BC NDP leadership hopeful David Eby made his first big policy announcement yesterday in North Vancouver.
The policy announcement is a detailed plan to address the housing issues in the province and affordability.
One key highlight is a flipping tax which will apply to to the sale of residential properties.
The tax will be highest for those who hold properties for the shortest period of time, and phases out after two years.
“homes should be for people and families to live in, not for speculators to profit from” Eby said.
There will be exemptions for life circumstances due to, for example, death, employment loss, divorce, or disability. Builders will also be exempted to encourage housing construction.
Significant notice will be given before implementation as a way for people to have enough time to sell their investment properties “The objective is to prevent flipping rather than generate revenue to a select few” Eby said.
In a plan that Eby is calling BC Builds is to build relationships with First Nations and city governments, and private and non-profit partners, in both urban and rural areas.
The idea is to help with rapid approvals for development and rezoning.
To address properties being bought up by criminal organizations and gang members. A new dedicated provincial tax enforcement team will shift our reliance away from Ottawa to identify people who declare poverty-level incomes but buy multi-million dollar homes for further tax review.
To help encourage more rental units Eby promoses to remove strata restrictions on rental units. And to address young families he wants to also remove 19+ strata restrictions.
The plan also outlines a $500 million funding in one-time capital grants for non profits to buy up builings that are listed for sale in a bid to extend their time before demolition.
For contrast into how much a building costs we found one in the BC Kootenay Region for $27 million with a total of 242 units.
However in the Vancouver area prices obviously skyrocket with this next property asking price of $18 million for only 27 units and a 13 unit building in New Westminster going for $4.8 million.
To read the full plan click here.
