Prices for holiday homes in British Columbia will fall in 2018, as the new tax, which allows for controlling the trade and actions of foreign investors, encourages more active selling.
At the same time, this tax impedes the purchase of housing, according to a forecast of the brokerage firm Royal LePage in Toronto. The average price is expected to drop 2.8% to $411,400.
The new speculative tax introduced in 2018 by the provincial government, targets buyers of non-elite residences in some areas, including parts of Vancouver and Abbotsford metropolitan areas, and is 0,5% of the property value. In 2019, it will grow to 1% for Canadians outside the province and up to 2% for foreign buyers. For residents of the state, it will remain at 0.5%, Bloomberg reports.