Federal government to change foreign buyer ban, exempt new builds and pre-sales

Описание: The federal budget announced Thursday includes a measure to extend the Prohibition on the Purchase of Residential Property by Non-Canadians Act to Jan. 1, 2029. The federal government announced changes to the ban, exempting new and pre-sale residential properties. The current ban was set to expire on Jan. 1, 2027.

Local real estate consultant Michael Geller says the extension will benefit B.C. and it's something the development industry has been asking for. "Our housing markets are so weak right now; any benefit would be greatly appreciated,” said Geller.

The B.C. provincial government also has measures in place on foreign real estate buyers, including a sales tax of 20 per cent. "Even if this federal ban is removed, a lot of foreign buyers are still going to be deterred by that 20 per cent tax, especially those who might be interested in buying a home to live in as a second home in British Columbia, because in addition to that tax, they would also have to pay the provincial speculation and vacancy tax," Geller added.

The ban was put in place on Jan. 1, 2023. Prior to that, non-residents in B.C. owned about 4.5 per cent of all properties in 2021, just over four per cent in 2022 and 2023, and 3.8 per cent in 2024.


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