BC Government’s Speculation Tax – Pain on the Way
Posted by Don Campbell | January 17, 2019
BC Government’s Speculation Tax – Pain on the Way

In BC, the NDP government’s answer to lack of rentals is a speculation tax. But here’s the rub, you will be charged the tax UNLESS you apply for an exemption AND they grant you that exemption.

By the way these notices will come in the mail to the property owners. And we all know how well mail works (see 2018’s referendum).

Is this another “Guilty Until You Prove Your Innocence” situation? Many are saying yes. It also seems to be an opportunity to build a large bureaucracy. It will be VERY interesting to see if the cost of collection eats up a large percentage of the tax, that was supposed to be used to fund affordable housing.

Please ensure your neighbours, your parents, your adult children and your friends are made aware to watch for the exemption letters. Here are some of the details:

#1 Jointly Owned With Your Spouse? Important, quite unnecessary rule in BC’s #speculationtax “”if the property is jointly owned, by SPOUSES or by anyone else, each owner has to apply for the exemption, or they will be taxed on a proportional basis.”  So YES, even if you have lived in the home, together for 20 years you BOTH must apply for the exemption separately

#2 This is NOT like the homeowner’s grant, where it is a simple signature.  This is a PROCESS, and includes 20 pages of information to read and decipher. (these notes are on the Ministry’s Website). The Ministry estimates that it will take a minimum of 20 minutes to complete the application

#3 PLEASE help others more vulnerable.  Sadly, this process will hurt the most vulnerable,, including seniors and those who English is their second language.  Make sure THEY now that they MUST apply for the exemption or the financial pain will be great.

#4 Renting To a Family Member to help them out?  And please be careful about helping out your family by renting a property to them.  You MAY not qualify for the exemption.  Make sure you read the regulations that clearly define what they are defining as “Arms-Length renters vs Non-Arms Length renters”

#5 Random Thought:  Wasn’t the act of “Negative-Option Billing” banned by the federal government many years before due to its abusive nature.  Isn’t this simply a negative option billing scheme?

Resources:

Residents in communities like Nanaimo, Kelowna, Abbotsford and many more (not just targeted Vancouver) are automatically being charged the “Speculation Tax” unless they take the steps to apply and receive an exemption. A second level question: How will this speculation tax work for builders who have inventory? https://lnkd.in/ghymgRA

Another good backgrounder, https://vancouversun.com/opinion/columnists/vaughn-palmer-speculation-tax-letter-will-spray-1-6m-to-target-32000-mostly-locals?fbclid=IwAR1O3Ag1NqnxBVE4fmeH75hVTIdKQyzmH7R_R1bgZ-cJeIFJIBmjtZ_vybI 

 

 

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Why We MUST Celebrate Real Estate Entrepreneurs in Canada
Posted by Don Campbell | July 26, 2018
Why We MUST Celebrate Real Estate Entrepreneurs in Canada

It seems that the narrative that surrounds the terms ‘real estate investor’ and ‘entrepreneur’ in Canada has been changed from ‘thank goodness we have them’ to ‘they are the problem in this world.’  And that has happened so quickly, in less than a year, that it has people’s heads spinning. But this attack will lead to a very unbalanced rental market, and that will hurt all parties

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Strategic Look at “Market Influencers” For 2018
Posted by Don Campbell | December 16, 2017
Strategic Look at “Market Influencers” For 2018

2018 Canadian Housing Market will be very interesting to say the least. It will be now more important to develop knowledge and mental filters than ever before. Here’s how

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Canada’s National Housing Strategy Announced, Who Really Wins?
Posted by Don Campbell | November 22, 2017
Canada’s National Housing Strategy Announced, Who Really Wins?

As with all new government announcements the REALITY will be found in the actual legislation, no matter what the marketing announcement says. With Canada’s new National Housing Strategy Canadians seem to be heading to the past to help fix the future. But is this a solution or is it even a larger problem?

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Generation Y is About To Change Housing: Are you ready?
Posted by Don Campbell | November 21, 2017
Generation Y is About To Change Housing: Are you ready?

The Technical Real Estate Cycle is about to enter a new phase, driven by a shift in demand. This shift will leave many investors, towns and neighbourhoods behind if they don’t adapt. Here are key insights to get you in front of this shift

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Why Quebec Needs To Be MORE Selfish and Save Itself Billions
Posted by Don Campbell | September 30, 2017
Why Quebec Needs To Be MORE Selfish and Save Itself Billions

Can the Quebec government increase its selfishness and save itself billions of dollars, support human rights all the while pumping more money into its provincial programs? Absolutely, but they would have to be brave to do so.

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Are You Caught in the “Average” Trap and Don’t Know It?
Posted by Don Campbell | September 25, 2017
Are You Caught in the “Average” Trap and Don’t Know It?

We live in a world of headlines that pump national average house price, average number of housing starts, and the average household debt. The most important thing to remember about all these average numbers is that they don’t mean much in the grand scheme of things.

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How You Label Yourself Will Determine Your Level of Success
Posted by Don Campbell | September 20, 2017
How You Label Yourself Will Determine Your Level of Success

Long term successful investors find their results in being Connective Pragmatics. They understand that that markets will never be at statistical norm, conditions will never be perfect. They have just learned to observe, adapt then act (and sometimes ‘act’ means sitting on the sidelines). Here’s how to see if you are using this advantage.

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The Inevitable Pain of Removing Port Mann Bridge Tolls
Posted by Don Campbell | September 11, 2017
The Inevitable Pain of Removing Port Mann Bridge Tolls

Yes having no toll access to Port Mann bridge is nice for individual drivers. But will prove to be terrible for the environment and livability of the Vancouver region as well as add much long-term financial pain to people across BC

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How To Evaluate Your Real Estate ‘Coach’
Posted by Don Campbell | September 3, 2017
How To Evaluate Your Real Estate ‘Coach’

Right now, everywhere you turn you hear people offering Real Estate ‘coaching services’. So how do you know if this service will be of value to you? Below are some key due diligence questions to ask if you are looking for a coach:

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