VICTORIA (May 7, 2018) – Official Opposition Leader Andrew Wilkinson has tabled a Private Member’s Bill that will balance the real estate market responsibly and improve affordability for homebuyers by stopping pre-sale speculation.
If passed, the Strata Pre-Sale Contract Flipping Tax Act 2018 will address speculators flipping properties before construction is complete. It would replace the ill-conceived NDP Speculation Tax, which does nothing to slow down or stop speculation. The Act would instead impose a provincial capital gains tax on sellers making quick profits on paper condo deals. Any profit would also be subject to federal capital gains tax.
“Unlike the NDP’s so-called ‘speculation tax’ that targets family cabins, this bill will actually address home flipping and artificial inflation of the housing market,” says Wilkinson. “The NDP speculation tax is an ideologically driven attempt to drain away the savings of British Columbians who have invested in their homes. We will not target people’s retirement assets. Under this bill, only those who are purchasing pre-sale homes or condos and selling them at a massive price increase before completion will be taxed.”
This bill addresses much of the market pressure created by speculators and will discourage them from treating the B.C. housing market like a secret stock market.
“The NDP promised ‘bold’ action on housing but so far, it’s just been blind tax grabs,” says Wilkinson. “Younger people and first-time homebuyers need a fair crack at actually buying a home here at a fair price.”