Re: “B.C. premier rejects Greens’ call to ban foreign homebuyers,” Jan. 17.
Rather than banning foreign ownership, which will never fly, the government might consider doing what Malaysia does. Foreigners are allowed to buy only homes above a certain value, so as not to make it more difficult for young people to own homes.
More importantly, property sold within five years is subject to a hefty tax (30 per cent) vs. five per cent after five years, which discourages flipping and speculation. Foreigners also pay extra taxes on rental income, albeit at a lower rate if they reside in Malaysia for part of the year.
A variation of the above might or might not work in B.C., but it does emphasize that the problem is not foreign ownership per se, but rather using housing as a commodity to speculate on.
Gisele Law
Victoria
