If you think the new taxes on Non-Resident property purchases is a bit much, then please look away now…
Vancouver slaps 15.00% tax on Non-Resident Property purchases
A recent AFR article (above link) may give some perspective on the Australian Property Market. With many Australian States implementing a tax on Non-Resident property purchases, there is naturally talk of concern as to whether this is fair or just a tax grab. It seems Canadians are embracing the idea of a tax on Non-Resident property purchases, with Vancouver introducing a 15.00% tax on Non-Resident property purchases.
Contrasting that amount with the amount Australian states have introduced, helps provide some perspective on the Australian Property Market, in relation to the rest of the world.
NSW 4.00%
QLD 3.00%
SA NIL
VIC 7.00%
WA NIL
Vancouver (CAN) 15.00%
Perhaps the new taxes some Australian States are introducing are appropriate, providing a solution to a problem the policy makers perceive as increased foreign investment in Australian property. However it could just as easily be opening a can of worms for even larger taxes on foreign investors, or a potential extension of these taxes to all investors (regardless of residency status) in the future.
What Do You Think?
- Do you believe a tax on foreign Non-Resident property purchases is good for Australia?
- And, how much tax do you think is appropriate?
Retired
8 年Just back from Vancouver on July , The tax wa introduced British Colombia wide . Interesting comment from some commentators is that the Percentage of non resident buyers was only 9% of total sales in BC , and they are primarily in the top end of the market . The median prices rose for a house in VAN over 20% on a year off an already high base , the market is being driven by well off Canadians wanting to live in the Vancouver Area, especially people who have amassed wealth in the Mineral , Mining and Shale oil areas , make no mistake there is a housing bubble and it will Burst !!!! Especially in Inner Vancouver , West Vancouver , North Vancouver and East Vancouver or 4- 5 KM from the Inner City Helping Homeless
General Manager
8 年Personally I think any tax introduced by governments is the 'thin edge of the wedge' that will increase & expand further down the line. That being said, I can see this as a good initiative by state governments who want to ease the demand of foreign investment into Australian property. Looking at the global marketplace, states like QLD and NSW could double their Stamp Duty fees and it would still appear as an attractive offer. Thus if the foreign investor is willing to pay; you ought to charge.
Yes bring it on
Director at Loan Market
8 年New Zealand is 0% and also an embarrassing first time home buyer cap of $550,000 in Queenstown, up from $450,000 1st August 2016. A bit behind the mark on both counts here as your cap is $750,000 depending on location. I was previously against a property tax but if used for areas infrastructure and first home buyers, brilliant.