Does the 15% tax on foreign home buyers in Metro Vancouver look like it will work?
Not according to one real estate specialist: Tina Mak of the Vancouver Chapter of the Asian Real Estate Association of America. The short article is well worth a read for some nuanced description of the Chinese real estate investor.
Excerpt from WesternInvestor.com:
However, Vancouver is what in the real estate trade we call a “Super Prime City.” Others in this category include Tokyo, Shanghai, Hong Kong, Singapore, London, Paris, Monaco, San Francisco, New York and Los Angeles. These cities attract high-net-worth people who want to establish a residence. They also are places where they have confidence that their investment is safe and secure. Why else do they continue to flock to these locations? There are several key reasons: the brand of the city; its reputation for safety and rule of law; world-class services and easy access to amenities; quality of life and lifestyle; and, finally, the prospect of capital appreciation.
So, do I believe a 15 per cent tax will stop Asians, and particularly Chinese, from investing in Metro Vancouver? Absolutely not.