New taxes introduced in the latest provincial budget are intended to help cool skyrocketing home prices.
The foreign buyer’s tax has been increased from 15 to 20 per cent, and expanded from the lower mainland to include much of southern Vancouver Island, the Fraser Valley, and the central Okanagan.
READ MORE: Home values soar throughout Okanagan
A new speculation tax is also being introduced in the fall that will target property buyers who don’t pay income tax in British Columbia.
The tax would be 0.5 per cent of the assessed value in 2018, and two per cent in the following years.
Developers and real estate experts in the Okanagan worry this could impact the building and sales of recreational and second homes for people outside of the province.
READ MORE: Neighbours react to Kelowna home with ‘for sale’ sign claiming neighbour is ‘a-hole’
Some say the uncertainty over the tax could interfere with confidence that is driving economic growth in our region.
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