Premier David Eby has been clear that speculators are in his crosshairs, and with the 2024 budget his government has announced details of a new 'BC Home Flipping Tax.'
flipping usually is done by flippers looking to repair run down houses
This isn’t really the case. Yes, a lot of it may be on really run-down houses that are upgraded to decent or nice, it’s actually pretty common for flips to be cheap and decent houses turned into top-of-the-line. Flipping almost always prices out lower/middle class incomes.
More importantly, it will eliminate the requirement for every goddamn house on the market to go for a full-cash offer.
Really run-down houses will have lots of room for profit as they buy them for cheap and invest in renovating them. Taking 20% off the top just alters the economics of it, and leaves it for someone who would buy the house to repair/renovate it so they can live in it.
This isn’t really the case. Yes, a lot of it may be on really run-down houses that are upgraded to decent or nice, it’s actually pretty common for flips to be cheap and decent houses turned into top-of-the-line. Flipping almost always prices out lower/middle class incomes.
More importantly, it will eliminate the requirement for every goddamn house on the market to go for a full-cash offer.
Really run-down houses will have lots of room for profit as they buy them for cheap and invest in renovating them. Taking 20% off the top just alters the economics of it, and leaves it for someone who would buy the house to repair/renovate it so they can live in it.