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I am not super familiar with real estate markets. Has the empty house tax helped in any way? Even if it is not the best solution, is there any huge downside to

I am not super familiar with real estate markets. Has the empty house tax helped in any way? Even if it is not the best solution, is there any huge downside to that ban?

Dylan16807 4y ago
Are there any empty house taxes that charge a significant amount of money? 5% would barely get you into the same range as price growth.
- pastacacioepepe 4y ago
  How do you tax foreign investors only, if they can set up subsidiaries and use dirty tricks anyway? You're gonna penalize the local market as well.
  - Dylan16807 4y ago
    I'm just asking about empty house taxes. Which also doesn't really need to be foreigner-only. Also if a company owns a house then make it pay the maximum penalty rate when it's empty. Subsidiary problem solved.
  - eru 4y ago
    That's why I am suggesting not singling out foreigners in the first place. Use the tax you collect to finance local goods and services (and to reduce other local taxes). So local pay the tax and get something in return. Non-residents pay the same tax, but don't get the local goods and services; just because they aren't there. And all without any complicated rules.
- refurb 4y ago
  You only have to make it less attractive than other countries.
pbronez 4y ago
I’d be very interested to read an analysis of this. Seems like the best solution to me.
Tiktaalik 4y ago
BC brought in a speculation tax that was effectively an empty house tax (you avoided the tax if you rented your house). In its first year, beyond whatever monies it made, it also added about 8000+ units to the market. Now you only get that surge one time, but hey that's not nothing, and beyond that the market seems to have reoriented slightly toward less development of apartments for sale, and more purpose built rental apartments. https://bc.ctvnews.ca/11-000-condos-added-to-metro-vancouver-s-rental-market-thanks-to-vacancy-taxes-cmhc-study-1.5205489 https://bc.ctvnews.ca/11-000-condos-added-to-metro-vancouver...

I am not super familiar with real estate markets. Has the empty house tax helped in any way? Even if it is not the best solution, is there any huge downside to that ban?

Dylan16807 4y ago

Are there any empty house taxes that charge a significant amount of money? 5% would barely get you into the same range as price growth.

pastacacioepepe 4y ago
How do you tax foreign investors only, if they can set up subsidiaries and use dirty tricks anyway? You're gonna penalize the local market as well.
- Dylan16807 4y ago
  I'm just asking about empty house taxes. Which also doesn't really need to be foreigner-only. Also if a company owns a house then make it pay the maximum penalty rate when it's empty. Subsidiary problem solved.
- eru 4y ago
  That's why I am suggesting not singling out foreigners in the first place. Use the tax you collect to finance local goods and services (and to reduce other local taxes). So local pay the tax and get something in return. Non-residents pay the same tax, but don't get the local goods and services; just because they aren't there. And all without any complicated rules.
refurb 4y ago
You only have to make it less attractive than other countries.

pbronez 4y ago

I’d be very interested to read an analysis of this. Seems like the best solution to me.

Tiktaalik 4y ago

BC brought in a speculation tax that was effectively an empty house tax (you avoided the tax if you rented your house). In its first year, beyond whatever monies it made, it also added about 8000+ units to the market. Now you only get that surge one time, but hey that's not nothing, and beyond that the market seems to have reoriented slightly toward less development of apartments for sale, and more purpose built rental apartments. https://bc.ctvnews.ca/11-000-condos-added-to-metro-vancouver-s-rental-market-thanks-to-vacancy-taxes-cmhc-study-1.5205489 https://bc.ctvnews.ca/11-000-condos-added-to-metro-vancouver...