B.C. Housing Tax to Cause Vacation Property Price Dip: Royal LePage Forecast

British Columbia’s new speculation tax on out-of-province buyers will likely convince a wave of owners to sell their vacation properties, pushing down home prices, said a forecast from Royal LePage.

 

By the end of September, the real estate company is expecting the average price of a recreational home in B.C. to reach $531,333, a 2.8 per cent drop from last year’s average of $546,444.

 

Under B.C.’s speculation regulations, owners outside the province will be taxed 0.5 per cent this year, but next year will see the rate climb to 2 per cent for foreign investors and 1 per cent for Canadian citizens and permanent residents not living in B.C. but owning properties in the province.

 

http://vancouversun.com/pmn/news-pmn/canada-news-pmn/b-c-housing-tax-to-cause-vacation-property-price-dip-royal-lepage-forecast/wcm/19e835ea-80ab-48d1-8525-0e596516cf25