A Vancouver-area realtor and real estate blogger thinks the B.C. Greens’ housing platform could cause a massive shift in the city’s housing market.
Steve Saretsky says the plans are aggressive, noting the party’s intention to change the tax structure.
“You’re really going against the grain. You’re going against a generation that has really invested all their retirement into their house and they’re relying on that equity to be there. So anytime you start to target capital gains tax and potentially affect the value of their home, there’s obviously going to be a lot of pushback.”
The Green proposal calls for beefing up the property transfer tax by putting it on a sliding scale from zero per cent on properties under $200,00 up to 12 per cent on those worth more than $3-million.
It would also double the foreign buyers’ tax, create a speculation tax, and begin taxing capital gains on principal residences that produce a profit of more than $750,000 on a sale.
Saretsky, who authors the website Vancity Condo Guide says those bold moves would likely affect the way buyers and sellers approach the market.
“I think that anytime you bring on a shock, a change to the market, I think immediately it’s going to change the psychology out there.”
The NDP’s 10-year plan on housing includes building more than 100,000 rental, non-profit, co-op and owner-purchase units, as well as provide a $400 annual tax break for all renters.
The B.C. Liberals don’t have specific plans for housing in its platform but implemented the 15 per cent foreign buyers’ tax last year and brought in a government down payment loan for first time home buyers.