Whereas it is well known that Vancouver has become one of the least affordable places to live in the developed world, and that the housing situation in Metro Vancouver has reached a crisis point; And whereas speculation in residential real estate, particularly by foreign investors, is having a significant impact on housing prices and affordability for those living and working in the Metro Vancouver area; And whereas housing is a necessity for all residents, and not simply a commodity of trade; And whereas unaffordable housing results in lost productivity as workers commute longer distances, it impacts economic growth as more household income is devoted to housing costs and as skilled workers leave Vancouver, and it negatively affects the diversity of our communities; And whereas it has been suggested that foreign investors avoid paying the applicable taxes on real estate investments through various means: Therefore be it resolved that UBCM urge the provincial government, and the federal government through the Federation of Canadian Municipalities, to take immediate action to discourage speculation in real estate, particularly by foreign investors, and to ensure that foreign real estate investors pay a fair share of provincial and federal taxes.
Ministry of Finance The BC Governments top priority is to make life more affordable for British Columbians, and steps are being taken to address affordability problems for renters and buyers. Through Budget Update 2017, capital funding has been increased to make sure more families have access to housing and to address the rising issue of homelessness. New spending will support construction of 3,700 new units for people in need of affordable housing. This is in addition to about 6,700 units that are currently in development or under construction throughout the province. The Finance Minister is reviewing the tax system to improve housing affordability, close real estate speculation loopholes, and reduce tax evasion, fraud and money laundering in the BC real estate marketplace. The Province also is working with the federal government to identify strategies to strengthen information sharing and help ensure that all taxpayers pay the appropriate amount of tax. The 15 per cent Additional Property Transfer Tax on foreign entities buying residential real estate in Metro Vancouver continues to diminish foreign demand while new homes are being built to meet local needs. The Minister of Municipal Affairs and Housing is working with local governments to address the housing and affordability problems impacting people in BC. The Ministry of Municipal Affairs and Housing also worked with the Federal Government and provinces and territories to help develop a new National Housing Strategy.