Vancouver Infill & Lowrise Updates Discussion

[whatnext]

Originally Posted by Changing City

I don't think the developers of expensive condos care who they sell them to. On the west side they seem to be marketed to house owners from the same area, downsizing by selling a valuable house that needs constant maintenance. Obviously a condo needs constant strata fees, so the owner is buying that 'convenience'.

It's an interesting question that hasn't really been relevant until very recently - when are the developers liable to pay the vacant home tax? In the last downturn when West Broadway condos weren't selling in one project the developer switched them to rentals. I guess that might happen to some of these - either that or they'll end up on the market at less than the first buyers paid for equivalent units. That doesn't make for a happy strata.

There are exemptions for the provincial Vacancy Tax:

Owners of property that is under construction are exempt from speculation and vacancy tax if reasonable steps are taken without undue delay to develop or renovate the property.

These exemptions also cover phased developments that occur over time, vacant new inventory and heritage properties where conservation work is taking place.

To be eligible for an exemption, the owner must be carrying out eligible building activity.

"Building activity" is defined as the following types of activities:

Applying for financing
Applying for a permit or other necessary approval
Entering into contracts for designing, building or engineering
Demolishing or removing existing improvements
Clearing or excavating the site
Constructing or placing the residence on the property or substantially renovating the residence (“substantial renovation” is when no one can live there because of renovations)
Any other activity necessary for the construction, placement or substantial renovation of the residence

https://www2.gov.bc.ca/gov/content/taxes...n-and-vacancy-tax/land-under-development