I’m sure you’ve heard about the latest tax hike on Vancouver luxury real estate! In my circle of colleagues, it’s a VERY hot topic right now!
There’s a lot of panic around it. But what is actually happening and how will it affect you, and the Vancouver luxury real estate market?
The basics of the tax increase on Vancouver luxury real estate
Okay, let’s go through the basics.
As part of the 2018 budget, BC has hiked up property transfer taxes for foreign buyers and on $3-million-plus properties – aka Vancouver luxury real estate. Foreign buyers will now be paying 20% instead of 15%. As for those buying $3-million-plus properties? You’re now looking at 5% rather than the previous 3%.
On a $3 million home, that means a $150,00 tax bill when you buy your property.
While we’re talking specifically about Vancouver luxury real estate, these tax hikes will have an impact on other BC real estate markets.
I know that the words “tax increase” can be scary, but it’s important to remember that taxes have always been there – and that, for Vancouver luxury real estate buyers, this is only a 2% increase.
What do these tax increases mean for the Vancouver luxury real estate market?
While it’s still a hot market compared to the rest of the world, Vancouver luxury real estate market has already been slowing down over the last couple of years. That’s not surprising given the current price for homes in our city!
At the same time, these tax increases are expected to be a further hit on an already slowing market.
So if you’re planning on selling your luxury home soon, count on the sale taking longer than usual. It’s likely that buyers will be very picky now that this tax is approved!
On the up side, these taxes can also be seen as a big opportunity for homebuyers out there! Because luxury sales will likely slow down, we’d consider this a buyer’s market – and that means you have time to research your options, rather than making quick decisions and potentially getting involved in the bidding wars we experienced before 2016. So while the taxes may have increased, you may ultimately get a better deal on your piece of Vancouver luxury real estate!
The trick to making the tax hike work for you? Getting the right Vancouver luxury real estate agent! Now is the time to get a bulldog who’ll both care about and fight for you.
If you’re ready to make the Vancouver luxury real estate tax hike work for you, give me a call!