Outside Markets Dodge Foreign Buyers Tax
It has come under notice that the two recreational markets that are close to Metro Vancouver are exempt from British Columbia’s Foreign Buyer tax of 15% which is advantageous for Sunshine Coast and Squamish, both of which has seen a spike in offshore buyers in the recent years.
Even though both markets are included in the Real Estate Board of Greater Vancouver, they are still considered to be outside of the Metro Vancouver boundaries and hence are not subjected to the tax.
In recent years, The Sunshine Coast has seen an increase in offshore investment with properties such as the Sechelt Golf and Country Club being sold for $2.5 million to foreign nationals.
The July benchmark price for a residential property is $467,000 as compared to $1.5 million in Greater Vancouver.
In Squamish, China-backed investors bought a property spanning across 460 acres for a sum worth of $30.5 million where they wish to build residential properties with 1000 units of housing.
Many realtors and investors falling under the tax bracket rushed to finalize their deals by August 2, 2016 while as some succeeded to evade the tax such as realtors Dee and Frazer Elliot who could see through the deal.
Many believe that the foreign buyer tax has been implemented due to the increase in Chinese investors, which has led to a backlash for other foreign investors.