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B.C. will implement a new 20% 'flipping tax' on homes: What you need to know (bc.ctvnews.ca)

submitted 9 months ago by [email protected] to c/[email protected]

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[–] aelwero 4 points 9 months ago (2 children)

The Ministry of Finance estimates the tax could generate about $43 million a year in tax revenue.

What could go wrong you ask? It's right there... $43m a year... That doesn't get deducted from the profits of the speculators, it comes out of the equity in the homes that get sold. The flippers aren't gonna eat the tax, they're going to add it to the cost of the homes they flip.

The law isn't going to mitigate flipping much, it's going to add $43m/year to the amount home prices increase by, and when people see the neighbors house values go up, they'll demand more for their non-flip sales as well.

[–] [email protected] 4 points 9 months ago

It doesn't take a mathematician to realize that a 20% price hike every time a home is sold is an impossibility. It will absolutely have an effect on flipping volume and turnover duration.

[–] Alexstarfire 3 points 9 months ago

Ehh, I'm not so sure. If a majority of the houses are the market are ones that were flipped, maybe. But if they are significantly above average market rate to recoup the tax, they'll probably have a hard time selling.