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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'
by 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 agoIf 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.