Time is up for those hoping to beat B.C.’s new foreign buyer tax.
The 15 per cent property transfer tax takes effect today. And while some are applauding the change aimed at cooling the market – not everyone getting caught up in it – is the intended target.
Last Thursday and Friday that was another story as many tried rush through real estate deals at B.C.’s online land registry system.
“The volume of transactions going through Thursday and Friday the website crashed which then meant that people had to stay later and they put in a little more overtime to try to close transactions to make sure the deals that were going through already were able to be completed,” said president of the Society of Notaries Public of B.C., Tammy Morin Nakashima.
READ MORE: Some concerned about B.C.’s new foreign buyer tax
Realtors are now starting to see the true impact of the tax on foreigners saying many non-foreigners are being hurt financially.
“Even taxpaying British Columbians and residents who’ve owned real estate here for 20 years could potentially be affected if their purchaser is a non-resident,” said realtor Jonathan Gelderman.
“The government is not doing the best job to protect their own people.”
And not all foreigners are absentee or not paying taxes. Marti Frakas and her husband wanted to put an offer on this condo in Coquitlam.
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They are both from Hungary and are here with working visas. They’ve been renting a basement suite for four years so they were ready to buy.
But with the new tax the price has increased by almost $51,000.
READ MORE: Email from Vancouver realtor to clients suggests ways around foreign buyer tax
“This condo is for $339,000 and with the tax, we just can’t afford it,” said Farkas.
Although the increase wouldn’t make much of a difference on their mortgage, because they are not yet Canadian the price difference can affect them.
One would think on a mortgage shouldn’t be that big of a problem with both of them working. But it is — because they are not yet Canadian.
“We have limited options until we become permanent residents. There are very few lenders who are willing to give mortgage for temporary residents.”
Gelderman says the government needs to increase supply to help people get out of the city and into the suburbs.
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