1.5% annual surcharge on residential real estate
A group of UBC economists put together a proposal, "The Housing Affordability Fund" to create an annual surcharge of 1.5% on all properties in the province - they would somehow redistribute that money to new home buyers to help get them into the market. Here's the rundown:
- Estimated that 7.5% of condos in Metro Vancouver are vacant, 2% of all other types of housing are vacant.
- 1.5% tax would generate $90 million annually, create more rentals, and provide property data because everyone has to participate.
- How it works - if your property is worth $1,000,000 you would pay $15,000 annually. Essentially everyone gets an exemption except for people who earn money overseas, but the the family lives here, and vacation homes.
The article is linked below. Do you agree with the proposal? Check out the video for some reactions.