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Don’t rush into foreign buyer tax for Victoria

Re: “Extend B.C.’s foreign buyer tax to capital region, councillors urge,” Jan. 18. Implementing a foreign buyer tax in Victoria is a bad idea for several reasons.
Re: “Extend B.C.’s foreign buyer tax to capital region, councillors urge,” Jan. 18.

Implementing a foreign buyer tax in Victoria is a bad idea for several reasons.

One, do we have any evidence that the Vancouver tax is accomplishing its purpose? Perhaps we should wait a few years to see if the new tax has any effect on the supply of housing in Vancouver before we impose another tax burden on homeowners in Victoria.

More important, what right does the council have to tamper with the market value of homes in Victoria? For the majority, a home is the only major asset they own, and for many, the value of that asset is what they are counting on for retirement. In addition to saving for a down payment and working hard for many years to pay off the mortgage, homeowners expect the value of their home to increase over time. As the most recent Victoria property assessment shows, real-estate prices in the capital region are just beginning to increase after the flat market of the past few years.

There are many ways to help people move into home ownership. For example, the province has just started a program to help first-time buyers put together a down payment by providing special loans. Imposing taxes that attempt to control the price of housing might not prevent foreign buyers or increase the supply of available housing, and it is not fair for the many people who have worked and saved and deserve to realize whatever increase in value the market will generate.

Thomas G. Wicker

Victoria