Quote:
Originally Posted by donk.
It sure is hard making 100-300k a year in appreciation, and then god forbid, paying 7-12k regular tax, and then another 2-5k in surtax
What will these poor homeowners ever do!?!?!?!
Ps, if you read dailyhive, you might as well read theonion & watch American "news"
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Find me a townhouse in Metro Vancouver that isn't worth over $1M. Chances are, the home owner is just a regular working class Joe family trying to keep it together. All of those gains that you speak of are only happening on paper, so how do we expect the home owner to magically come up with the extra dough to pay for this surtax?
So this so-called UBC prof -- the founder of this Generation Squeeze -- says the surtax can be deferred until the property is sold. What if the market (somehow) tanks as a result of the City / Province / national policy for affordable housing works? A bunch of that so-called paper gain has evaporated, but the taxes owed won't. Does that sound nice and dandy to you?
FWIW, the news was also reported by City News 1130:
https://vancouver.citynews.ca/2022/0...rdable-report/
This is the founder dude from Generation Squeeze:
https://www.spph.ubc.ca/person/paul-kershaw/
With him teaching at UBC and being based in Vancouver, I honestly don't know how he can ever think the $1M threshold that he suggested is a reasonable number. It might be reasonable for other parts of the country, but for the 2 most expensive RE markets in Canada -- Toronto and Vancouver -- they almost definitely do not make any sense.
In Vancouver, the high prices is primarily a major disconnect between demand and supply. People continue to think Vancouver is a desirable place to live, so the demand is huge. Meanwhile, CoV, in particular, takes forever to approve new building permits, while other municipalities are nowhere close to being fast either. The building code, esp CoV's ultra leftard green initiatives, make building costs expensive. Quite a number of RS-ers have work related to the construction business one way or another. I'm sure they can tell you what can be done on the supply side to improve things so that costs savings can come down from there, and these are far better suggestions than to "just tax the current home owners".