RCI: Foreign nationals bought 5 per cent of Vancouver homes in June

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July 8 2016 | Carmel Kilkenny

Quoted from the article:

This was not news to anyone, and New Democratic Party Leader, John Horgan and the party’s Housing Critic, David Eby, held a news conference this afternoon to demand the government introduce a ‘speculation tax’, a two per cent tax on the assessed home value for those who don’t pay income tax in Canada.

David Eby referred to the Bank of Canada warning in 2011. The BOC addressed the situation in Vancouver then, “and said very clearly that international money coming into the housing market could create the false impression among people in the lower mainland that real estate values will always go up. He said, “It will cause them to leverage themselves heavily to get into that market, that is not a stable market, He says the warning was “incredibly prescient”.

“If you look at the debt levels in metro Vancouver there off the charts. People are hugely in debt, they can’t afford to live. Millenial couples have negative income in Metro Vancouver according Vancity.” said Eby.

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Foreign nationals bought 5 per cent of Vancouver homes in June