprowan 10y ago> Vancouver real estate prices jumped 20% in 2015 > If pricing trends continue along that trajectory It will not. That is a bubble.