The B.C. Government has now taken action to address low vacancy rates and high real estate prices.
Starting Aug. 2, foreign real estate buyers will be taxed an extra 15 per cent.
However, some fear the new rules could bring short-term volatility and claim they were not consulted.
“I’ve always worried about new taxes, about the unintended consequences, and this one has some very serious unintended consequences for people that have already signed contracts that haven’t closed yet and that this could potentially put their contracts in jeopardy,” said Dan Morrison with the Real Estate Board of Greater Vancouver.
One billion dollars of foreign money was invested in B.C.’s real estate market between June 10 and July 14 this year. Eighty-six per cent of that was invested in Metro Vancouver.
A 15 per cent tax would yield about $90 million in just over a month.
All B.C. residents currently pay a one per cent tax on the first $200,000 of their purchase, two per cent on the remaining value up to $2 million and three per cent on the portion above that.
After the bill was introduced, Premier Christy Clark said her government is focused on increasing the housing supply, protecting buyers and sellers and boosting the rental market.
-With files from The Canadian Press