What is this 15% tax anyway?
The 15% foreign buyer tax that came into effect on August 2nd is only applicable for the Greater Vancouver area. It is a tax that is charged to any foreign buyer on the total purchase price of their home.
We have been asked many times if this will have an effect on our market here in Kelowna and if we have seen any changes already. The answer is a bit of a long winded one….. We have noticed a slight slowdown as investors and buyers take some time to understand the implications of the tax. Unfortunately, I don’t think it was very clear who was to be affected and even which areas of BC were under this new tax. We have many realtor colleagues in the greater Vancouver area who have had buyers walk away from firm deals leaving the sellers stranded and Unable to complete on a home they had an offer on. In one particular instance the deposit on the home was $100,0000 but the 15% tax equaled $250,000 so the buyer didn’t complete. In other cases people had to move on very short notice as some buyers tried to complete before the tax took effect. Truly we believe the tax was inevitable; however are uncertain if it will keep the investors away for long. Likely they will adjust their purchase price accordingly but still make those buying decisions.
We do feel that this tax will likely fuel our already busy market as more investors will start to look at other areas of BC to spend their dollars. And what better place then the sunny Okanagan where we offer excellent schools, a great hospital with further growth and expansion, 4 seasons, plus an international airport.
For more information please contact the stone sisters
Shannon and Tamara Stone
Personal Real Estate Corp