Vancouver

Opinion: The Property Transfer Tax Can Help Affordability

In BC's expensive real estate markets, the PTT has become a monster. BIV columnist Peter Ladner thinks the BC Chamber of Commerce has a great idea for taming the beast.

By
Business in Vancouver
October 16, 2014






empty-wallet
— thepoo

With three of Canada’s most expensive real estate markets — Greater Vancouver, the Fraser Valley and Victoria — British Columbia also has the country’s fattest property transfer tax: one per cent on the first $200,000 and two per cent on the balance. That means an extra $8,000 to buy a $500,000 home.

The property transfer tax (PTT)  was introduced when the average price of a house was about one-tenth of what it is now, and targeted luxury properties. But with the upward swing of home prices we’ve seen over the last decade, it now applies to the majority of home buyers in the province except for first timers, making it even more onerous to buy a home.

As municipal elections draw near, one major focus in these hot markets is affordability. And in Vancouver in particular, that issue goes hand-in-hand with overseas investment in residential real estate.

Business in Vancouver columnist and former Vancouver city councillor Peter Ladner takes a look at these issues, and cites a possible solution: a BC Chamber of Commerce proposal that could lower the PTT for Canadians buying a primary residence, while still providing the Province with most of the PTT revenue it relies on.

Click here for “Property Transfer Tax Could Be the Key to Housing Affordability”

 

Peter Ladner is a co-founder of Business in Vancouver . The former Vancouver City councillor is a fellow at the SFU Centre for Dialogue and author of The Urban Food Revolution.


Peter Ladner is a co-founder of Business in Vancouver . The former Vancouver City councillor is a fellow at the SFU Centre for Dialogue and author of The Urban Food Revolution. - See more at: http://www.rew.ca/news/small-changes-make-saferhomes-better-for-everyone-1.1341970#sthash.j6lyaMu2.dpuf

Peter Ladner is a co-founder of Business in Vancouver . The former Vancouver City councillor is a fellow at the SFU Centre for Dialogue and author of The Urban Food Revolution. - See more at: http://www.rew.ca/news/small-changes-make-saferhomes-better-for-everyone-1.1341970#sthash.j6lyaMu2.dpuf

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