Foreign investors seem to be undeterred by B.C. tax

B.C. earned $102 million in revenue from the foreign buyers' tax over the past year

Foreign investors seem to be undeterred by B.C. tax
Despite the B.C. government’s implementation of a 15-per-cent foreign buyers’ tax last year, the measure seems to have done little to dissuade overseas nationals from investing into Vancouver’s homes, according to data released by B.C.’s Ministry of Finance earlier this week.

In the past year, foreign buyers represented 6 per cent of the value of residential property purchased in the province, while the B.C. government collected $102 million in revenue from the tax from August 2, 2016 to March 31, 2017.

Overall, the value of foreign buyer transactions in B.C. from June 2016 through May 2017 stood at $3.27 billion, the Vancouver Sun reported.

David LePoidevin, the founder of a Vancouver portfolio management firm, stated that the recent sales activity and price growth resurgence in the local market might be fuelled by foreign nationals who have reconsidered B.C. after Ontario’s announcement of its own foreign buyers’ tax in April.

“I talk to realtors in Richmond, and they are saying the foreign buyers are back. The clients are saying ‘If I’m going to pay a tax in Ontario, I’d rather buy here,” LePoidevin explained.

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