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> Laundering money, leaving homes empty, not investing in the economy appart from real estate, these don't sound very beneficial. It seems its not even a big ta

by mcny 8y ago

> Laundering money, leaving homes empty, not investing in the economy appart from real estate, these don't sound very beneficial. It seems its not even a big tax benefit due to loopholes. I already proposed a very simple solution: raise real estate taxes to sustainable levels. Use the money to cover infrastructure costs. I don't see why it is so difficult.

jbay808 8y ago
Remember that we're dealing with property that for most long-term residents was bought fairly inexpensively a couple decades ago, on fairly low incomes, and it's ballooned in value recently. Real estate taxes are low as a percentage but high in terms of dollars, for those residents who live and work in the city. Incomes have not risen accordingly. For the independently wealthy, sure another few percent on a recent purchase is no problem. But for families that are already struggling to pay the huge tax (in dollar terms, not percentage, due to the rising value of their home) it would force them to sell and leave the city. It also would get passed on to renters. This is different than the bay area issue, where property taxes are locked down and the city is generating massive wealth due to the tech industry, floating real estate prices. Vancouver is not generating the wealth to support that kind of tax base that it needs.
- mcny 8y ago
  > It also would get passed on to renters. Higher taxes would force owners to either sell or rent which increases housing supply, right? Also I want to use the tax money to further increase housing supply.
  - jbay808 8y ago
    If an absentee owner is forced to sell or rent, great! If a resident is forced to sell or rent, well, they'd be either selling to a wealthier, possibly absentee owner who can afford the massive price and higher taxes, or they'd be renting a basement suite (since they're residents). Most basement suites legal to rent are already on the market, I think. There's a good chance that this would make the problem worse, by creating vacancies that nobody can afford to occupy. If it manages to crash the market, perhaps those people would be able to move back eventually or see their taxes drop in dollar terms, but it's not clearly a good thing.
didibus 8y ago
I was mostly replying to your claims of racism and bigotry. Effectively your solution is what they're doing. Foreign home purchases is now taxed at a higher rate, and empty homes also get taxed. Personally, I don't think that's the greatest solution, unless the taxes are turned back into income for locals, or major tax cuts for them, to a point where it balances out the artificial cost of living increase due to the foreign real estate market.
- mcny 8y ago
  > Effectively your solution is what they're doing. Foreign home purchases is now taxed at a higher rate, and empty homes also get taxed. That's not that I want. I want higher taxes on everyone, not just an absentee owners. The tax money should be used to increase supply of housing and help suppress home prices.

by mcny 8y ago

jbay808 8y ago

Remember that we're dealing with property that for most long-term residents was bought fairly inexpensively a couple decades ago, on fairly low incomes, and it's ballooned in value recently. Real estate taxes are low as a percentage but high in terms of dollars, for those residents who live and work in the city. Incomes have not risen accordingly. For the independently wealthy, sure another few percent on a recent purchase is no problem. But for families that are already struggling to pay the huge tax (in dollar terms, not percentage, due to the rising value of their home) it would force them to sell and leave the city. It also would get passed on to renters. This is different than the bay area issue, where property taxes are locked down and the city is generating massive wealth due to the tech industry, floating real estate prices. Vancouver is not generating the wealth to support that kind of tax base that it needs.

mcny 8y ago
> It also would get passed on to renters. Higher taxes would force owners to either sell or rent which increases housing supply, right? Also I want to use the tax money to further increase housing supply.
- jbay808 8y ago
  If an absentee owner is forced to sell or rent, great! If a resident is forced to sell or rent, well, they'd be either selling to a wealthier, possibly absentee owner who can afford the massive price and higher taxes, or they'd be renting a basement suite (since they're residents). Most basement suites legal to rent are already on the market, I think. There's a good chance that this would make the problem worse, by creating vacancies that nobody can afford to occupy. If it manages to crash the market, perhaps those people would be able to move back eventually or see their taxes drop in dollar terms, but it's not clearly a good thing.

didibus 8y ago

I was mostly replying to your claims of racism and bigotry. Effectively your solution is what they're doing. Foreign home purchases is now taxed at a higher rate, and empty homes also get taxed. Personally, I don't think that's the greatest solution, unless the taxes are turned back into income for locals, or major tax cuts for them, to a point where it balances out the artificial cost of living increase due to the foreign real estate market.

mcny 8y ago
> Effectively your solution is what they're doing. Foreign home purchases is now taxed at a higher rate, and empty homes also get taxed. That's not that I want. I want higher taxes on everyone, not just an absentee owners. The tax money should be used to increase supply of housing and help suppress home prices.