The Underused Housing Tax is a new initiative in Canada that took effect on January 1, 2022. It is an annual 1% tax on the ownership of vacant or underused housing in British Columbia (BC), Canada. The tax is primarily intended to address the housing affordability crisis in the province and to encourage the efficient use of housing.
The tax usually applies to non-resident, non-Canadian owners who own residential property in Canada that is not their primary residence. These owners will be subject to the tax if their property is vacant or underused for more than six months in a calendar year. However, there are some situations where the tax may also apply to Canadian residents who own property in BC.
For example, if a Canadian resident owns a vacation home in BC that is not their primary residence and is vacant or underused for more than six months in a calendar year, they may also be subject to the tax. The tax also applies to property owned by corporations or trusts, which are not Canadian residents or citizens.
Are you currently looking for condos or houses for sale in Burnaby or Vancouver? If so, you may want to consider the potential impact of the underused housing tax. In this article, we will discuss what the underused housing tax is and how it can affect the real estate market. We will also provide tips on finding an experienced and top-rated Vancouver real estate agent to help you navigate this tax and other considerations when buying or selling a property.
What is the Underused Housing Tax?
The underused housing tax is a tax that was introduced by the Canadian government in 2019 to address the issue of housing affordability. It targets properties that are not being used or occupied for at least six months of the year, including vacant lots and underused buildings. The tax is calculated at 1% of the property's assessed value and is payable by the property owner.
How can the Underused Housing Tax Impact the Real Estate Market?
The underused housing tax can have a significant impact on the real estate market, particularly in cities like Vancouver where housing affordability is a major issue. It can encourage property owners to put their underused properties back on the market, increasing the supply of available housing and potentially lowering prices. It can also discourage foreign investors from buying properties as an investment, as they may not want to pay the tax on a property that is not generating income.
Tips for Finding an Experienced and Top-Rated Vancouver Real Estate Agent
If you are planning to buy or sell a property in Burnaby or Vancouver, it is important to find an experienced and top-rated Vancouver real estate agent who can help you navigate the underused housing tax and other considerations. Here are some tips to help you find the right agent:
Do your research. Look for agents who specialize in the type of property you are interested in, whether it's condos, houses, or commercial real estate.
Check their credentials. Look for agents who are licensed, have a good reputation, and have a track record of success.
Read reviews. Look for reviews from past clients to get a sense of the agent's communication skills, professionalism, and responsiveness.
Interview multiple agents. Talk to multiple agents to find one who you feel comfortable working with and who understands your needs and goals.
The underused housing tax can have a significant impact on the real estate market, particularly in cities like Burnaby and Vancouver where housing affordability is a major issue. If you are planning to buy or sell a property in these areas, it is important to find an experienced and top-rated Vancouver real estate agent who can help you navigate this tax and other considerations. By doing your research, checking credentials, reading reviews, and interviewing multiple agents, you can find the right agent to help you achieve your real estate goals.