You’ve likely heard about B.C.’s new foreign property transfer tax, but what you may not know is that it doesn’t apply to Mission and parts of the Fraser Valley. The common questions some buyers and sellers ask are: What’s the foreign buyers tax? How might it affect me? Will it change Mission’s real estate market?
I wanted to clear up any confusion, so here’s a quick Q&A of what you need to know about the new foreign buyers tax.
What is the Foreign Buyers Tax?
As of July 25th 2016, foreign nationals and companies that buy real estate in the Greater Vancouver area will pay a 15% tax on the total property value of their purchase. Canadian citizens and permanent residents won’t have to pay this tax.
Why was the Foreign Buyers Tax created?
The B.C. government implemented the tax to address public concerns over housing affordability and low rental housing inventory in Vancouver. Officials felt these issues were partially driven by foreign investment in the real estate market.
The funds collected from the tax will be used to create projects that support new housing, first time buyers, low income residents, and rental property availability.
Where does the Foreign Buyers Tax apply?
The property transfer tax only applies to the Greater Vancouver Regional District, which does not include the District of Mission. Taxable properties end at the Maple Ridge/Mission city border along 272nd street.
How could the Foreign Buyers Tax benefit Mission real estate?
Even though it doesn’t directly apply to purchases in our area, the tax has potential to positively affect you as a home buyer or seller in Mission.
Some possible perks may include:
- A more stable market that makes real estate an even better investment.
Much of the local media is focused on the slower, post-tax real estate market. Yet, that’s not the full picture.
When you look at the real numbers, the benchmark home price in Mission went from $366,400 in September 2015 to $498,400 in September 2016 for detached homes! I think we can agree: That’s good news. Although the market has slowed, the value of homes in Mission continues to grow.
- Mission becomes even more desirable to buyers.
Since the tax doesn’t currently apply to real estate transactions here, Mission will likely attract more home buyers, investors, and companies — both from local areas and abroad. This is a good sign for the long term value of homes in the area.
Not having the tax here may draw more attention to Mission real estate, which will then expose new buyers to the other reasons we love our city.
Mission is only a 15 minute drive from the US border and the Abbotsford International airport which makes it easy for travel. The West Coast Express also makes commuting to Vancouver for work a more relaxing commute.
I hope you’ve gained a better understanding of the new foreign buyers tax and how it affects Mission.
If you have any more questions about the tax or the current real estate market, feel free to contact me, I’m here to help!