If you have been wondering about how Speculation tax will affect Kelowna and West Kelowna - They have finally announced it as of March 2018
The BC government has drawn new boundaries for areas impacted by the home speculation tax. How does speculation tax affect you? I've outlined some point form notes that you need to know!
Areas like Whistler, Kelowna and West Kelowna are included regions that speculation tax will affect. This tax will not affect most of our province. Only those who have multiple properties (ie. if you have a vacation property) in major cities will be asked to contribute.
Vacation properties include: any home left vacant for more than 6 months of the year.
The government unveiled 3 different rate structures for the speculation tax
- The full rate of 2% will be reserved for foreign buyers
- 1% will apply to out of province land owners
- British columbians who own multiple properties and don’t rent them at least 6 months of the year will pay 0.5%
This tax is exempt for properties below $400,000
People who own properties in condos where strata corporations don’t allow rentals will be grand fathered into the program.
The city is "fundamentally opposed to the implementation of a vacancy-based speculation tax in Kelowna as proposed in budget 2018," said Mayor Colin Basran.
"We have focused the geographic areas so this tax only applies in urban housing markets hardest hit by this crisis," said James. "With so many people desperate to find good homes in these urban areas, we need to take every step we can to free up and create more housing opportunities."
What do you think about the new speculation tax that has been implemented? Does this affect your decision to buy a second home? Start the conversation below or on my facebook post!