Why is housing in Vancouver so expensive?
Is it because of foreign investments? Is it the fault of greedy landlords and developers?
We’re quick to point fingers, but what if we’re looking at this all wrong. Why are foreign owners willing to pay so much for housing here? Why do landlords feel they can charge so much for rent? Why are brand new homes so expensive to purchase?
It might have something to do with taxes. Sexy, sexy taxes.
This week I have a conversation with the BC Director of the Canadian Taxpayers Federation – Jordan Bateman to discuss just that.
Jordan has worked as a journalist, small business owner, and Township of Langley councillor. Having won two elections, Jordan resigned from Council in 2011 to take on his role with the CTF. Since then he is often featured in the media speaking out against high taxes that greatly affect affordability in the province (he is best known for leading the successful No Transit Tax campaign in 2015).
The federation is now involved in the housing file in Vancouver, after identifying a whopping 107 different taxes levies and fees associated with housing in the province!
Obviously taxes are important and help pay for things like roads and schools, but at what point is enough, enough?
A great quote from the CTF website sums the situation up perfectly:
“Rather than encourage new housing – thus increasing supply and helping drive down prices – city hall acts like it’s a nuisance to be eradicated. They seem to be trying to tax new housing out of existence.”
While it’s easy to say that those taxes are “paid for by builders”, the cost always trickles down to the consumer.
I could go on and on here about government intervention in the housing market, but you should probably just listen to the episode.
If you have any questions or any guests you would like to see, email as at email@example.com.
Keith Roy – Personal Real Estate Corporation, RE/MAX Select Realty.