Has the Government learnt to be more pro-active or will it remain overly-reactive in 2017?
We have seen it all, and it’s not over yet, because it’s still unfolding. We have had it all starting from shadow flipping, tax loop holes, rude awakenings, vacant home tax, shady realtor practices, foreign buyer tax, stricter mortgage constraints, and all efforts to bring the market to a grinding halt to make it more affordable. So, did it help?
The only possible answer is ‘time will tell’ - because truth be told too much was done, too fast, and too late and it’s hard to tell what is working for the long run or even the short run for that matter.
From the overall market standpoint, although sales may have dropped, prices have remained somewhat steady. Media loves to use the term sales and price as if it’s the same thing - it’s not. My point is given all the ‘adjustments’ that has been thrown at the market, it has stood fairly unscathed in my opinion.
Buyers are still confident in purchasing and will take an any edge they can to get themselves one step closer to their dream of being home owners. After all owning a home seems to be in the blood for most Canadians. And as I mentioned in my last blog, I looks like its going to get a lot tougher.
Think about all the provisions being put into practise at record speeds to slow down, or derail the runaway train, but there is little or no mention of increasing rebate thresholds in response to the increase in property values. How many citizens can actually benefit from the home grants or property tax rebates based on higher assessments?
The most recent headlines to come out of Vancouver City Hall show the lack of accountability for a “simple mistake” as stated by City Manager Sidhu Johnston, that paid out $1.5m tax dollars erroneously labeled as a DCL waiver to Onni. That is a lot of money to mishandle and lose track of. If it really was a ‘mistake’ then it makes you wonder how many other mistakes may have gone unearthed.
It seems what we have learned from 2016 is that government action is primarily, if not wholly, reactive by what the media reports on, and the local governments scramble to create quick band aid solutions to appease those who are ‘yelling’ the loudest.
The term affordability has been thrown around all year, however, the realities are that Vancouver is evolving rapidly and as a world class city, there is much interest which comes with even greater pressures to ensure a fine balance.
Canada has and still has a lot of appetite for foreign investors, but the term investors mean their capital spent i……
I have read some great articles on how we have all been foreigners at one time or another, and our ultimate goal should be inclusion and assimilation instead of using terms such as ‘others’ and foreigners’ which ultimately create an even larger divide. Lets not hastily act on mere speculation but create independent think-tanks that can work with our policy makers to ensure that we continue to foster a sense of community and neighbourhoods, sustainability, land use, yet not hinder the possibilities of one of the best cities in the world.
But for now, media still gets to focus our attention and right now all hands on deck to solve the tax loop holes affecting Richmond Farmland and possible new by-law proposals for New Construction homes. More details on this next week.
Happy Holidays
any comments or questions contact me at shali@shalitark.com