Quote:
Originally Posted by trofirhen
This is a question of curiosity, not a criticism in any way: Could you please tell me how housing in Vancouver could / would be regulated? It's a critical issue and any ideas are appreciated.
I have only vague, general ideas how this could be done, and they're probably inaccurate, but if you could specify points and and ways to regulate housing here, that'd be great. Thanx
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I don't know why you're asking a forumer for suggestions to regulate housing market as there have already been a few recommendations made by tax regulators:
1)Houses selling for more than $750K no longer are qualify for principle residence exemption. As such, the whole property would be subject to capital gains instead of current tax free system (i.e. wealth family uses son/daughter in Canada who is attending UBC, for example, to buy a wealthy home in affluent neighborhood using family wealth, for son/daughter to live in; son/daughter sells property later as a principle residence and repatriates to home country with no taxation paid).
2)Secondary use property should be subject to capital gains inclusion rate of 75% instead of 50%.
3)No vacation homes in Vancouver - secondary property must be used for rental (Mayor Moonbeam).
4)No more allowing corporations to acquire residential real estate unless to rent it out or redevelop under a bona fide business. Current system has corporations being used to avoid foreign buyers tax and taxes. Generally, these corporations were owned by non-residents where the corporation buys the property, then flips the property later for capital appreciation. The non-residents sell shares of the corporation equal to the fair value of the corporation (i.e. its cash after selling the home above cost) to other non-residents, experiencing capital gains on their shares but no taxes paid to Canada (done willfully). Corporation still owns property but shares owned by new non-residents who repeat the process.