China's Millionaire Migration

[rubecube]

Break out the smallest violin in existence for these poor souls. They've only had six months to prepare for this.

http://www.cbc.ca/beta/news/canada/b...fect-1.4190576

Vancouver's empty homes tax came into effect over the weekend, causing some property owners to scramble to rent, sell or find a way around the fees, according to one property manager.

Cameron Fazli is with Re/Max Crest Realty. He has seen a spike in calls from concerned owners looking for advice and solutions, he told CBC guest host of On The Coast Gloria Macarenko.

"We are getting a lot of calls from people who are unsure what they are going to do," Fazli said. "There is a lot of uncertainty and definitely a lot of unhappy property owners."

Under the new rules, homes that are not occupied for at least six months of the year are subject to a tax of one per cent of the property's assessed value. The deadline to rent out empty dwellings was July 1.

Also, the NDP and Greens need to do something about closing this loophole, as I've heard of quite a few landlords using it to evict tenants recently:

Other property owners are still figuring out exactly how much of the year they spend in the property, Fazli said, and are seeing if they can find a family member to occupy enough to make it over the six month threshold.

[CMPunk]

Sweet, people are going to get paid to live in mansions. I've found a job for the homeless population of Vancouver

[Fuzz]

Couldn't you "rent" it out to a family member or friend or "executive housing company" and just have that "rent" go back to your pocket? I'm sure there must be loopholes.

[Muta]

The property owners are 'panicking?' Haven't they had, like, months to deal with this issue? It's hard to find sympathy for people like this.

[Regorium]

I'm surprised the owners didn't just throw up an airbnb ad or something.

Worst case scenario you avoid the fees. Best case scenario you make an incredible amount of money.

[Zarley]

I doubt this law will have a material impact on housing as it's not easily enforceable.

[Johnny Makarov]

Originally Posted by Regorium

I'm surprised the owners didn't just throw up an airbnb ad or something.

Worst case scenario you avoid the fees. Best case scenario you make an incredible amount of money.

Worst case scenario? how about having your house condemned after a weekend orgy like the house in Calgary.

[blankall]

Originally Posted by Fuzz

Couldn't you "rent" it out to a family member or friend or "executive housing company" and just have that "rent" go back to your pocket? I'm sure there must be loopholes.

You are 100% allowed to have a family member stay or rent your property. You are also 100% allowed to have anyone you want stay there for free. The issue is whether or not its occupied.

But once again the main problem becomes how do you prove whether or not a home is "occupied". According to the laws, it has to be occupied for 6 months out of the year or be a principle residence (plus a bunch of other exemptions for death, renovations, etc..). It'd be pretty easy to fake that. Although I could see a lot of people getting themselves into trouble, because if you declare a principle residence in Canada, you are then subject to income tax in Canada.

[Fuzz]

Originally Posted by blankall

You are 100% allowed to have a family member stay or rent your property. You are also 100% allowed to have anyone you want stay there for free. The issue is whether or not its occupied.

But once again the main problem becomes how do you prove whether or not a home is "occupied". According to the laws, it has to be occupied for 6 months out of the year or be a principle residence (plus a bunch of other exemptions for death, renovations, etc..). It'd be pretty easy to fake that. Although I could see a lot of people getting themselves into trouble, because if you declare a principle residence in Canada, you are then subject to income tax in Canada.

Semi-transparent blinds and inflatable dolls tied to strings with an oscillating fan and lights on a timer.

[nik-]

Originally Posted by Fuzz

Semi-transparent blinds and inflatable dolls tied to strings with an oscillating fan and lights on a timer.

Hey! That sounds like Home Alone!

[Fuzz]

Do what works, is what I says.

[snootchiebootchies]

Originally Posted by Regorium

I'm surprised the owners didn't just throw up an airbnb ad or something.

Worst case scenario you avoid the fees. Best case scenario you make an incredible amount of money.

Vancouver city council are also planning to crack down on airbnb rentals. I believe they are planning to implement the same rules as in Toronto -- that short term rentals are only permitted in principal residences.

[snootchiebootchies]

Originally Posted by Zarley

I doubt this law will have a material impact on housing as it's not easily enforceable.

No, not easily enforceable at all but the vast majority of immigrants will want to abide by the law, especially if they are permanent residents planning to achieve citizenship or if they are foreigners planning to apply for PR one day. These are high net-worth individuals we are talking about -- they are not going to break the law and risk a criminal record for an investment. Money is fungible.

[Galakanokis]

I really feel bad for the lady with three empty homes, whatever will she do. Problem is that most of the empty homes are off the highend variety so it won't have much of an impact on cost or even supply for the average workers.

[blankall]

Originally Posted by Galakanokis

I really feel bad for the lady with three empty homes, whatever will she do. Problem is that most of the empty homes are off the highend variety so it won't have much of an impact on cost or even supply for the average workers.

There are plenty of empty condos. The price of renting them is artificially high to to lack of supply. There's Just a big tickle down effect. Higher end renters get forced into lower end units being rented for higher prices. Overall any increase in supply is good for all renters.

[Galakanokis]

Originally Posted by blankall

There are plenty of empty condos. The price of renting them is artificially high to to lack of supply. There's Just a big tickle down effect. Higher end renters get forced into lower end units being rented for higher prices. Overall any increase in supply is good for all renters.

But the fine is only 10% of your property tax so most condo owners won't care about a couple hundred dollars. But $5k to $7k might be a little more of a problem. I'm just going by what's in that article and a few others I have read. Property experts don't think it will have a huge impact on the cost to rent.

Don't get me wrong, I hope it does but I doubt I see one bedroom apartments coming down to $600 or $700 like they were when I first moved here 17 years ago. They might come down to $1500 but that's not a huge help.

[FlamesAddiction]

Originally Posted by Fuzz

Semi-transparent blinds and inflatable dolls tied to strings with an oscillating fan and lights on a timer.

You might also be able to use such a set up to make it look like the house is occupied if you're not there.

[Fuzz]

Originally Posted by FlamesAddiction

You might also be able to use such a set up to make it look like the house is occupied if you're not there.

Oh, was that the goal? I was just trying to set the mood for my "date".

[Winsor_Pilates]

Originally Posted by Galakanokis

But the fine is only 10% of your property tax so most condo owners won't care about a couple hundred dollars. But $5k to $7k might be a little more of a problem. I'm just going by what's in that article and a few others I have read. Property experts don't think it will have a huge impact on the cost to rent.

The fine is 1% of assessed value, not 10% of property taxes

[Galakanokis]

Originally Posted by Winsor_Pilates

The fine is 1% of assessed value, not 10% of property taxes

Ah yeah, not sure why I thought it was the other way. That does start to add up. Articles still don't think it will impact pricing that much.