The following is an excerpt of an article written by VERICO’s Economic Consultant Michael Campbell and published on the VERICO blog.
What impact will the 15% foreign property tax have on the market?
Virtually nothing if the concern is affordability. There’s no evidence to suggest that foreign buyers are gobbling up entry level homes.
So the question is, will adding $600,000 in tax to the purchase of a $4 million home or putting an additional $1.5 million on a $10 million dollar home be enough to discourage foreign buyers and send capital elsewhere?
At this point we can only guess. But Toronto, Victoria – even Nanaimo could be beneficiaries if foreign investors turn their attention elsewhere.